Collaborative Procurement Roundtable Discussion

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					Collaborative Procurement
 Roundtable Discussion

   Tuesday 3 February 2009
         1882 Lounge
   Durham County Cricket Club
     Ross Smith
    Head of Policy
North East Chamber of
      Hilary Knox
 Deputy Chief Executive
Association of North East
                Public Sector
                The Opportunity
                            A business perspective

Alan Holmes
Chairman – Buy North East
Is it worth the effort?
North East Local Authorities;
 Fire and Rescue Services
Total North East spend
     N. E. business’ share
     £1.57Bn (about 45%)
Total UK spend

            What’s needed

•   Better information
•   Earlier/better communication
•   Smart bureaucracy
•   Meaningful feedback
•   Innovative criteria
•   Measured risk

•   Willingness to learn
•   More collaboration
•   Smart systems
•   Some determination
•   Getting involved in reform activity

• Central Government intentions
• Concordats, reports etc

And locally
• Standard PQQ/ITT
• NEIEP- Collaborative procurement
• Procurement Forum and Buy North East
      Can things change?

• It has started, here and elsewhere
• Scotland a source of good practice?
• Tough context:
  Gershon, Glover, Sustainability goals etc etc

• Dependency on Public Sector business
• Downturn and public sector strategy attracts
  more competition
• Public Sector spending “crunch”
            What next?

• Get involved with the procurement
  reform group
• Sign up to Buy North East
• Help us work with the health sector and
  Collaborative Procurement
and Commissioning Programme

Barry Rowland – Programme Sponsor
 Acting Chief Executive, Newcastle City Council
                3 February 2009
Regional Improvement &
Efficiency Strategy 2008-11

  Developed around the National Improvement & Efficiency Strategy’s
  key priorities
  Sets out how NE Councils, Fire & Rescue Services & Partners will
  build on firm foundations to drive improvement, deliver efficient public
  services and accelerate the pace of change
  Acknowledges significant progress to date within NE Region
  Recognises that the region faces significant economic, social and
  environmental challenges – emerging as priority areas for action in
  LAA’s & emerging MAA’s
  Through improved leadership, empowerment, engagement &
  collaboration - along with more efficient service delivery - NE well
  placed to deliver innovative and transformational change
Delivery Programme Areas

 Children’s Services – Maggie Atkinson, Gateshead
 Adult Services – Rachel Shimmin, Durham County
 Construction & Asset Management – Amanda Skelton, Redcar &
 Collaborative Procurement – Barry Rowland, Newcastle
 Waste and Environment – Paul Walker, Hartlepool
 Organisational Development & Workforce Planning – Susan
 Johnson, D&D Fire & Dave Smith, Sunderland
 Partnerships – Irene Lucas, South Tyneside
 Community Engagement & Empowerment – Andrew Kerr, North
 21st Century Services – Ada Burns, Darlington & Geoff Paul, Blyth
 Regional Leadership – Roger Kelly, Gateshead
Collaborative Procurement

Region collectively spends £1.5 billion per annum on
goods, works & services
Significant potential to deliver benefits and efficiencies from
collaborative procurement
Significant opportunity to work with the business sector to
review how procurement spend can support local
businesses as well as driving up efficiencies
Collaborative Procurement

Working collaboratively with local authorities and key
partners in the North East to:
– improve the way in which authorities procure commodities,
  goods and services
– improve procurement activity for local authorities and suppliers
  through engagement with the business sector and voluntary
  community sector
– make best use of procurement intelligence and collective buying
  power,strengthening the position of regional firms
– ensure improved strategic planning and investment in electronic
  procurement systems
Collaborative Procurement Aims, Objectives & Outcomes
   Transformational Procurement to support the delivery of Public Services of the highest
   standard – delivering efficiency, quality, innovation and excellence to service users,
   contributing to the economic, social and environmental prosperity of the North East

  •Procurement at the heart of Public Service outcomes, strengthening the link between policy &
  •Clear Objectives across the region, so that procurers and commissioners have a clear focus on
  delivering value for money on a whole life costing basis from an efficient procurement process
  •Appropriate contractual arrangements in place, within a Single Coherent Framework to assess how
  best to undertake particular types of procurement
  •Effective management of Contracts in operation, where the right objectives, incentives, people and
  support to be in place for contract manager to deliver public service outcomes
  •Commitment to collaboration and use of innovative solutions, to deliver 21st century services,
  efficiency savings and sustainable benefits
  •Encourage regional economic growth through public procurement stimulating, through competition, a
  mixed economy trading community, business growth and innovation
  •Development of Demand and Supply Side Market Intelligence, to support the planning, monitoring
  and measurement of performance & outcome delivery
  •Development and Mobilisation of capacity and skills, into a Coherent Framework for procurement
  and commissioning delivery, building capacity and skills to attract and retain high quality professionals
  •Improve the interface between Procurers & Suppliers, to further improve competition and diversity
  within the supply markets
  •Strong cross sector partnerships, shaping procurement policy and practice ensuring that collaboration
  and continuous improvement are characteristics of the North East in the years to come

                  Better                                                                Better
    More                      Improving                 Motivated &
                outcomes                   Increasing                   Community    partnerships   Economic
 Customer                      Value for                Professional
               for citizens                Innovative                  Empowerment    for Better    Prosperity
 Orientated                     Money                    Workforce
                   and                      Capacity                                    Places
  Delivery                     Services
         Key Strands of Work

                Category Spend

 Demand &           Policy &       Capacity
   Supply          Practice      Management &
Intelligence     Harmonisation    Mobilisation

Policy and Practice Harmonisation

• Developing a collaborative approach to
  procurement through standardisation of local
  authority policy frameworks:
   – Health & Safety
   – Equalities & Diversity
   – Financial (Standing Orders & Contract Procedure

    Improved tender submissions - time and
     money savings for both la’s & suppliers
Category Spend Planning

• Established baseline – who, what, where, when & how much
• To date, collaboration has lacked strategic direction
• Collaborative sourcing will ensure the most efficient & effective
  use of resources
• Procurement intelligence will inform a regional collaborative
  market category sourcing programme – better use of resources

   Providing a clear vision and focus to deliver
         efficiency and cashable savings
Capacity Management & Mobilisation

• Work to establish a future Governance Model for Regional
  Collaborative Procurement and Commissioning
• Create a delivery model that is fit for purpose
• Address the challenges facing all North East authorities
• Contribute towards delivering the targets set out in the NE RIEP
  Delivery Plan
• Develop a Capability Review Model and Standards Framework to
  assess procurement performance

       Provide strategic leadership, capacity & capability
  Collectively consider the impact on the regional marketplace
             Drive the collaborative agenda forward
Commerce Interface

• Agree specific activities and outcomes to support the Business Sector
• Identify what the issues are from all perspectives
• Improve engagement with the supplier community
• Simplify & standardise procurement processes
• Improve engagement & communication
• Operate more strategically
• Encourage innovation & grow procurement capability
• Encouraging regional economic growth

             Remove Barriers & Procurement Reform
                 Improve Supplier Engagement
          Improve outcomes for Economic Regeneration
Demand & Supply Side Intelligence

•   Develop a repository of procurement intelligence
•   Integrated from multiple supply and demand sources
•   Packaged for specific user requirements
•   Deployed across the web to every decision maker
•   Scalable to meet the needs of a growing community of users.
•   Will provide rich intelligence to a regional community of stakeholders
•   Realise the greater potential for regional collaborative procurement
    using a category based planning approach

Sustainable repository of procurement management information,
    providing rich procurement intelligence across the region
      Key Stakeholder Overview
                           Other Regional
Business Sector              Public Sector
                 Government •NOMS •SHA
•CBI                 •OTS               •HE
•NECC               •DCLG               •FE
•FSB                •OGC              •SHA
                •ANEC                 •LSC
                •GONE               •NEPO
                 •RDA                 •LA’s
                 •RIEP                 •LSP
•VONNE                      •Fire & Rescue
•NESEP                              •Police
•CVS                             •(Schools)
Third Sector              Local Government

                      Local Authority
                          & FRS

   Interaction with   Collaborative        Supplier
     other NE IEP     Procurement       Engagement &
     Programmes        Programme         Performance

                        Savings &
Thank you

Questions & Answers
for further information, contact:
Barry Rowland (Programme Sponsor)
Tel: 0191 277661
Diane Nielsen (Programme Manager)
Tel: 0191 261 3912
Ruth Connorton

Eversheds LLP
Collaborative Procurement
 Roundtable Discussion

   Tuesday 3 February 2009
         1882 Lounge
   Durham County Cricket Club