Report of the Local Government Efficiency Review Group

official list. Some local authorities are achieving lower prices by seeking
quotes for chemicals on a more frequent basis than the annual list. This
has the effect of undermining LAQuotes, and the integrity of the
procurement process should be protected in order to ensure value for
money in the long-run.
9.4.12 The Group considers that the procurement systems in operation in Dublin
City Council, Clare County Council, Longford County Council (currently
outside of LAQuotes), as well as the LAQuotes system itself, should be
subject to an independent review, to establish which system can deliver the
greatest cost savings through aggregation. Following the review, which
should be carried out within the next twelve to eighteen months,
participation in an aggregated sectoral procurement system should be
mandatory for all local authorities.
9.4.13 The Group suggests that these issues be addressed through its
recommendations below.
9.5 Analysis of Main Areas of Local Government Procurement
9.5.1 Expenditure by local authorities on non-pay items in 2009 is estimated at
€2.14 billion (based on provisional un-audited accounts). The net procured
expenditure (with non-procured items removed e.g. grants, agency works
etc), amounted to €1.19 billion.
9.5.2 A survey of local authorities was carried out in April 2010 regarding the
procurement process for the principal spend items. These are listed in
Table 9.1 below. Particular emphasis was placed on the top 20 items as
these account for 95% of all spend in this category. The top 5 items alone
account for more than two-thirds of expenditure.
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