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Government Secures Groundbreaking Deal with Oracle

Office of Government Commerce

6 February 2003

The Office of Government Commerce (OGC) has announced today a strategic partnership agreement that will guarantee the UK public sector discounted prices on selected Oracle products.

The new three-year arrangement has been centrally negotiated by a public sector team lead by the OGC. The entire UK public sector, including local government, central government departments and devolved administrations, will be covered.

The deal is expected to lead to an average 11 per cent reduction in the cost of technology products directly and indirectly purchased from Oracle.

Under the new arrangements Oracle and the Government will also work together on ways of developing standardised systems for the public sector based on common requirements. In addition, it will bring much greater transparency to the pricing of Oracle software, the OGC said.

Paul Boateng, Chief Secretary to the Treasury, commented: "This groundbreaking outcome demonstrates how the collective strength arising from effective procurement practice by government can bring substantial direct and indirect value for money savings. By driving down the cost of goods and services in this way, we have been able to make real savings that can be re-deployed to fund front line public services."

Peter Gershon, OGC Chief Executive, said: "Transparency is an essential part of this approach. Oracle's new pricing customer guide structure will ensure that the public sector achieves maximum value for money on all products with Oracle."

Read the full announcement

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