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October 2007

ERF Bidders’ Conference

Stephanie Minns October 2007


Kindly switch off all mobile telephones as the unit hunting for a signal interferes with the sound system. There is no fire alarm test planned for this session. If you should hear an alarm, please exit the building following the Fire Exit signs and assemble in St James’s Park, at the edge of the lake nearest the 1HGR entrance.

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Welcome and introduction The Procurement Process Consultant Roles Framework Operation Supplier Questions Closing Remarks

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Transforming Government Procurement

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External Resource Framework Procurement
ERF Bidders’ Conference

Robert Stephens October 2007

Indicative Procurement Timetable
Contract Notice issue: EOI by: Response to PQQ by: ITT issued: Response to ITT by: Consultant Interviews: Contracts signed in: 18 Sep 07 3pm on 25 Oct 07 3pm on 12 Nov 07 2 Jan 08 (estimate) 3pm on 11 Feb 08 (estimate) Feb-Apr 08 May 08

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Size of Framework

In 2004 90 suppliers given contracts from 300 PQQ responses 350 consultants (inc 135 RTL) from 1800 bid In 2007 25 suppliers given contracts from ?? PQQ responses 80 consultants from ?? bid tbd MC/HR RTL & RTM tbd MR RTL

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Supplier Types

Sourcing Partner Suppliers capable of responding to refresh needs Consultant Provider Suppliers unlikely to be able to respond to refresh needs Assignments Supplier type will not be a selection criteria

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Refresh Arrangements

SACS Gateway RTL (continuous) Consultants (rare) ERF Gateway RTL/RTM (continuous) Consultants (more frequent, subject to OGC needs)

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Supplier Involvement

SACS Process focused on direct CIMS/consultant interaction Invoicing through CIMS ERF Client specifications Consultant selection Contracting direct with clients Invoicing direct to clients Proactive framework management

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Assignment Call-Off

All call offs sponsored by OGC Simple assignments Prescriptive, short and/or urgent OGC selects supplier invited to provide long list Contracted day rates normally apply Complex or longer assignments Mini-competition Contracted day rate discounting encouraged

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Thank you and any questions?

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External Resource Framework Procurement
ERF Bidders’ Conference

Robert Stephens & Yvonne Hardy October 2007

ERF Roles

MC/HR RTL & RTM MR RTL Procurement Capability Reviews MPRG Reviews Interventions GET topics

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ERF Consultants

Focus of work is at the higher end of the range of government activity Experience of working at Departmental main board level Minimum level at about SCS1 This is not SACS

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OGC GatewayTM process is described on OGC website RTL for MC/HR/MR projects RTM for MC/HR projects RTM need initially focused on MOD and DH Accreditation by a Gateway Hub is a pre-requisite

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Procurement Capability Reviews • Independent strategic review of the procurement activities of a
department and its wider network • Covers widest definition of procurement, from commodities to complex PFI projects • Assesses procurement activities along whole delivery chain and across the whole lifecycle – from policy to disposal • Involves deployment of a small team of high calibre procurement and commercial experts for a short intensive period – 3 to 4 weeks • Leads to publication of a report with prioritised recommendations, alongside department’s response (Improvement Plan) • Obligation on the department to take action to improve, supported by various workstreams in OGC.

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MPRG Reviews • New, evolving area of work for OGC • Scrutiny of the largest, most complex projects across Government • MPRG chaired by John Kingman, Treasury Minister, 12 members • Pilot review in DWP – Enabling Retirement Savings Programme • Future reviews will include Nuclear Decommissioning Authority
and Carbon Capture programmes

• Team not there to help – relationship grittier

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Departments may be given access to ERF to pursue nonGatewayTM reviews. Volume of work likely to be relatively small. Some RTL may also carry out this type of assignment.

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Government Estate Transformation
A major change programme addressing workforce issues and property A rationalised “fit for purpose” Government estate

20% annual efficiency savings from an estate costing £6 billion a year to run Anticipated delivery of - up to £500 million savings a year by March 2009 - up to £800 million savings a year by March 2011 - up to £1.5 billion savings a year by March 2013 Resources released to the front line, equivalent to building 50 new schools or 10 new hospitals An estate that is better aligned to delivering more efficient service to the citizen
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High Performing Property
Component 3: Skills and Capability Component 1: Leadership and Integration Offset the effects of fragmentation of the estate by strong leadership from the centre and an integrated property strategy Integrate asset management into strategic business planning and policy delivery across government departments and their arms length bodies Ensure that all senior managers in government have an understanding of asset management among their core skills Ensure that there are sufficient skilled property ‘professionals’ to implement best practice across government organisations

Component 4: Review and Challenge Component 2: Benchmarks and Standards Provide a framework of standards and benchmarks that set out best practice, performance objectives and aspirations Provide tools, guidance and support to help government organisations implement best practice and meet objectives Create a culture of evidence based review, challenge and continuous improvement Improve accountability and transparency in property asset decision making

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Experience Competency Requirement

Understanding Policy context Senior Influence Strategic Property Portfolio Advice Understanding Requirements for Organisational Capability Strategic Property Asset Management Leaders of complex business cases for organisational change combining Property, HR and IT Transformation. Strategic Review and Analysis

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Operating Procedures for External Resource Framework
ERF Bidders’ Conference

Stephanie Minns October 2007

Operating Procedures for ERF

Greater involvement in – Consultant Management – Proposing Consultants – Knowledge Sharing – Administration The Refresh Process Operating Guidance

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External Resources – Final Structure
Head of External Resources Band 6 Head of Operations Band 6

External Resource Manager Band 5 External Resource Leader Band 4 External Resource Leader Band 4

External Resource Manager Band 5

Community Manager Band 5 Contract Manager

External Resource Leader Band 4 External Resource Leader Band 4

Band 4

Contract Administrator Band 2

Community Administrator Band 2

Operations Manager Band 3 Assignment Operations Administrator Band 2

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Consultant Management
Provide up to date CVs Complete a consultant Details Form Monitor availability Provide availability data to OGC as required

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Proposing Consultants
Statement of Work Direct call off – Clearly defined requirements covered by the framework agreement – Day rates as quoted in the framework as a maximum Mini competitions – Requirements that are not fully covered by the framework agreement – Bidding consultants – Competitive Rates – Appointed on basis of optimum balance of skills and cost

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Knowledge Sharing
Expect suppliers to share information on assignments and consultants Examples – – – – Customer Feedback Best practice Lessons learned Relevant documents and reports

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Ordering Work – Formal order from customer – Formal approval before extending the service Direct billing – Monthly invoice direct to customer – Full supporting details Management Information – Quarterly stats – consultant, customer, fee volumes – More information to be defined

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Refresh Process
Meet changing needs of OGC – Volume – Skills “Sourcing” Partners May carry out a refresh exercise quarterly Managed by the Contract Manager in consultation with customers Bid in consultants – CVs and day rates

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Operating Guidance
Operating Guidance is in development Issued to customers and suppliers before the ERF is operational Set out responsibilities, contacts, processes, standard forms Induction day for suppliers and customers

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Any Questions?

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