The Government says it will save $115 million during the next five years by buying all their IT requirements, office stationary and vehicles from only a few suppliers.
As part of a drive to reform procurement procedures, the Ministry of Economic Development has negotiated four contracts with a handful of suppliers to provide these products to all government departments and agencies.
Economic Development Minister Gerry Brownlee says the savings have been made by harnessing the collective buying power of the state sector.
He says the Government spends more than $30 billion a year on goods and services, and the new purchasing system will mean better value for taxpayers.
He also says measures to cut red tape to reduce the barriers that suppliers face when doing business with the Government will be announced soon.