Report of the Local Government Efficiency Review Group

forms are now captured online. This has eliminated the need to collate
approximately an additional 38,000 hardcopies of these forms.
9.4.7 In 2009, an online document management system was implemented where
documents were streamlined and hosted centrally by Kerry County Council,
which has eliminated the need for a further 9,000 hardcopies. An electronic
system to validate ownership of the vehicles quoted for by suppliers on
LAQuotes has also been developed, further eliminating the need for the
submission and approval of the hardcopy certificates. Overall, the number
of hard copy documents requested from suppliers by local authorities was
reduced from just over 284,000 to approximately 36,000 and an additional
10,000 documents are collated online via electronic forms (such as the
insurance questionnaire and the pre-qualification questionnaire).
9.4.8 Further developments are planned for LAQuotes in 2010. The design and
development of an electronic request for a quotation (eRFQ) module is
underway and will work in conjunction with the LAQuotes system to assist
local authorities in conducting mini competitions which are a requirement of
multiparty framework agreements. The development of an eRFQ module
integrated with the LAQuotes system and using framework agreements
provides a fully compliant and transparent process for recurring
procurement and ensures value for money. The complete process will lead
to a more efficient and effective procurement process for all participating
local authorities. These improvements, geared towards making the local
government procurement process more user-friendly, are important in
encouraging local suppliers to bid for public contracts – while there is an
underlying principle that best value must be obtained in terms of economy,
equally local authorities must enable local suppliers to participate in the
tendering process.
9.4.9 The development of LAQuotes has introduced greater efficiencies into the
procurement process in the local government sector, resulting in ongoing
savings to the sector. Based on the benefits predicted in 2002, the system
has yielded savings to local authorities in the order of €250 million in the
period 2006-2009. There is a recurring cost saving per annum of
approximately €58 million based on current expenditure levels. The system
also facilitates competitive tendering by being user-friendly and involving a
wide range of potential suppliers.
9.4.10 Notwithstanding these positive outcomes, the Group identified a number of
limitations of the system. The management information that the LAQuotes
system produces is limited in terms of providing usable data upon which
local authorities can assess whether they are securing value for money in
procurement. The Group recommends that the LAQuotes system should be
adapted to install metrics that would measure throughput in value terms,
count the number of transactions and record the transaction size, and
identify the products and services being procured.
9.4.11 The Group also noted how a number of unsuccessful tenderers tended to
undercut official suppliers by offering lower prices post the publication of the
103