government policy & joint procurement
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Scottish Library and Information Council
“Government Policy & Joint Procurement”
Gary Robinson
Branch Mgr - Procurement Development
Scottish Procurement Directorate
Agenda
• Procurement reform : McClelland Report & Conclusions– Vision– Major challenges, key enablers & critical success factors– Structure SPD & Programme Governance Structure– Major challenges
• Enabling the strategy – Centres of Expertise – Policy & Guidelines– Professional People & Training– Tools
• Best Practice• Technical Enablement & Management Information
– Competitive Supply Base
• Questions» 20 minutes
Public Procurement Reform in Scotland Report & Recommendations, John McClelland CBE,
Observations: • Significant room for VFM improvement;• Opportunity to redirect savings to front line services;• Better procurement would drive better quality goods / services & reduce risks;• Potential to increase collaborative procurement.
Summary Conclusions• Ministerial support a prerequisite;• Programme board to support implementation of change programme;• Some progress made but not consistent across public sector;• Governance issues require urgent action:
– All procurement activity by staff in procurement team or with specific delegated authority to procure;• Procurement needs a higher priority;• Need for greater collaboration; (not just in joint contracting).• Investment required on resources and skills;• Central leadership needed with procurement policy being mandatory;• eProcurement Scotl@nd is a fundamental platform – accelerate implementation.
McClelland Report: http://www.scotland.gov.uk/Publications/2006/03/14105448/24
Context: Public Sector Procurement Vision
• Public Sector spend on goods and services ~ £8bn
• Procurement Scotland focus on national (Category A) commodities ~ £1bn
Category A
Category B
Category C1
National Procurement
Single interface with public sector facilitates
efficiency/competitiveness of suppliers. e.g. IT HW, SW,
Telecoms, Utlities, Professional Services, Corporate Services.
Sector Specific CGCoPE
APUC; Scotland Excel; NHS National Procurement
Regional Collaboration at local levele.g. Tayside Consortium
Interface via sector Centres of Expertise.
e.g. Social Care, Medical Equipment.
Category C
Interface coordinated via regional hub e.g.
Printing (collaboration across organisations)
ProcurementScotland
Local 185 Major procuring organisations;
In excess of 900 in total; Many, many local purchasers/requisitioners….!
Many contracts will exist at a local level.
Cat A –National Contracts
Cat C –Local Contracts
Cat B –Sectoral Contracts
ReformProgramme
ReformProgramme
People& Skills
Manage-mentInformation
Best Practice
Policy &Guidance
CompetitiveSupplyBase
e-Tools
HealthBoards Central Government
LocalA
uthorities
Fire & Rescue
Servic
es
PoliceServices
Uni
vers
ities
& C
olle
ges
NHSNational
Procurement
Fire
ScotlandExcel
APUC
CGCoPE
Police
Cat A –National Contracts
Cat C –Local Contracts
Cat B –Sectoral Contracts
ReformProgramme
ReformProgramme
People& Skills
Manage-mentInformation
Best Practice
Policy &Guidance
CompetitiveSupplyBase
e-Tools
HealthBoards Central Government
LocalA
uthorities
Fire & Rescue
Servic
es
PoliceServices
Uni
vers
ities
& C
olle
ges
NHSNational
Procurement
Fire
ScotlandExcel
APUC
CGCoPE
Police
Vision : Public Procurement Reform Programme
Scottish ProcurementDirectorate
Scottish ProcurementDirectorate
Scottish Procurement Directorate
Procurement Policy & Development
Construction Advice & Policy
CGCOPEeProcurement
ScotlandProcurement
Scotland
Chair John Swinney MSP,
Cabinet Secretary for Finance and Sustainable Growth
Chair John Swinney MSP,
Cabinet Secretary for Finance and Sustainable Growth
Chair Jim Mather MSP,
Minister for Enterprise, Energy and Tourism
Chair Jim Mather MSP,
Minister for Enterprise, Energy and Tourism
Public Procurement Reform Governance Structure
Procurement Scotland
ePS CGCope
Scottish ProcurementDirectorate
FirePolice
ScotlandExcel
APUCNHS
Nat. Proc.
Delivery Group
Advisory Group
Reform Board
Major Challenges
• Major change programme; • Evolving governance;• Organisations at different stages of development;• Conflicting priorities;• New terminologies / ways of working;• Resource constraints, changing roles & expectations;• Political & media focus; • Differing perceptions/expectations on vision, progress and timeline;• Need to parallel process ‘set up/development’ with ‘delivery’;• Ensuring appropriate engagement and communications in complex
stakeholder environment.
Key Enablers & Critical Success Factors
• Ministerial endorsement and direct support;
• High level sponsorship and champions at the top and locally;
• Increased visibility/expectations of procurement and its contribution;
• Investment in procurement skills development;
• Common vision & approach;
• Key enabling platforms! (MI, toolkits, collaborative tools/systems);
• Agreed ways of working/protocols & stakeholders willingness to engage & interact constructively; and
• Passion and enthusiasm for driving the programme, upskilling and sharing learnings openly.
Enabling the Strategy - Centres of Expertise
• To enable and drive procurement capability and expertise;
• To facilitate and drive best practice:
– Adherence to legal, EU and policy requirements;
– Benchmarked and consistent strategic procurement processes (toolkits);
– Responsible procurement;
– Process efficiency & eEnablement;
– Performance management;
– Supplier engagement / SRM / supply chain management; and
• To deliver collaborative national/sector procurement strategies and contracts that deliver best value for Scotland/sector for assigned commodities.
Enabling the Strategy - Procurement Policy & Guidance
• Procurement governance, basic standards and legal/EU obligations at the heart of effective procurement;
• Importance of central procurement body to support policy development and future direction of procurement;
• Understanding and commitment across the business:– Documented basic or acceptable standards– Audit/Review Function – Capability Assessment Tool Deployed – Improvement/Development Plans
• Procurement – Procurement Regulations (EU, Legal, Treaty, Case Law)– Procurement Policy & Practice (Policy Hand Book, Policy Guidance Notes, CSR/Ethical
considerations, Best Practice Toolkits, Sustainable Procurement Action Plan)– Procurement/Spend Controls & Supporting Governance, DPA.
• Suppliers– Commitment to suppliers (Suppliers’ Charter, 6 Step Plan)– Right of supplier re-dress on policy/practice
(i.e. Single Point of Enquiry, Courts, Legal, Press, Ministers....)
Enabling the Strategy (The Tools)- Best Practice & Ways of Working
The Toolkit: • is online facility with key steps, supporting tools & templates to support effective procurement;• does not replace need for investment in skills development;
Supports procurement process and how to build an understanding of:- Market, supply and political drivers;- Product and supply chain characteristics;- Opportunities for innovation;- Total cost analysis- Opportunities to add value & support economic, environmental or social considerations.- Risk management and mitigation
Better enables:- EU/legally compliant procurement with adherence to policy- Robust tender evaluations - Effective communication & implementation
Toolkit is key but success determined by:=> Understanding of procurement, effective communication, information sharing…
Enabling the Strategy - Professional People & Skills
- Scarcity of good procurement skills
- Job descriptions and adverts call out requirement for CIPS, or equivalent, qualifications;
- Competency based framework
- Pay course fees and allow study time for people to obtain qualifications;
- A key performance indicator;
- Developed a close working relationship with CIPS, viewed as a key partner
- Increased training for people involved in procurement across Scotland
http://www.scotland.gov.uk/Topics/Government/Procurement/npcoe/Capability
Enabling the Strategy (eTools)- Technical Enablement & Management Information
• Scotland rolling out common eProcurement platform– And supporting eEnabling tools (e.g. eTendering, eAuction);
• Developed national information Hub: – Extract spend information from every organisations’ accounts systems on annual
(or quarterly) basis;
– Hub cleanses, manipulates & classifies information enabling national, sectoral and local reporting;
– View of spend across the whole public sector and with whom;
– Most successful spend analysis project in the public sector in Europe;
• Developed and agreed national performance indicators – uploaded and tracked on the Information Hub; and
• Ongoing developments to further improve and simplify reporting.
Enabling the Strategy – Competitive Supply Base
• Impartial point of contact for advice/concerns on public procurement practices in Scotland:
– Provide businesses with advice on procurement legislation & practices; – Seek resolution of disputes regarding procurement practice;– Help improve the consistency of public procurement processes;
• Will operate with impartiality, fairness and objectivity and promote culture of openness and transparency in relation to procurement practice.
http://www.scotland.gov.uk/Topics/Government/Procurement/Selling/supplier-enquiries
• Ensuring fairness and transparency for all suppliers;• Identifying and reducing barriers to business; and• Specifically Commits to:
– Adequate publicity (facilitated by the national portal);– Use of core questionnaire (ensure proportionality, minimise burden);– Debriefing on request (transparency and supplier development).
http://www.scotland.gov.uk/Topics/Government/Procurement/SellingSuppliers Charter
Single Point of Enquiry
Enabling the Strategy – Competitive Supply Base
• Supporting Government’s wider economic agenda through procurement whilst adhering to legal & EU requirements:– Understand market dynamics;– Drive innovation;
• Ensuring a more equal playing field for suppliers of all sizes in all locations:– Innovative strategies to enable competition on ‘value add’ products and services;– Developing supplier/market capability; – EU prohibits protective policies;– Want sustainable & competitive local businesses;
• Increasing transparency & ease of doing business with Scottish public sector:– Supplier events & roadshows;– Supplier engagement throughout procurement process;– Info on web.
Enabling the Strategy - Competitive Supply Base
www.publiccontractsscotland.gov.uk
• A one stop shop for advertising public sector tender opportunities;• Increases transparency and opens up access to businesses;• Officially launched by the Cabinet Secretary for Finance and
Sustainable Growth in October 2009;• Over 40,000 suppliers registered on the portal since its launch;• Automatically sends e-mail alerts to registered suppliers when
opportunities they may be interested in are advertised; • Over 1 million alerts have been issued to date; • 160 public sector entities actively using the portal to advertise
contracts.
What does it do ?
It provides –
• information on contract opportunities,• e-mail alerts to suppliers,• helpful information to buyers and suppliers,• online Q &A facility,• online submission of tenders,• quick and easy online quotation service,
“Connecting public and private sector business”
Does Procurement Reform Work ?- Case Study (Procurement Scotland)
• Office Supplies (£43m Spend)– Secured cumulative savings of £24m by 2011, £7.6m p.a.;– Significant additional cost avoidance due to fixed price deals;– 3 Lots: General Stationery, Paper & IT Consumables;– 3 Year deal with optional 1 year extension;– Over 80% orgs already migrated to new arrangements & many more
committed;– Major focus on supporting government’s economic agenda. Examples include:
• Development of market/suppliers capacity/capability, ensuring equity and fairness;• Championing effective partnerships with Scottish providers/distribution partners that
‘add value’;• Suppliers commitment to Scottish job creation and new warehouse facility;• High % environmentally friendly products on core lists;• Social clauses to support Corporate Social Responsibilities through supply chain;
Procurement Reform Impact?
5% Increase in the amount
of common spend over the
three year period despite
5-10% fragmentation in the
overall supply base.
5% Increase in the amount
of common spend over the
three year period despite
5-10% fragmentation in the
overall supply base.
NHS Performance – Medical equipment
Continuous Progress in Procurement
Reform2004
20052006
20072008
20092010
20112012
2013
Efficient Government
Plan
Efficient Government
Plan
Mcclelland Report
Mcclelland Report
NHSNational
Procurement (Cat B)
NHSNational
Procurement (Cat B)
Procurement Scotland(Cat A)
Procurement Scotland(Cat A)
CentralGovernment
CGCOPE
EducationAPUC
Scotland Excel
CentralGovernment
CGCOPE
EducationAPUC
Scotland Excel
£300m saved, major
improvements made
£300m saved, major
improvements made
•Public sector deficit•Public sector debt •Demographics, Lifestyle & Expectations•Reduced revenues from taxation
•Public sector deficit•Public sector debt •Demographics, Lifestyle & Expectations•Reduced revenues from taxation
Requirement to accelerate benefits in even more challenging circumstances.