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Leeds City Council
Electronic Procurement
San Sebastian - 11th & 12th April 2005
Wayne Baxter
Chief Procurement Officer
www.counciltenders.net
Leeds City Council - Background/Context
 North of England - West Yorkshire
 2nd largest UK local authority
 Serves a population of 730,000
 Unitary - providing full range of services
 33,000 employees
 € 2 bn annual budget
 € 805 m procurement spend
The Starting Point...
Leeds City Council’s Best
Value Review of Procurement
E-Procurement: Main Principles
 More than ‘shopping electronically’
 Get the ‘offline’ procurement in shape first
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(Business NOT technology led)
Modular approach to implementation
Encourage local suppliers and SME’s
Exploit opportunities for joint working
between local authorities
Linking procurement strategy and policy
with other corporate priorities/strategies
Drivers & Objectives
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Progress towards meeting the Government’s
targets for Electronic Service Delivery
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Improve the efficiency, effectiveness and
economy of the procurement process
 Demonstrate
leadership in the adoption of etechnology and promote its use in the local
business community
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Improve the competitiveness of the local
economy
Overview: Systems & Processes
Buyers
Value Added Services
Suppliers
Small
Businesses
High Value, Low Volume
Procurement
(TENDERS)
Contractors
Large
Corporations
Low Value, High Volume
Procurement
(ORDERS)
E-procurement
Policy & guidelines
/ buyer profiles
Contract
Management
Portals
Agencies
Not-for-Profit
Consultants
e-Auctions
POLICY
INFRASTRUCTURE
TRAINING
A Step by Step Approach
Yorkshire Regional
Electronic
Tendering System
(CouncilTenders)
Main
Strategy
Leeds Electronic
Tendering System
(LETS)
Leeds Contract and
Supplier Management
System (LCSMS)
Leeds Electronic
Purchasing System
(LEPS)
Leeds (or Regional)
Supplier
Management
Call Centre
Phase 1
Phase 2
Phase 3
UK Central Government e-Procurement
Initiatives for Local Government
UK Government - Implementing Electronic Government (IEG) Agenda
Current Position
e-Gov Pathfinder Programme & Dissemination
National e-Procurement Project (NePP)
IEG Partnerships
National Procurement Strategy for L.Gov
Regional Centres of Excellence
2001/2
2002/3
2003/4
2004/5
2005/6
Fitting it all Together…
Fitting it all Together…
Pathfinder
Regional
E-Tendering
The Catalyst...
Leeds City Council’s Best
Value Review of Procurement
Local Government On-Line
Pathfinder Programme
Partnership with the State
Govt of Western Australia
Tendering - Traditionally
Prepare
Tender
Advertise
Tender
Register
Interest
B
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E
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Provide
Tender
Lodge
Response
Open
Tenders
Evaluate
Tenders
Award/Notify
Tenders
Prepare
Response
CONTRACT
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Tendering - Electronically
Electronically
Electronically
Early Advice
Advertise
Advertised
Tender
Invited
Prepare
Tender
New User
Register
or
Interest
Logon
B
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Y
E
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Provide
Electronic
Tender
Download
Electronic
Lodge
Lodgement
Response
Online
Open
Tender
Tenders
Opening
Evaluate
Tenders
Result/Status
Award/Notify
Published
Tenders
Online
Prepare
Response
CONTRACT
CONTRACT
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What is an Electronic Tendering System?
Being able to perform tendering functions as a buyer
and a supplier in an electronic manner as an extension
of the existing procurement processes.
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Tender Advertising (Early & Current)
Invited Tenders
Tender Search & Classification
Tender Document Download
Electronic Tender Lodgement
Attachments (Documents & Drawings)
Tender Status & Results
Archiving
The Home Page
Benefits: BUYERS
Improve transparency & openness
 Provide the ability to decentralise
tendering
 Improve communication with suppliers
 Reduce tender advertising, paper &
overhead costs
 Make the process easy to manage & easy
to use
 Provide the opportunity for partnerships
with other Councils
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Benefits: SUPPLIERS
(1 of 2)
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Direct access to latest tenders and
contracts - 24 hrs / 7 days per week
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Simple to register & to use
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Tenders can be downloaded electronically
No need to wait for the tender to come to them
 No need to notify the Council of their interest
in a tender first
 Can always view the specification of a tender
before deciding whether to tender
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Benefits: SUPPLIERS
(2 of 2)
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Provide the ability to find out about award
details
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Tenders can be lodged electronically
No last minute rush to the tender box
 Reduced postage & handling costs – simply
lodge the e-version
 Auto confirmation of tender being received
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Ability to always view a tender’s status
after lodgement (reduced phone calls).
System Usage Information
 17,320 registered users
 3,110 tenders placed on site (€ 3.2bn)
 96% electronic download rate
 58% electronic submission rate
 95% of feedback ‘good’ or ‘very good’
 12 other Councils using the system
Statistics for Leeds only - as at Feb 2005
‘GoDigital’ Toolkit
An EU funded initiative that
sought to:
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promote the efficient use of e-business by
SMEs
provide assistance to enable SMEs to
participate in and take full advantage of
the e-economy
Toolkit Overview
Based on Supplier FAQ’s
 What equipment do I need?
 Have I got the right skills?
 Is electronic tendering secure?
 What will it cost?
 What will I need to do differently?
Fitting it all Together…
NePP
Regional
Solutions
National e-Procurement
Project
Project Overview
NePP - Aims of the project
 To enable councils to take full advantage of eprocurement by the target date of 2005
 To raise the profile of procurement in all councils
 An e-procurement toolkit (web-based)
 A programme of local authority experience sharing
 Standards, and products tailored to reflect local
authority requirements
NePP - Why is the project needed?
Survey of 168 authorities in 2003:
 85% of authorities had taken steps to meet
2005 e-government targets
 35% of authorities had completed a
business case for e-procurement
 Only 13% had implemented e-procurement
by the end of 2002
NePP - The Project Strands and Lead
Authorities
 Getting the Story Right (IDeA and BuyIT)
 Technical Requirements (Kirklees)
 Regional Solutions (Leeds)
 Organisational Change Management and
Communications
(Cambridgeshire)
 Standards (Bristol)
 Supplier Adoption and Economic Development
(Newham)
NePP - Shape of the project
 A web-enabled toolkit
 A database of authorities
 A programme of seminars
 Comprehensive Guidance
 Support targeted at those authorities that
need it most
 Experience Sharing workshops
NePP - More Information
www.idea-knowledge.gov.uk
www.nepp.org.uk
Fitting it all Together…
Partnership IEG funding
Supplier/Contract
Management and
e-purchasing
West Yorkshire IEG Partnership
e-Procurement
Project Overview
Project Details
 Implementing Electronic Government (IEG)
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2005 target - all services online
Annual IEG statements record progress
IEG partnership funding linked to statements
 Project Details
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Focuses on eProcurement
€ ¾ million funding - completion March ‘04
Collaborative working / partnerships
Sub-regional focus (West Yorkshire)
Objectives
 Speed up the introduction of eProcurement
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Collaborative approach to systems development
Sharing existing tried and tested solutions
 Easier for businesses to trade with us
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Raising awareness & encouraging participation
Common procurement systems & procedures
 More efficient and effective procurement
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Sharing costs of implementing eProcurement
Joint procurement and contracting arrangements
Deliverable 1
Sub-regional e-procurement strategy
 Publishing a co-ordinated short to medium-term
approach to eProcurement across the WY region
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Embracing IEG principles
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Aligning strategies across the
WY Councils
Building-block for ongoing
collaboration beyond IEG
funded project
Inform businesses of future
developments in the region
Deliverable 2
Standard documents & procedures
 Easier for firms to do business with Councils
 Easier for WY Councils to work together
 Initial priority areas:
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Vetting standards for supplier pre-qualification
Standard contractual terms and conditions
Documents/procedures around tendering
Approaches to contract and supplier management
Deliverable 3
Electronic tendering
 Migrating “CouncilTenders” (formerly
LETS) from Australia to the UK
 All WY Councils to share same electronic
tendering system (ETS)
 Modifying ETS to capture information on
local sourcing and SME usage
Deliverable 4
Electronic procure-to-pay
 Further roll-out and development of
Marketplaces
 Review of ‘procurement management
information’ needs across the Councils
 Pilot projects looking at e-enabling elements
of the ‘procure to pay’ cycle (Ordering,
Payment, Invoices)
 Regional electronic auctions
Deliverable 5
SME engagement & enablement
 Research supplier concerns around working with
councils generally and around e-procurement
 Programme of joint events ‘demystifying’ working
with Councils in West Yorkshire
 Information booklet and website: “How to do
business with West Yorkshire Councils”
Deliverable 6
Joint contract/supplier management
 Supplier Management
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Online supplier management system
Suppliers register information once but info available
to all WY Councils
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Avoid filling out similar forms for all WY Councils
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Avoids all WY Councils vetting same firms
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Shared approved lists
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Allows initiatives to be developed in line with political
strategies e.g. local sourcing and SME support and
development
Deliverable 6
Joint contract/supplier management
 Contract management
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Online contract register for WY Councils
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Better contract planning, packaging and design
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Identify opportunities for joint contracting
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Single source of business opportunities
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Market development and management
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‘Opportunity Matching’ through business support
organisations
Fitting it all Together…
National Procurement Strategy
&
Regional Centres of Excellence
The Future
Regional Centres of Excellence
 9 Regional Centres in the UK
 Leeds City Council hosts the Regional Centre
of Excellence for Yorkshire and the Humber
(21 local authorities)
 Government funded to 2008 then self-funding
 Centres will deliver
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Gershon Efficiency Savings
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National Procurement Strategy
National Procurement Strategy
 Milestone targets for 2004, 2005, 2006
 Key themes
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Leadership and Building Capacity
Partnering and Collaboration
Doing Business Electronically
Stimulating Markets
Achieving Community Benefits
 Leeds already making good progress
 Targets embedded into LCC own strategy
Questions
[email protected]