Selling To The Public Sector 2009 wo notes

Procurement Reform• Public Procurement Reform Programme • Workstreams: Collaborative Contracting, People and Skills, Competitive Supply Base, Management Information, Policy and Best Pr

Selling To The Public Sector 2009

A Presentation For Suppliers

Procurement Reform

• Public Procurement Reform Programme

• Workstreams: Collaborative Contracting, People and Skills, Competitive Supply

Base, Management Information, Policy

and Best Practice, eCommerce

• Policy Handbook:

http://openscotland.gov.uk/Publications/20 08/12/23151017/0

• Public Procurement Reform Board

• Procurement Advisory Committee

• Single Point Of Enquiry:

http://www.scotland.gov.uk/Topics/Governm ent/Procurement/Selling/supplier-enquiries

Major Influences

• The new EU Procurement Directive

• The McClelland Review of Public Sector Procurement in Scotland

• The Scottish Executive Efficiency Agenda

• Increasing commitments to sustainability

• The drive towards trading electronically

• Freedom of Information

The EU Directive

• Increased Requirement For Competition At All Levels

• Increased Allowance for Sustainability Criteria

• Provision For Electronic Business

• Provision For Framework Arrangements

• Competitive Dialogue

• Increased Willingness To Take Legal Action

• Mandatory Standstill Period

The McClelland Review

• http://www.scotland.gov.uk/Publications/2006/0 3/14105448

• 80+ Recommendations

• Aims To Save £200M Per Year

• Collaboration on A, B, and C Commodities

• Public Procurement Reform Board/Procurement Advisory Group

• Orders Required For EVERY Invoice

• Suppliers’ Charter:

http://www.scotland.gov.uk/Topics/Government/ Procurement/Selling/Supplierscharter2/

Benefits Of Collaboration

• Reduced Duplication of Procurement Effort

• Better utilisation of scarce resources and skills

• Aggregation of spend to create greater purchasing power which will in return result in greater cost savings

• A less complex and more efficient interface to suppliers utilising the efficiency of systems and other refinements

of e-trading

• Spread of best practice including sharing of market

intelligence

Category A Commodities

• IT Hardware

• IT Standard application software

• Telecoms (including mobile telephony)

• Joint Committee, Elected Members for all Member Councils

• Executive Sub-Committee

• Chief Executives Management Group

• Scottish Local Government Procurement Forum

Category B Commodities (EXCEL)

Currently 80+ In Debate Covering:

• Vehicle and Plant Hire

• Grit and Aggregates

The Central Government Centre of Procurement Expertise (CGCoPE)

• Works with Scottish Government Agencies, Non-Departmental

Public Bodies (NDPBs), Tribunals and Public Corporations

• Professional team of public sector purchasing staff delivering best practice in procurement

• Around 80 organisations members of CGCoPE

• Purpose - conducting and facilitating collaborative procurement activity

• User Intelligence Group's - used to ascertain and collate

requirements

• HIE representation :

– member of Procurement Collaboration Group

– highlight and identify local requirements and considerations

Category B Contracts 2008/2009

(CGCOPE)

• Currently assessing and prioritising categories of spend

& workplan for 2009 and beyond

• Current categories of spend as follows:

Efficiency Agenda

• Shared Services Across All Councils

• Procurement Is A Main Element

• 13% of Overall Total Savings Target

• Standard Approach Across All Public Bodies: PQQs, Ts and Cs

• Single Point Of Contact For Tender Notices

Public Sector Procurement:

How to tender for contract opportunities.

• £8 billion spent in Scotland each year on goods and

services

• Any business can become a supplier to this market

• Contract values are an estimate of the value of the whole requirement over the period of a contract

• For example:

– local authority contract for services valued at £160K

 Scottish public sector organisations advertise tender

opportunities via the Public Contracts Scotland website:

Other Contract Opportunities

 These tips are expanded upon in the Tendering for

Public Contracts booklet or online at:

www.scotland.gov.uk/Publications/2008/10/27105954/1

 Only bid for work that you are sure you can do

 Familiarise yourself with the format you will have to

use to fill in the buyer’s documents

 Identify key Dates and Deadlines

 Plan and cost the full extent of delivering the contract

Public Procurement Tips

 If you are not sure of anything, ask the buyer in good

time

 Remember that at the Invitation to Tender stage you

are being evaluated in line with the criteria identified

 Remember, your bid will be evaluated only on the

information you provide as part of the tender process

 Request feedback about your proposal to allow you to

identify areas for improvement when submitting your

next tender

Public Procurement Tips

 All public sector organisations must ensure they

obtain value for money.

In Scotland, it is policy to award contracts on the basis

of Most Economically Advantageous Tender

(MEAT)

To assess MEAT, a quality: price ratio will be

applied

 HIE typically apply this ratio on an 80:20 split

Understanding the Evaluation of Tenders

Subcontracting opportunities

 Some of the highest-value government contracts may

go to large companies Smaller or newer

organisations may become engaged in these

• The aim of this is to achieve value for money

• Opportunities for H&I businesses:

- Offer to service the contracts in our area

- Bid for these when they appear

- Work in partnership with others

Supplier Opportunities

Freedom Of Information

• Request winning tender submissions

• All tender submissions are subject to FOI

• Monitor Contract Award Notices and request winning submissions

• Request feedback

E-Procurement Systems

• Greater Understanding Of Transactional

Purchasing

• Greater Auditability and Control

• Greater Contract Compliance

• Process Savings

• Increased Ability To Compete Requirements

• Best Value In Purchasing

Acrobat Document

Purchase Cards

• Increased Flexibility In Purchasing

• Out Of Hours/Emergency Purchasing

• One-Off Purchases

• Improved Audit Trail Over Paper

• Lower Costs In Supplier Base

Administration

• Levels 1, 2, and 3

• Immediate Payment

• Minimisation Of Process Cost

• Increased Process Efficiency

• Increased Auditability

• Minimisation Of Waste

• Clearer Evaluation Process

• Faster Communications

Freedom Of Information

• Entitlement To Debriefs

• Elimination Of Blanket Confidentiality Clauses

• Obligation To Disclose As Much As Possible

• Records Not Processes Ongoing

• Protection Of Intellectual Property And LINE ITEM Pricing As Long As It Is Live

Advertising and Publicity

• Pace Of Change Is Quickening

• Public Bodies Must Change, And Need Suppliers To Change With Us

• Auditability And Competitiveness Are Increasing