Conference

1
Conference Exhibition 2008

• 11 March 2008 Edinburgh International
  Conference Centre

2
Welcome
3
Conference Exhibition 2008

• 11 March 2008 Edinburgh International
  Conference Centre

4
CHAIRMAN'S OPENING COMMENTSNicol
ThorntonLondon Fire Brigade, SOPO National
Executive Committee
5
Conference Exhibition 2008

• 11 March 2008 Edinburgh International
  Conference Centre

6
KEYNOTE PRESENTATION"The Strategic Fit" The
Importance of Procurement to Overall
ObjectivesRory MairCEO, COSLA
7
Conference Exhibition 2008

• 11 March 2008 Edinburgh International
  Conference Centre

8
KEYNOTE PRESENTATIONWorking with Supported
Employment ProvidersHelen EadieMSP,
Dunfermline East
9
Conference Exhibition 2008

• 11 March 2008 Edinburgh International
  Conference Centre

10
KEYNOTE PRESENTATIONThe Importance of the
Procurement Process to Long Term
SustainabilityMaf SmithSustainable Development
Commission
11
Conference Exhibition 2008

• 11 March 2008 Edinburgh International
  Conference Centre

12
SOPO ScotlandSustaining the Challenge

• Lynn Garvie
• Head of procurement

13
Scottish Parliament approach to Responsible
Purchasing

• Introduction
• Why Responsible Purchasing?
• The Journey
• Our Responsible Purchasing Strategy
• Lessons Learned
• What next?

14
Introduction

• Who are we?
• What we buy
• Procurement Services
• Our Environment

15
Why Responsible Purchasing?

• Political Pressure
• Do the right thing
• A holistic approach
• Whats in a name?

16
The Journey

• In the beginning
• Let there be light
• Statement of Principles
• Some tangible progress

17
The journey continues.

• Developing our Vision
• A new way of thinking
• Developing a formal strategy
• Now

18
Our Responsible Purchasing Strategy

• 4 Areas of the Strategy
• Professional Standards
• Environmental Impact
• Ethical and Social Issues
• SMEs Scottish Suppliers
• Deeds not words
• Action Plan
• Communication Plan

19
Lessons Learned

• Find your own fit
• Find your organisations motivation
• Timescales
• Communication
• Commitment

20

What next?

• Keep Up
• Monitor, Measure, Report
• Review
• Building Blocks

21
Q A

• Any questions?

22
Conference Exhibition 2008

• 11 March 2008 Edinburgh International
  Conference Centre

23
Sustainable Procurement in the new City of
Edinburgh Council HQJanice PauwelsSustainable
Development Manager, CECSOPO Conference 11
March 2008, Edinburgh
24
Edinburgh Vision- to lead the most successful
and sustainable city region in northern Europe by
2015 and sustain the highest quality of life of
any UK city. Role of the SDU to develop the
Councils policies on sustainable development,
implement and report on progress.
25
CASE STUDYNew Council Headquarters
26
New CEC HQ

• Five floor open plan office space
• Gross floor area of 17,362m2
• Staff Restaurant
• Fitness suite
• Nearly 1,800 staff
• All departments represented
• Council is the tenant - 20 year lease
• Agreement for Lease signed in October 2003
• Building now occupied
• 45-50million

27
What was required from Developers?

• The City of Edinburgh Council is committed to
  sustainable development in all new city centre
  building projects. The Office Rationalisation
  Strategy provides an opportunity for the Council
  to demonstrate this commitment and encourage the
  adoption of sustainable development principles in
  the design of this project. The selection board
  will be looking for evidence of a thorough
  understanding of the issues with particular
  respect to the environmental performance of the
  building, transport needs, the working
  environment, maintenance and life cycle costs of
  the building
• Taken from the Client Specification

28
Process of Developing the Brief and Setting KPIs

• Cant just specify a sustainable building
• Unique approach involving developers, Council
  officers, design team and sustainability
  consultants
• Establishment of a Sustainability Working Group
• Agreement of a set of sustainability criteria
  covering issues such as energy, waste, water
• Development of a series of targets to be met if
  appropriate or feasible (exemplars)
• Understanding the constraints in sustainability
  terms
• PROCUREMENT PROCESS - absolutely crucial - also
  VERY problemmatic

29
New CEC HQ Sustainability Key Performance
Indicators
There are 74 Sustainability KPIs applying to
ALL the stages of the project Design,
Construction, Fit out and Operation. These
are incorporated into the Agreement for
Lease There are 14 categories of
KPIs Biodiversity Management Maintenance Sa
fety Waste Transport Water Materials Polluti
on Health and well being Energy and C.
Change General Social and Economic Indoor Air
Quality
30
Sustainability Report 26/05/2005KPIs Submitted
for Sign Off
31
Example of the sign off sheets
32
Relationship with the Procurement Process

• Waste contracts
• Materials Contracts
• Timber contracts

33
WASTE CONTRACTS
KPI 1.21 Waste Minimisation Plan

• HQ KPITo produce a Waste Minimisation Plan
• The plan set a target to divert 25 of
  construction waste (that would normally be
  expected for a project of this size) away from
  landfill. The Plan was to cover all waste
  streams.

34
Regular Waste Uplifts
35
Regular Waste Segregation and Recycling New
contracts negotiated with British Gypsum/Waste
Contractors
36
Recycling on Site
37
Examples of Waste Reports Submitted by Contractor
Waste Report 24/01/05
Waste Report 26/05/05
Target Outcome 90 of waste diverted from
landfill
38
MATERIALS CONTRACTS - Requirements

• KPI 1.15 All Timber to come from certified
  sustainable sources
• KPI 1.16 PVC use to be minimised
• KPI 2.21 Use of recyclable materials

39
MATERIALS CONTRACTS

• KPI 1.15 All Timber to come from certified
  sustainable sources. Outcome all timber has
  been certified
• KPI 1.16 PVC use to be minimised Outcome a
  number of changes have been made to materials e.g
  1600 rainwater stacks changed from PVC to
  Europipe 1200 soil stacks changed to HDPE
  approx 3000m lighting cables changed to LSF/LSOH
• KPI 2.21 Use of recyclable materials Outcomes -
  Carpet is BREEAM A rated and carbon neutral

40
MATERIALS CONTRACTS
All Materials had to meet a number of criteria
and go through a selection process
41
Changed to meet project reqs
Specific number of materials changed in the
contract process
42
(No Transcript)
43

• FURNITURE PROCUREMENT

44
(No Transcript)
45
Procurement (Tender)

• Term contract for the supply, delivery and
  installation of new furniture for FFF -
  specifically Councils new corporate HQ.
• Notice in the Official Journal of the European
  Union (OJEU) - sustainable criteria primary
  consideration in awarding contract.
• 27 invitations, 19 returns

46
Procurement (Evaluation)

• Bespoke sustainability matrix developed.
• Specialist technical assessment.
• 2-stage assessment
• Stage 1 EMS and FSC criteria
• Stage 2 Life-cycle assessment

47
Stage 1

• Council contract went out in Dec 2004 for its HQ
  furniture stipulated that
• companies have to have ISO 14001 Environmental
  Management certification and Forest Stewardship
  Council accreditation certificates (or
  equivalent) and chain of custody certificates for
  all products. They had to provide documentary
  evidence (that has been or can be independently
  verified) to show that the wood/wood product has
  originated from sustainably managed resources.

48
Stage 2 Life Cycle Assessment

• WOOD - veneers not less that 0.9 mm- use of
  domestic woods preferred, lowest formaldehyde
  level
• METAL AND PLASTIC had to contact a recycled
  component
• Chemicals used in Manufacturing aviod creosote
  or CopperChrome Arsenic
• PACKAGING AND TRANSPORTATION packaging to have
  a minimum 30 post consumer recycled content
• MAINTENANCE AND DURABILITY minimum warranty,
  all major parts coded to ensure recycling
• DISPOSAL

49
Procurement (Contract)

• Workstations Senator International Ltd.
  1,181,883.
• Seating Orangebox Ltd. 506,411.
• Best Value not lowest cost.
• 10 year warranties
• Potentially save CEC 1.7m over furniture
  lifespan.

50
Disposal

• Disposal of existing furniture
• Warehoused for internal reuse.
• Donations to Malawi and Eastern European schools.
• Components stripped and recycled (including some
  cash return).

51
Operational Phase

• Building now fully occupied
• Monitoring of key KPIs relating to the
  occupational phase over 12-24 months
• Staff pleased with the building

52
(No Transcript)
53
NEW TASK GROUP ON SUSTAINABLE PROCUREMENT

• The SSN Network is a grouping of all 32 Scottish
  Councils Sustainability Officers
• New Task Group being set up on sustainable
  procurement
• Happy if there are any volunteers onto the group
• Contact Janice Pauwels janice.pauwels_at_edinburgh.go
  v.uk

54
Conference Exhibition 2008

• 11 March 2008 Edinburgh International
  Conference Centre

55
KEYNOTE PRESENTATIONThe Links Throughout the
Procurement CommunityDorothy CowieDirector,
Scotland Excel Nikki BellDeputy Head,
Procurement Scotland
56
Conference Exhibition 2008

• 11 March 2008 Edinburgh International
  Conference Centre

57
CASE STUDIESThe Competitive Supply Base -
Working with SMEs and Local BusinessJo
MitchellScottish Procurement Directorate Andy
ScottBusiness Relationship Manager, Scotland
Excel Robert AndrewPrincipal Adviser of
Business Finance, Glasgow City Council
58
Competitive Supply Base - Improving Access to
Public Sector Contracts March 2008
59
Government Economic Strategy

• Sustainable Economic Growth with opportunities
  for all to flourish
• Increase productivity and competitiveness
• Ensure that growth is shared and sustainable
• Implications for skills/education, technology
  capital, innovation and competition

60
Public Procurement 5 Key Principles

• Equal treatment, non-discrimination giving
  everyone the same chance to win the contract,
  irrespective of nationality or whether the buyer
  knows them or not
• Transparency stating requirements upfront and
  sticking to them
• Proportionality setting requirements with
  reference to the needs of the contract in
  question
• Mutual Recognition Giving validity to
  qualifications with and standards from other
  member states, where applicable
• Confidentiality Respecting the confidentiality
  of any information received regarding tenders and
  tenderers

61
Competition

• Public Contracts must be subject to open
  competition, unless there are objectives and
  compelling business reasons to the contrary.
• EU law now requires that all contracts, including
  lower value contracts and those not subject to a
  requirement for advertisement in OJEU are
  publicised
• THIS IS A MATTER OF BOTH POLICY AND LAW

62
Why is Competition Important?

• Taxpayers expect VFM, difficult to demonstrate
  vfm if there is no competition
• Business, who contribute taxes, expect to have a
  fair opportunity to compete
• Competition helps drive improvements in
  efficiency and new ways of working
• Compliance with legal obligations
• Help businesses to develop, so that they can
  become competitive on any scale

63
The Challenge

• To increase participation in public sector
  procurement opportunities by removing barriers -
  without discriminating

64

• So what could be holding organisations back?
• Not being able to find out about opportunities.
• Belief that the procurement process is
  unnecessarily complex and bureaucratic.
• Lack of transparency in procurement process.
• Belief that asking for effective debriefing will
  jeopardise future chances.
• Trend is towards larger and longer contracts,
  reducing supply base smaller businesses unable
  to compete.
• Lack of capacity

65
Public Procurement Reform Programme

• Competitive Supply Base
• People and Skills
• Best Practice and BPI
• Management Information

66
Competitive Supply Base

• Introduction of Public Contracts (Scotland)
  Regulations 2006 including adequate publicity
  requirements and lowering rights of redress for
  complainants
• Suppliers Charter and core qualification
  questionnaire
• Single Point of Enquiry
• Tendering for Public Sector Contracts Guidance
  for Businesses. (Equivalent guidance for buyers
  in hand)
• Public Procurement Advisory Group, (PPAG)

67
Suppliers Charter

• Develop public sector procurement processes with
  the aim of ensuring fairness and transparency
• Consult with the business community to identify
  and reduce barriers to business
• Specifically Commits to
• Adequate publicity access to adverts, will be
  facilitated by the national portal
• Use of the core questionnaire to ensure
  proportionality and minimise the burden on
  suppliers
• Debriefing on request - illustrate transparency
  and help future performance

68
Procurement Strategies

• Concerns regarding rationalisation and super
  contracts
• Counter through use of procurement strategies
• To address issues of supplier capacity
• To ensure no discrimination related to
  organisation size.
• Support widespread use of Procurement Strategies
  through roll-out of the Scottish Public
  Procurement Toolkit
• www.scotland.gov.uk/Publications/2006/11/16102303
  /0

69
Procurement Strategy - Example

• National Procurement Centre of Expertise (NPCOE)
  -
• Office supplies and stationery contract.
• Research to gain an understanding of
• the industry structure in Scotland
• the domestic dependency of the industry in
  Scotland
• the numbers employed in the industry in Scotland
• geographical presence of the industry in
  Scotland.
• Prior to establishing the Procurement Strategy
• These factors taken into account in contract
  design

70

• Where Are Scottish Public Sector opportunities
  advertised?
• Scotland is unique in the UK having provided for
  Adequate Publicity in the Public Procurement
  Regulations (Scotland) 2006.
• National Advertising Portal will be available
  shortly.
• Increasing use of internet e.g. SPD website
• www.scotland.gov.uk/Topics/Government/Procurement/
  Selling

71
The Competitive Supply Base

• Andy Scott Scotland Excel

72
Overview of Scotland Excel

• Head Offices will be in Paisley with Regional
  Offices in Edinburgh, Aberdeen and Inverness.
• Benefits we will provide to Local Authorities
• Cost reductions through economies of scale
• Reduction in time/effort from procurement staff
  who can redirect their resources into other
  commodity areas and value-added activities
• Increase in internal expertise through training
  programmes
• Support available in terms of best practice and
  expert procurement advice
• Increase in opportunities for more collaboration
  between local authorities through national
  events, forums and in response to customer demand
• Improved engagement with and management of
  suppliers
• Accelerated progress towards achievement of
  McClellands superior performance status

73
Supporting the message of Scottish Procurement
Directorate

• Supplier Charter Scotland Excel signed up
• Scottish Public Procurement Toolkit adoption of
  the tender process (Example to follow)
• Planning to adopt other elements of the Toolkit
  ensuring best practice policies and procedures
• Established points of contact People/Skills
  Procurement Teams Directors Supplier Management
  etc.
• Use the National Advertising Portal

74
Case Study

• Personal Protective Equipment
• Present contract expires 30 June 2008 (1 year
  extension option)
• Following the Scottish Procurement Directorate
  Toolkit process
• Contacts and User Intelligence Group established
• Stakeholder mapping
• Current commodity landscape
• Spend analysis cost drivers total acquisition
  cost
• Market overview including supplier analysis
  (Scotland, UK and Europe)
• SWOT and risk analysis
• Contract Options
• Award criteria
• Evaluation process
• Currently compiling tender documentation issue
  PQQ March 08
• Aim to implement contract in Autumn 08

75
Working with Supplier Development Programme

• Relationship Building - identifying where
  Scotland Excel can-
• Work on mutual objectives with Supplier
  Development Programme
• Assist Supplier Development Programme in the
  promotion of their services offered to suppliers
• Provide support in the delivery of Supplier
  Development Programme objectives
• Participate in activities that will encourage
  suppliers to engage with public sector
  procurement
• In addition we will support Supplier Development
  Programme events and attend where practical

76
Scotland Excel

• Thank You
• www.scotland-excel.org.uk

77

• Robert Andrew

78
Agenda

• Background
• Partners
• Objectives
• Actions
• Achievements
• Benefits

79
Programme Background

• Reasons for intervention
• Low number of SMEs supplying the
• Public Sector
• Difficulty in identifying and accessing
• Procurement opportunities
• Lack of Capacity scale of contracts
• Lack of Confidence

80
Current Partners

• Glasgow City Council
• South Lanarkshire
• North Lanarkshire
• East Renfrewshire
• Renfrewshire
• Angus

• East Ayrshire
• North Ayrshire
• West Dunbartonshire
• East Dunbartonshire
• Inverclyde
• Perth Kinross

81
Supporting Organisations

• Scotland Excel Glasgow Caledonian University
• NHS MoD
• Scottish Enterprise Scottish Funding Council
• Strathclyde Fire University of Glasgow
• APUC University of Strathclyde
• Local Authorities Historic Scotland
• more on website

82
Objectives 1

• To stimulate Economic Growth of our Member Firms
• To improve their productivity
• To make them more sustainable Enterprises

83
Objectives 2

• Advise SMEs of the potential opportunities
  arising
• through Public Sector Procurement
• To prepare businesses for delivery of procurement
• contracts
• Provide training to improve tendering performance
• To grow and diversify the SME business
• Community
• Increase number of Partner/Supporting
• Organisations

84
Supplier Development Actions

• Events
• Seminars
• Workshops
• Exhibitions
• Publications
• Website
• Business Development toolkit

85
B-Link Magazine

• Quarterly Newsletter informing of the latest
  news, events and information on Scottish Public
  Procurement.

86
www.sdpscotland.co.uk
87
Achievements to Date
Created infrastructure which can reach at least
10,000 businesses We manage expectations
localEurope Our events are increasingly used by
procurement professionals to reach SMEs We
provide more capable tender ready firms
88
Future Developments

• On-line Company Diagnostics Tool
• Company database
• Developments of website incl pod casts, forums,
  inter-trading
• Further Events and Seminars i.e Joint tendering
  Internationalisation

89
Programme Benefits

• Pioneering Partnership Programme
• Partnership Economies of Scale
• Inexpensive mechanism of engaging with
• business community
• Up Skilling SMEs e-business
• More tender ready companies
• Opportunity of Joint tenders

90
Thank you
www.sdpscotland.co.uk
91
Conference Exhibition 2008

• 11 March 2008 Edinburgh International
  Conference Centre

92
Shuna Boyle Search ConsultancyAddressing the
Skills Gap
93
Overview of Search Consultancy
94

• The challenge of procurement in the public sector
• Shortfall in level of Procurement Professionals
• Strongest Solution lies

95

• The current climate
• Need to prove value for money is critical
• Availability of professionals
• Private Sector - Cross fertilise the skills

96

• What injection of knowledge can the private
  sector bring?
• Innovation and imagination
• Cost Savings
• Resilience

97

• Learning Curve
• Rules and Procedures
• Regulated Environment

98

• Attracting candidates to your organisation
• Sell your organisation and the role
• Identify competencies of the role
• Strategic plans of the organisation

99

• Alternative Sources
• Employee Referral Schemes
• CIPS Colleges
• Graduates

100

• Recruiting the right People??
• Define success not skills
• Benchmark the profile
• Understand the competencies

101

• Effective sourcing programme
• Timescales
• Cost of hire

102
ConclusionDiversity is healthy and brings
challenges to the status quo
103
Questions?
104
Conference Exhibition 2008

• 11 March 2008 Edinburgh International
  Conference Centre

105
Irene McCullochScotland Excel

• Developing People for Effective Performance
  Management of Public Sector Procurement

SOPO March 2008
105
106
Effective Performance Management

• What do we want to achieve?
• Nationally
• Sectorally
• Locally
• How are we going to get there?
• Begin with the end in mind
• 
  Stephen Covey

107
Effective Performance Management

• Have clarity and leadership in procurement
  functions to meet business objectives
• Establish best practice and knowledge management
  processes
• Organisational structure fit for purpose
• Job Profiles based on competency frameworks
• Robust Performance Review/Assessment Tools
• Effective Performance Management

108
People Development - Nationally

• National People Skills Working Group
• supporting public sector procurement people by
  developing and implementing-
• Competency Frameworks
• Competency Framework Guidance
• Professional Development - CIPS
• Graduate Training Programme
• National Training Contract
• Scottish Procurement Academy

109
People Development

• Scotland Excels current training programme for
  local authorities
• Awareness Training
• Procurement Training for Elected Members
• Procurement and the role of Heads of Service
• Essentials of Procurement
• Commissioning and Procurement of Social Care
  Services
• Currently assessing local authority training
  needs to
• further develop the programme

110
What is next on the agenda for Learning
Development?

• To support capable astute procurement functions
  in local authorities
• To support capable, confident and knowledgeable
  procurement staff in local authorities
• To develop solutions in partnership with local
  authorities which although challenging will
  enable smart, strategic procurement.

111
Some new ideas!

• Behavioural Training
• Change Management
• Leadership
• Assertiveness
• Effective Facilitation
• Communicating Presenting
• Challenging, Influencing Persuading
• Managing Stakeholders Customers
• Confidence Building

112
Proposed Scotland Excel Learning Development
Programme

• Considerations?
• Scotland Excel procurement training should be
  capable of delivery to all local authorities
• Need to compare and align Scotland Excel
  procurement training with Local Authority
  training programmes and general local training
  needs
• Timing/planning market procurement training
  appropriately and avoid duplication

112
113
Scotland Excel Other Developments

• Partnership working Chartered Institute of
  Purchasing and Supply (CIPS)
• Partnership working Universities and Colleges
• Easier access to Learning e-systems
• Knowledge Management systems
• Coaching Mentoring Schemes
• Assessment systems skills gaps, performance
  management

SOPO 2008
113
114

• We are what we repeatedly do. Excellence then,
  is not an act, but a habit - Aristotle  
• irene.mcculloch_at_scotland-excel.org.uk

115
Conference Exhibition 2008

• 11 March 2008 Edinburgh International
  Conference Centre

116
KEYNOTE PRESENTATIONUpdate on European
IssuesSpeaker to be confirmed
117
Thank you all and see you at national conference
in November.
118
Conference Exhibition 2008

• 11 March 2008 Edinburgh International
  Conference Centre