2.9 OGC was created in April 2000 to lead a wide-ranging programme to modernise procurement in central government and deliver substantial value for money improvements. Since January 2007, it has been specifically responsible for improving value for money by driving up standards and capability in procurement, from commodities buying to the delivery of major capital projects, maximising the effective use of 60% of Government spending and a £30 billion property estate.
2.10 OGC is tasked with the transformation of government procurement and with driving up standards and procurement capability across central Government. OGC will do this through: setting the right procurement standards and ensuring they are met; capitalising on the government's collective buying power to achieve value for money and playing a stronger role in the successful delivery of major projects.
2.11 OGC will deliver its VfM savings over the CSR period as part of its broader programme to become a more efficient organisation that is better able to deliver the Transforming Government Procurement 4 agenda.
2.12 To ensure that the necessary improvements are delivered, OGC has been fundamentally redesigned to focus on its new agenda and deliver efficiencies through the creation of joint support functions. In line with Transforming Government Procurement, OGC will reduce its headcount from 310 FTE to 250 FTE over the SR2004 period. This reduction represents a decrease in costs that has been reflected in the baseline expenditure for OGC. As the OGC transforms itself into a smaller organisation, by streamlining its processes for delivering its new range of outputs further headcount reductions will realise significant VfMSavings.
4 Transforming Government Procurement was published in January 2007 and is available from
http://www.hm-treasury.gov.uk/media/E/6/government_procurement_pu147.pdf