PowerPoint Presentation Firebuy Relationships with Regions within the National Procurement Strategy

1
(No Transcript)
2
WELCOME
3
(No Transcript)
4
CHAIRMANS OPENING ADDRESS
5
(No Transcript)
6
Peter Howarth Managing Director of SBV Ltd and
Chief Executive Officer of SOPO
7
Selling to Local Government2007

• The Local Government procurement landscape.
• What drives the value for money agenda
• Peter Howarth
• CEO SOPO
• MD

8
Selling to Local Government

• The Landscape
• The Efficiency Review
• The National Procurement Strategy
• Local Government Acts
• White Paper Strong and prosperous communities
• FOI
• EU Consolidated Directive
• ( Public Contract Regulations 2006)
• Sustainable Procurement
• Whats in it for you

9
Local Government Landscape

• Local authorities consist of over 400 councils
• County councils
• Metropolitan councils
• Unitary Councils
• London Boroughs
• District / Borough
• plus 1000s of Parish councils
• Not to mention
• Police ,Fire, Housing and numerous other
  
• local public sector bodies

10
Local Government Landscape

• The main services provided include
• Social Services
• Education
• Transport
• Housing/ Benefits
• Leisure /Museums /Libraries
• Economic Development
• Trading Standards /Environmental Health
• A host of other activities from Archaeology to
  Zoology

11
Local Government Procurement Spend
40bn Procurement Spend 4bn cost of procurement
Local Government
12
Analysis of typical County Council spend as a
of contract type
13
Drivers in local government Procurement
NATIONAL/INTERNATIONAL GOVERNMENT
Sustainability Agenda
e-Government
Best Value CPA
OCLG
National e-procurement project
National Procurement Strategy
Regional Centres of Excellence
Delivering Efficiency In Local Services
EU Directives
Peter Gershons
Efficiency Review
Local Government Acts/ Guidance
EUTreaty
14
The Efficiency Review

• Background
• Review by Peter Gershon /OGC
• Affects whole of public sector
• 40 billion local gov procurement expenditure
• Target 2.5 efficiency savings for 3 years to
  2008 (50 Cashable) 6.45 billion
• 3 from 2009 All Cashable

15
Efficiency gains - three kinds of projects
Investing for Results
Improving Outputs
Reducing Inputs
Outputs
Outputs
Inputs
Baseline 2004/5
Inputs
Outputs
Inputs

• re engineering
• processes

• PFI
• New Technology

• use of p cards
• reduced prices

E.g.
No reduction in output levels is allowed
16
The Efficiency Review

• Procurement
• Enhance scrutiny,monitoring and accountability of
  procurement
• Improve strategic management of major supply
  markets
• Better leadership of procurement
• Improved professional support and capacity
• Improved procurement of professional services

17
The National Procurement Strategy

• Objectives
• Better quality public services
• Mixed Economy of Service Provision
• Continuous improvement
• Greater Collaboration
• Community Benefits
• Equality and Opportunity for staff ,service users
  and suppliers
• Market Stimulation and Innovation

18
The National Procurement Strategy
Partnering collaboration
Providing leadership Building Capacity
Doing business electronically
Stimulating markets achieving community
benefits
Cultural shift

• Strategy,
• Policies
• Implementation

• Leadership,
• People
• Skills

Partnering Collaboration including stimulating
the market
Processes Systems including doing business
electronically
19
The National Procurement Strategy

• Who is the Strategy aimed at
• Elected Members
• Senior Officers
• Procurement Officers
• Third Sector
• Partner Agencies
• Suppliers

20
Local government Acts and Guidance

• Recently the most pertinent was the 2003 Act
• Opportunity for Prudential borrowing
• Trading powers in ordinary services
• Charging for discretionary services
• Comprehensive Performance Assessment (CPA)
• Update on Best Value and options
• Workforce issues
• Race relations implications
• They have changed the way many local authorities
  go about their business

21
White Paper- Strong and Prosperous Communities

• Reinforces many issues relating to procurement,
  calls for
• A more radical approach to value for money
• Increased Collaboration
• Wider adoption of new business processes and
  technology
• Greater contestability fair and open competition
• Additional professional support

22
CPA

• CPA (comprehensive performance assessment)
  introduced by Audit Commission in 2002
• Generally measures how well councils are
  delivering services
• Now introducing CPA the Harder Test with greater
  emphasis on service users, use of resources and
  value for money
• How well do councils achieve VFM and how well
  does they manage and improve it
• It has had a positive affect.

23
Best Value

• The Best Value regime was introduced in 1998
• Based on principles of 4Cs, challenge, compare,
  consult and compete
• Resulted in considerable outsourcing of council
  services.
• Mixed economy approach to provision of services
• Best Value is still a very important element of
  the efficiency campaign If others can do it
  better then it is likely that an activity will be
  outsourced

24
Workforce Issues

• The circular recognised the rights of workers
  in the contract procedure for example in regard
  to
• TUPE
• Information
• Involvement of Unions
• Workers rights

25
Race Relations

• The Amended Race Relations Act gives
• councils a duty to
• Have due regard to
• Eliminate unlawful discrimination
• Promote equality of opportunity and good
  relations between people of different racial
  groups
• This duty applies to procurement and functions
  delivered by suppliers under contract
• A guide has been produced by CRE
• www.cre.gov.uk

26
Freedom of Information Act

• The general right of access came into force
• 1st January 2005
• A public authority will be obliged to disclose
  that information in response to a request,
  regardless of the terms of any contract
• Public authorities have been told to reject
  confidentiality clauses wherever possible
• Public authorities will not be able to give
  guarantees of confidentiality which have
  previously featured in public procurement.
• Whilst certain types of information are
  exempt, the Freedom of Information Act contains a
  presumption of disclosure.

27
Freedom of Information Act

• Local Authorities have been advised to
• 1. Inform all suppliers at the outset
• a) about FOI when issuing requests for
  tenders or
• placing advertisements in the
  newspapers and
• b) of the authority's policy regarding
  information it
• intends to release outside of the FOI
  Act
• 2. Ask suppliers to identify sensitive
  information, when forwarding material to them and
  advise them where disclosure of information is
  being considered under the FOI Act.
• 3 Public Interest Test in most instances
  authorities will only be able to withhold
  information if they are satisfied that there is
  an overriding reason not to provide access to
  specific information.
• 4. This opinion can however be challenged by the
  Information Commissioner

28
Freedom of Information Act

• You should look on the FOIA as an opportunity
  to gain additional information about the public
  sector markets you operate in e.g. with regard
  to procurement policy and decisions
• L As will be happy to co-operate providing the
  requests are reasonable and fair and not vexatious

29
New EU Consolidated Directive

• The main new procedures include reference to
• Framework Agreements
• Competitive Dialogue
• Dynamic Purchasing systems
• Reverse auctions
• Information Provision
• Social /Environmental issues
• Qualification
• Host of other changes
• The European Directives will be covered in some
  detail by later speakers

30
New EU Consolidated Directive

• The Directive has been incorporated into UK law
• under the following regulations
• The Public Contracts Regulations 2006
• for England Wales and N Ireland
• The Public Contracts (Scotland) Regulations 2006
• If you are exporting to Europe you need to be
  aware
• that each nation may have a slightly different
  version dependent on national law

31
The Sustainable Procurement Agenda

• The sustainable procurement task force report
• Will be covered as a separate item but it is
  important that you understand how this fits into
  Local Government policy
• It is designed to help the Business Community as
  much as the environment
• It is a hot topic and will get hotter

32
Look Out For

• Lyons report on L G reorganisation
• Varney report Service transformation A better
  service for citizens and businesses, a better
  deal for the taxpayer
• Comprehensive spending review (CSR2007)
• Move to Shared Services
• PAG (Procurement Action groups)
• Treasury Review of procurement costs

33
What does it all mean for you

• New Market Opportunities and Access
• Partnering Opportunities
• Greater Transparency
• Better Contract relationships
• E commerce benefits
• Requirement for Continuous improvement
• Better Information provision and access
• Sustainability of Business

34
What does it all mean for you

• Improved professional relationships
• Opportunity to be innovative
• Improved transactional interface
• Share of some efficiency gains
• Greater scrutiny by and involvement of elected
  members
• A need to keep abreast of changes
• Lower business Rates !!!

35
What does it all mean for you

• Today is an opportunity to get a better
  understanding of local government and its
  business culture and an opportunity to increase
  your competitiveness

36
(No Transcript)
37
Getting Selected as a Supplier

• Andrew Maisey
• Head of Procurement
• Torfaen County Borough Council

38
Context

• Preparation
• Selling to the Council
• Local Authority Markets-Policy Culture
• Channels of Information
• Selection and Award Criteria
• Engaging Local Suppliers
• How to Improve your Chances
• Dispelling a Few Myths
• Procurement Processes
• Other Factors
• Conclusions

39
Preparation

• Ensure that the goods or service that you are
  attempting to sell is required
• Different Public Sector organisations now procure
  in different ways, not the traditional Council
  way
• Prepare policies in advance (eg Health and
  Safety, Environmental etc.)

40
Selling Directly to the Council

• Many Councils will have a How to do Business
  Guide and Web link on the website
• Other Websites and portals to look at for tender
  opportunities are -
• Sell2Wales.co.uk
• Supply2Gov.com
• OGC
• Contrax Weekly
• Trade Journals
• Regional Centres of Excellence
• SIMAP/OJEU

41
Selling Indirectly to the Council

• Consider supplying or being sub-contractors to
  existing Council Contractors
• Look for Award Notices on -
• Council Websites
• Sell2Wales.co.uk
• Supply2Gov.com
• SIMAP/OJEU

42
Local Authority Markets

• These can be very specialist markets E.g. Social
  Care, Waste Collection Waste Disposal, Back
  office support services (Shared Services)
• Generally, Councils purchase finished products
  and services rather than components
• Understand exactly what the Council is after and
  what it is trying to do with the service
• If a PIN( Prior Indicative Notice) is published,
  that is the time for consultation with a
  prospective purchaser
• A successful contract makes a good advert
• It is a valuable market
• E-Procurement (E-Auctions, E-tendering and
  E-Ordering) and Purchasing Cards are increasing
  in popularity
• Benefits are
• Accounts paid on time (Usually!)
• The network opens other opportunities
• Risk is low (they dont go bankrupt)
• You are entitled to debriefing (learn to earn)

43
Channels of information

• Buyer profiles-Some authorities will have areas
  for which they are actively looking for sources
  of supply
• Approved lists-How do you get on them?
• Constructionline
• CHAS
• Contract listings on Council websites
• Workshops/seminars

44
Selection Award Criteria

• MEAT (Most Economically Advantageous Tender)
• Sustainable Procurement , not just green
  environmental products, but social and
  economically sustainable service areas
• Social Enterprise (Community and Voluntary Sector
  Involvement) Factors
• Overall Value
• Evaluation of Quality
• Whole Life Costings

45
Engaging Local Suppliers

• Meet The Buyer Events
• Contract Shop/Chambers of Commerce
• Contract Opportunities Advertised in the Local
  Media
• Networking events

46
How to improve your chances

• Do everything in the tender documentation that
  you are asked to do
• Make sure that you do not do anything that you
  have been told not to do
• Answer the questions asked not what you want to
  submit
• Preferably have other public sector business, and
  good references
• Only submit relevant material and keep it as
  brief as possible
• Proof read your submission
• Submit your tender in plenty of time

47
Dispelling a few myths

• Councils are actively looking for new suppliers
  in immature service markets, E.g. Social Care,
  Waste Collection, Waste Disposal, Partners.
• We are not a closed shop, but a balance on
  long-term arrangements has to be made

48
The key parts of the process

• Know exactly what you are doing, your obligations
  and know what services the Council wants from new
  suppliers
• Fill in and supply all the information that is
  requested
• Ask what is required and ask if you dont know
  the answer
• Practice-Submit a number of tenders to get used
  to the process
• View it as an investment You may do a lot of
  work and not get awarded business for a number of
  months, even years

49
EU Procurement Rules

• European rules ensure all suppliers must be
  allowed the opportunity to bid.
• You do not have to be a Multi-million pound
  company to be successful in tendering for public
  sector contracts (SMEs/Third Sector-Social
  Enterprise)
• In any public sector procurement exercise you
  will almost certainly have to fill in PQQs
  and/or a set of tender documents.
• Negotiation is reserved for high risk, complex
  contracts
• Complexity is addressed by type of tender process
  and contract
• Evaluation is based on standardised criteria for
  that contract
• Price is important but it is often only part of
  the award criteria
• MEAT (Most Economically Advantageous Tender)

50
Sub OJEU Tenders

• For contracts below the EU threshold but above a
  figure agreed by each Authority local rules
  apply.
• May be advertised on the Sell2Wales.co.uk and/or
  the Authoritys website, locally and in trade
  journals
• May invite known suppliers or use approved list
• OJEU principles of non discrimination apply but
  not processes
• Provide a timescale for return.
• Sealed offers - will be rejected if not on time

51
Quotations

• Quotes are used for values under the tender limit
  set by each Authority
• Usually minimum of three suppliers
• Invites to known suppliers/approved lists
• Can be sealed but more normally open offers with
  short return time.
• Key area for SMEs
• Evaluation criteria may be price or Most
  Economically Advantageous Quotation
• A few points to watch
• Cost versus service and quality
• Content-Check your submission
• Clarity
• Communication
• Closing Date

52
Public Sector View of the Tender Process

• Governed by legislation designed to
• Ensure open and fair competition.
• To protect the contracting parties.
• Provide a tool to procure goods, services and
  works.
• Remove barriers to participation
• Involve as many suppliers as is practical
• Control the process of procurement in a public
  body.
• Ensure probity and an honest, transparent and
  auditable process
• Safeguard employees (TUPE)-Two Tier Workforce
  issues

53
Other Factors to be Considered

• Authorities Financial Regulations and Contract
  Procedure Rules/Contract Standing Orders
• European and UK Laws and Targets
• Word Trade Organisation Treaties
• European Procurement Directives
• Freedom of Information Act
• E-procurement Targets
• Race Relations Act
• Equal Opportunities/Diversity
• Local Government Acts
• Welsh Language Act
• Sustainability in Procurement
• Value-for-money

54
Conclusions (1)

• What you need to do?
• Think extremely carefully why you should be
  awarded the business
• Preparation is all important
• Think about the cost of the bid and submission
• It is likely to be a long-term relationship as
  most contracts will be for a number of years so
  plan what you need to do if successful

55
Conclusions (2)

• Do extensive research and consultation, find out
  as much as you can about the organisation you are
  tendering for
• Lots of information sources are available
• Do everything in the documentation you are asked
  to do
• View it as an investment for the long term
• Local Authorities are viewed as risk averse but
  they measure and manage risk
• Get to know different Councils style and culture
  ( like private sector companies) and how they do
  things, that you are bidding for, and all
  require the same basic information for a tender
  or business to be awarded

56
Contact Details

• Andrew Maisey
• Tel [phone]
• E-Mail Andrew.Maisey_at_torfaen.gov.uk

57
Good Luck
58
(No Transcript)
59
Claire Smart Director of Procurement,
Gloucestershire County Council
60
SELLING TO LOCAL GOVERNMENT

• Claire Smart
• Interim Director of Strategic Procurement
• Gloucestershire County Council

61
Contents

• What youve told us
• External influences
• EU provisions
• Relevant legislation
• The changing face of Local Government
• Internal influences
• Policy
• Process
• Summary of implications

62
(No Transcript)
63
What Suppliers Say

• I can never find the right person to talk to?
• How do I know when a contract is up for renewal
  how can I plan ahead?
• Where do I look for opportunities?
• You only ever use large suppliers small local
  suppliers dont get a chance!

64
What Suppliers Say

• The tender process is impossibly bureaucratic?
• Whats the point in me coming up with ideas when
  youll only go out to tender anyway?
• Its always about price!
• You never know what you want?

65
External Influences

• EU PROCUREMENT DIRECTIVES
• The Principals
• Achieving value for money in all public
  procurement
• Competition
• Open market
• Free movement of trade
• Non-discrimination
• Equal treatment
• Transparency
• Proportionality

66
EU ProvisionsThe opportunities

• Published notice / Published requirements
• Part A and B contract
• PINs
• Timescales
• Published selection criteria
• Requirement to publish the importance of criteria
• Debrief
• 10 day standstill period

67
EU Provisions - Continued

• Specifications / standards
• Performance Specifications
• Equivalent standards
• Precise
• Relevant
• Sustainability / Green issues
• Special conditions (including environmental and
  Social)

68
EU Provisions - Continued

• New Flexibilities
• Competitive dialogue
• Framework arrangements
• Dynamic Purchasing Systems
• Reporting
• Requirement to hold records of each procurement

69
Relevant Legislation

• Freedom of information Act
• Equalities Act
• Disabilities Discrimination Act
• Health and Safety

70
The changing Face of Local GovernmentStrong
and Prosperous Communities

• Community Leadership, engagement and empowerment
• Ambitious efficiency gains
• More collaboration
• Business process improvement techniques
• Fair and open competition
• Stable financial planning
• Expert support

71
The changing Face of Local Government- Continued

• Single tier Authorities
• Local Area Agreements
• Emphasis on Commissioning
• Social Care and Health
• Our Health, Our Care, Our Say

72
Internal Influences

• Policy
• Constitution
• Procurement strategy
• Risk management strategy
• Third Sector
• SMEs
• Partnership

73
Internal Influences

• Process
• Market places
• E-procurement
• P2P
• Better information / visibility
• Aggregation
• Centralisation
• Growth in Professionalism of procurement
  function

74
So what should this all mean to suppliers ?

• Articulated strategy
• Better information
• Better planning
• Clearer / more efficient processes

75
So what does this all mean to suppliers ?

• Yes - we have rules and constraints.
• but, applied correctly they should make life
  easier for suppliers, not harder.
• Many of the rules are still being interpreted !
• Change will not happen over night !
• We have to keep listening to you !

76
THANK YOU
77
(No Transcript)
78
Ron Fawcett Procurement Services Manager, Dorset
County Council
79
(No Transcript)
80
Mike Phillips Managing Director, West Mercia
Supplies
81
SELLING TO CONSORTIA Mike Phillips Managing
Director West Mercia Supplies National
Executive Committee Member Society of Procurement
Officers in Local Govt. (SOPO)
82
Consortia?

• Only talking about Local Government
• Covering those which act as large trading
  operations only
• Large warehouses
• Significant fleets to enable close control of
  logistics
• Fully functioning commercially run business but
  owned by the Public Sector
• Take in bulk product, store, pick and pack and
  deliver to site

83

• The main Consortia in Local Govt are
• Yorkshire Purchasing Organisation -Wakefield
  (YPO)
• Eastern Shires Purchasing Organisation-Leicester
  (ESPO)
• West Mercia Supplies -Shrewsbury (WMS)

• We also need to consider other Trading
  Organisations - not
• Joint Committees but still operating as
  commercial enterprises
• Kent County Supplies (KCS)
• Hertfordshire Supplies
• Central Buying Consortium (CBC)
• also North East Purchasing Organisation (NEPO) -
  but trading
• arm being wound down?

84

• Nearly all England and most of UK covered
• Some regional focus but significant trading in
  areas between the main regional centres
• South West England has no public body Consortium
• Consortium growth is at the expense of the
  private sector and single Authority Supply
  operations which may not have the necessary scale

85
YPO
Battle Ground!
ESPO
WMS
KENT
86

• CONSORTIA - MAIN FEATURES
• A collaborative venture bringing together the
  purchasing requirements of a number of
  authorities
• Dont have a separate legal identity.( Cant be
  sued!!)
• Operate from large warehouse premises usually
  owned by the Joint Authorities engaged in the
  Consortium
• Staff are employed by the Lead Authority but
  under Consortium pay and rations agreements.
• Own and operate their own distribution fleet with
  their own Operators Licence (CPC)
• Large mail order operations with highly developed
  logistics operations and sophisticated sales and
  marketing skills.

87

• COMMON MYTHS
• They are heavily subsidised by their parent
  Authorities
• There are no profit drivers
• Standard business costs are not paid (rates,
  rent, cost of capital)
• Staff are seconded from the parent authorities at
  no or minimum cost
• Support functions are provided at no charge
• Any losses are written off by the owners
• Their main customer groups are mandated to use
  them

88

• SIMILARITIES AND DIFFERENCES
• No 2 Consortia have the same Business Model
• Most operate as large mail order operations with
  a product emphasis directed at the education
  sector
• YPO operates a large food buying, storage and
  distribution facility including frozen foods, but
  has only recently moved into strategic
  procurement- they do have very significant call
  off contracts and are the largest public sector
  supplies operation in the UK
• ESPO are class leaders in Strategic Procurement
  with their trading arm being a smaller part of
  their business
• WMS concentrates on being the leader in
  transactional procurement, and has developed a
  significant expertise in Energy buying

89
New EU Directive recognises Consortia (2006)
Ability to combine to provide goods and services
Consortia established in law (UK)
Local Govt Goods and Services Act 1970
Education main market but other public bodies
able to join in
Enabling Act
90

• THE GROWTH OF CONSORTIA
• From small beginnings the Consortia grew into
  multi-million pound businesses
• Current T/O pa on transactional trading is
• - YPO 100 million
• - ESPO 25 million
• - WMS 15 million
• YPO and ESPO have annual T/O of 300 and 400
  million respectively
• Developing sales outside Owning Authorities
  territories helped to generate significant
  turnover growth

91
Thatcher Govt 1988 Education Reform Act
Central Govt. expected the private sector school
supply operations to move in
?
Limit Town Hall intrusion
Mandated use of in house operation now unlawful
Schools able to leave LA control (Grant
Maintained)
Private Sector expected to see dramatic growth
92
POST EDUCATION REFORM ACT REALITY
New freedoms would lead to private sector
growth? Consortias one stop shop kept them in
pole position Schools took time to respond
Very limited motivation to move away from
existing sources of supply Considerable evidence
that even the poorest Local Authority supplies
operation was considered good enough Private
sector operations watched as Consortia in
particular expanded their turnover and profit
93

• BESA COURT ACTION AGAINST YPO
• The British Educational Supplies Association
  undertook legal action against YPO, the largest
  of the Consortia, referring to the size and scale
  of YPOs trading in February 1996
• BESA argued that YPOs trading was now so large
  as to fall outside the 1970 Goods Services Act
• Judicial review action was against YPO but it
  threatened the commercial existence of all local
  government Consortia
• Suggestion by some BESA members is that the
  action didnt represent all BESA members

94

• THE OUTCOME OF THE COURT CASE
• His Honour, Mr Justice Owen, commented as
  follows
• It is ironic that in 1970 a Parliament........not
  averse to protection for local authority or
  state enterprise, gave local authorities powers
  which in 1996 are challenged in a free enterprise
  economy by a body representing private
  enterprise
• Ruling found in favour of YPO
• Ruling established that there could be no
  geographic limitation provided actions fell
  within the 1970 Act
• BESA appealed the decision
• June 1997, Lord Justice Brown upholds the
  previous decision

95

• NEW POWERS UNDER LABOUR
• The Labour Government has taken a much wider view
  than the Goods Services Act
• Authorities should be at the heart of their
  communities and to have powers to deliver
  community benefit
• Wellbeing Powers introduced in 2000. Authorities
  free to take any action they felt had the effect
  of improving the lot for the local citizen
• No general power of trade under the Wellbeing
  Powers
• July 2004, a new Power to Trade Act became law,
  allowing Authorities to do anything incidental to
  statutory powers they wish
• Consortia now able to deal with the voluntary
  sector and even the general public?

96

• EU PROCUREMENT RULES
• All public sector buyers, including Consortia
  buyers, are bound by EU procurement rules
• These complex and prescriptive rules are being
  overhauled and a new Consolidated Directive is
  shortly to be introduced
• Sellers have important rights under the rules
  including the right to challenge key decisions
• General view that any challenge might jeopardise
  future trading relationship, but there is little
  evidence to support this
• January 2005, Freedom of Information Act became
  law. This has extended the right to know for
  suppliers.
• The release of any information likely to damage
  an authoritys commercial interest is likely to
  be exempt

97
Weve been here before!

• 1982 John Banham reviews Central and Local Govt
  buying
• Purchasing placed centre stage - but the real
  stars lose out

1
1.50
2.00
2.50
3.00
SUPPLIER

• All buyers are told to get the same price as the
  best buyers

98
The pie is only so big
Prices migrate to a standard level All deals
become visible Danger of a one off price setting
the price level for the industry The danger of
benchmarking to the top buyer cannot be
overstated
Someone forgot to tell the supplier
99
2005- Procurement tops the Agenda again

• Government looking for significant
• savings
• All sectors of Govt now need to
• demonstrate the maximum bang for
• each 1 spent
• Each sector now chasing efficiencies-
• but are we all chasing the same savings
• The price paid is now visible through
• benchmarking and other similar price
• comparison mechanisms

Regional Centres of Excellence
100
Supply Tensions?
Regional Centre of
Expertise?
Regional Centre of Excellence
Private Sector Competitors
Central Govt OGC OGCbs
Consortia
Single Authority Procurement Units
Local Authority Customer
101
Strong and Prosperous Communities

• White Paper published by Ruth Kelly in October
  2006
• Aims to give local communities more control over
  their improvements
• New ambitious efficiency gains will be
  established for 2007 onwards
• Much greater drive for Councils to collaborate
  with each other and across sectors
• Procurement will be at the leading edge of this
  further transformation

102
West Mercia Supplies (WMS)
Yorkshire Purchasing (YPO)
Eastern Shires Purchasing Organisation (ESPO)
Pro5
Central Buying Consortium (CBC)
North East Purchasing Organisation (NEPO)
103
WEST MERCIA SUPPLIES
104

• Built in 1998
• 50,000 sq ft internal size
• offices on 3 floors
• over 1000 pallet spaces
• 7,000 products stocked
• stock value of 2 million

105
(No Transcript)
106
(No Transcript)
107
(No Transcript)
108
(No Transcript)
109
(No Transcript)
110
(No Transcript)
111
(No Transcript)
112
(No Transcript)
113
(No Transcript)
114
(No Transcript)
115
(No Transcript)
116
(No Transcript)
117
(No Transcript)
118
(No Transcript)
119
(No Transcript)
120
(No Transcript)
121
(No Transcript)
122
Summary

• Examined who the main Consortia are
• Looked at what they do and how they do it
• Identified the similarities and differences
• Seen how the national picture is developing
• Given you a brief overview of WMS

123
Any Questions?
124
(No Transcript)
125
eProcurement Threat or OpportunitiesRussell
Darling NePP Board Member and Bristol City
Council - Account Services Manager - Corporate
Finance Procurement
126
(No Transcript)
127
(No Transcript)
128
(No Transcript)
129
(No Transcript)
130
(No Transcript)
131
(No Transcript)
132
(No Transcript)
133
(No Transcript)
134
(No Transcript)
135
(No Transcript)
136
(No Transcript)
137
(No Transcript)
138
Orders appear in CFS
139
Expand order and add expenditure information
140
Invoices appear in CFS
141
Expand invoice to be allocated
142
(No Transcript)
143
Paying using 3 way matching
144
(No Transcript)
145
(No Transcript)
146
(No Transcript)
147
(No Transcript)
148
(No Transcript)
149
(No Transcript)
150
(No Transcript)
151
(No Transcript)
152
Timing - Manual

• Order - 8 minutes
• Payment - 7 minutes
• Total 15 minutes

153
Timing E Trading

• Order - 3 minutes
• Payment - 3 minutes
• Total 6 minutes

154
e Tendering the Council
155
What is e-Tendering?

• A web based tendering/procurement system
  accessed via the internet
• Allows for an Electronic process in
• Maintaining supplier records
• Working through the tender process
• Monitoring and Maintenance of contract records
• Easy to use and FREE to suppliers

156
Current systems

• Paper based/partial electronic
• Adverts
• Pre-Tender Questionnaire/Standing List
• Evaluation of Pre-Qualification Questionnaires
• Shortlist/Invitation to Tender
• Evaluation of Tenders
• Award of Tender

157
Whats Wrong with Paper?

• Relies on suppliers
• Spotting the contract notice/advert
• To physically deliver bids on time
• Remembering to update their details
• Verbal or written contact to track the progress
  of their bid

158
How e-Tendering Systems Work (1)

• Suppliers register on the system, they tell us
• Who they are/Who their staff are/Provide basic
  information

159
How e-Tendering Systems Work (2)

• Suppliers tell us what categories of services,
  goods or works they supply

160
How e-Tendering Systems Work (3)

• The Public Organisation will
• Acknowledge your registration electronically
• Approved Lists
• Approve your organisation for work up to a
  specified value. If not approved, you will be
  told why not.

161
How e-Tendering Systems Work (4)

• Choose the contract you are interested in and
  register interest

162
How e-Tendering Systems Work (5)

• Receive and return Pre-Qualification through the
  electronic system

163
How e-Tendering Systems Work (6)

• Queries and questions dealt with on-line, at
  both the PTQ and Tender stages. Everyone sees
  the answers, but not who asked the question.

164
How e-Tendering Systems Work (7)

• If you are invited to tender, you will be
  notified and given access to the tender pack
  which you will be able to download onto your pc

165
How e-Tendering Systems Work (8)

• Submit your tender via the system too.
  Everything is confidential, time and date
  stamped. No tenders can be opened until the
  deadline has passed. Only the relevant officers
  can see your tender.

166
How e-Tendering Systems Work (9)

• You can upload plans, drawings, method
  statements etc that you may ask you to provide to
  be considered with your tender.

167
How e-Tendering Systems Work (10)

• You will be notified if you have been awarded
  the contract
• Feedback can be uploaded onto your company
  profile this will help you make a better bid
  next time
• System may also track variations to contract and
  contractor performance

168
Benefits of e Tendering

• Only need to register once
• Early warning of business opportunities with
  more time to complete bid documents
• No cost to participate
• Data security with suppliers keeping their own
  information up to date
• Easy to use
• Approval (by category/type of work) for whole
  Organisation, not just one department
• Less bureaucracy and paperwork!

169
Questions?

• Contact for any general enquiries
• projectoffice_at_nepp.org.uk
• National Projects Information line 0870 777 0011
• Russell_Darling_at_bristol-city.gov.uk
• 01179 22521

170
(No Transcript)
171
The Procurement Process Internal and External
influences

• Gillian Brindle
• Programme Manager
• South West Centre of Excellence

172
The Procurement Process Internal and External
influences

• Political
• Economic
• Social
• Technological
• Legal
• Environmental

173
Political External

• The Government has set ambitious savings targets,
  becoming more arduous for CSR07 6.45blln savings
  by March 2008
• Councils 45
• Schools 40
• Police and Fire authorities 15
• For Councils the pressure will become greater
• Lyons Report
• Varney Report
• CSR07

174
RCE national spend analysis
175
Political Internal

• Attitude towards risk
• Contract Performance issues (environment, cost,
  time, quality, quantity, place)
• Position of procurement within organisation
• Procuring paperclips
• Strategic
• Availability of resource/ appropriate skills
• Senior management buy-in
• Unitary status
• Willingness to collaborate
• Procurement vs. commissioning
• Internal restructuring

176
Economic

• The need to make cashable savings via
• Supply chain management
• Value chain orientation supporting delivery of
  programme/ service/ business results
• Transaction efficiency
• Procuring better
• Improving p
• Implementing e

177
Social/Organisational

• Efficient execution and management of the
  procurement cycle
• Standardized procurement processes, procedures
  and practises
• Adoption of a commercial approach
• Inconsistency arising from a geographically
  dispersed and technically diverse business
• Media influences

178
Technological

• Legacy systems
• Integration of new technologies
• eProcurement tools
• Simplified and automated purchase to pay
  processes
• Efficient transaction process using financial
  management information system
• Using spend analysis to identify key areas for
  intervention

179
Legal

• Compliance
• Internal control including procurement rules and
  regulations
• OJEU regulations
• Institutional framework
• Outcomes
• Accountability
• Transparency
• Integrity
• Fairness

180
SW Centre of Excellence Projects

• Spend analysis
• Eauctions
• pCards
• Contract evaluation service
• eProcurement helpline
• Skills development
• Childrens Adults Services
• Business Transformation
• Waste
• Construction

181
Making it happen six essential ingredients

• Gain senior management support for procurement as
  a strategic function, supporting policy and
  giving commitment to implementation
• Stakeholder engagement and management and adopt a
  commercial approach
• Use spend analysis to identify key areas for
  intervention and derived policy from analysis of
  evidence not anecdotes
• Long term investment in change
• Improve p before implementing e
• Ensure legal compliance

182

• Gillian Brindle
• Programme Manager
• SW Centre of Excellence
• 01305 757232
• G.brindle_at_dorsetcc.gov.uk
• www.swce.gov.uk

183
(No Transcript)
184
Eddie Regan Senior Consultant, PASS
185
How to Win Tenders
EDDIE REGANSenior PASS Consultant
186
How To Win TendersFinal Tips and Pointers

187
How to Win Tenders

• What is important to Public Procurement Officers?
• Legal Compliance
• Delivering Government Objectives/Initiatives
• Advancing Environmental Issues
• Advancing Social Issues
• Satisfying Taxpayers Needs
• Finding Good Suppliers
• Transparency, Probity and Business Ethics
• Risk Management

188
How to Win Tenders

• Most commonly requested information when
  tendering
• Health Safety Policy
• Environmental/Sustainability Policy
• Equal Opportunities Policy
• Insurance
• 2 Years Financial Accounts
• Principal Personnel CVs
• Staff Turnover Statistcs
• Past Experience
• Quality Assurance
• Investors In People

189
How to Win Tenders

• Tips When Tendering
• Know that public sector is a regulated market
• Learn the rules, before you start playing the
  game
• Apply the rules dont look for ways to skirt
  them
• Ensure you have access to the OJEU notices
• Know what codes are relevant to your company
• Regularly check procurement web sites
• Remember who you are targeting

190
How to Win Tenders

• Tips When Tendering
• Ask about the marking and weighting of
  questionnaire answers
• If weighting is not revealed, ask about order of
  priority
• Quantify your questionnaire answers as far as
  possible
• Remember short-listing is about disqualifying
  applicants
• Ask about disqualifying criteria
• Especially turnover
• Be sure to provide all submissions and answer all
  questions

191
How to Win Tenders

• Tips When Tendering
• First thing to do Read the instructions
• Second thing Read them again
• Third Get someone else to read them
• Finally Before returning tenders, read
  instructions one more time and make sure you have
  complied with them

192
How to Win Tenders

• Tips When Tendering
• If briefings are offered attend if at all
  possible
• Ask questions preferably in open forum not in
  private
• Ask about tender assessment and for any
  weightings or order of priority
• Verify acceptability of variations
• Ask about budget

193
How to Win Tenders

• Tips When Tendering
• Note the ITT order of questions, do not shuffle
  the answers
• Do not do the most important work close to the
  deadline
• Do not be late in delivering the tender
• If asked for hard-copies, send the number asked
  for
• Stay focused on client requirement not what the
  company can deliver
• Keep bumpf separate from the requested material
• Do not hold anything relevant back

194
How to Win Tenders

• Tips When Tendering
• Bring key personnel not sales team or window
  dressing
• Team should know the tender each other
• Include specialists if pre-presentation questions
  suggest it
• If using presentation tools know how to operate
  them
• Arrive on time but expect to run late
• Stick strictly to the given timetable
• Dont argue with the presentation board
  chairperson
• Dont interrupt own team members
• Dont make rash promises

195
How to Win Tenders

• Tips When Tendering
• Always ask for a debrief, whether you win or lose
• Note when procurement will be due for re-tender
• Note all information that will help you prepare
  next time use FOI if you have to

196
How to Win Tenders

• When tendering, ensure tenders address
• Promotion of SMEs
• Whole life costing
• Environmental/Sustainability Issues
• Local benefits and economic dividends
• Collaborative working relationships
• Innovation
• Risk
• Your expertise
• Project management
• Risk management
• e-Government
• Communication channels

197
How to Win Tenders

• Final Pointers
• Target the market you can supply and wants you
• Dont use a shotgun approach it only reduces
  your chances of success
• Doing a bad job is worse than losing
• Bad news travels quickly in the Public Sector
• Show off your medals ISO/IIP/Satisfaction
  Certificates
• Identify problems early and discuss - No
  Surprises
• Audit relations throughout the contract

198
How to Win Tenders

• Final Pointers
• ASK if in any doubt
• Confirm ALL correspondence in writing
• Always seek a Debrief
• Be positive and professional
• Identify and meet risk head-on and up front
• Always show how why your tender provides good
  VfM
• Add Value throughout the course of the contract
• Make Money Dont buy business

199
Selling To Local Government
How to Win Tenders

• Summary

200
(No Transcript)
201
THANK YOU FOR ATTENDING
202
(No Transcript)