Procurement News September 16th: featuring the big battalions (the Indian railways, US military and Cap Gemini…)

We have an interesting story here from India (India Everday / NDTV website).  The Indian Railways are according to some sources paying way over the odds for routine goods supplied by vendors who have got onto 'approved supplier' lists.  Is it corruption - or is it just bureaucratic incompetence?  Or a consequence of using poorly thought out specifications and uncompetitively managed frameworks?

New policies for US defence procurement were announced on the 14th September by Defence Secretary Robert M Gates in “a move aimed at creating greater efficiency and productivity in defense spending”. It may take me a while to read them but I will come back to this if there's anything interesting or noteworthy to discuss.  And probably as usual be taking claims of huge future 'procurement savings' with a very large pinch of salt....

And finally... Cap Gemini are the second firm to announce that they have signed a memorandum of understanding with the UK Government after negotiations as part of the 'immediate cost savings from top suppliers' initiative.  They also announced a profits warning after they were forced into offering  up millions of pounds in savings that:

"All existing contracts remain and continue to be delivered as planned. Capgemini has also presented a range of new business opportunities to enable the commitment of savings to HMG."

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