OTTAWA (CBC) - The City of Ottawa could save $10.3 million this year by changing the way it purchases goods and services, according to the findings of a consultant hired by the city manager.

The savings identified by PPI Consulting Limited were released Wednesday as part of a financial progress report by city staff, and are to be discussed at the corporate and economic development committee next week.

Council has asked staff to find $100 million in savings over the next three years through changes to city operations.

The report is the first of 12 to be released four times a year over the next three years, with each focusing on productivity, technology, purchasing, or the city's management of assets such as facilities.

With savings from all four areas combined, the city's target is to save $25 million this year, $29.5 million in 2009 and $45.5 million in 2010.

The first report on purchasing recommended that the city:

- Pay suppliers more quickly to take advantage of discounts of one to five per cent offered to clients.

- Encourage potential service suppliers to offer discounts for longer-term contracts by providing them with a form that allows them to bid for rates and adjusting the way bids are evaluated.

- Save money on vehicles by standardizing the fleet and perhaps joining up with organizations such as school boards and other municipalities when purchasing vehicles to arrange for bigger bulk discounts and taking into account fuel efficiency and contract length.

- Use new contracting techniques such as e-auctions that allow potential suppliers to bid online and requiring bidders to submit their "best and final offer."

- Expand the use of a special purchasing card called the p-card to buy goods and services of lower value.

City manager Kent Kirkpatrick told city council that the numbers are only goals, and they may be overly ambitious.

"At this point in time, I would say the same thing that I told council last summer - $100 million is an extremely aggressive target," he said. "But...council has said to staff, we wish you to work toward that really aggressive target and we will.”

Mayor Larry O'Brien said he was pleased by the report's findings.

A report released in November by consultant Gordon Hunter, who was hired by the mayor, projected that the city could save $100 million in 2008 and $240 million by 2010 through administrative efficiencies, new sources of revenue and a thorough review of services provided by the city.

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