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Title: PowerPoint Presentation Firebuy Relationships with Regions within the National Procurement Strategy


1
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2
WELCOME
3
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4
CHAIRMANS OPENING ADDRESS
5
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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 01495 766921
  • 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

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

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1.50
2.00
2.50
3.00
SUPPLIER
  • All buyers are told to get the same price as the
    best buyers

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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
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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
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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
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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

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

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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

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Any Questions?
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eProcurement Threat or OpportunitiesRussell
Darling NePP Board Member and Bristol City
Council - Account Services Manager - Corporate
Finance Procurement
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Orders appear in CFS
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Expand order and add expenditure information
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Invoices appear in CFS
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Expand invoice to be allocated
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Paying using 3 way matching
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Timing - Manual
  • Order - 8 minutes
  • Payment - 7 minutes
  • Total 15 minutes

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Timing E Trading
  • Order - 3 minutes
  • Payment - 3 minutes
  • Total 6 minutes

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e Tendering the Council
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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

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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

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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

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How e-Tendering Systems Work (1)
  • Suppliers register on the system, they tell us
  • Who they are/Who their staff are/Provide basic
    information

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How e-Tendering Systems Work (2)
  • Suppliers tell us what categories of services,
    goods or works they supply

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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.

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How e-Tendering Systems Work (4)
  • Choose the contract you are interested in and
    register interest

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How e-Tendering Systems Work (5)
  • Receive and return Pre-Qualification through the
    electronic system

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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.

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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

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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.

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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.

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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

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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!

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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

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The Procurement Process Internal and External
influences
  • Gillian Brindle
  • Programme Manager
  • South West Centre of Excellence

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The Procurement Process Internal and External
influences
  • Political
  • Economic
  • Social
  • Technological
  • Legal
  • Environmental

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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

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RCE national spend analysis
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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

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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

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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

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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

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

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SW Centre of Excellence Projects
  • Spend analysis
  • Eauctions
  • pCards
  • Contract evaluation service
  • eProcurement helpline
  • Skills development
  • Childrens Adults Services
  • Business Transformation
  • Waste
  • Construction

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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

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

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Eddie Regan Senior Consultant, PASS
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How to Win Tenders
EDDIE REGANSenior PASS Consultant
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How To Win TendersFinal Tips and Pointers

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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Selling To Local Government
How to Win Tenders
  • Summary

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THANK YOU FOR ATTENDING
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