Feeds

Gov stitches up IT price cuts

Great deals?

3 Big data security analytics techniques

The Office of Government Commerce (OGC) has negotiated price cuts of 45 per cent on computer hardware supplied through its Catalist framework agreements, it said yesterday.

The OGC framework regime is already notoriously tight for suppliers, with most British firms that supply PCs to the public sector complaining they can barely make ends meet.

So how can the OGC squeeze another 45 per cent of price cuts in a promotion it has branded "Great Deals"? The OGC won't explain exactly, but it looks like it's managed it with a little creative pricing.

The limited range of equipment being sold under the new 45 per cent discount will not be available under the usual volume discounts, the OGC admitted.

Normally, the more computers you buy at one time, the lower the price per unit, but the OGC's "Great Deals" scheme doesn't allow for a volume discount. So what seems like a good price when you are buying ones and twos, doesn't look so marvellous when you are buying a hundred computers to kit out a new college lab.

In order to work out how "great" these "deals" are, you would need to know how they compared to the prices you would have got under the standard volume discounting scheme.

Then there's the fact the 45 per cent, is an "average" of all the deals the OGC has negotiated (they were done with two categories of suppliers from the IT Goods and Services frameworks - Client Devices and Resellers - 17 firms in all).

But the OGC would not show what great deals had been meshed together to create its 45 per cent average. Neither would it say against what figures it was calculating that its new prices were 45 per cent lower. Volume discounting would change the deal price according to how many you were buying, making the comparison difficult, if not ingenuous.

The OGC's explanation went only thus far: "Benchmarked figures were provided by an independent benchmarking company and the savings have been calculated against these."

However, it did admit that the 45 per cent discounts were only available in two categories - desktops and bundles.

If profit margins are so slim for suppliers to the public sector already, the OGC is not readily going to get them to drop their draws any further without putting them out of business. We do therefore suspect that these great deals aren't so great after all. ®

High performance access to file storage

More from The Register

next story
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
One year on: diplomatic fail as Chinese APT gangs get back to work
Mandiant says past 12 months shows Beijing won't call off its hackers
Whoever you vote for, Google gets in
Report uncovers giant octopus squid of lobbying influence
Lavabit loses contempt of court appeal over protecting Snowden, customers
Judges rule complaints about government power are too little, too late
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Don't let no-hire pact suit witnesses call Steve Jobs a bullyboy, plead Apple and Google
'Irrelevant' character evidence should be excluded – lawyers
EFF: Feds plan to put 52 MILLION FACES into recognition database
System would identify faces as part of biometrics collection
Putin tells Snowden: Russia conducts no US-style mass surveillance
Gov't is too broke for that, Russian prez says
Ex-Tony Blair adviser is new top boss at UK spy-hive GCHQ
Robert Hannigan to replace Sir Iain Lobban in the autumn
Alphadex fires back at British Gas with overcharging allegation
Brit colo outfit says it paid for 347KVA, has been charged for 1940KVA
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.