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Procurement, Capital and Shared Assets
Workstream
Cllr Paul Bettison
Andrew Smith OBE
Friday 3rd December
www.local.gov.uk
The productivity challenge…
• Cultural not technical – who can afford sovereignty?
The productivity challenge…
• Designing for tomorrow today
The productivity challenge…
• Driving adoption
The productivity challenge…
• Embracing localism
The productivity challenge…
• Making a significant impact on costs
• 96% of spend is in construction, corporate services, social care and waste
and in the last two costs are set to double
• Our solutions need to deliver for each of these markets
• Working with suppliers to reduce costs
• We need to help suppliers reduce their costs, simply driving down margins
becomes counter productive
• There is an expanding range of service providers in the private, and voluntary
and community sectors - we need to help them reduce their costs too
• The challenge isn't technical its in our behaviour
• We haven't been good at collaborating in the past but we have some
examples of excellence
• We can deliver significant quick wins and reshape whole markets
• Building capacity in local government to make the changes is critical
Workstream plan
• Short term – Quick Wins Strategy
• Medium term – Big Wins Strategy and
new service models
• Longer term – Remove barriers to
adoption = Optimum Leverage
Big Wins Strategy… Follow the money
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50% of spend is through third party suppliers
External spend for public sector in England is £221bn…
Of which £50bn is local government
96% of our external spend is in 4 areas
Construction
Asset Management
Corporate
services
Social care
Waste
Construction and Asset Management
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Build using a managed framework approach
Helping localism through increased leverage
Developing long term performance based supplier relationships
Using collaborative frameworks as a vehicle for local economic benefit
Offering a core framework design for local adaption
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Offering a Collaborative Education Partnership service model
A local government led best practice approach
Easy access, low cost and flexible
Developing programmes not projects
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Sharing assets
Better use of what you currently have – start simple
Shape and improve service outcomes through sharing assets
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Learn from CLG Capital and Asset Pathfinders
Developing new property vehicles and funding mechanisms
Corporate services
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Outsourcing corporate services
Developing new contracts with flexibility and incentives to reduce costs
Delivering a framework for shared services with CBI and industry
Looking at open source software and shared processes
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Reducing the costs of commodity procurement
An online best deals service to compare prices
Development of the Spotlight on Spend service to make spend transparent. Joining
up business portals to make contracts and tenders more transparent.
Reviewing the best deals in the top spend categories in collaboration
with central government
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Energy Buying Guidance
Developing proposals on optimum energy procurement
Reviewing local energy production and local government’s role in this
Social Care
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Reduce unit costs
Across the SE, London, WM & EM the Care Funding Calculator continues to
offer a method for delivering savings on residential care and supported living –
Savings since 2008 to date of £13m
Putting this online and extending to children‘s services
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Reduce purchasing
Developing a proof of concept to help authorities to expand their Shared Lives
schemes to deliver support to a wider range of people, and reducing spend of up
to 60% on traditional high cost services such as residential care and day care
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Shared approaches to procurement
Geographic frameworks to manage the markets for traditional forms of care
Regional or sub-regional community equipment services
Opening ‘best deals’ offers care providers reducing costs of service to
the public sector and self-funders
Waste and Resources
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Transformation Support Service
A service for all councils pursuing early stage and advanced waste partnerships, access to
a national waste partnership forum
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National and regional procurement delivering frameworks representing significant
procurement savings; reducing the costs of existing contracts, and; providing access to
reduction and recycling incentive schemes
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Knowledge Transfer Waste Information portal with over 95% of LA’s registered
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Self Assessment an online service, allowing local authorities to self-assess their service
against a blueprint of best practice. 70 authorities already using this.
Accelerating the learning…an example
Local Authorities
Benefit
Learning
The Future
• Technical
• Collaboration
(local choice)
Leverage
(aggregation benefits)
• Product shift – but less risk
• More adoption of what works
• Supply chain management
• Scale
• Standardisation?
• Compliance
The Future continued…
• Adaptive
• Sharing capacity / skills / people
(is sovereignty dead?)
• Redesign
aggregate
procure
• Elected member leadership
• Is the private sector prepared?
• Procurement models based on:
Joint ventures
Asset backed borrowing vehicles
Geography or place based
• Leverage
deliver
Questions and answers…
• We have published a Quick Wins document
– We would welcome your feedback
• We will publish shortly a Big Wins document
– We would welcome your suggestions
• We recognise that to make the programme meaningful we
have to implement change
– If you want to help take the programme forward please get
in touch
Workstream contacts and further info
Member lead: Cllr Paul Bettison:
[email protected]
Chief Executive lead: Andrew Smith:
[email protected]
Managing Director: Andrew Larner
[email protected]
Programme Manager: Michael Lee:
[email protected]
Visit our website and join the community of practice:
www.local.gov.uk/place-based-productivity
www.southeastiep.gov.uk
www.niepbuiltenvironment.org.uk
Thank you