Transcript Document

Government
Procurement Reform
Programme
Update Briefing - November
Agenda
• Cabinet report back
• Support structure
• All-of-Government Contracts
• Capacity building
• Next steps
Cabinet Report Back
October 2009
Key issues
• Funding
• Savings
• Ministerial intervention
Ministerial Directions
• Direct MED to report back to the ECC with
information on any Public Service Department or
State Services agency that wishes to opt out of,
or takes actions that may undermine the savings
available from an A-o-G contract approach
Ministerial Directions
• Agree that Public Service Departments and
State Services agencies transition to A-o-G
contracts as soon as possible from June 2010;
and that agencies should not enter into new or
extend existing arrangements that may
undermine the planned A-o-G contracts
Resources
• 09/10
-
$3.0M
• 10/11
-
$5.6M
• 11/12
-
$5.6M
• 12/13
-
$5.7M
• Out years
-
$5.7M
• Headcount increase
Funding/Savings
• Year 1 central funding
• Year 2 funded from savings delivered
• Agencies count savings against their
individual targets
• On-going support dependent on benefits
evidence
Support structure
Delivering procurement reform
Governance
• Strategy
– Future direction, business participation
• Procurement Development
– Technical support, sounding board
• Cost Savings
– Contract strategy, scrutiny
• Client Groups
– Service requirements, technical input
Advisory Groups - Invited
Strategy
Development
Savings
Phil O’Reilly
Ron Stuart
Ron Stuart
Laila Harre
Ted Dean
John Richards
Chris Morgan
Brett Rigden
Craig Williams
Andrea Gregory
Colin Fairweather
TBA
Peter Mersi
Matthew Perkins
David Scampton
Nicola White
Alyson Moody
Bruce Wooller
Steve Bickers
Peter Fehl
Team Leader appointments
• John Ivil
Manager AoG Contracts
• Paul Simonsen
Team Leader - Vehicles
• Gareth Charles
Team Leader - IT
• Neville Johnson
Team Leader - Stationery
• Peter Cooper
Team Leader - Capability
• TBA
Policy Development
All-of-Government
Contracts
Collaborate to deliver efficiencies
Contract areas
Spend Area
Annual Spend
Desktop/laptop computers
$58 Million + $20 MinEd
Vehicles
$87 Million
Stationery
$61 Million
Multi-functional Devices
$20 Million
Summary Data
IT Equipment
Spend & Units by Sector –
IT Hardware
Average Annual
Spend
Average Annual Units
Desktops
Laptops
Desktops
Laptops
Public Service
$11M
$6M
8500
3100
State Services
$20M
$7M
14600
3600
State Sector
$10M
$4M
6900
1800
Note: Number are rounded to $1M
Pareto – Significant Procurers
Desktops
Desktops: Total Spend over 4 Years
$16,000,000
16.0
80% of total
spend
$14,000,000
14.0
$12,000,000
12.0
$10,000,000
10.0
$8,000,000
8.0
$6,000,000
6.0
$4,000,000
4.0
$2,000,000
2.0
$M
$-
Pareto – Significant Procurers
Laptops
Laptops: Total Spend over 4 Years
8.0
$8,000,000
$7,000,000
7.0
$6,000,000
6.0
$5,000,000
5.0
$4,000,000
4.0
3.0
$3,000,000
$2,000,000
2.0
$1,000,000
1.0
$$M
80% of total
spend
Desktop suppliers:
11%
23%
2%
Dell
3%
HP
4%
Axon
Datacom
4%
Gen-i
Cyclone Computers
Fujitsu
14% Silicon Systems
7%
Acer
IBM / Lenovo*
Other
10%
11%
11%
Laptop suppliers:
Axon
HP
13%
Gen-i
27%
Dell
Datacom
13%
Fujitsu
The Laptop Company
Cyclone Computers
Advantage Computers
1%
Lenovo
2%
Other
12%
3%
5%
6%
6%
12%
Summary Data
Vehicles
Spend & Units by Sector –
Vehicles
Average Annual Spend (Millions)
Passenger
Cars
4x4
Ute's
Vans
Total
Public Service
$19
$2
$8
$3
$31
State Service
$31
$3
$2
$5
$40
State Sector
$5
$3
$4
$2
$14
Average Annual Units
Passenger
Cars
4x4
Ute's
Vans
Total
Public Service
1000
100
200
100
1300
State Service
1600
100
200
200
2100
State Sector
300
100
200
100
700
24
Note: Number are rounded to $1M
Pareto – Significant Procurers
Vehicles
$70M
$60M
$50M
$40M
$30M
$20M
$10M
$0
25
Vehicle suppliers:
15%
18%
Hyundai
4%
GSB Supplycorp Ltd
Holden
4%
13%
5%
Custom Fleet
FleetPartners
Local Car Dealers
Honda
6%
11%
6%
8%
26
Volkswagon
Toyota
10%
Ford
Other
Spend & Units by Sector – MFD
Average Annual Spend Average Annual
Units
Public Service
$6M
900
State Services
$10M
2200
State Sector
$4M
300
TOTAL
$20M
3400
Note: Number are rounded to $1M
24
Pareto – Significant Procurers
MFDs
MFDs: Total Spend over 4 Years
12.0
$12,000,000
80% of total
spend
10.0
$10,000,000
8.0
$8,000,000
6.0
$6,000,000
$4,000,000
4.0
$2,000,000
2.0
$M
$-
25
MFD suppliers:
TOP 10 MFD Suppliers
2% 1% 0% 1%
2%
Ricoh
Canon
4%
8%
Konica Minolta
Fuji Xerox
30%
Axon
Gen-i
Sharp
Datacom
Fujitsu
GSB SupplyCorp
14%
Other Suppliers
13%
25%
26
Summary Data
Stationery
Spend by Sector –
Stationery
Average Annual Spend by Sector
$61m
Public Service
$18M
State Services
$32M
State Sector
$11M
53%
Public Service
State Services
State Sector
29%
18%
Current Stationery Supply
Millions
Public Service Spend
$14
Corporate Express
$12
$10
Office Max
$8
Other Suppliers
$6
$4
$2
$0
Public Service
State Services
State Sector
Pareto – Significant Stationery
Procurers
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
80% of
spend
Annual Average Spend on Stationery
Breakdown of Agency Spend
SPEND
AGENCIES
TOTAL SPEND
PERCENTAGE
0 - $100000
63
$2,380,470
4%
$100000 - $200000
31
$4,394,311
7%
$200000 - $300000
16
$3,973,490
6%
$300000 - $400000
14
$4,953,189
8%
$400000 - $500000
4
$1,820,514
3%
$500000 - $1000000
17
$12,651,614
21%
$1000000 - $1500000
5
$6,729,360
11%
$1500000 - $2000000
3
$5,333,960
9%
$2000000 - $2500000
2
$4,642,848
8%
$2500000 - $3000000
2
$5,363,474
9%
$3000000 +
2
$8,949,472
15%
159
$61,192,701
100%
Data Set 2 - Surveys
• Desktops/Laptops
3 December
• Multi-functional devices
3 December
• Vehicles
17 December
• Stationery
17 December
All-of-Government
Contracts
Challenges
Current challenges
• Change management
• Supplier conditioning
• Transition dates
Engagement
• Ministerial intervention
• Chief Executive engagement
• Work groups
• Supplier engagement
• Client Groups
Summary
• Generally strong support
• Few cases of undermining behaviour
• Testing reform resolve
• Ministerial intervention
• Savings = Investment in Procurement
Capacity & Capability
Building
Resource, training & education
Skilled migration
• “Professional Procurement” NZIS
• Long term skills shortage register
• MCIPS qualified
• 5 Years experience
• Job offer not pre-requisite
• Prioritisation in process
Education
• Year 1 focus on CIPS
• Year 2 broaden curriculum
• E-Learning Platform (levels 3, 4, 5, 6)
• Workshops (20 plus per year)
– feasibility of pod cast under investigation
• Study Guides
Education
• Pathfinder assessment to determine
optimum route for individuals
• Offer up to 50 places Year 1, 100 by year 4
• High subsidy (50-100%)
• Details to be worked through with
Development Group
• Finalisation/establishment work
• Likely to start in May ‘10
Training
• On the job training
• Scope to be agreed:
– Procurement Introduction (101)
– Procurement Leaders Event
– Strategic Procurement
– Negotiation
• Out to market soon
• Subsidised 50% to 100%
Conclusions
Procurement reform is happening
Conclusions
•
•
•
•
•
•
Reform is happening
Significant investment
Generally good support
Pockets of resistance
Ministerial personal intervention
Increase engagement
Government
Procurement Reform
Programme
Update Briefing - November