Transcript Title

Selling To The Public Sector 2009
A Presentation For Suppliers
Procurement Reform
• Public Procurement Reform Programme
• Workstreams: Collaborative Contracting,
People and Skills, Competitive Supply
Base, Management Information, Policy
and Best Practice, eCommerce
• Policy Handbook:
http://openscotland.gov.uk/Publications/20
08/12/23151017/0
Governance
• Public Procurement Reform Board
• Procurement Advisory Committee
• Single Point Of Enquiry:
http://www.scotland.gov.uk/Topics/Governme
nt/Procurement/Selling/supplier-enquiries
Major Influences
• The new EU Procurement Directive
• The McClelland Review of Public Sector
Procurement in Scotland
• The Scottish Executive Efficiency Agenda
• Increasing commitments to sustainability
• The drive towards trading electronically
• Freedom of Information
The EU Directive
• Increased Requirement For Competition At All
Levels
• Increased Allowance for Sustainability Criteria
• Provision For Electronic Business
• Provision For Framework Arrangements
• Competitive Dialogue
• Increased Willingness To Take Legal Action
• Mandatory Standstill Period
The McClelland Review
• http://www.scotland.gov.uk/Publications/2006/03/
14105448
• 80+ Recommendations
• Aims To Save £200M Per Year
• Collaboration on A, B, and C Commodities
• Public Procurement Reform Board/Procurement
Advisory Group
• Orders Required For EVERY Invoice
• Suppliers’ Charter:
http://www.scotland.gov.uk/Topics/Government/P
rocurement/Selling/Supplierscharter2/
Benefits Of Collaboration
• Reduced Duplication of Procurement Effort
• Better utilisation of scarce resources and skills
• Aggregation of spend to create greater purchasing
power which will in return result in greater cost savings
• A less complex and more efficient interface to suppliers
utilising the efficiency of systems and other refinements
of e-trading
• Spread of best practice including sharing of market
intelligence
Category A Commodities
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IT Hardware
IT Standard application software
Telecoms (including mobile telephony)
Travel
Stationery
Office Supplies
Certain professional services and consulting
(requires further definition)
• Light vehicles
Scotland Excel
• Local Authority Centre of
Excellence/Expertise
• Overall Governance of Local Authority
Category B Commodities
• Regional Offices
• Timescales
Governance
• Joint Committee, Elected Members for all
Member Councils
• Executive Sub-Committee
• Chief Executives Management Group
• Scottish Local Government Procurement
Forum
Category B Commodities (EXCEL)
Currently 80+ In Debate Covering:
• Waste Management
• Street Lighting and Road Marking
• Recruitment & HR
• Stair Lifts
• Financial Services
• Marketing Services
• Subscriptions and Publications
• Water
• Transport and Distribution
• Education Supplies
• Vehicle and Plant Hire
• Grit and Aggregates
• Aids and Adaptations
The Central Government Centre of
Procurement Expertise (CGCoPE)
• Works with Scottish Government Agencies, Non-Departmental
Public Bodies (NDPBs), Tribunals and Public Corporations
• Professional team of public sector purchasing staff delivering best
practice in procurement.
• Around 80 organisations members of CGCoPE
• Purpose - conducting and facilitating collaborative procurement
activity
• User Intelligence Group's - used to ascertain and collate
requirements
• HIE representation :
– member of Procurement Collaboration Group
– highlight and identify local requirements and considerations
Category B Contracts 2008/2009
(CGCOPE)
• Currently assessing and prioritising categories of spend
& workplan for 2009 and beyond.
• Current categories of spend as follows:
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Professional Services
Marketing
Facilities Management
Corporate Services
Travel
Financial Services
Vehicle
Catering
Efficiency Agenda
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Shared Services Across All Councils
Procurement Is A Main Element
13% of Overall Total Savings Target
Standard Approach Across All Public
Bodies: PQQs, Ts and Cs
• Single Point Of Contact For Tender
Notices
Electronic Trading
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E-Procurement Systems
Purchase Cards
E-Tendering
Reverse Auctions
Public Sector Procurement:
How to tender for contract opportunities.
Background
• £8 billion spent in Scotland each year on goods and
services
• Any business can become a supplier to this market
• Contract values are an estimate of the value of the whole
requirement over the period of a contract.
• For example:
– local authority contract for services valued at £160K
– The value could relate to a period of 4 years,
– The contract could be more attractive at a level of
£40K per year
Where to find Scottish Contract
Opportunities
 Scottish
public sector organisations advertise tender
opportunities via the Public Contracts Scotland website:
http://www.publiccontractsscotland.gov.uk
 HIE also advertise candidates Invited to Tender and the
winning suppliers for their own contracts on their web site
to allow local suppliers to collaborate/subcontract with
these suppliers:
www.hie.co.uk/tenders.htm
Other Contract Opportunities
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www.supply2.gov.uk
www.cpdni.gov.uk
www.sell2wales.co.uk
www.constructionline.co.uk
www.london2012.com
• These and other links are available on the HIE tenders
page
Public Procurement Tips
 These
tips are expanded upon in the Tendering for
Public Contracts booklet or online at:
www.scotland.gov.uk/Publications/2008/10/27105954/1
 Only
bid for work that you are sure you can do.
 Familiarise yourself with the format you will have to
use to fill in the buyer’s documents.
 Identify key Dates and Deadlines.
 Plan and cost the full extent of delivering the contract
 Answer all questions asked and ensure your bid
reflects the contract requirements.
Public Procurement Tips
 If
you are not sure of anything, ask the buyer in good
time.
 Remember that at the Invitation to Tender stage you
are being evaluated in line with the criteria identified.
 Remember, your bid will be evaluated only on the
information you provide as part of the tender process.
 Request feedback about your proposal to allow you to
identify areas for improvement when submitting your
next tender.
Understanding the Evaluation of Tenders
 All
public sector organisations must ensure they
obtain value for money.
In Scotland, it is policy to award contracts on the basis
of Most Economically Advantageous Tender
(MEAT).
To assess MEAT, a quality: price ratio will be applied
 HIE typically apply this ratio on an 80:20 split
The relative importance of the criteria on which the
contract will be awarded will be listed in the tender
documentation.
Supplier Opportunities
Subcontracting opportunities
 Some of the highest-value government contracts may
go to large companies. Smaller or newer
organisations may become engaged in these
contracts through:
-sub-contracting,
-partnering/consortia
-consultancy work.
 You can identify and contact a supplier who won a
major contract through the Public Contracts Scotland
and the HIE website.
Supplier Opportunities
Collaboration
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Collaboration on public sector contracts is now a
high priority
Public Sector will be using these contracts more
frequently
The aim of this is to achieve value for money
Opportunities for H&I businesses:
- Offer to service the contracts in our area
- Bid for these when they appear
- Work in partnership with others
- Attend national supplier briefing days
advertised on PCS
Supplier Opportunities
Freedom Of Information
• Request winning tender submissions
• All tender submissions are subject to FOI
• Monitor Contract Award Notices and request winning
submissions
• Request feedback
Further Information on Public
Procurement
•www.scotland.gov.uk/procurement
•www.eprocurementscotland.com
•www.procurement.scotland.gov.uk
•www.cgcopescotland.gsi.gov.uk
•www.apuc-scot.ac.uk
•www.scotland-excel.org.uk
•www.nhsscotlandprocurement.scot.nhs.uk
•www.efirescotland.org
•www.enterprise-europe-scotland.com
•A copy of this presentation will also be available on the
HIE website tenders page.
Electronic Trading
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E-Procurement Systems
Purchase Cards
E-Tendering
Reverse Auctions
E-Procurement Systems
• Greater Understanding Of Transactional
Purchasing
• Greater Auditability and Control
• Greater Contract Compliance
• Process Savings
• Increased Ability To Compete Requirements
• Best Value In Purchasing
E-Procurement Systems
• More Accurate Invoicing
• Quicker Payment
• Less Process At Your End
Purchase Cards
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Increased Flexibility In Purchasing
Out Of Hours/Emergency Purchasing
One-Off Purchases
Improved Audit Trail Over Paper
Lower Costs In Supplier Base
Administration
• Levels 1, 2, and 3
• Immediate Payment
E-Tendering
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Minimisation Of Process Cost
Increased Process Efficiency
Increased Auditability
Minimisation Of Waste
Clearer Evaluation Process
Faster Communications
Freedom Of Information
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Entitlement To Debriefs
Elimination Of Blanket Confidentiality Clauses
Obligation To Disclose As Much As Possible
Records Not Processes Ongoing
Protection Of Intellectual Property And LINE
ITEM Pricing As Long As It Is Live
Advertising and Publicity
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OJEU
Government Opportunities
www.publiccontractsscotland.gov.uk
Buyer Profile
Moving Away From Press Adverts
Summary
• Pace Of Change Is Quickening
• Public Bodies Must Change, And Need
Suppliers To Change With Us
• Auditability And Competitiveness Are
Increasing