CENTRAL PROCUREMENT DIRECTORATE

1
Des Armstrong Deputy Director, Central
Procurement Directorate (DFP)
2
Construction Contract Monitoring (CCM)IPSIG
3
Construction Procurement in NI

• Investment Strategy for NI (ISNI)
• 16 billion sustained investment in
  infrastructure
• Government 35 of total construction spend
• Spending on construction gt 1 billion/year
• Spend in 2003/04 676m
• Spend in 2007/08 1,232m (est)
• Centres of Procurement Expertise
• CPD Water Service Roads Service
• NIHE Health Estates ELB's

4
Construction Industry in NI

• Workforce of 65,000 - 70,000
• 8 of total NI workforce
• 23,000 jobs added 1996/2005
• 4,000 local businesses
• 65 of businesses less than 5 people
• 9 companies gt 50m turnover
• 7 companies gt 10m net assets
• Important for economic development in NI
• delivery of public services/ environment

5
IPSIG Pilot

• Independent Private Sector Inspector General
• Payments to criminal or paramilitary
  organisations
• Compliance with aggregates tax payments
• Compliance with waste disposal landfill tax
  payments
• Employment of labour only sub-contractors
• IPSIG pool of 4 firms
• Tested on 6 construction projects
• Social housing schools sectors

6
IPSIG Pilot

• Enabled by Condition of Contract
• Inspection of financial records processes
• Added value to Contractors
• Sufficient suppliers to ensure competitive supply
• PSNI have effective procedures
• Construction Industry Perceptions

7
Construction Contract Monitoring CCM

• Enabling condition in all public sector contracts
• Deployment based on intelligence/ random audit
• Part of contract supply chain management
• Before during construction phase
• EU procurement for new service supplier pool
• Roads, Water Health Sectors
• Consultation with Construction Industry