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Practical Procurement 1Pre-Procurement Planning and Building Specifications
Eleanor Stokes, Key Account Manager
OGP Client Conference
12-13 November 2019
Hibernia Conference Centre, Dublin Castle
Agenda
• A View from Policy – Corporate Procurement Plans and the Role of Procurement Officers
- Fergal Grogan, OGP Policy Unit
• Corporate Procurement Plan & Multi annual Procurement Plan Overview
- Emer Roy & Claire Keane, Dublin & Dún Laoghaire ETB
• Planning and Developing Specifications
- Gerard Dooley, Sourcing - Managed Print Services Category
• Q & A
2
A View from Policy – CPPs and the Role of Procurement Officers
Fergal Grogan
OGP Policy Unit
OGP Client Conference
12 November 2019
ogp.gov.ie
National Public Procurement Policy Framework
1. Legislation (Directives, Regulations)
2. Government policy (circulars etc.)
3. Capital Works Management Framework for Public Works
4. General Procurement Guidelines for Goods and Services
5. Technical guidelines, template documentation and
information notes
5. Technical guidelines,
template documentation
and information notes
National Public Procurement Policy Framework
Procurement Officer Role
• Supports contracting authorities in meeting
procurement obligations
• Higher levels of compliance and efficiency
• Scale of procurement-related spend and related risk informs role and responsibilities
Procurement Officer Role
Governance and Planning
• Corporate Procurement Plan and Contracts Register
• Governance obligations and risk management
• Report (internally)
• 40/02 Annual Return
Support
• Advise and Assist
• Public Procurement Guidelines
• Engagement
Communication
• Liaise with and update budget holders
• Review documentation and communicate onwards
• OGP Customer Service Team [email protected]
• Procurement planning - integral part of business planning
• Purpose of information note - assist in the preparation of a CPP
• Benchmark current procurement policies and practices and identify future procurement needs
Corporate Procurement Plans
Corporate Procurement Plans – Key stages
Corporate Procurement Plans – Objectives
Corporate Procurement Plans - Benefits
Corporate Procurement Plans – What goes in …
National Public Procurement Policy Framework
1. Legislation (Directives, Regulations)
2. Government policy (circulars etc.)
3. Capital Works Management Framework for Public Works
4. General Procurement Guidelines for Goods and Services
5. Technical guidelines, template documentation and
information notes
Pre Procurement Planning - Government Policy
• Central frameworks• Circular 16/13 – Encourage and promote the use of central frameworks
• SME Access• Circular 10/14 – Consider measures to encourage SME participation
• Environmental & Social Considerations• Circular 20/19 – Consider GPP and social considerations in CPP & criteria in
procurements
End note
Aiming for …
• Better public procurement
• Strategic approach to public procurement
• VFM on goods and services
• Better outcomes for all
Thank you
Dublin
and D
ún L
ao
ghair
e
Education a
nd T
rain
ing B
oard
Corporate Procurement Plan
And MAPP
Overview of the process undertaken by
Dublin & Dún Laoghaire ETB
29
/03
/17
Objectives
Creation of a Corporate Procurement Plan (Requirement under Code of Governance for ETBs)
Creation of a Multi Annual Procurement Plan (MAPP) which will form part of an overall wider ETB sectoral annual MAPP submission to the Education Procurement Service (EPS)
An
alys
is Non Pay expenditure in previous year
Levels of spend –increase/ decrease
One off purchases
Disaggregation of spend
Iden
tify Where contracts are
required
Where non-contracted suppliers are not being used
Compliance rates with contracted suppliers
Pla
nn
ing Tenders to be run in
coming year
Resources
Categories of spend which require contracts
Liaising with budget holders and senior management on estimated projections for year ahead
Initial Process Timeline
Step 1
September 2018
Assign resource to project
Step 2
Process involved Mapping SUN
General Ledger (GL) Codes to EPS Product Groups
and Codes
Step 3
Oct to Dec 2018
Completed Expenditure Analysis
and created the MAPP
Step 4
December 2018 Completion of
MAPP
Challenges
• Identifying and allocating dedicated resource to the project.
• Financial systems: MAPP requires VAT exclusive figures. SUN can only provide VAT inclusive figures.
• Miscoding's in SUN can make it difficult to identify correct GLs for expenditure analysis.
• No direct access to SAP expenditure – had to be requested and interrogated separately.
• Catch all GL’s such as “class materials” or “office expenses” require deeper analysis at invoice level
• Initially a time consuming process as we were trying to figure out the most efficient process to use. We commenced in September 2018 and completed our first draft MAPP in December 2018.
• In Year 2 (2019) we commenced the analysis in April 2019 and completed the MAPP in August 2019.
Expenditure Analysis
Step 1 - Analysis of Contracted Suppliers
• We used our Contracted Suppliers List (all companies we have a formal contract in place with following a tender process) to identify suppliers and ran Citrix expenditure reports from January to December 2017
• We entered the data into the MAPP for all contracted suppliers according to the relevant product code they were identified with.
Expenditure AnalysisStep 2 – Analysis of Non–Contracted Suppliers
• We ran Citrix reports to interrogate SUN for the spend analysis. Editing data on the report to create meaningful expenditure reports.
• Citrix expenditure reports ran for January to December for all 97 Non Pay GL Codes
• Identify suppliers within a GL where the expenditure was more €8k per annum as the cumulative spend would be € 25k+ over a 3 year period.
• Used P2P to review invoices and identify suppliers areas of business where it wasn’t clear what they were supplying to our schools
Expenditure Analysis
• Ran Citrix expenditure reports by Supplier as often the expenditure was distributed over a number of GL Codes
• Grouped expenditure of these suppliers within the GL Code e.g. Woodwork Class Materials, Exam Papers
• Group of suppliers are reported on together in one line on the MAPP
• Incorporated the Training Centres expenditure information into the MAPP
• No of transactions identified
• Once initial MAPP is completed, a secondary drill down of non-compliant spend was commenced which required the input of budget holders. The resulting secondary analysis resulted in some changes to the MAPP
Expenditure Analysis
On completion of the expenditure analysis the following information was entered on the MAPP
MAPP Field Data EnteredProduct Group Buildings, Estates & Facilities Management Product Code Description Cleaning Services Contract Name of Service Cleaning (3650) – GL Description and CodeDescription of Requirement Contract Cleaning Current Contract Own ContractIf own / other contract Pre National Framework Agreement / Contract Contract Expiry Date 31/05/2021 Contract extension option 31/05/2023Number of Procurement Transactions in year - 696Estimated Annual Contract Value 2018, 2019, 2020 - €xxx,xxx (2017 expenditure in each of the 3 fields)Estimated Annual Contract Value Cumulative Value (auto populates)Expenditure Type RecurringComment Supplier name entered for our records but we will remove data from this cell
when submitting to ETBI/ EPS
Lessons Learned• The MAPP is primarily a tool for planning and identifying supplies/ services which need to be
procured but is also used to identify areas of non compliant expenditure.
• Defining “compliance”. Compliance with internal procurement policy very different to compliance with national guidance and Directives.
• Set a limit on how far you will drill down – what level of detail will be possible given your resources and time.
• Enlist the assistance of the budget holders in carrying out the secondary analysis of the expenditure
Lessons Learned• Commence analysis earlier in the year (January) to facilitate any audits which may be scheduled
• Developed a supplier driven MAPP for internal use by including supplier in own column on MAPP –has become a very useful tool for our internal expenditure analysis.
• Initial exercise requires resources while establishing process and system however the investment in year 1 will facilitate the MAPP to be completed more efficiently in the following years.
• Suppliers on P2P system – some duplication of suppliers will require clean up
• Contracted suppliers list – supplier codes to be included to prevent schools using the wrong version of the supplier
Thank You
Planning and Developing Specifications
Gerard Dooley
Sourcing - Managed Print Services Category
Office of Government Procurement
Agenda
• Planning
• Building your specification – seeking advice
• Importance of recording
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Planning and Developing Specifications
What do you want to procure?
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What do you want? Are you sure?
33
PLAN
•Is there a Budget for this planned procurement?
•Bring all of your stakeholders together
•Understand what is needed
•Did you procure these goods/services previously? Can you examine the data?
•Distinguish ‘Wants from Wishes’
34
PLAN
• Remember the 6 ‘R’s’:
• Right Product/Service
• Right Quantity
• Right Quality
• Right Time
• Right Place
• Right Price
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PLAN
• Get to know your market and the players
• Has there been market changes since you last contracted?
• Has your organisation changed how it now carries out this function?
• Consider a RFI – Request for Information
• Examine the Risks. How can these be mitigated?
• Are there innovation in this marketplace?
• Developing you qualitative and award criteria
36
Seek advice
• Are there Frameworks available from the OGP or Sector Partners that can be used to procure the Goods/Services your organisation require?
• If you are unsure check the buyerzone at ogp.gov.ie or email [email protected]
• Technical guidelines, template documents and information notes are readily available to you at all times
• Take legal advice – before not afterwards!
37
Seek advice – be familiar with the rules
• Remember the fundamental European Treaty Principles – Non-Discrimination, Equal Treatment, Transparency, Proportionality and Mutual recognition
• Choose the appropriate procedure – Open, Restricted, Competitive Procedure with Negotiation and Competitive Dialogue
• Understand the timelines regarding the chosen procedure
• Know the thresholds - EU & National
• Consider the public procurement circulars
38
Record as you go
• Always develop a procurement audit trail
• You are obliged under Article 84 (EU Public Contracts Directive) to record the process
• These documents may be discoverable under the Freedom of Information Act
• When a determination is made, at any stage, ensure an appropriate memo or note is saved to file that reflects on the why and how of the decision taken
• Best to record now than try remember later!
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Case Study
• Managed Print Services Framework
• Requirement for Printer and Usage Details to go-to-market
• Client ‘understood MPS’
• On reviewing final documents client had questions regarding pricing
• Client was paying click charge and rental
• Following evaluation of bids the client not only save the rental but also reduced click charge
• Research your markets
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Plan well
Seek advice
Record as you go
Key messages
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Thank you.
Q & A
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