Transcript Slide 1

Presented by
PUBLIC PROCUREMENT
25 OCTOBER 2012
David Hall
&
Heather
Hodgins
PROGRAMME OBJECTIVE
To provide an overview of Public
Sector Procurement,
To assist in the understanding of what
is involved and what is needed to
present a creditable submission for a
public sector contact.
DOING BUSINESS
Business with the:
Consumer
Private Sector
Public Sector
The Public Sector
– that part of business
activity that is organised and
controlled by the
government or its agencies
on behalf of the nation as a
whole
THE PUBLIC SECTOR INCLUDES
 Local Authorities
 GLA, LOCOG, LLDC
 Central Government
 NHS
 Transport (TfL)
 Emergency Services (Blue Light)
THE
“PUBLIC SECTOR” INCLUDES
 Housing Associations
 Colleges & Universities
 Quangos
 PPP
PUBLIC EXPENDITURE
Approximately 74% of expenditure is Central Government and 26%
local government.
ADVANTAGES OF SUPPLYING THE PUBLIC SECTOR
 L a r g e a m o u n t o f b u s i n e s s a va i l a b l e ( P u b l i c S e c t o r £ 6 7 5 b i l l i o n i n 2 0 1 3 )
 G e n e r a l l y g o o d p a ye r s a n d p r o p e r c o n t r a c t u a l a r r a n g e m e n t s
 C h a n c e t o g e t i n vo l v e d i n e x c i t i n g o r u n u s u a l p r o j e c t s
 Recession resistant – (to some extent, but not immune)
 Subject to public procurement legislation
 Unlikely to go bankrupt
 Not beholden to cash flow problems
 L o o k i n g t o “ g o l o c a l ” ( E n vi r o n m e n t a l & L o c a l d e ve l o p m e n t a g e n d a )
 Chance of innovative projects
 Chance to demonstrate flexibility
 Tr a n s p a r e n t
 Subject to statute (e.g. OJEU)
ADVANTAGES OF SUPPLYING
PUBLIC SECTOR
 Cash flow being paid on time
 Obliged by law to pay within 30 days of receiving a valid invoice, in
most cases the council pays before the statutory 30 days
 Barking & Dagenham– 20 days
 Waltham Forest – now aiming for 10 days
 Feedback
 Under the EU procurement Directives - required to provide feedback
 If it is requested, even for contracts below the EU threshold
 Do not have to give any details of competing bids
DISADVANTAGES
 Risk
 Cost of process to w in w ork
 Time to make decisions
 Different paperw ork
 Poor coordination
 Unexpected impact of political decisions (Local Authority)
FINANCIAL REGULATIONS
The Greater London Authority
£0 - 4999
£5000 -14999
£15000 - 24999
£25000 – 49999
£50000-£154000
£154000 plus
Purchase Order
Three quotes
Three written quotes
Mini Tender
Full Tender
EU Tender
Greenwich Council
£0 – 10,000
£10,000 - 25,000
£ 25,000 -100,000
Over £100,000
£154000 plus
One written quote – from approved list/Concordat
Two written quotes - from approved list/Concordat
Three written quotes
Full Tender - Framework agreement
EU Tender
BARRIERS & CONSTRAINTS
 N ot unde r st anding publ ic pr oc ur em e nt
 N ot e nough e x pe rie nce or t r a c k r e c or d ( r e f e rence s)
 Pol i cie s ( t he c or e f our pl us one )
 Ac c r e di t a t i ons & C e r t ific ations ( e . g. N I C EI C , C H AS,
C ons t r uctionline , I SO , e t c . )
 Fi na ncial c a pa c ity ( not ha vi ng 2 / 3 ye a r s a c c ounts)
 Wor k load c a pa c ity
 Sys t e m s & pr oc e dur es ( Sub c ont r ac tor /supplie r e va l ua t i on
pr oc e dur es)
 Pr oc e s ses i nvol ve d i n s ubm i ss ions/bidding a r e c om pl e x a nd
c os t ly
 La c k r e s our ce t o s ubm i t publ i c s e c t or PQ Q ’s of t e nde r s
 H ow t o f i nd out a bout oppor tunitie s
 The D e ve l opm e nt of e - pr ocur em ent
BUYERS OBJECTIVES
Purchasers/procurers are looking for a variety of things (and the criteria w ill vary) but in
simple terms the decision is likely to be in finding a supplier that is:
 Qualified and capable (meets the requirements)
 Has relevant experience
 Provides an acceptable level of risk
 Providing Value For Money (or Best Value). HM Treasury: Value for
money is the combination of w hole -life cost and quality to meet the
user ’s requirement .
 Has a level of financial soundness.
IMPORTANT TO THE BUYER
What is important to the Buyer?
 Better sources of supply
 Increased competition = lower costs
 Increased competition = innovation
 Help to overcome shortages
 Suppliers with understanding of local issues
Also require :
 Vetted suppliers
 Supply base which is reflective of local community
 Opportuni ty to review and improve
SOME CONSIDERATIONS FOR THE SUPPLIER
“READINESS TO SUPPLY”
• Awareness of the Supply Chain
• Accessing Opportunities
• Considering the risk & Addressing the areas of Risk
• Assessing capabilities, qualifications and references
• Policies and certifications
• Presenting your business
BREAK
PRACTICAL WORKSHOP
PRIORITISING RESOURCES
Cost of seeking public sector work. (Direct and Indirect costs)
Don’t under estimate the time to prepare your business to be RTS.
Certifications. Are they worth it?. (ISO’s, CHAS, SafeContractor, etc.)
Policies & Procedures. Developing and maintaining.
Consider carefully what you want to “go for”
Do you need to consider enhanced staff training?
Costs for on-going monitoring/searching for published opportunities
When you are submitting, make sure you leave plenty of time.
IT requirements?
Be prepared for the long haul
PRE-QUALIFICATION (1)
Demonstrate that your organisation is a
creditable potential supplier
 Ex pe r ie nce a nd c a pa bilit y
 References, track record
 Trade membership or quality standards
 Staff capabilities
 Capacity
 O r ga nisa tion a nd l e ga lities
 Appropriate insurance policy documents
 Certificate of Incorporation
 Staff structure
 Staff turnover rate
PRE QUALIFICATION (2)
Essential Policies for the Public Sector:
•Health & Safety (OHSAS 18001)
•Environmental (ISO 14001)
•Equalities & Diversity
•Quality Assurance (ISO 9001)
•Business Continuity (BS25999)
PRE-QUALIFICATION (3)
Financial status
 Two/Three Years accounts
 Bank reference
 Statement of continued trading
Best practice
 Environmental Awareness
 Social Responsibility
 Training Plans
 Recruitment
 CRB Checks
 Resident Communication Systems
SUSTAINABILITY & the ENVIRONMENT
• High on the Government agenda
• Local Councils wish to ensure that their suppliers are committed to
sustaining the environment
• Environmental awareness is a “Good selling point”
• Opportunities, e.g. CERT
• Can you demonstrate your business is environmentally aware?
• What positive steps have you taken to manage the impact you
business has on the environment. (Materials, Energy, Water)
• Have you an Environmental Policy in place?
• Have you an Environmental Action Plan & Management System in
place?
• What does your business proactively do regarding reducing, re-using
and re-cycling?
• How do you communicate/promote sustainability requirements to your
staff?
• Have you a waste procedure in place?
• Can you confirm that your suppliers have a sustainability culture?
THE MOVE TOWARDS E-PROCUREMENT
 Electronic procurement (e - Procurement) is the purchasing of goods
and services utilising the Internet.
 Most large organisations are moving towards greater electronic
sourcing, ordering and transactions (e.g. Payment methods).
 The challenge to SMEs is not just to be online, but to be able to
respond to electronic opportunities, invoicing and data interchange.
E-Procurement
•Identifying/Finding Opportunities
•Responding to Opportunities
(Expression of Interest, Prequalification
Questionnaires and Invitations To Tender)
FINDING OPPORTUNITIES
CompeteFor
 A w ebsite designed to publicise new opportunities w ithin the
London 2012 supply chain
 Originally Funded by the LDA and the Regional Development
Agencies (no longer since July 2012)
 Maximise the economic benefits of the 2012 games
 There are 125,000 published companies nationally
 30,000 businesses registered in London
 45% of companies of the 125,000 are published and until you
are, you w ill not get anyw here – you have to publish
FINDING OPPORTUNITIES:
E.G.
Public sector contracts under £ 100K, register at
w w w.supply2gov.uk
Advertised tenders above EU threshold (c £ 154K)
http://ted.europa.eu (Tenders Electronic Daily “TED”)
http://w w w.villagesupplychain.com /index.php
https://w w w.sell 2w ales.co.uk/
http://w w w.govopps.co.uk/
w w w.pasa.doh.gov.uk/sid/
https://w w w.in -tendhost.com
w w w.sopo.org.uk
w w w.espo.org
w w w.cbconline.org.uk
w w w.bluelight.gov.uk
SELL YOURSELF WITHIN PQQ
SME’s have:
 Low er cost base
 Innovative
 Responsiveness
 Flexibilit y
 Quality
Use your USP’s:
 Why are you the best
 Fast response –better service
 Improved environmental
impact
 Specialise
 Local issues
 Brings greater
 Give the benefits as w ell as
competition
the features of your business
Quality of your bid not the service
BALANCED SCORE CARD
For example
1.
2.
3.
4.
5.
6.
7.
8.
9.
Within geographical area
Proportionality
References
Accounts (number of years)
Years of experience
Trade accreditations
Policies
Need to sub contract (high/low)
Etc as determined
CARDINAL SINS- Things to avoid
1. Don’t participate unless you are totally dedicated to succeed. It is better
to decline than give a poor representation of your business.
2. Late submissions. Failure to comply with timetable
3. Spelling mistakes and poor grammar
4. Forgetting to remove previous clients name from submission
5. Not complying with all instructions, (e.g. format, number of copies, etc)
6. Too much waffle and not enough substance. Avoid generic information
7. Failing to ask questions of the buyer if unsure
8. Exaggerating your business offer to succeed.
9. Condemnation of competition
10. Taking success for granted or offering bribes or inducements for work
11. Failing to ask for de-briefs if unsuccessful
12. Busting word limits.
ACCREDITATIONS &
CERTIFICATIONS
T h i r d p a r t y a c c r edi t a t io n
 C o n s t r uc t i o nl in e t h e U K ' s r e g i s t e r o f p r e - qu a li f i e d l o c a l a n d n a t i on a l
c o n s t r u c t io n a n d c o n s t r uc t i on - r e l a t e d s u p p l i e r s ( D T I f u n d e d) w w w. c on s t r uc t i o nl i ne . c o. uk
 E x o r - w w w. e x or gr o up. c o. u k
 Ac h i l l e s - w w w. a c h i ll e s . c o m
 C H AS  S a f e C ont r a c t or
THANK YOU
David
[email protected].