Centralizing Ontario's procurement could save $1B a year in 5 years, government estimates

Ontario plans to create a centralized procurement system across government and the broader public sector.

The government estimates it will save $1 billion a year, starting in about five years.

Treasury Board President Peter Bethlenfalvy saidthere is currently too much duplication and fragmentation in the way government ministries, as well as schools and hospitals, buy goods and services.

He saidin a digital era it doesn't make sense to operate in silos, and centralizing procurement will bring significant cost savings.

Bethlenfalvy said creating such a system won't be quick, but in the meantime, Government and Consumer Services Minister Bill Walker says new contracts will be limited to two-year terms.

The province has also created a Lean and Continuous Improvements Office to modernize how services are delivered and increase productivity.