Introduction to Procurement Scotland and the Public Procurement Reform Programme Nikki Bell

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Introduction to Procurement Scotland and the

Public Procurement Reform Programme

Nikki BellProcurement Scotland Deputy Director

PLEASE NOTE:Slides 21, 22 and 23 have been updated to take account of

feedback received on the day of the presentation

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• Procurement Reform Programme Update • National Programme Workstreams • Procurement Scotland Overview • Accessibility of Contracts • Collaborative Procurement Process Overview

AGENDA

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Public Sector Procurement Vision

Category A

Category B

Category C1

National Strategies

& Contracts:Goods or services of

a similar standard or nature

Where a single interface with the public sector facilitates efficiency and competitiveness of suppliers.

E.g. IT HW, Telecoms, Office Equipment & Supplies

Sector Specific Strategies & Contracts:

commodities and Services that tend to be unique to a specific sector,

yet common within that sector

General Strategies & Contracts: Commodities not categorised as A or B.

Establishment of contracts will be conducted as the remit of a single organisation. e.g. niche IT applications.

Where interface coordinated via a sector CoE. E.g. Wheelie bins, Medical

Equipment, Care Services

Commodities& Services categorised as A, B or C

Category C

Where interface coordinated via regional hub or

local organisation Local/Regional Strategies & Contracts: where it is appropriate to consolidate requirements on local/ regional basis

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Public Procurement Reform Programme

Cat A – National Contracts

Cat C –Local Contracts

Cat B – Sectoral Contracts

ReformProgramme

People& Skills

Manage-mentInformation

Best Practice

Policy &Guidance

CompetitiveSupplyBase

e-Tools

HealthBoards Central

Government

LocalA

uthorities

Fire & Rescue

Service

s

PoliceServices

Uni

vers

ities

& C

olle

ges

NHSNational

Procurement

Fire

ScotlandExcelAPUC

CGCoPE

Police

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Overview of Governance Model

Programme

NationalProcurementCoE

SectorSpecificCoE

End UserOrganisation

Proc. RefDel. Group

Public Procurement Reform Board

Public Procurement Advisory Group (PPAG)

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Recognition of Challenges / Major Change Programme

• Evolving governance• Organisations at different stages of development• New terminologies / ways of working • Resource constraints, changing roles & expectations• Increasing scrutiny • Need to parallel process ‘set up/development’ with ‘delivery’• Ensuring appropriate engagement and communications in complex

stakeholder environment

=> Managing full change spectrum

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Key Enablers & Critical Success Factors

• Ministerial endorsement & direct support

• High level sponsorship

• Increased visibility/expectations of procurement & its contribution

• Common vision & approach

• Key enabling platforms! (MI, toolkit, collaborative tools/systems)

• Agreed ways of working/protocols & stakeholders willingness to engage & interact constructively.

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We have developed several key tools to steer a course through this challenging landscape

• Standardised advice on best practice including latest policy/guides/support regarding corporate social responsibilities;

• Visibility of current spending behaviours with detailed analysis of spend by supplier, commodity, invoice value, public sector organisation, sector, etc;

• A standard system to measure improvements in performance over time;

• Access to a National contracts register & advertising portal (One stop shop for suppliers. Facilitates ‘adequate publicity’ of tender opportunities);

• Advice, guidance and templates to help reduce the burden on suppliers (How to we reduce barriers to competition and ensure a level playing field, fairness, transparency?);

• Access to tools, latest thinking & events to support people and skills developments (Where and how can we increase our procurement skills?) .

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CoE Role

• To deliver collaborative national/sector procurement strategies & contracts that deliver best value for Scotland/sector

– cost and efficiency savings balanced with CSR responsibilities

• To enable and drive procurement capability & expertise

• To facilitate and drive best practice:

– Adherence to Legal, EU & Policy

– Benchmarked & Consistent Strategic Procurement Processes (Toolkit)

– Responsible Procurement

– Process Efficiency & eEnablement

– Performance Management

– Supplier Engagement / SRM / Supply Chain Management

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Procurement Scotland

• Officially launched March 2008:

• Our Vision:

“To contribute benefits to the people of Scotland through the development of efficient and effective national procurement strategies.”

• Our Aim:

“We will deliver Value for Money Savings through the implementation of innovative, fit-for-purpose Category A procurement strategies and contracts focused on optimising and balancing total cost of ownership and sustainability drivers.”

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Procurement Scotland‘In–scope’ Category A’s include:

• IT Hardware

• IT Software

• Telecoms

• Professional Services (Including IT Consultancy)

• Office Equipment – MFDs

• Corporate Services - Office Supplies, Postal Services

• Utilities - national contracts from 2009/10

Public Sector spend (Goods & Services) ~ £8bnCategory A ~ £1bn

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Progress at 3rd November‘08 - Procurement Scotland

• Recruiting and inducting team to become fully operational;• Establishing/championing governance, ways of working, systems &

processes to enable collaborative procurement across Scotland;• Leading innovation on best practice specific to balancing sustainability

agenda in support of Scottish Government’s wider agenda – E.g. economic, social, environmental, total cost and risk factors;

• Leading national people and skills work stream to ‘nurture the talent’ which already exists within Procurement across the Scottish Public Sector;

• Delivering commodity strategies against agreed milestones:– securing and generating cashable and non cashable savings ahead of

targeted savings, – Optimising service levels, innovation, quality and process efficiencies.

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Progress at 3rd November‘08 - Procurement Scotland

• IT Hardware e-auction secured £5.45m savings (and growing);• Office Supplies framework secured potential annual savings of £7.6m;• Out to market for Scottish public sector demand on Electricity and

Multifunctional Devices;• Category plans, sourcing strategies and stakeholder engagement well

underway for Telecoms, IT Software, Gas, Interim Management….• Market analysis and opportunities assessments underway for postal

services, couriers, fuel, travel services…. • Going to market for Professional Services imminently.

For status/updates refer to: http://www.procurement.scotland.gov.uk

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Accessibility to Contracts

All Procurement Scotland contracts advertised to ensure that the Scottish Public Sector has access. The Scottish Public Sector will be fully defined in the tender advert but does include:

• Police• Fire• NHS• Local Authorities• Central Government (Core departments, Agencies and NDPB’s)• Higher and Further Education

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Governance & Ways of WorkingCollaborative Procurement Process

Graeme CookProfessional Service Category Manager

[email protected]

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National Category Forums (NCFs)

• Cross-sectoral advisory groups; • Bring particular expertise in the goods or services in scope for Cat A procurement;• Drawn from cross-sectoral procurement staff and technical from end-user organisations and Centres of Expertise;

•Role?• To ensure pragmatic procurement strategies are developed and deployed that deliver best value;• To represent support, lead and facilitate communications with the wider the stakeholder community across their sectors.

Who?

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National Category Forums (NCFs)Main tasks?

• Engaging proactively with their respective sector:• Representing sectoral views at the Forum• Updating on progress of Category A procurement activity• Leading User Intelligence Groups (UIGs) within their sectors as appropriate;

• Participating in opportunity analysis exercises; • Contributing to, and endorsing, category strategy development proposals to ensure ongoing best value procurement;• Contributing to, and endorsing, proposals on specifications and standards;• Supporting and championing wider stakeholder engagement via UIGs or workshops;• Participating in tender evaluation/supplier selection & ongoing supplier management & development.

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Maximised leverage, learnings and engagement opportunities including:

• Other UK wide reports, tenders, guidance and experiences• Market engagement• REC engagement• User engagement (workshops, one-to-one meetings etc)

Professional Services – Approach

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• Holistic portfolio approach across broad spectrum of external resource categories including:

• Temp & Interim• Interim Specialist• Interim Management• Consultancy

Focus not just on frameworks but under pinned by governance, guidance and toolkits to support demand management and best practiceChampioned at highest level.

Professional Services – Approach

Consultancy Firms

Employment Agencies

Interim Management Agencies

ConsultancyInterim Management

Temp & Agency

Interim Specialist

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Contract Overview & Scope

Areas Covered by these agreementsTherefore for these agreements we define Temporary staff to include administrative, manual industrial and cleaning, IT, social & care catering and trades.

Areas Not Covered by this Contract•Permanent Recruitment•Clinical Temporary Workers

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Framework AgreementsLotting Strategy

Administrative

Dumfries andGalloway

Interim Management

ITInterim Specialist

Social / CareCatering

Frameworks 1, 2 and 3 will have up to 8 regional lots (as demonstrated below, using the Administrative framework as an example). Subject to the capacity of successful bidders, we envisage that each regional lot will support a single supplier. However, bidders must note that if no one supplier can demonstrate the required volume capacity (to the satisfaction of the evaluation team), 3 or more suppliers will be invited to participate in that lot. Additional bids on combined lots for regions with small spend will be sought in the tender.

Central

Manual,Industrial &

Cleaning

Fife Grampian Lothian and Borders Northern Strathclyde Tayside

Framework Title

Regions

One Supplier per Region

1 2 43 5 6 7 8One-Stop

Shop

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Framework AgreementsLotting Strategy– Lots (cont’d)

Dumfries andGallowayCentral Fife Grampian Lothian and

Borders Northern Strathclyde Tayside

Framework Title

Regions

Several Suppliers per Region

Lotting StrategyFrameworks 4 and 5 will have regional lots, each supporting several suppliers (as demonstrated below, using the Catering framework as an example). Actual numbers will be determined by the volume capacity of suppliers successful at the PQQ stage. Additional bids on combined lots for regions with small spend will be sought in the tender

Administrative Interim Management

ITInterim Specialist

Social / CareCatering

Manual,Industrial &

Cleaning

1 2 43 5 6 7 8One-Stop

Shop

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Lotting StrategyFrameworks 6, 7 and 8 will be national for Scotland (no regions) with several suppliers. Business will be awarded through mini-competition.

Framework AgreementsLotting Strategy – Lots (cont’d)

Administrative Interim Management

ITInterim Specialist

Social / CareCatering

Manual,Industrial &

Cleaning

1 2 43 5 6 7 8One-Stop

Shop

Framework Title

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Post-code Spend Analysis by Lot

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Post-code Spend Analysis by LotS

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• Make every effort to answer the question in the space given. • Do not refer to marketing materials or attachments.• No prior knowledge• Evaluation teams for subsets of questions – don’t refer to the “answer

above” (it’s OK to repeat yourself)• Read and re-read the question• Only use the comments fields if absolutely necessary to add clarity to an

answer• Consortia bids are welcome (identify the lead contractor clearly)• Alternatives to audited accounts are welcome and will be evaluated• Bid with your best bid FIRST TIME. Do not expect to enter into post-tender

negotiations.• Understand the Reform and Political environment and drivers.

Expectations in PQQ and ITT(Don’t forget the basics!)

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Status: Strategy Development

Nov - Dec Jan - Feb <<August

(July) ApproveCommodity Plan

March 2009

(End Oct) ApproveStrategy

May 2009 >>

(Nov)Publish OJEU & Release PQQ

(June/July) ContractGo-Live

(Jan) Issue Tender

(Mar)Receipt of Tender

(May/June)Pre-awardDecision

Timelines

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Break

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Q & A