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Value Wales continues to evolve by dfsiopmhy6


									                                                                                                                                                                              Autumn 2005

Value Wales continues to evolve
Work has been well underway to               forward by the Capital Team. The         over responsibility for the Welsh       establish a permanent team of full
establish Value Wales as a fully             restructure has resulted in a number     Purchase Card programme and the         time procurement professionals in
functioning team, with new staff joining     of shifts to the Heads of programmes     new SMe-Engage project.                 the future and hope to be located
across all areas of Value Wales. Emma        within the Procurement Team and          Roger Lodwig supports the Welsh         across South, West and North Wales.
Holiday has been appointed as Chief          with effect from 1st October, some       Purchase Card programme on a full       Recently we were delighted to open
Executive Value Wales, whilst Julia          key staff changes are:                   time basis.                             a new North Wales office at Conwy
Douch joins as deputy Chief Executive        Alison Standfast moved from Head                                                 Business Centre, which is managed by
and will act as Director of Strategic                                                 Chris Chapman retains responsibility    Doug Powell.
                                             of Programme Best Practice to Head       for the delivery of the Gateway
Partnerships. Richard Wilson has been        of Programme Value for Money
appointed as Director of Property and                                                 programme and Construction policy
                                             Collaborative Procurement. She is also   support but working as a key member
Capital, and Paul Skellon remains in         Deputy Director of Procurement.
post as Director of Procurement. Turn                                                 of the Capital Team.
to page 5 to read up on Emma’s role          Kerry Hussell moved from Programme       In addition to these changes, the
and her vision for Value Wales.              Manager Value for Money to Head          procurement team continues to                           Value W
                                             of Programme Operational Support         expand and evolve and since our                                ales
After an evaluation of the business          Policy - a new area which covers
                                                                                                                                                       ng the
plan and careful restructuring of the                                                 last report, has been able to take on
                                             data, people and process, including      an additional number of secondees
Value Wales team, our procurement            the Procurement Fitness Check
agenda will now be focused on                                                         to help the team deliver on the
                                             programme.                               challenging targets set by the Making
four programmes: e-Procurement,
Operational      Support       Policy,       Gunther Kostyra, seconded from           the Connections Review. To find out
Sustainable Development Policy               Welsh Health Supplies, becomes Head      who our new secondees are and the
and Value for Money Collaborative            of Sustainable Development Policy.       work they will be doing see below.           Septem
                                                                                                                                            ber 2005

Procurement. The Construction and            Mike Melville remains Head of            As Value Wales continues to
Gateway projects will now be taken           Programme e-Procurement and takes        develop and grow, we plan to

                                              Gary Crewe from Caerphilly Council      Nicola Southall from Coleg              e-Procurement Programme
                                              joins the VfM team, supporting          Sir Gar/WFEPC joins the VfM             Helen Oliver from Gwent Central
                                              collaboration on Fleet & Vehicles.      team, taking responsibility for         Supplies will be working on the

   the team
                                                                                      training and also supporting a          e-procurement         programme,
                                              Darren Evans from Cardiff University    collaborative construction project      supporting the development of the
                                              will be taking the ICT Collaborative    in Pembrokeshire.                       new e-tendering module as well
                                              procurement forward, as well as
   Value Wales continues to expand                                                                                            as e-auctions.
                                              working part time for the Broadband     Operational Procurement Policy
   with the addition of secondees to
                                              Wales Unit within the Assembly.         Programme
   support us in our new role. Their wide                                                                                     Business Management Team
   range of skills is being applied across    David     Evans    from    County       Nick Sullivan from Swansea NHS          Danielle Dolan from WLGA will be
   the board, with many programmes            Borough Supplies in Bridgend            Trust will initially be working on      working as project support across all
   benefiting from their involvement.                                                  expenditure data collection and the     of the VW projects, including assisting
                                              will be joining the VfM team two
   VfM Collaborative Procurement              days a week, initially focusing on      Procurement Route Planner.              with the Direct Mail project.
   Programme                                  Food Procurement.
   Cheryl Brown joins on a part-time                                                  Dawn Brace from the Wales               Zoe Fisher from WLGA, will be
   basis from FFORWM, who host the            Mark Gwilym from Coleg Gwent            Audit Office will have responsibility    providing project support for
   WFEPC, and will be supporting joint        will be managing the PC, Laptops        for managing the Procurement            the North Wales area from our
   working between HE & FE sectors.           and Printers framework agreement.       Fitness Checks.                         Conwy office.

Inside this Issue . . .

   Welsh Purchasing Card                                                              Plus
   View from the Assembly                                                             •    Latest news from VW
                                                                                      •   Your questions answered
   SMe-Engage project takes off                                                       •   Collaborative update
   Public Sector Opens Doors for SMEs                                                 •   What’s on
Raising the e-profile
Look out for the upcoming e-Procurement
workshop, planned for 9 February 2006.
The workshop, held by Value Wales and
supported by the WPS e-procurement
                                                   As always we bring you the latest news from across
                                                   Wales, keeping you informed of the issues facing
                                                                                                          Welcome to the latest edition of Cytgord
                                                                                                          brought to you by Value Wales.

                                                                                                          asked Emma Holiday, Chief Executive to explain
                                                                                                          how Value Wales Procurement fits into the new
steering group, will look at how                   procurement. We’ve answered your questions             organisation. We also bring you details of Value
e-procurement can support efficiency                and explained the issues regarding the use of the      Wales’ new Charter for SME friendly procurement
savings and promote engagement in                  Welsh Purchasing Card, as well as bringing you the     on page 6, which your organisation can sign up to!
the development of the all-Wales                   results of Swansea and Pembrokeshire’s recent          If you have any ideas for the next issue or
e-Procurement Strategy.                            e-auctions.                                            would like to share your news, then we want
With an introduction from Sue Essex,               In this issue we report on the latest developments     to hear from you. You can reach us by emailing
Minister for Finance, Local Government and         of the Value Wales team, and on page 5 have  
Public Services, the workshop will focus
on case studies from across Wales and
give a detailed insight into progress made

                                                Purchasing Cards - fictions and facts
in Scotland and Ireland. The workshop is
aimed at Chief Executives, Finance Directors
and Procurement Managers.
For     further    information       contact                             Alan Oram, Senior Project        visibility provides a robust process to manage the                                           Manager, WPC dispels the         Purchasing Card programme.
                                                                         common myths associated          Lack of budgetary control. Fundamentally Purchasing
                                                                         with purchasing cards and        Cards let staff obtain the goods and services they
                                                                         gives you the truth on using     need within clearly defined rules. Spend restrictions
                                                                         and saving with the WPC.         apply to every Card and organisations can institute
                                                                          We now have over 40             pre-purchasing checks or put the Cards in the hands of
                                                                          organisations across all        buyers and authorisers(!). Systems can also ensure that
                                                                          Welsh public sectors using      spend is attributed to the correct budgets.
                                                Alan Oram
                                                                          the Welsh Purchasing Card       No purchase order = no information. Extensive MI is
                                                (WPC) and many in the ‘pipe-line’. Add in the 500+        provided in many cases. Let the Cardholder manage
                                                organisations using the Government Purchasing Card        the ordering and the organisation concentrate on what
Love me Tender                                  (GPC) and it is evident that Cards are an established     is received and what it pays!
A new guide, produced by the WDA in             tool for UK public sector procurement. Spend through
                                                WPC and GPC in 2004 was over £400m with many              Savings are unrealistic or unrealisable. Welsh
conjunction with VW, has now been printed
and is currently winging its way to thousands   organisations using Cards as their primary means of       Assembly Government and National Audit Office
of suppliers who have requested their free      purchasing low risk goods and services.                   endorse an average savings figure of £28 per
copy through The                                                                    transaction. Realistically what you achieve depends
                                                We are on course to achieve our target of 50% of          on how convoluted the existing process is and how
aim of the guide is to give Welsh SMEs a
                                                all Welsh public sector organisations using WPC           simple the replacement P Card process is. Direct
greater understanding of how the public
sector procures and to encourage them to        by the end of 2005, however several are very small        cash savings will accrue from supplier discounts,
compete for this work by demystifying the       programmes which are not maximising the benefits           reduction in paper, postage, etc plus any rebate you
tendering process.                              gained from wider use and many are yet to commit to       get on your Card spend.
                                                a Card programme.
Giving practical advice, the guide is kept                                                                VAT reclaim will be difficult. Data from Level II/III
general enough to apply to a wide variety of    Given that P Cards are now so well established, why so    suppliers provides sufficient evidence for VAT reclaims;
industry sectors, and to suppliers both new     much internal resistance to them? This is often because   an easier process with no need for paper invoices.
to the process and those who are looking to     of a lack of understanding and misconceptions about
                                                                                                          It’s difficult to post spend to the correct budgets.
improve their current tendering practices.      what P Cards can do and how they operate. Some of
                                                                                                          This is easy with a Card Management System such
                                                the more frequently expressed reservations are:
Contact if you                                                                   as Smart Data OnLine (provided free with WPC
would like more information.                    We must tightly control all purchasing to eliminate       MasterCard). Spend can be reconciled, approved
                                                the risk of fraud. Frequently the cost of ordering        and assigned account codes ready for uplift into
                                                and paying for low value goods and services is out of     the General Ledger. In effect the purchase to pay
                                                proportion to their value. Is it efficient use of public   process can be paperless (e-procurement at no cost!)
                                                money to buy something valued at £10 with acquisition     and fully automated.
                                                costs of £50?
                                                                                                          Our Auditors do not like it. The killer! Properly
                                                Successful Purchasing Cards programmes replace a          formulated and managed P Card programmes provide
                                                risk avoidance (at any cost) culture with one of risk     the visibility and control to satisfy the strictest
                                                management, empowering staff to buy what they need        audit requirements. Audit values are changing to put
                                                to do their jobs, but with adequate checks and controls   increased emphasis on the efficiency of processes as
                                                balancing the risks involved: all at a much lower cost.   well as financial probity and Cards offer an effective
                                                Cards lead to loss of control over purchasing.            cost reduced process. With Government endorsement
                                                Adequate training and monitoring considerably             from the highest level this should not be an issue.
                                                lessens this risk. Cardholders are told what they         Do not let misconceptions prevent you from realising
                                                can buy and from whom and Cards can be blocked            the contribution that Purchasing Cards can make to
                                                against selected types of suppliers. Enhanced             meeting the savings targets that are required over the
                                                Management Information(MI) and comprehensive              coming years. They are an easy and safe way to reduce
                                                exception reports allow for easy checking of what         administration and maximise potential for efficiency
                                                is bought. This combination of good guidance and          savings. Contact                                                                                        
                                                                                                                                  NEWS 3

   POINTS OF VIEW                                                                                                      NEWS IN BRIEF
   Cytgord answers some of your questions on the                 All public bodies funded directly by the              New training for Wales
   Value for Money Measurement system.                           Assembly Government will need to set                  The University of Glamorgan is now offering
                                                                 VfM targets in line with the national target          Prince2 project management courses. A
                                                                 and publish them in their business planning           qualification increasingly demanded in
   Q: What is the VfM Measurement system?                        documents, together with details of how they          public procurement contracts, it is designed
   A: It was developed following consultation                    will be achieved.                                     to ensure projects can be delivered on time
        throughout the public sector in 2003. It is a                                                                  and within budget.
        streamlined version of the mechanism utilised
                                                            Q: What is ‘Making the Most of our Resources’?
        in Higher Education. The methodology was            A: ‘Making the Most of our Resources’ is the draft         It is the only Welsh university to offer the
        launched on 1 April 2004 through workshops in            framework and guidance note published by the          five-day Prince2 practitioner course and the
        North and South Wales.                                   Welsh Assembly Government in March 2005 to            three-day foundation course, with only two
                                                                 provide further information on the approach to        other universities in America and Australia
   Q: What are the requirements on my organisation/              securing VfM improvements and arrangements            offering training in this qualification.
        sector for recording and reporting VfM                   for defining, securing, monitoring and validating
        efficiencies?                                             these gains. The aim of issuing it in draft was       VWʼs Best Practice Team Up For
   A: ‘Making the Connections’ October 2004 sets                 to enable bodies to start planning their work,        Nomination
        out the Welsh Assembly Government’s visions              however, further development is underway              Congratulations goes to Alison Standfast
        for delivery of better quality public services           and suggestions are invited. For the purposes         and Karen Coombs of the Best Practice
        in Wales.                                                of measuring and recording VfM efficiencies            team at VW who have been shortlisted for
                                                                 achieved, the framework recommends use of             a CIPS Supply Management Award for their
        The publication identified the achievement of             the Value Wales VfM Measurement model.                contribution to corporate responsibility.
        value for money gains as one of four principles
        for better services. The Assembly Government        Q: Where is the information held?                          The winners are due to be announced at a
                                                                                                                       gala dinner in London on 27 October, and
        has set a target of achieving £600 million of VfM   A: Copies of the VfM Measurement system, ‘Making
                                                                                                                       we have our fingers crossed that the team
        improvements across the Welsh public service             the Connections’ and ‘Making the Most of Our
                                                                                                                       will walk away with a winning award.
        by 2010 - at least half of these to be reached           Resources’ are available for download from
        by 2008.                                        For further information
                                                                                                                       Nurturing talent for the future
                                                                 please contact
        Within this overarching £600 million target is                                                                 Four students from North Wales are
        a distinct target for procurement savings: £120     Q: Are there any plans for future developments             the first to take part in a procurement
        million of VfM improvements through better               with the methodology?                                 apprenticeship scheme set up to produce
        procurement by 2008, with the possibility           A:   Planned developments for the future include           qualified procurement professionals for
        of more by 2010. This equates to all bodies              the roll-out of an online version of the savings      the public sector. The year long scheme is
        securing three per cent savings on their annual          methodology and further guidance on recording         the first of its kind and covers areas such as
        procurement budgets.                                     non-cash releasing efficiencies achieved.              purchasing supplies and tendering. It also
                                                                                                                       allows the students to study for an NVQ
                                                                                                                       level 2 in procurement.

Public Sector finds Welsh SMEs engaging
                                                                                                                       The apprentices will work across the
                                                                                                                       public sector for both the NHS and Local
                                                                                                                       Authorities. The scheme aims to encourage
                                                                                                                       students at an early age to consider a career
Having received final funding approval from WEFO this        The project will be working with businesses in some        in procurement and to help keep local
autumn, a new VW and WDA project is set to help SMEs        of the most economically vulnerable areas of Wales,        young people in their own community by
in Objective 1 areas in Wales develop their capabilities    and will provide Welsh SMEs with both practical            providing job opportunities.
to use vital e-procurement processes.                       and financial assistance, such as part funding the          The scheme is the brainchild of Kay Smith,
As the Welsh public sector gears up to using                technology costs to become card enabled. It will also      director of the NHS’s North Wales Supplies
e-procurement processes such as the Welsh                   offer assistance in improving the skills required for      Consortium, who saw a gap in the market
Purchasing Card, e-tendering, e-auctions and                identifying and carrying out procurement activities        for a recruitment drive aimed at school
e-invoicing,     it is                                                                   electronically and will       leavers who were making career decisions.
                                                                                         encourage them to             The scheme is backed by a £25,000 grant
important that SMEs
                                                                                         continue upgrading their      from Value Wales.
understand the use
of such tools in                                                                         own IT systems once
both the public and                                                                      the project has ended.
private sectors.                                                                           Value Wales            is
Feedback        received                                                                   committed             to
from SMEs in Wales has                                                                     increasing          SME
identified the need for a programme which will develop,      engagement with the public sector, and encouraging
simplify and explain public sector e-procurement            more Welsh SMEs to tender for public sector
processes. The SMe-Engage project will work with SMEs       contracts. The SMe-Engage project is the latest in a
in Wales’ Objective 1 areas to enhance their ability to     line of initiatives aimed at bringing the public sector
trade electronically with the public sector by helping      closer to SMEs.
and encouraging them to keep pace with the latest           Value Wales will be working with the WDA and other         Standing L-R: Kay Smith North Wales NHS
e-procurement developments.                                                                                            Purchasing Consortium, Rowena Thomas
                                                            business support organisations to ensure a consistent
                                                                                                                       (apprentice), Caryl Evans (apprentice)
This work will be complemented by a commitment              and joined up programme of support is available to
                                                                                                                       and Kathryn Sawyers (North Wales
from the unitary authorities across Wales to ensure         Welsh businesses.
                                                                                                                       NHS Purchasing Consortium). Seated
that SMEs are placed on an equal footing with larger        Activity is currently underway to recruit a project        L-R: Anthony Dawber (apprentice) and
firms by simplifying procurement processes and               team, however if you require more information in the       Matthew Stuart (apprentice).
moving towards a more standardised approach.                meantime contact                                                                                        

                                             Language Board, some functions of          will also start to both demonstrate           practical ones of being able to link
                                             the Countryside Council for Wales,         and implement efficiencies that can            IT systems together, introducing new
                                             Sports Council for Wales and the           be achieved in bringing together “back        ways of working and moving staff to
                                             Arts Council of Wales, together with       office” functions and developing the           different locations so that they can

                                             various structural changes in respect of   shared service concept.                       work as a team.
                                             delivery of health functions, including
                                                                                        Over the next 12 months, we will be           The Assembly Procurement function
                                             the move of the functions of Health
                                                                                        developing and implementing better            will be managed through an enlarged
                                             Professions Wales to an NHS Trust.
                                                                                        ways for the newly merged and                 central team, which will set the
                                             We’ve invited Laurie Pavelin, Change
                                                                                        enlarged body to work, ensuring that          framework for the Assembly’s
In July 2004, First Minister Rhodri          Director at the National Assembly for
                                                                                        they are focused on the customers’            procurement and will provide
Morgan announced his intention               Wales to bring you the latest details
                                                                                        needs through the bringing together           professional advice and support and,
to bring into the Welsh Assembly             on the upcoming ASPB merger.
                                                                                        of the skills and expertise of the            where appropriate, direct functions
Government a number of ASPBs                                                            various teams.                                for each of the main business
(Assembly Sponsored Public Bodies)
                                                                                        There are a number of benefits that            departments within the Assembly.
including the Welsh Development
                                                                                        the public sector hopes to receive as         This new structure will be able to
Agency (WDA), Wales Tourist Board
                                                                                        a result of the merger. These include         have a greater influence, due to its
(WTB) and National Council for
                                                                                        a reduction in costs of a number              size and professionalism, on the way
Education and Training in Wales (ELWa)
                                                                                        of “back office” functions; more               that the Assembly both undertakes
by April 2006 - three organisations
                                                                                        resources going into frontline services       its procurement and develops for
which account for almost 70 per cent
                                                                                        to the customer; the introduction of          the future.
of expenditure by the ASPBs. This
was followed by an announcement                                                         new ways of working with customers;
                                                                                                                                      The much enlarged direct role of the
in November 2004 that some of the                                                       a wider understanding of customers’
                                                                                                                                      Assembly, with its focus on being an
remaining ASPBs would either also                                                       needs through the joining up of policy
                                             Laurie Pavelin                                                                           exemplar procurement organisation,
be merged into the Welsh Assembly                                                       and delivery and, over time, a much
                                                                                                                                      means that it is likely to play a larger
Government, or would have changes                                                       reduced number of contact points
                                             The main objectives of the ASPB                                                          and stronger role in the development
made to their responsibilities.                                                         for questions and enquiries.
                                             merger are to bring together the                                                         of procurement across the public
In addition to the WDA, ELWA                 policy and delivery arms of the            The issues facing the merger range            sector in Wales following the Welsh
and WTB this will also affect the            Welsh Assembly Government to               from cultural ones where each body            Assembly Government’s principles,
Curriculum,   Qualifications   and            ensure an improved customer focus          has its own ethos and the need to             which include, among many others,
Assessment Authority for Wales               and the achievement of the Welsh           develop a corporate ethos for the             sustainability, developing economic
(ACCAC), and in 2007, the Welsh              Assembly Government objectives. It         newly merged organisation, to the             strength in Wales and green issues.

   Projects Update
   VfM Measurement System                     regional users would commit to            to develop a structured approach            into sustainable procurement /
   Work is currently underway with            use WPC with suppliers of various         to strategic procurement within             construction policy and best practice.
   the Making the Connections team            commodities or services in their area.    Construction. Results and experience        A number of public sector organisations
   to further develop the recording           This would greatly assist with supplier   will be shared with the wider public        are seeking to take specific account
   and reporting methodology to               recruitment - signing suppliers up to     sector via a case study in May 2006.        of sustainability in construction
   encompass non-cash-releasing savings.      accept cards and moving to higher                                                     frameworks or major projects, by
                                                                                        e-Procurement strategy
   Additionally, trials and evaluations of    levels of capability.                                                                 incorporating aspects of pilot schemes
                                                                                        Further progress via the steering group
   an on-line version of the methodology                                                                                            and the Sustainable Procurement
                                              Training                                  and sub-groups is required to finalise
   are underway. See Points of View on                                                                                              Programme. These include the Heads
                                              An MSc cohort group has now been          the draft road map and planning
   page 3 for more details.                                                                                                         of the Valleys project (covering RCT,
                                              established to start studying this        the logistics of the recommended
   National website                           Autumn with Glamorgan University.         workshop. See page 2 for more details       Caerphilly, Blaenau Gwent and Merthyr
   Changes to the notice form area have       After numbers were disappointingly        on the workshop.                            Tydfil councils); Welsh Health Estates;
   been made live, which hopefully makes      low, VW offered to part-fund the cost                                                 the Pembrokeshire collaborative
                                                                                        Management Information and
   the process of adding and publishing       of the MSc by 50% which resulted                                                      project;      and     Carmarthenshire
   a notice more user friendly. Changes       in ten candidates committing to                                                       Council.     Those     interested    in
                                                                                        Following evaluation of the proposals
   include the ability to attach documents    study for their MSc. If you would                                                     sharing experiences should contact
                                                                                        requested from nine suppliers of
   to non-OJEU notices, which could be        like to join this MSc group please let                                      
                                                                                        the Procurement Expert Advisors
   used for background information, T&Cs know        framework,      Alito,   working     in     Procurement Strategy Template
   or even PQQs. Thanks to those users        as soon as possible.                      partnership with PMMS have been             The pathfinder project as defined has
   who have helped with the testing, your     Interest is being assessed in the         selected to undertake analysis of           now been completed. Coleg Sir Gar
   feedback has been excellent.               Corporate Award route to MCIPS.           current data held and co-ordinate           has completed their Procurement
   We are always on the look out for          This programme could be run by            collection and analysis of future           Strategy, which will act as a model for
   Case Study material, so if you have        PMMS either on assignment-basis,          information. The expenditure analysis       FE and the wider public sector at large.
   awarded work to a supplier as a            which costs £5100, or on a project-       will be carried out on a sectoral basis,    The template and the PMMS guidance
   result of buy4wales / sell2wales,          basis, which costs £7100. Full details    starting with Local Government and          is available on
   then please get in touch with              of the programme will be available        moving to NHS, Higher Education,
                                                                                                                                    SME Development              on buy4wales shortly. If you think        Further Education and the ASPBs.
                                                                                                                                    Findings of the SME Focus Group
   Welsh Purchasing Card (WPC)                you may be interested contact             Community Benefits: Impact                   research highlighted a key demand
   The next major step for the programme            Assessment                                  for more consistency in approach
   will be to evaluate the potential for      PMMS are leading a live project as part   The pathfinder project as defined             and documentation across the public
   collaborative groups covering specific      of the Pembrokeshire collaborative        will be completed with production           sector, which will hopefully be
   areas of Card usage. As an example,        work, facilitating three workshops        of the final report, and will move           addressed by the charter to promote                                                                                                   
                                                                                               NEWS & VIEWS 5
Fresh Faces
                                                              strategic direction of Value Wales and its three         public sector to look at changing the way we
                                                              operational elements, strategic partnerships,            are doing things and to make a real difference.
                                                              capital and procurement. The Management                  This is easy to say, but is not easy to do and I
                                                              Group is advised by a Leadership Group                   should like Value Wales to be a genuine source
In this issue, we bring you the latest news on
                                                              comprising a board of senior representatives             of help to organisations in achieving real and
Value Wales from Emma Holiday, Chief Executive
                                                              from across the public sector. This group in turn        sustainable improvements.
Value Wales.
                                                              reports directly to the Public Services Board,
                                                              which is chaired by the First Minister and has       Q. What, in your opinion, is the biggest challenge
Q. What was your previous job?                                                                                         facing Wales when it comes to delivering value
                                                              overall responsibility for the whole of Making
A. I am currently on secondment        to the Welsh           the Connections.                                         for money?
    Assembly Government from KPMG where I was                                                                      A. There     have been many value for money,
    responsible for delivering audit, accounting and                                                                   efficiency and collaborative initiatives working
    financial advisory services to a wide range of                                                                      within sectors, although mainly in the area of
    organisations in a variety of different markets                                                                    procurement. Whilst these make a valuable
    and sectors.                                                                                                       contribution, they operate largely as individual
Q. Briefly, what is Value Wales?                                                                                        units. There is a great opportunity, in Value
                                                                                                                       Wales, to bring the public sector together and
A. Value Wales is a major initiative, set up by the                                                                    give it strategic direction. Value Wales will be
    Welsh Assembly Government, to drive better                                                                         the catalyst that joins together all of the public
    use of resources across the public sector.                                                                         sector organisations, their sector umbrella
Q. Can   you give a brief overview of the three                                                                        bodies and the existing initiatives and aligns
    arms of Value Wales and how you see them                                                                           them with the National objectives of maximising
    fitting together?                                                                                                   value for money and efficiency through
                                                             Emma Holiday                                              collaboration.
A. Value     Wales is focusing on three areas -
                                                                                                                       The key priorities for Value Wales will be to
    strategic partnerships, capital and procurement,     Q. What is your vision for Value Wales?                       provide leadership, strategic direction and
    and by facilitating collaboration and sharing
    information, we will help organisations to
                                                         A. Value Wales will act as a major catalyst    for            access to information, best practice, guidance
                                                              change across the public sector and will                 and technical expertise across the public
    deliver their value for money savings set out in
                                                              focus on value for money opportunities from              sector balancing the need for central direction
    Making the Connections.
                                                              streamlining support functions (covering                 with respect for the autonomy of individual
    Value Wales will promote fundamental                      strategic partnerships and shared services);             organisations.
    structural change in the way in which services            better management of capital investment; and
    are organised and delivered by encouraging                smarter procurement.                                 Q. Tell us three interesting facts about yourself.
    and facilitating joint arrangements and                                                                        A. I am a qualified chartered accountant with a
    shared services.                                     Q. What changes can we expect to see over the                 degree in Chemistry so I am not meant to be
    We will bring strategic direction to the public           next 12 months?                                          interesting. However, when I am not absorbed
    sector’s approach to the management of capital       A. Over     the next 12 months, I would to like to            in accounting technicalities, I love gardening and
    investment and have a critical role to play in its        begin to see that vision become a reality. The           am currently renovating an area of my garden
    efficient delivery.                                        procurement team is well established and we              which, until now, has been a bit of a wasteland.
    Building on the work of the Welsh Procurement             are currently setting up the capital and strategic       In fact, this weekend involves shifting six
    Initiative Team, Value Wales will focus on                partnership teams as well as looking at our              tonnes of topsoil. My other great love is
    enhanced delivery of key strategic and                    information and communication channels and               coastal, moorland and hill walking. We have
    operational procurement priorities.                       building our networks. We have a detailed                some of the most beautiful coastline and
                                                              operational plan with a series of initiatives            landscapes here in Wales and I love nothing
Q. What is your role within Value Wales and how               and priorities in our first year, which we hope           more than to escape to the Pembrokeshire coast
    does this fit in to the whole structure?                   will start to deliver some tangible savings for          to watch seals and dolphins or to Snowdonia,
A. As  part of the Value Wales Management                     organisations who want our help. The efficiency           the Beacons or the South Wales valleys for
    Group, my role is to manage the overall                   agenda is a huge opportunity for all of us in the        some energetic hill climbing.

  SME friendly procurement entitled         on behalf of four Local Authorities        Ethical Supply Chains                    Sustainable Procurement
  ‘Opening Doors’.                          and will use this to assess the
                                                                                       VW is reviewing supply chains and        56 organisations have signed up to
  In addition a Print sub-group has been    implications of letting and managing
                                                                                       looking for potential efficiencies        the SP Programme and a series of
  established and met, discussing the       cross sector contracts.
                                                                                       via an all-Wales approach. Contact       workshops have taken place through
  potential for a Print Cymru initiative,   Primary School Breakfasts/School  or     the Autumn, free of charge. Further
  led by the supply side. The Medical       Meals                             if you    workshops are planned for 2006
  sub-group has also met.
                                            An Assembly led project is being set       would like more information about        on ethical supply chains, office
  SME Food Development                      up to review nutritional standards of      the proposed project.                    consumables and construction. Full
  The project group has met to consider     school meals, and met for the first time
                                                                                       Procurement Fitness Check                details of all workshops will be
  the future direction of the project       in October 2005. This combines the
  /commodity group and the draft            primary school breakfast project and                                                available on buy4wales and priority
                                                                                       The Higher Education sector plan
  collaborative sourcing plan. Details      school lunches into one policy area.                                                will be given to those organisations
                                                                                       to conduct Fitness Checks on 12
  of best practice projects at Rhondda      The main breakfast project is currently                                             signed up to the SP programme.
                                                                                       establishments by the end of 2005.
  Cynon Taf Council, Caerphilly Council,    collating cost and volume data from
                                                                                       In addition, two new PFCs are            The proposed help line manned by
  Welsh Health Supplies (WHS), HEPCW,       pilots, and VW will be working with
                                                                                       programmed for Local Government          Global to Local is currently being
  Pembrokeshire, Monmouthshire and          them to look at longer term sourcing
  Swansea Councils are available on         implications and opportunities. The roll   with capacity for a further one          trialled. If it goes ahead this will be
  request. In North Wales WHS are           out will continue and current take up is   this year, along with the annual         available only to those who have
  leading tenders on both meat and milk     averaging in the region of 30 per cent.    revisit programme.                       signed up and completed the tool.                                                                                              
Opening Doors to a better understanding
Next year Value Wales will be             Procurement Taskforce, has produced         the public sector’s and the SMEs’         the Welsh public sector is to grab this
launching Opening Doors, a new            “Opening Doors: the Charter for SME         perspective. When signing up to the       opportunity now, so that by opening
charter aimed at breaking down            Friendly Procurement”. The Charter          Charter, public sector organisations      the right doors, we collectively build a
barriers between the public sector        aims to create a better understanding       will be pledging their commitment to      healthier business sector in Wales.”
and SMEs - and want your organisation     between SMEs and the public sector and      a range of simple principles which will
to make the pledge to conduct SME         thereby increase the amount of public       create a level playing field for SMEs.     The      Opening     Doors       Charter
friendly procurement!                     sector procurement business won by          This includes a commitment to cutting     complements a range of existing
                                          SMEs in Wales. We are now seeking           down on administration, simplifying       projects such as the WDA’s Local
The perception that many of us work       public sector sign up to the Charter        documents and using plain language.       Supplier Development Programme,
for large organisations based in large    from all 108 Welsh organisations before     It     also    includes     welcoming     which encourages new businesses in
offices or vast factories is no longer     it is launched in Spring 2006.              collaborative bids and actively           Wales to access new markets and win
true. It is estimated that there are                                                  encouraging main suppliers to provide     contracts through inter-trading, Value
around 0.15 million businesses in Wales   Every year the public sector in Wales       opportunities for SMEs to deliver         Wales’ SMe-Engage that helps SMEs in
and 99 per cent of these are Small and    spends around £4 billion on goods           elements of appropriate contracts.        Objective 1 areas to develop their e-
Medium Enterprises (SMEs).                and services. Research indicates that
                                                                                                                                procurement skills and the WDA’s SME
                                          only 35 per cent of this spend is won       It also includes committing to
SMEs make an important contribution       by businesses in Wales, supporting          registering    on     the     National    tendering toolkit. Collectively these
to the development of a healthy           approximately 70,000 jobs. For every        Procurement Website and developing        projects will help deliver a consistent
economy in Wales, yet despite             one per cent increase in spending           and working with their supply chains to   approach to procurement across the
being able to offer good business         within Wales, a further 2,000 jobs          include other SMEs.                       public sector in Wales while at the same
opportunities not enough are engaging     could be created. It is therefore crucial                                             time addressing issues of particular
with the public sector due to a mixture   that SMEs are able to adapt to meet         Andrew Davies, Minister for Economic      concern to SMEs.
of both real and perceived barriers.      the requirements of the public sector       Development and Transport says: “We
                                                                                      are all on a long journey of change in    The public sector will shortly be
                                          and ultimately win more business.
To remove these barriers and to                                                       public sector procurement methods         contacted encouraging you to sign up
dispel some of the myths surrounding      ‘Opening Doors’ sets out the main           and optimising work opportunities, and    to the Charter. In the meantime contact
procurement in the public sector, Value   principles for commitment to SME            this is another important step on that     or
Wales, in partnership with the Business   friendly procurement, from both             journey. My challenge to both SMEs and

                               Under the Microscope…                                                                Congratulations
                                                                                                                    CIPS and MSc
                                                                           …with Jan Koziel                         Graduates
                                   Procurement Manager for Environment Agency Wales                                 VW would like to congratulate all the
                                                                                                                    procurement      professionals     in   Wales
   Q. When did you join the Environment                   Q. What are the main challenges of                        who received their MSc in Public Sector
      Agency?                                                  your job?                                            Procurement and CIPS qualifications in August.
                                                                                                                    Juggling studies with a full-time job is never
   A. I joined in October 2000, initially as a            A. Trying to get everything that I’m expected             an easy task and their hard work and
      Senior Procurement Officer before gaining                 to do and deliver into a 37 hour week                determination are recognised.
      promotion to Procurement Manager.                        (impossible!) and endeavouring not to
                                                               overburden and totally stress out my staff           Those achieving their MSc in Public Sector
   Q. What is the number one aim and objective                 by giving them too much to do.                       Procurement include: Paul Griffiths, ACCAC;
      of your role?                                                                                                 Wendy Fawcus, Health Professions Wales;
   A. To ensure the Environment Agency’s                  Q. What are your interests and/or hobbies?                Andrew Falvey, Swansea Council; Nicola
      Procurement Strategy is delivered in Wales,                                                                   Southall, Coleg Sir Gar; and Helen James,
                                                          A. Rugby - I’m on the verge of hanging up my
      with a focus on contributing to key regional                                                                  Swansea NHS Trust.
                                                               boots, but saying that I’ve been promising
      business needs.                                                                                               Newly qualified MCIPS professionals include:
                                                               my long suffering partner Heidi that “it’s
                                                               my last season” for the last nine years. My          Simon Griffiths, Swansea Council; Kathryn
   Q. What was your previous job?
                                                               eight-year-old son has just started playing,         Sawyer, North Wales Supplies Consortium;
   A. Prior to joining the Environment Agency                                                                       Simon Davies, Gwalia Housing Association;
                                                               and I think it’s about time I handed the
       I worked at Cardiff County Council as a                                                                      Heather Walters, Gwent Healthcare NHS Trust;
       Senior Purchasing Officer.                               baton to him.
                                                                                                                    and Nicola Torrington, Swansea NHS Trust.
   Q. What do you enjoy most about                        Q. What are your three pet hates in life?                 Joanne Young of Gwent Healthcare
      procurement?                                        A. Adults riding their bikes on the pavement (it’s        NHS Trust also achieved her CIPS Foundation
   A. Within the Environment Agency it’s the wide              okay for kids to do it), being late for meetings     stage qualification.
      variety of contracts that I get involved in.             and dog owners who don’t clean up after
                                                                                                                    Many elements of these qualifications can be
      Anything from Construction and IT through                their pets.
                                                                                                                    undertaken at locations suitable to students,
      to Otter surveys. What’s really satisfying                                                                    and your organisation may allow you to
      is contributing to major projects from              Q. What three items would you take to a
                                                                                                                    work flexibly, making time up along the way.
      inception to completion and actually seeing              desert island with you?
                                                                                                                    Contact for
      an environmental benefit at the end of it.           A. Heidi and the kids.                                    more information.                                                                                            
                                                                                                                                           NEWS 7
Find updates on new agreements, collaborative projects underway and forthcoming award dates. Be sure to log on to the Useful Resources
section of for regularly updated Collaboration news.

                                             For further information contact             co-incides with the recent recycled          Garage Workshop Sundries and Parts
                                                  paper workshops. This revised pricing        A framework agreement for the
                                                                                         is available to existing and new Lyreco      supply of garage workshop sundries

                                                                                         customers on a ‘one stop shop’ basis.        and parts has been set up by Flintshire
                                             Corporate Express                                                                        County Council and is available to
                                                                                         Office Depot
                                             Amendments in the pricing of 41                                                          all public sector bodies in Wales.
                                                                                         A proposed amended core list                 The framework allows organisations
                                             core list items took effect from 12th
                                                                                         pricing from Office Depot has been            to buy individual items and more
                                             September as an interim measure in
  Recruitment Advertising Agency                                                         refused as this represented an overall       importantly allows organisations
                                             advance of the full framework review
  Services                                                                               increase in the value of the core            to enter into a longer term supply
                                             scheduled for 1st December. All current     list ‘basket’ of approximately 21 per
  To date this project has delivered £4      Corporate Express customers will be                                                      relationship with suppliers.
  million savings, and identified a further                                               cent. Discussions are on-going but no
                                             contacted to review usage profiles                                                        Print Services
  potential of £4 million. A review will                                                 amendments will be agreed outside
                                             and produce a bespoke core list                                                          As part of the North Wales
  shortly be carried out by the project                                                  the value of the original tender.
                                             which reflects actual products being                                                      Procurement Forum’s Collaboration
  team and recommendations such as                                                       Discussions are already underway
                                             purchased. The contract management                                                       Programme a framework agreement is
  closer working with Jobcentre Plus and                                                 with all three suppliers regarding the
                                             team recognises the inconvenience                                                        to be set up for print services across
  all-Wales web portals are expected.                                                    structure of the framework from 1st
                                             of amendments outside the agreed                                                         North Wales which should provide
                                                                                         December onwards.
                                             period and it is with some regret that                                                   a regional solution with benefits to
  PCs, Laptops & Printers
                                             this course of action has been agreed.      Expert Advisors                              local SMEs.
  By the end of August 2005 orders                                                       Already proving useful for VW this
                                             However, it is necessary to secure the                                                   Photocopiers
  to the value of £6 million had been                                                    framework is available for call-off by       Public sector organisations across
  placed through the framework by 91         future of the framework.
                                                                                         any public sector body within Wales.         Wales are now benefiting from
  organisations, resulting in an estimated   Lyreco
                                                                                                                                      the framework agreement for
  saving of £1.98 million. Up to date        From 1st October Lyreco are reducing        Vehicle Hire
                                                                                                                                      photocopiers awarded to four
  pricing and specifications are available    the price of recycled copier paper          Around 45 organisations are now
                                                                                                                                      suppliers. This includes the use of
  on         along   and revised pricing on A4 Evolve            utilising the framework with total           digital copiers which are classed as
  with a bespoke Buyers Guide.               and Nautilus copier is available on         expenditure in the region of £195,000.       multi-functional print devices which
  A user focus group is being                buy4wales. This is a result of Lyreco’s     As well as the contract rates being          can be directly networked into
  developed for this commodity area          support of the VW Sustainable               very competitive, all suppliers are          PCs to deliver more cost effective
  across the Welsh public sector.            Development       programme        and      p-card compatible.                           print solutions.

                                             Other potential fleet collaborations         for how both Electricity and Gas can         viability of a framework agreement for
                                             include: Commercial Vehicle Hire, Fuel      be best delivered across the public          the provision of local access circuits;
                                             Supply, Workshop Maintenance and            sector in Wales.                             Phase 2 of the Videoconferencing

  tenders and                                Repair Service. In addition a workshop
                                             took place on 20th October to promote
                                                                                         The OGC/BT Premier Value framework
                                                                                                                                      Services Pilot with the possibility
                                                                                                                                      of collaboration between 16 local

                                             Sustainability within all aspects of fleet                                                authorities in Wales; and liaison with
                                             procurement and operations.                 continues to offer very low BT tariffs to
                                                                                                                                      practitioner networks such as SOCITIM
                                                                                         participating organisations. In addition,
                                             Agency Worker Provision                                                                  to develop collaborative procurement
                                                                                         Premier Value customers also qualify
                                             The project team has developed a                                                         for other IT and communication
                                                                                         for a free consultancy package called
  Legal Services                             procurement method that uses the                                                         requirements.
                                                                                         Analyst Consult, through which BT
  The project team has identified             best elements of national suppliers         consultants analyse voice traffic and         Direct Mail
  several innovative opportunities to        and smaller local or specialist agencies    identify areas where more effective
  improve VfM through collaborative                                                                                                   Postcomm plans to open the market
                                             in an efficient co-ordinated way.            use could result in further savings.
  procurement and a copy of this report                                                                                               up to full competition in the new
                                             Cost savings are in the region of
  is available on                                                   NTL remains a competitive alternative        year. The OGC is scheduled to have an
                                             10 per cent.
  Stakeholders have been invited to                                                      to BT, offering lower voice tariffs and      arrangement in place by January 2006
                                             Two pilot projects were used to             discount line rental.                        and has invited VW to be part of the
  discuss the project team’s findings
                                             develop an off-the-shelf suite of                                                        project team. We are also scoping the
  and future action at a workshop in                                                     Discounted BT PSTN Lines
                                             tender documentation, which will                                                         wider procurement options, including
  Llandrindod Wells on 8th November.
                                             help avoid duplication of effort. A         NTL and BT are now able to offer
                                                                                                                                      those for internal and local logistics.
  Acquisition of Vehicles                    collaborative network of officers is also    discounted BT line rentals to
  A framework is set to commence on          being developed to encourage mutual         organisations. The NTL scheme for            Taxi Services
  1st March and organisations will be        support and sharing of knowledge.           reducing your BT PSTN line rentals is        The Welsh Ambulance Trust is currently
  able to purchase individual or groups                                                  NTL Wholesale Access (WA) and the            working on a Taxi Services framework
                                             Utilities                                   BT schemes are the BT Exchange Line
  of vehicles or enter into strategic long                                                                                            agreement for Health Trusts across
                                             It is estimated that the Welsh public       Credit Scheme and the BT Access
  term supply arrangements where fleet                                                                                                 Wales, with an expected award in
                                             sector spends over £100m on energy          Credit Scheme.
  management issues can be considered                                                                                                 early 2006. All public organisations
                                             commodities and with the recent
  in line with workshop facilities.                                                                                                   are welcome to participate and are
                                             increase in prices this programme           Data Communications
  Tyres Supply and Repair Services           is under close scrutiny. The Energy         Key areas in the development of data         invited to register their interest.
  This tender process is well under          Utilities Forum has agreed to               communications procurement include:          The framework provides opportunities
  way, led by Neath Port Talbot County       set up a Focus Group to explore             a collaborative opportunity for internet     to gain value for money benefits as
  Council and should be awarded              improvement opportunities and               security provision; joint working with       well as effective engagement with
  in March 2006.                             consider the procurement approach           Broadband Wales; an assessment of the        local operators.                                                                                                     
Whatʼs On?                                                                            So, what is the Procurement
The essential place to look for courses, training, workshops and events.
                                                                                      Excellence Model?
  NOVEMBER                                   Optimising the Performance of
                                                                                      The Procurement Excellence Model          on which to build, and the areas where
                                             your buildings
  Introduction to Energy                     22 November                              is quite simply a method of assessing     improvement is necessary to achieve
  Management workshop                        Village Hotel, Cardiff                   the health of an organisation’s           the desired performance.
  2 November                                 Web:            procurement activities.
  Exeter                                                                                                                        The model then enables a benchmark
                                             4th Annual eProcurement
  Web:                                                       The model, based on the EFQM              to be established, against which
                                             Scotl@nd conference 2005
  Intermediate Energy Management             23 & 24 November                         (European Foundation for Quality          actions can be assessed and changes
  workshop                                   Crieff Hydro Hotel in Perthshire         Management) Excellence Model,             measured.      The model can be
  2 November                                                                          is widely used throughout the UK
                                             Optimising the Performance of                                                      used to assess any type or size of
  Exeter                                                                              and Europe and is becoming the
                                             your buildings                                                                     procurement activity and assessments
                                             24 November                              standard model used by central and        can be carried out by anyone in the
  Collaborative Procurement Legal            St. David’s Park Hotel, Ewloe            local government. Seen as a holistic
  Workshop                                                                                                                      procurement industry. It is advisable
                                             Web:            approach to assessing all aspects of an
  8 November                                                                                                                    to encourage both staff and senior
  Llandrindod Wells                                                                   organisation’s procurement activities,    managers to carry out the assessment,
  Email:                                              it is intended to promote continuous      as there are merits in having responses
  Contract Management                        DECEMBER                                 improvement and is an aid to effective    from people at different levels.
  (2 days, £250)                             Introduction to Procurement              benchmarking.
  8 November                                 (1 day, £140)                                                                      The Procurement Excellence Model
                                                                                      The structure of the model covers
  Swansea                                    1 December                                                                         has been used across the board. In
                                                                                      nine key areas encompassing the
  Web:            DVLA Development Centre,                                                           the Health Sector Welsh Health
                                                                                      input (leaders, people, policy and
  Energy Workshop & Utilities                Swansea                                                                            Supplies has used it for several years
                                             Web:          strategy), the enablers (partnerships,
  Forum                                                                                                                         with proven and demonstrable
  9 November                                 2nd Annual Efficiency Delivery
                                                                                      resources and processes) and the
                                                                                                                                positive results.     As part of its
  Mid Wales                                  Conference                               outcomes (people results, customer
                                                                                                                                Procurement Performance Framework
  Email:        6 December                               results, society results and key
                                                                                                                                the Local Government Benchmarking
  Is quality free? CIPS seminar              QEII Conference Centre, London           performance results).
                                                                                                                                Club has also adopted the model
  16 & 17 November (tbc)                     Web:
                                                                                      Through answering a series of             as one of its main performance
  Cardiff International Arena, Cardiff
                                                                                      questions on procurement activity,        indicators, which supports its Quality
                                                                                      the model helps identify the strengths    Critical Success Factor.

e-auction first for                         After evaluating written bids, the
                                           procurement team at Swansea Council
                                                                                      A second e-auction was held on 26
                                                                                      September by a six-way partnership
                                                                                                                                market, an e-auction was considered
                                                                                                                                the best option and within 2 hours
Local Authorities                          in partnership with Neath Port Talbot
                                           County Borough Council held the
                                                                                      consisting of Pembrokeshire County
                                                                                      Council, Carmarthenshire County
                                                                                                                                of the final bid the contract was
                                                                                                                                awarded to Bizzenergy. Savings
                                           first e-auction at the New Stadium in       Council, Ceredigion County Council,       achieved from both e-auctions will be
This autumn The City and County
                                           Swansea on 14 September.
of Swansea and Pembrokeshire                                                          Pembrokeshire College, Ceredigion         communicated shortly.
County Council became the first             Up for grabs was the biggest single        College and Coleg Sir Gâr.
Local Authorities in Wales to host         food contract to be offered by the                                                   Both auctions received support
e-auctions, getting the best price         councils - tinned and dried food goods     The contract tendered was for             from VW. If you’re interested in
and value possible for the                 for schools and other council facilities   electricity supply across 50 sites.       holding an e-auction contact
authorities’ money.                        for the next three years.                  Due to the volatility of the energy

  Value Wales
  Unit D, 1st Floor
                                                                                       Coming up next
  Tawe Business Village                                                                The Winter issue of Cytgord will bring you the latest news on the
  SWANSEA                                                                              Opening Doors launch in 2006 as well as reporting on the e-procurement
  SA7 9LA                                                                              workshops.
  Tel: 01792 313068                                                                    We will also be taking an in-depth look into Value Wales’ work and bringing
  W:                                                      you news from the other teams, Capital and Strategic Partnerships.

   We value your honest feedback, opinions, thoughts and views on how we can improve our next edition. Let us know what you
   would like to see in the next issue, or perhaps you would like to comment on the work of Value Wales itself.
   Make sure you get yourself heard by emailing Any comments are gladly received.
   The next issue is due out in February2006.                                                                                            

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