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					National Sustainable Public Procurement Training Programme




       SUSTAINABLE PUBLIC PROCUREMENT COURSE
         FOR THE CENTRAL GOVERNMENT SECTOR




                                                             Group Training – Module 4
                                                                           Date:…………




                                                               Central Government Module 4   1
National Sustainable Public Procurement Training Programme



    DISCLAIMER:                This material has been produced by DEFRA in partnership and association
    with the Marrakech Task Force on Sustainable Public Procurement and with the professional
    contribution of experienced members of the National Sustainable Commissioning and Procurement
    Group. Whilst every effort has been made to ensure the accuracy and legality of the content of this
    material, all recipients thereof and contracting authorities must satisfy themselves on the accuracy
    of the information for their purposes. Recipients and contracting authorities should therefore seek
    independent legal advice where they consider it necessary to do so. This disclaimer is necessary to
    ensure that any examples given throughout the material may need to be varied having regard to the
    subject matter of individual contracts in question.




    This material is Crown Copyright. You may re-use this document/publication (not including the
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                                                              Central Government Module 4                  2
National Sustainable Public Procurement Training Programme

                       The SPP Training Programme
     Module 1 E-Learning :
     • What is Sustainable Procurement
     • Introduction to key tools
     • Life Cycle Assessment

     Module 2:
     • Implementing policy through procurement
     • Assuring sustainability – Prioritisation methodology, risk assessment
     • Specifications

     Module 3 E-Learning :
     • Assuring sustainability continued – Selection criteria
     • Supplier selection
     • Whole Life costs

     Module 4:
     • Evaluation of bids and contract award
     • Supplier and contract management
     • Bringing it all together


                                                             Central Government Module 4   3
National Sustainable Public Procurement Training Programme

      Outline of today – Module 4

      09:30       Introduction                               13:15   Contract management
                  Format of the course                               (cont’d)
                  Review of course so far and e-
                  Learning Module 3                          14:10   Monitoring and reporting

      09:50       Supplier selection Exercise                14:35   *Coffee Break*

      10:40       Bid evaluation and award                   14:45   Bringing it all together

      10:55       *Coffee Break*                             15:50   Developing further:
                                                                     Stakeholder and supplier
      11:10        Supplier evaluation and award                     engagement
                  (continued)
                                                             16:05   Key actions
      12:00       Contract management
                                                             16:15   Evaluation and review
      12:45       *Lunch Break*
                                                             16:30   *Close*
                                                                Central Government Module 4     4
National Sustainable Public Procurement Training Programme

      Objectives and working methods
       • To enable participants to implement the sustainable
         procurement cycle using a robust risk and opportunity-based
         approach.
       • Challenge thinking and capture opportunities for innovation in
         supply chain
       • E-Learning
       • Facilitated group work , sharing results and discussion
          – Working in small groups
          – Sharing experience and expertise within the group and with
            others
       • Challenging, interactive and creative
       • Trainers will provide further case studies and illustrations


                                                             Central Government Module 4   5
National Sustainable Public Procurement Training Programme




                            REVIEWING PROGRESS




                   ...SO WHAT HAVE YOU LEARNED SO FAR?


                                                             Central Government Module 4   6
National Sustainable Public Procurement Training Programme

               Recapping on Module 3 e-Learning


      • Supplier Selection
      • Sustainability criteria
      • Whole Life Costing




                                                             Central Government Module 4   7
National Sustainable Public Procurement Training Programme

                   Supplier selection in practice....




                                                             Central Government Module 4   8
National Sustainable Public Procurement Training Programme


                    Exercise 1: Supplier Selection
     In your working groups, for your product or service, 30 mins to:

          1. Determine how you can choose a more (environmentally
              and socially) responsible supplier
             a. Will you use Pre-Qualification?
             b. What will you include in the Pre-Qualification
                Questionnaire (if used)?
             c. What will your key minimum and preferred criteria
                will you use to select appropriate suppliers (as
                qualifying criteria)?



                                                             Central Government Module 4   9
National Sustainable Public Procurement Training Programme

              Supplier Evaluation – Factors to consider
       • Are any criteria more important than others?
          – Relevance and proportionality: link to risks
          – Allocate points to each of the criteria and apply weightings (if
            appropriate)
          – Better to use fewer key questions
       • Establish a scoring model
          – Will you use minimum or preferred criteria?
          – Simple scoring system (e.g. pass/fail)
          – Establish total marks for each supplier
       • Aim to differentiate suppliers
       • Avoid personal preferences
       • Team approach to evaluation
       • Remember to compare scores and the benefit of moderation.
       • Finalise selection model in advance
       • Can only score on information provided

                                                             Central Government Module 4   10
National Sustainable Public Procurement Training Programme

               Supplier Evaluation – Legal Implications


       • EU and UK contract regulations
       • Supplier selection process must support organisational policies and
         help to deliver outcomes
       • Clear audit trail




                                                             Central Government Module 4   11
National Sustainable Public Procurement Training Programme




                          Tender/Bid Evaluation and
                                   Award




                                                             Central Government Module 4   12
National Sustainable Public Procurement Training Programme

                         Risk Management Options
     1.      Re-think need to reduce the risk
     2.      The risk cannot be managed
     3.      Addressed in the specification
     4.      Managed by choice of supplier
     5.      Supplier provides proposals for evaluation (bid evaluation)
     6.      Managed by targets to be delivered after contract award




                                                             Central Government Module 4   13
National Sustainable Public Procurement Training Programme

                               Bid Evaluation Outline

        •   Background
        •   Criteria development
        •   Cost and sustainability, including WLC
        •   Scoring criteria & weighting
        •   Calculating cost
        •   Determining the best bid
        •   Legal implications




                                                             Central Government Module 4   14
National Sustainable Public Procurement Training Programme

                      Background to Bid Evaluation

        •   Structures award decisions
        •   Link to risk/opportunity assessment
        •   Reflect the specification
        •   Transparent process using an evaluation model
        •   Withstand scrutiny
        •   Reward sustainability
        •   Encourage innovation & R&D across the supply chain




                                                             Central Government Module 4   15
National Sustainable Public Procurement Training Programme

                                        Award Criteria
      OGC guidance: ‘Buy green and make a difference’ 2008
      • “The UK’s policy is that all public contracts must be awarded on the basis of value
        for money on a whole life basis, not lowest upfront price.”

      • “When we in the UK refer to ‘value for money’ at award stage, we are talking about
        ‘Most Economically Advantageous Tender’ as described in the UK Regulations
        implementing the EU Directives.”

      • “This has to be evaluated from the point of view of the contracting authority, so at
        this stage you can’t consider wider benefits to society.

      • However, this relates to value for money to meet the requirement – so, as long as
        appropriate environmental issues have been built in at the specification stage, the
        winning bid will provide the environmental benefits you need.”

      • “All award criteria must be relevant to the subject of the contract, give a benefit to
        the contracting authority and be consistent with EU Treaty principles such as non-
        discrimination.”
                  http://www.ogc.gov.uk/documents/Environmental_Issues.pdf
                                                             Central Government Module 4         16
National Sustainable Public Procurement Training Programme

                                        Award Criteria
     Award criteria referred to in UK Regulations include:
     • Quality
     • Price
     • Technical merit
     • Aesthetic and functional characteristics
     • Environmental and social characteristics
     • Running costs
     • Delivery date and delivery period
     • Cost effectiveness
     • After sales service
     • Technical assistance        Key Award Criteria:
                                   • Minimum
                                      – Criteria which a bid must meet
                                   • Preferred
                                      – If a bid cannot meet these it does
                                         not necessarily stop it from winning

                                                             Central Government Module 4   17
National Sustainable Public Procurement Training Programme

                  Sustainable Procurement Matrix
    • Choose criteria based on matrix position and your understanding of what
      the market can deliver
    • Focus less or more on cost / sustainability / quality
    • Link criteria to risk assessment




                                                             Central Government Module 4   18
National Sustainable Public Procurement Training Programme
            PRIORITISE ACTION
   23                                                                                    Construction – Building & Refit


                                                              Food & Drink                 Construction – Highways & Local
                                                                                           Roads



   Risk                       SECURE                                  Energy
                                                                                          CRITICAL           Health & Social Care
                         Chemicals                                            Waste      Construction – Maintenance &
                                                                                         Operations

                                                           Textiles   Motor Vehicles

   18                                                                                   Office machinery & computers
                                                         Furniture    Pulp & Paper
                                            Telecommunications, Radio, TV                      Pharm aceuticals
                                                            Business Travel
                Consumables – White Goods
   Risk                  ACQUISITION                                                   COST DRIVEN



   11                                                                            IT & Computer Services

        0                        Spend                           £1bn                       Spend                            £21bn
                                                                Source: Procuring the Future' - The Sustainable
                                                                Procurement Task Force National Action Plan 2006.
                                                                http://www.defra.gov.uk/sustainable/government/
                                                                publications/procurement-action-plan/
                                                                          Central Government Module 4                                19
National Sustainable Public Procurement Training Programme

                 Exercise 2: Bid evaluation criteria
        In work groups, take 30 mins to:
        • Identify most important sustainability criteria
        • Agree on bid evaluation criteria
              – Minimum
              – Preferred
        • Apply weightings
        • Focus on appropriate wording for the criteria
        • Develop your evaluation model
        • Flipchart results and report back to main group

                                                             Central Government Module 4   20
National Sustainable Public Procurement Training Programme

                              Bid Evaluation Practice

        •   Aim to differentiate bids
        •   Avoid personal preferences -Team evaluation
        •   Award points for each of the criteria
        •   Total number of marks irrelevant
        •   Weight scores as appropriate and if relevant
        •   Establish total marks for each bid




                                                             Central Government Module 4   21
National Sustainable Public Procurement Training Programme

                                             Next Steps

        • Any clarifications shared with other bidders to ensure
          openness and transparency; no discrimination
        • Notice of intention to award to supplier(s) who scores the
          highest
        • Provide feedback to de-brief unsuccessful suppliers Alcatel
          standstill




                                                             Central Government Module 4   22
National Sustainable Public Procurement Training Programme

                                    Legal Implications

        • The basic principles are equality, transparency and non-
          discrimination
        • Ensure that your organisation supports your evaluation
          process before ITT is issued!
        • Notification of award to EU




                                                             Central Government Module 4   23
National Sustainable Public Procurement Training Programme

                                              Summary

       • Award contracts based on cost, quality, sustainability criteria
            – Optimum combination of risk/value MEAT
       • Evaluation criteria founded in risk assessment
       • Supports supplier proposals/ innovation
       • Position on any cost premium?
       • Link to matrix category and market ability to deliver
       • Take account of legal framework
       • Structured and transparent approach




                                                             Central Government Module 4   24
National Sustainable Public Procurement Training Programme

                    Take 5: your comments so far...

   Personal Action Plan
   Fill in your personal action plan started on the Group Training day:
   • What’s new for me?
   • Things to check or try out
   • People to follow up with




                                                             Central Government Module 4   25
National Sustainable Public Procurement Training Programme




                      Integrating Sustainability into
                          Contract Management




                                                             Central Government Module 4   26
National Sustainable Public Procurement Training Programme

                         Risk Management Options
     1.      Re-think need to reduce the risk
     2.      The risk cannot be managed
     3.      Addressed in the specification
     4.      Managed by choice of supplier
     5.      Supplier provides proposals for evaluation (bid evaluation)
     6.      Managed by targets to be delivered after contract award




                                                             Central Government Module 4   27
National Sustainable Public Procurement Training Programme

                              Contract Management

     • Contract implementation, management and review
     • Stakeholder engagement
     • Working with suppliers to improve products and services
     • Monitoring and reporting on procurement: KPIs/ Supplier
       Performance
     • Making it happen in Central Government sector
     • Wider implication for framework contracts as opposed to public
       supply or service contracts

     • Ensures your requirements are being monitored
     • Identifies realised benefits – monitoring of performance and
       benefits of SP

                                                             Central Government Module 4   28
National Sustainable Public Procurement Training Programme

                               Identify Requirements
   • Minimum (condition of contract)
      – Essential measures that ensure compliance with commitments
        made
   • Preferred (Continual improvement)
      – Measures that demonstrate increased benefits over time
   • Determine the base-line
   • Approach based on matrix position
   • Focus less or more on measurement
   • Link performance indicators to risk assessment




                                                             Central Government Module 4   29
National Sustainable Public Procurement Training Programme

      Exercise 3: Contract Management

        • In work groups, take 30 mins to:
        • Determine key contract management approaches
             – Focus on what will be minimum
             – Discuss ‘preferred’
        • Link back to sustainability risks and specification and
           supplier selection
        • Develop KPIs and thoughts on benefits tracking
                    Flipchart results and report back to main group


                                                             Central Government Module 4   30
National Sustainable Public Procurement Training Programme

                                  Factors to Consider
     • Opportunity to address risks and realise opportunities during
       life of contract
     • Development:
         – Suppliers will have a requirement to deliver requirements
           under tender - is there an opportunity to develop
           enhanced sustainability objectives with them?
         – Procurers will need to consider the influence you have
           over the winning bidder when developing contract
           management requirements
         – Are you important to them, in which case they may be
           open to change?
     • Think about the requirements from a suppliers’ perspective as
       well as your own

                                                             Central Government Module 4   31
National Sustainable Public Procurement Training Programme

         Furniture: Product conditions – example

     •    Plastic parts ≥ 50g shall be                       •   The products used for surface
          marked for recycling according to                      coating shall:
          ISO 11469 or equivalent and
                                                                 – Not contain more than 5% by
          must not contain additions of
                                                                   weight of volatile organic
          other materials that may hinder
                                                                   compounds (VOCs)
          their recycling
                                                             •   The tenderer should demonstrate
     •    The VOC content of adhesives                           that the packaging material is
          used in the assembly of furniture                      clearly marked to aid recycling
          shall not exceed 10% by weight                         and disposal




              What is a suitable Contract Management Requirement?
                                                                  Central Government Module 4      32
National Sustainable Public Procurement Training Programme

                                  Product Conditions
     ‘Only timber and timber                                 ‘Packaging must consist of
     products originating either                             readily recyclable material,
     from independently verified                             and/or materials taken from
     legal and sustainable sources                           renewable resources, or be a
     or from a licensed Forest Law                           multi-use system, i.e.
     Enforcement Governance and                              reusable. All packaging
     Trade (FLEGT) partner can be                            materials shall be easily
     purchased.’                                             separable by hand into
                                                             recyclable parts consisting of
                                                             one material (e.g. cardboard,
                                                             paper, plastic, textile).’
              What is a suitable Contract Management Requirement?
                                                                 Central Government Module 4   33
National Sustainable Public Procurement Training Programme

                         Service Related Conditions

        Energy:                                              Vehicles / Transport:

        Equipment procured and                               Vehicles, machinery and
        used when carrying out this                          equipment procured and
        contract shall be highly                             used for this contract to
        energy efficient                                     meet Euro 5 emissions
        (for example white goods,                            standard and for vans and
        lighting - A+; IT equipment -                        cars have CO2 emissions
        Energy Star or better - GBS)                         near or below 120g/km


              What is a suitable Contract Management Requirement?
            Euro 5:
                                                           Central Government Module 4
            http://europa.eu/legislation_summaries/environment/air_pollution/l28186_en.htm   34
National Sustainable Public Procurement Training Programme

                                   Further Conditions

   Chemicals:                                                Employee & Skills Training:
   Whenever possible the                                     The contractor will be required to
   contractor should ensure                                  utilize employment practices that
   biodegradable cleaning products.                          include opportunity for local
   Natural microbes and enzymes                              labour and local trainees. In
   should be used in place of                                addition the contractor shall
   traditional acids, bleaches,                              maintain an employee training
   caustic and solvent based                                 programme that provides
   cleaning agents in buildings in                           awareness of climate change
   order to break down any organic                           impact and the continuing need
   soiling.                                                  to reduce carbon emissions.


              What is a suitable Contract Management Requirement?
                                              Central Government Module 4                         35
National Sustainable Public Procurement Training Programme

                                   Further Conditions
     • Developmental
     • It may be appropriate to require a supplier to develop over a
       period of time
     • For example, where at present the supplier does not have an
       Environmental Management System, they may be required to
       develop one within a required period, after award of the
       contract
     • This needs to be relevant to the contract and proportionate
     • Offers opportunity for enhanced sustainability management
       in the future



                                                             Central Government Module 4   36
National Sustainable Public Procurement Training Programme


                   Example- GBS Cleaning Services
                            (Mandatory)
            Products utilised must comply with the Mandatory GBS for
            cleaning products

             After the first 6 months of contract, and thereafter at the end of
              every year of contract, a balance must be submitted by the
              contractor indicating the name and quantity of all cleaning
              products used. For any products falling within the scope of
              Mandatory GBS not mentioned in the initial bid the contractor
              shall provide the required proof of compliance with the
              relevant criteria.




                       This is a Contract management requirement
                                                             Central Government Module 4   37
National Sustainable Public Procurement Training Programme



                            Contract requirements...

         Supplier required to improve energy efficiency of products
          supplied by 5% within 12 months of contract award

         KPI established to measure aggregate energy efficiency of
          product s supplied

         Progress reviewed through quarterly reporting and reviews




                       This is a Contract management requirement
                                                             Central Government Module 4   38
National Sustainable Public Procurement Training Programme

           Contract conditions and social clauses
     The term ‘social clauses’ refers to special conditions relating to the
     performance of a contract, which address social issues.
     • Example: targeted recruitment and training
           – “In a works procurement for the construction of a new
             community centre, authority ‘I’ included a contract clause
             requirement that “10% of the person-weeks required to
             complete all of the works is to be delivered by new entrants
             that have an apprenticeship, trainee or employment contract
             with the contractor or a sub-contractor and are engaged in a
             training programme that is accepted by the employer”.
     • In this example, 10% is acceptably proportionate; 50% would not be.
       Costs and benefits need to be weighed up case by case.
                                       Source: OGC p. 10 ‘Buy and make a difference’ 2008
      http://www.ogc.gov.uk/documents/Social_Issues_in_Public_Procurement.pdf
                                                             Central Government Module 4    39
National Sustainable Public Procurement Training Programme

       Case Study: Glasgow Housing Association
                         GHA policy included targeted recruitment and training (TR&T) clauses when
                         contracting with the private sector.
                      The GHA’s social benefits project is seen as the most significant use of
      employment and training requirements in construction contracts in Britain (Scottish Government,
      2008). A Method Statement was required from bidders that detailed how they would ensure:
      1. Every vacancy notified to agencies named by GHA
      2. 10% of person-wks delivered by new entrants engaged in a training programme
      3. 5% of person weeks to be available for unwaged work experience placements
      4. Monitoring and verification procedures
      5. Provision of reports on performance against stated KPIs.
      Over its first 30 months GHA achieved:
         • Over 12% of employees were new entrants
         • 10,399 person-weeks of apprentices
         • 2,642 of person-weeks of training
      These results are also cost neutral. The contractors have been required to obtain the resources they needed to
      meet the employment and training targets by drawing on existing management and supervision, obtaining
      external funding (from, for example, CITB and SEG) and obtaining good productivity from trainees. This has
      meant the recruitment and training outputs are truly ‘added-value’.
                                                                     Central Government Module 4                       40
National Sustainable Public Procurement Training Programme

                                     Supplier Auditing
      • Audit environmental and social aspects
      • Informed by risk profile
         – spend category and nature of market
         – within some of CG sector auditing takes place regularly
      • Context specific
         – How detailed will audit be/frequency?
         – Objectivity of audits – in-house/independent
         – Multi-tiered supply chains – how far do you go?
         – Who will be involved?
         – Specialists: understanding culture, language, market
      • Options for action:
         – Work with suppliers?
         – Terminate contract?
                                                             Central Government Module 4   41
National Sustainable Public Procurement Training Programme

                                              Summary
     •   Contract management
     •   Conditions of contract
     •   Contract review
     •   Key performance indicators, including
     •   Auditing supplier performance
     •   Encouraging good practice: how have SP benefits been
         realised, how can they be enhanced?




                                                             Central Government Module 4   42
National Sustainable Public Procurement Training Programme

                    Take 5: your comments so far...

   Personal Action Plan
   Fill in your personal action plan started on the Group Training day:
   • What’s new for me?
   • Things to check or try out
   • People to follow up with




                                                             Central Government Module 4   43
National Sustainable Public Procurement Training Programme




                           Monitoring and Reporting




                                                             Central Government Module 4   44
National Sustainable Public Procurement Training Programme

                          Monitoring and Reporting
   What is monitored and measured?                            What is reported?
   • By whom?                                                 • By whom?
   • How?                                                     • To whom?
   • When?                                                    • When?
   • Why?                                                     • Why?




                                                             Central Government Module 4   45
National Sustainable Public Procurement Training Programme

                          Monitoring and Reporting
     Organisational Progression
     • Flexible Framework is only one way of demonstrating progress
        – Maturity matrix


                                                      • People
                                                      • Policy, strategy and communications
                                                      • Procurement process
                                                      • Engaging suppliers
                                                      • Measurement and results

                             Strategic planning – key stakeholders involved

                                                             Central Government Module 4   46
National Sustainable Public Procurement Training Programme

                          Monitoring and Reporting

       Embedding sustainability into contracts
       • Aim to show how procurement has helped deliver
         improvements
           – Track benefits of SP activity
           – This is key for demonstrating value/ business case
             of SP and that benefits identified in the original
             contract have been delivered


                          Need to ensure key benefits realised are visible




                                                             Central Government Module 4   47
National Sustainable Public Procurement Training Programme

   Monitoring and Reporting – Internal and External
     • Transparency and Public Accountability
     • SDAP/ Carbon Reduction Delivery Plan
     • Greening Government Commitments
     • Savings & efficiencies
     • ‘Value for money’
     • Carbon and landfill taxes
     • Links to the drivers and outcomes identified on Day 1 of the
       training course
     • Collate realised benefits in ‘business case’




                                                             Central Government Module 4   48
National Sustainable Public Procurement Training Programme

                    Take 5: your comments so far...

   Personal Action Plan
   Fill in your personal action plan started on the Group Training day:
   • What’s new for me?
   • Things to check or try out
   • People to follow up with




                                                             Central Government Module 4   49
National Sustainable Public Procurement Training Programme



                                                                        Market
        Bringing it all                                               intelligence

         together...
                                                                          SP

                                                         Organisational              Supplier
                                                           objectives                selection




                                                                Central Government Module 4      50
National Sustainable Public Procurement Training Programme

                   Recap – bringing it all together!
  Prioritising                   Risk                           Scope           Influence
  • £, Environmental,
    Social Risks
  • Scope to do more
                                                     £                   Risk
  • Influence
                                                                                            Scope

 Market Intelligence

  Organisational
  sustainability
  objectives

 Sustainability
                                        Minimum              Preferred
 specifications

 Supplier selection                     Minimum              Preferred
 Bid evaluation

 Contract
 requirements
                                                             and Government Module 4
                                                     Monitor Centralreport benefits                 51
National Sustainable Public Procurement Training Programme

      Exercise 4: Recap
       • In work groups, take 45 minutes to:
       • Determine matrix position for chosen category (make sure
          scope is clear)
            – Quick assessment of Risks
       • Decide on market situation
       • Determine key specifications – Minimum and Preferred
       • Determine key Supplier Selection criteria – Minimum and
          Preferred
       • Determine Contract management requirements and KPIs

       • Focus on key issues
                                                             Central Government Module 4   52
National Sustainable Public Procurement Training Programme

                           Identify Sustainability Issues
     Environmental                                           Socio-Economic
     • CO2 and other GHG                                     • Health
       emissions                                             • Education
     • Other emissions to air                                • Employment
     • Emissions to water                                    • Community
     • Waste                                                 • Labour Standards and
     • Hazardous substances                                    Human Rights
     • Materials                                             • Diversity
     • Energy                                                • Ethical and fair trade
     • Water
     • Biodiversity
     • Local environment
     • Depletion of natural
       resources

                                                                Central Government Module 4   53
National Sustainable Public Procurement Training Programme




                   Developing this further with key
                            Stakeholders




                                                             Central Government Module 4   54
National Sustainable Public Procurement Training Programme

                           Stakeholder Engagement

     1.      In procurement and commissioning process
                Vital at each stage of the process – especially so at the
                 beginning but also vital that relevant stakeholders
                 realise the benefits actually achieved.

     2.      In development of sustainable procurement policy, strategy
             and action plans

     This emphasises the need to involve key stakeholders early as
     part of a Team approach.



                                                             Central Government Module 4   55
National Sustainable Public Procurement Training Programme

          Stakeholder Engagement in Procurement
                    and Commissioning
      •   Executive,
      •   Finance,
      •   Media,
      •   NGOs,
      •   Public,
      •   Specifiers,
      •   Stores,
      •   Suppliers,
      •   End Users,
      •   Sustainability Lead,
      •   Waste Managers...
      •   This ensures that stakeholders support SP aims and understand
          their role

                                                             Central Government Module 4   56
National Sustainable Public Procurement Training Programme

                           Stakeholder Engagement

     • Wide range of potential stakeholders
     • Same message, different ‘language’
     • Benefits of working with stakeholders
        – Greater understanding
        – Buy-in, commitment and support
        – New ideas, new opportunities




                                                             Central Government Module 4   57
National Sustainable Public Procurement Training Programme

           Stakeholder engagement in policy and
                  strategy development
            procurement process driven by policy but also needs to inform policy


       •   Who?
       •   What?
       •   Why?
       •   When?
       •   How?




                                                             Central Government Module 4   58
National Sustainable Public Procurement Training Programme

           Stakeholder engagement in policy and
                  strategy development
       • Executive
       • Internal customers / Users of service / Commissioners /
         Specifiers
       • Suppliers and contractors
       • Specialists
       • Non-governmental organisations
       • Public
       • Media
       • Others?
       Does your Policy and Strategy adequately support SP aims and
       enable benefits to be realised?
       How can lessons learned be reflected in Policy and Strategy in
       your organisation?
                                                             Central Government Module 4   59
National Sustainable Public Procurement Training Programme

              Sustainable Procurement Policy and
                            Strategy
     • Policy
        – High level statement of intent
        – Short
        – Integrated into procurement policy?
     • Strategy
        – More detail
        – More specific




                                                             Central Government Module 4   60
National Sustainable Public Procurement Training Programme

            Sustainable Procurement Action Plan

     • Greater level of detail
     • Specific responsibilities
     • Targets and milestones
        – Level x by date y
        – % reduction in emissions
        – % reduction in waste to landfill
        – SMEs, apprenticeships, etc




                                                             Central Government Module 4   61
National Sustainable Public Procurement Training Programme




                                                             Central Government Module 4   62
National Sustainable Public Procurement Training Programme




                                                             Central Government Module 4   63
National Sustainable Public Procurement Training Programme




                                 Supplier engagement




                                                             Central Government Module 4   64
National Sustainable Public Procurement Training Programme

                                Supplier Engagement

      • ‘Innovative procurement and procurement of
        innovation’
          • SP can deliver innovative solutions – e.g. new
            technology/service delivery
          • Also innovative procurement - e.g. challenging
            the need/delivering function in alternative ways




                                                             Central Government Module 4   65
National Sustainable Public Procurement Training Programme

                                Supplier Engagement

      • Competitive dialogue process
      • Negotiated procedure
      • Forward commitment procurement

      • Working with existing suppliers
         – Example: Defra’s Supplier Engagement programme
         – Opportunities from voluntary initiatives by incumbents




                                                             Central Government Module 4   66
National Sustainable Public Procurement Training Programme

       Case Study: CAESAR - Home Office/HMRC
                                       In 2008 the Home Office, with other Government
                                       departments, sought to develop aspects of the Flexible
                                       Framework, with a focus on how they could efficiently
                                       engage a large and varied supply base and demonstrate
                                       leadership on the sustainability agenda.

                                       CAESER has enabled the Home Office to engage with
                                       hundreds of our suppliers equating to over 70% of their
                                       annual procurement spend.

                                       ‘The Home Office and HMRC share a commitment to
                                       incorporate (sustainability) objectives into the procurement
                                       process, in ways that are consistent with the EU
                                       procurement rules and the Government's procurement
                                       policy, based on value for money; whilst ensuring we do this
                                       in a way that reduces the administrative burden on our
                                       suppliers’
                                       Home Office/HMRC Supplier Charter
                                          https://nqc.com/files/downloads/carbon_project_brief.pdf


                                                               Central Government Module 4            67
National Sustainable Public Procurement Training Programme

      Case study: CDP Public Procurement Programme
    The 2010 report into the Carbon Disclosure
       Project’s Public Procurement Programme,
       analysed greenhouse gas emissions, and
       climate change risk and opportunity in the
       Government’s supply chain.
    In 2010, 25 Government departments and non-
       departmental public bodies participated, as
       well as the GLA group and five NHS
       organisations.
    The number of participating suppliers
       measuring emissions and reporting to these
       organisations on their carbon management and
       climate change actions grew by more than 60%
       (262) compared with 2009 figures.
   ‘Working collaboratively with customers, such as
   the UK Government, to identify and implement
   more efficient ways of working will yield benefits
   for all parties’

                                                            Central Government Module
                                      http://62.193.238.61/blueprinttv/cabinet-office/4   68
National Sustainable Public Procurement Training Programme

                    Take 5: your comments so far...

   Personal Action Plan
   Fill in your personal action plan started on the Group Training day:
   • What’s new for me?
   • Things to check or try out
   • People to follow up with




                                                             Central Government Module 4   69
National Sustainable Public Procurement Training Programme




                                            Summary....




                                                             Central Government Module 4   70
National Sustainable Public Procurement Training Programme

                                         Key actions....

     • Share your key actions with the Group

     • What else would you like?




                                                             Central Government Module 4   71
National Sustainable Public Procurement Training Programme


     Key issues
      • Inclusive approach: stakeholders key, and make business case – challenge
        the norm
      • Opportunity for market to innovate and deliver new solutions
      • Organisational policies and objectives
      • Understand the market
      • Relate to environmental and social risks and opportunities
      • Procurement hierarchy
      • Specifications – make them relevant and clear (use GBS if relevant)
      • Selecting suppliers: PQQ = capability. Certificated systems
      • Evaluation: relevant and proportionate, achieve VfM – Whole Life Costs
      • Identify and share benefits from SP – inform policy
      • Have a clear route map
                              Sustainability procurement offers significant
                                 opportunities to deliver financial and
                                     environmental/social benefits:
                             Good Procurement is Sustainable Procurement
                                                        Central Government Module 4   72
National Sustainable Public Procurement Training Programme


                                       Final Evaluation

    • Please complete the evaluation form provided and leave it with your
      trainer before you leave the session.
    • Think about...
       – Discussion with participants
       – Content, depth of coverage, interactive style, length of course, gaps
         between modules, etc
       – Can you take this forward?
       – What else would help?
       – Key actions


                                                THANK YOU!


                                                             Central Government Module 4   73
National Sustainable Public Procurement Training Programme




                                                   Close

    Thank you for your attention, participation,
            evaluation and feedback!




                                                             Central Government Module 4   74

				
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