Procurement Solutions 08 Speakers Corner

1
Chris ChettleGetting more for less

• Procurement Solutions 08 Speakers Corner

2
Outline

• Definition of e-Auctions
• Summary of benefits
• Description of OGCs programme
• Outline of work to encourage Collaborative
  Procurement of IT hardware
• Q A session

3
What is an e-Auction

• Reverse auctions run by OGC where suppliers bid
  decreasing prices for a contract offered by a
  customer
• Conducted online using specialised software
• Sellers progressively reduce their prices in
  response to competitors bids during the process
• Only the buyer can see who is offering each price
  
• Software is able to combine qualitative scores
  and pricing instantly to measure overall
  competitiveness of each bid
• The successful supplier is the one leading the
  auction when it closes

4
The benefits get more for less

• If properly implemented, they consistently
  deliver significant savings and improve quality
• Other inherent benefits
• Legally compliant
• Transparent to all parties
• Provide suppliers with clear visibility of
• selection criteria
• competitive pricing levels
• Support high quality procurement execution
• Potential to condition and shape the marketplace

5
OGCs IT hardware e-Auction programme

• Run since September 2005 this programme aims to
• Promote e-Auction use in the public sector
• Provide guidance on the process for less
  experienced organisations
• Promote collaboration in pursuit of competitive
  deals
• To meet these objectives the OGC has provided
• Experienced staff to advise on strategy and
  preparation of key documents e.g. Invitations to
  Tender (ITTs)
• A remit to work across the entire public sector,
  matched by an extensive network of stakeholders
  and customers
• Resource to support the product evaluation phase

6
Collaborative procurement in practice8
e-Auctions and several conventional tenders have
been completed using a collaborative model

• The programme is aimed at high volume, mainstream
  products
• OGC brings participants into the programme and
  aims to cater to the needs of all Participants

OGC

• A local project manager preferably leads
  implementation
• A specialist technology providers services are
  engaged if the project involves an e-Auction

TECHNOLOGY PROVIDER
PROJECT MANAGER

• Participants in the programme have been drawn
  from central government, local government, the
  NHS, educational institutions, and charities
• Between 2 -13 procurement organisations have been
  involved in collaborative these projects

PARTICIPANT 3
PARTICIPANT 1
PARTICIPANT 2

• Participants often represent a collaborative
  group of entities (e.g. a Collaborative
  Procurement Hub representing NHS Trusts)
• OGC has managed IT hardware procurement projects
  on behalf of over 300 public sector entities,
  including more than half of all NHS Trusts in
  England

7
The big picture

• e-Auctions 1, 2 ,3, 4 conducted under old
  procurement rules
• 21 individual stakeholders
• 98 from the NHS
• Total value 38.2m
• Total savings 10.02m 26.23
• e-Auctions 5, 6, 7, 8 conducted under EU
  consolidated Directive
• 60 individual stakeholders from the public sector
• Total value 40.02m
• Total savings 17.63m 42
• Increase in participants over e-Auctions 1, 2, 3,
  4 285
• Increase in savings 76

Stakeholders and savings have significantly
increased
8
Whats been achieved?

• Eight IT hardware e-Auctions completed
• 80 individual stakeholders involved
• (Cascading down to over 400 seperate entities)
• 80.22m auctioned
• 27.65m saved 34.5
• Participants from all across public sector
• police, local authorities, health, central
  government,
• education charities

Quality never compromised
9
Summary

• Understand how e-Auctions work
• Benefits to the public sector
• Which organisations can participate in them
• How we achieve collaborative procurement of
• IT hardware
• Real savings generated via this process

10

• Questions?

Please talk to a member of our team or fill in a
card available on the OGC stand for more
information.