Transcript Susan Dawson CPC Keynote Final

Achieving Value for
Money in Procurement
Stephen Archer
Schools Commercial Team
Public Sector Procurement Reform
How?
Efficiency and Reform Group (ERG) works in
partnership with HM Treasury and government
departments to deliver:
• savings by ensuring that government acts as ‘one
customer’ – through combining government’s buying
power and increasing our pool of suppliers to government
(including small and medium-sized enterprises)
• assurance on the delivery of government’s most
significant projects, on time, within budget and to a high
quality
• support for UK growth by allowing a wider range of UK
businesses to bid for government contracts and making
new commercial partnerships and businesses, including
support for public service mutuals
What does it look like?
Collaborate to deliver £12bn savings
Collaborate to deliver £12bn savingsDepartments to Focus
Departments focus on truly unique commercial activity
Strengthen the procurement profession
Collaborate to deliver £12bn savingsDepartments to Improve
Commercial awareness
Collaborate to deliver £12bn savingsDepartments to Simpler
More flexible EU procurement rules
SMEs have access to government contract opportunities
Contract management – drive value from contracts
Dept for Education
Efficiency & Reform Group
Centrally manage procurement of goods and services
Review of efficiency in the schools
system
https://www.gov.uk/government/public
ations/review-of-efficiency-in-theschools-system
Procurement aspects
 Benchmarking
 Identifying new deals and
driving uptake to existing
contracts and arrangements.
How can procurement help you….
save money
get better
value for
money
be
accountable
for what you
spend
follow the
law
Managing Public Money
Is there a requirement for public bodies to achieve
value for money?
Yes
and do so following EU Treaty principles of transparency.
proportionality, equal treatment and non-discrimination.
The competitive process:
• Helps ensure value for money
• Helps demonstrate transparency
EU Financial thresholds
From 1st January 2014
EU Procurement Directives and
The Public Contracts Regulations
2006
For Schools thresholds are:
• £172,514 Goods & Services
• £4,332,012 Works
Regulations do not apply in full
when the estimated value of
contract is below threshold
but Treaty principles do
New EC Procurement Directives
Revised directives agreed by
EC June 2013. Anticipated to
be UK law by end of 2014.
Changes to UK public sector
procurement regulations will
be highlighted to schools in
BuyWays
Cabinet office training
www.gov.uk/transposing-euprocurement-directives
Core changes to the new Directives
‘Most economically advantageous tender’ (MEAT) will
become the standard award criterion replacing “lowest
price”.
This includes :
• Quality,
• Environmental & social
• Innovative characteristics
• Transparency in sub-contracting
• Rules on abnormally low bids.
“Light Touch” regime for Education &
Social Services
• We have negotiated an exemption for Education &
Social Services (& Health) that enables us to use a
“light touch” regime for services under 750,000 Euros.
• The UK is required to put in place “appropriate
procedures” for the award of contracts under this
process in the UK Regulations
• The Cabinet Office has consulted on this & we await
their proposals
The
current
climate
Importance of efficiency and
financial management
Variation in back office spending
What can you do?
• Analyse expenditure
• Review your contracts
• Identify opportunities for rationalisation
• Deliver admin savings
• Collaborate across key strategic spend areas
• Benchmark and compare