Collaborative Procurement Roundtable Discussion

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Collaborative ProcurementRoundtable Discussion

• Tuesday 3 February 2009
• 1882 Lounge
• Durham County Cricket Club

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Ross SmithHead of PolicyNorth East Chamber of
Commerce
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Hilary KnoxDeputy Chief ExecutiveAssociation of
North East Councils
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Public Sector The Opportunity

• A business perspective

Alan Holmes Chairman Buy North East
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Is it worth the effort?
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• 1.5bn
• North East Local Authorities
• Fire and Rescue Services

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Total North East spend

• 3.45bn
• N. E. business share
• 1.57Bn (about 45)

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Total UK spend

• 750bn

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Whats needed

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

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And

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

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Progress

• Central Government intentions
• Concordats, reports etc
• And locally
• Standard PQQ/ITT
• NEIEP- Collaborative procurement
• Procurement Forum and Buy North East

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Can things change?

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

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Risks?

• Dependency on Public Sector business
• Downturn and public sector strategy attracts more
  competition
• Public Sector spending crunch

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What next?

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

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(No Transcript)
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Collaborative Procurement and Commissioning
Programme

• Barry Rowland Programme Sponsor
• Acting Chief Executive, Newcastle City Council
• 3 February 2009

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Regional Improvement Efficiency Strategy 2008-11

• Developed around the National Improvement
  Efficiency Strategys 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 LAAs
  emerging MAAs
• Through improved leadership, empowerment,
  engagement collaboration - along with more
  efficient service delivery - NE well placed to
  deliver innovative and transformational change

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Delivery Programme Areas

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

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Collaborative Procurement Programme

• 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

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Collaborative Procurement Programme

• 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

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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
  procurement
• 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

More Customer Orientated Delivery
Better outcomes for citizens and communities
Improving Value for Money Services
Increasing Innovative Capacity
Community Empowerment
Better partnerships for Better Places
Economic Prosperity
Motivated Professional Workforce
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Key Strands of Work
Category Spend Planning
Demand Supply Intelligence
Capacity Management Mobilisation
Policy Practice Harmonisation
Commerce Interface
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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
  Rules)
• Improved tender submissions - time and money
  savings for both las suppliers

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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

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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

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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

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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

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Key Stakeholder Overview

• Business Sector
• CBI
• NECC
• FSB

• Other Regional
• Public Sector
• SHA
• HE
• FE
• SHA
• PCT
• LSC

• Government
• OTS
• DCLG
• OGC

• NOMS

• ANEC
• GONE
• RDA
• RIEP

• VONNE
• NESEP
• CVS
• Third Sector

• NEPO
• LAs
• LSP
• Fire Rescue
• Police
• (Schools)
• Local Government

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Summary
Local Authority FRS Improvement
Supplier Engagement Performance
Interaction with other NE IEP Programmes
Collaborative Procurement Programme
Savings Efficiencies
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Thank youQuestions Answersfor further
information, contact Barry Rowland (Programme
Sponsor)Tel [phone]email
barry.rowland_at_newcastle.gov.ukDiane Nielsen
(Programme Manager)Tel [phone]email
diane.nielsen_at_northeastcouncils.gov.uk
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Ruth ConnortonPartnerEversheds LLP
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Collaborative ProcurementRoundtable Discussion

• Tuesday 3 February 2009
• 1882 Lounge
• Durham County Cricket Club