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Government Procurement Service at a glance

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Presentation on theme: "Government Procurement Service at a glance"— Presentation transcript:

1 Government Procurement Service at a glance

2 Delivering savings for the nation.
Our value to you Operating at the heart of Government Procurement, available to all UK public sector organisations. Leveraging £10bn spend for the benefit of the entire public sector purse. Public sector serving public sector Accountable and transparent Effective commercial management of public sector spend on common goods and services. Customer access to all procurement activities and pricing to drive operational and business performance. Low cost to serve (average 0.4%) Any surplus is invested to support continuous improvement in Government’s procurement capability. Demonstrating overall value for money. Delivering savings for the nation.

3 Key facts Estimated £8bn of public sector procurement spend in Over 2,000 suppliers. Over 14,500 customers across 1,400 organisations. 4,600 contracts currently in place. Over 100 EU-compliant framework agreements. 275 staff across two sites – Liverpool and Norwich. Current commission average is 0.4%. Total savings (demand and price) for 11/12 are estimated to be £2bn.

4 Our procurement operating model
Input Self serve Communication Services, Energy, Fleet, Travel, Office Solutions, Professional Services, Print, ICT, Property/Facilities Management Outputs Sourcing & Category Management Public sector organisations should buy common goods and services together for maximum leverage and best pricing. Self serve and assisted delivery options to help buy most effectively. Government portal/ITQ Government eMarketplace Outsourced solutions Economic Growth Category Management 120 days Early engagement Pipelines Deficit Reduction Aggregation Demand Management Savings Capability Procurement Investment Fund eEnablement Training £10bn Spend Under Management (SUM) Assisted delivery e.g. Further Competition, eAuction Through category Through Spot Buy team Through eAuction Managed delivery e.g. End to end procurement service Project team Spot Buy team Enablers to more efficient Government Procurement Procurement capability Category management EU procurement eEnablement Government portal eMarketplace Contracts Finder Spend analysis Dun & Bradstreet eSourcing/contract management P2P (in development) Management information Spend under management Compliance Leverage Performance Benefits methodologies Transparency & standardisation Transparency Terms & conditions Lean procurement process Freedom of Information Investing in capability Investment People Processes Systems Training Customer engagement Account management Help desk Service improvements Communication Performance dashboard – spend, saving, suppliers, satisfaction Category governance Underpinned by Lean principles and ways of working

5 Enablers: Procurement capability
Category management Aggregate spend and manage supplier base. Introduction of Lean to improve efficiency and reduce lead times. Stakeholder engagement at category level to understand current and future requirements and ensure that products and services meet customer requirements. Customer engagement to gain commitment and rationalise requirements to obtain best prices. Use market intelligence to further develop category expertise and source plans. Assess the ability of the market to meet requirements and fulfil demand. Develop category strategies and obtain approval from stakeholder forums. Manage demand through the implementation of policy and working with stakeholders. Review and evaluate sourcing and delivery solutions. Lead and encourage the adoption of innovative products. EU procurement Keep abreast of, and influence, developing EU procurement legislation. Target reduction in procurement cycle times to 120 days. Run eAuctions (where appropriate) during the OJEU process and/or further competition stage. Effective supplier relationship management including pre-procurement engagement. Ensure Government policy is taken into account during the development of category strategies including SMEs, sustainability, ethical sourcing and support for apprenticeships.

6 Enablers: eEnablement
Government portal A single point of access for buyers and suppliers. Clear signposting to provide easy access to deals. Procurement guidance and information. Government eMarketplace eMarketplace provides online catalogues for centrally negotiated deals with fixed pricing. Dynamic Marketplace provides a quick request for quotation service for contracts below £100,000. Data management captures and monitors transactions to ensure value for money is being delivered. Contracts Finder All new procurement opportunities over £10,000 are advertised here. All contract documents post-award are also published on the site. Spend analysis A dynamic tool that increases the flexibility of reporting and improves access to reports and analysis. Promotes classification at source and consistent application of standards. Increased frequency and granularity of data collection. A single source of procurement related spend across Government. Dun & Bradstreet DUNS numbers will be the common standard applied against suppliers and buying organisations. Supports classification in source systems, enables data extraction and a single source of consolidated information. Provides monthly reporting to drive operational procurement. eSourcing/ contract management Reduces procurement cycle times and supports continuous improvement through Lean processes. Maximises eAuctions to facilitate increased savings. Integrates with other applications to improve data quality. Library of standardised terms & conditions with version control. Improves compliance, assurance and governance. Minimises commercial risk through robust management of terms & conditions. A single repository of central contracts. P2P Integration with customers’ ERP systems will enable prompt payment of invoices.

7 Enablers: Management information
Spend under management Monitor customer total spend and spend under centralised procurement. Use data to work closely with customers to develop procurements and manage demand. Compliance Working with Departments, spend analysis data facilitates compliance reporting, helping identify non-contract spend and savings opportunities. Leverage Use Government’s aggregated spend to leverage best value for Departments. Performance management A robust data warehouse provides accurate and meaningful spend information. Enables performance to be measured against agreed key metrics. Working closely with suppliers to improve commercialism and service delivery. Identify process/contract changes that will deliver savings for the public purse. Deliver in-year cashable savings and ongoing service level improvements. Benefit methodologies Benefit methodologies for each category or sub-category are approved by HMT. Data is captured to support the methodologies and calculate the savings generated. Ensure centralised deals remain competitive by benchmarking against the market.

8 Enablers: Transparency & standardisation
A variety of information relating to our procurement activities, operational and business performance is published on our website. Procurement arrangements fully support the delivery of the Government’s transparency policies. All procurement opportunities are published on Contracts Finder as required by the transparency policy. Contract documents for all framework agreements awarded since January 2011 (1 July 2010 for ICT) are also published on Contracts Finder.  Terms & conditions Standardised terms & conditions for each category and sub-category provide clarity and protection. Work with suppliers to remove any clauses in contracts that would prevent transparency. Engagement with suppliers through trade bodies to ensure that terms & conditions are not excessively onerous and lead to higher prices. Lean procurement process Lean sourcing principles are being mandated across Central Government so all but the most complex procurement projects are completed within 120 days. New Standard Operating Procedures will help deliver sourcing projects more effectively and efficiently by removing bureaucracy. Freedom of Information We are fully committed to making information available to the public under the Freedom of Information Act 2000. Past disclosures and details of our publication scheme can be viewed on our website.

9 Enablers: Investing in capability
Investment The Procurement Investment Fund Board provides a transparent mechanism to review and approve investments to develop the capability of all Government procurement staff, invest in Government Procurement and improve procurement tools and systems. People People development and continuous improvement of high quality, professional teams at every level within the organisation enhancing delivery. Processes Spot buy team procure goods and services on behalf of Government organisations providing assistance with further competitions, demand management and aggregation. Systems Improve the use of technology and processes, maximising the use of Government wide procurement resources and operating more efficiently. Training Support continuous improvement of Government’s procurement capability by making available appropriate training resources.

10 Enablers: Customer engagement
Account management Team of dedicated relationship managers working with customers to deliver excellent customer service. Providing a single point of contact to wider Government Procurement/Government Procurement Service knowledge and expertise. Customer Service Agreements with agreed acceptable minimum standards for quality, service and delivery. Defines the relationship, roles and responsibilities of Government Procurement Service and the customer. Help desk Dedicated customer service desk providing access to professional advice, guidance and procurement support. Service improvements Customer satisfaction survey conducted quarterly to gather customer views of our capability and drive improvement action. Communication Quarterly newsletters sent to customers with category and procurement news. Government Procurement portal provides a single access point to all deals, news and latest information. Performance dashboards Monthly report on progress in terms of spend, savings, supplier performance and customer satisfaction. Category governance Clear, transparent governance holds us accountable through Procurement Reform Board (PRB), providing forums for category engagement and performance management.

11 Lean A Lean working environment is one where the business processes add value, are not wasteful or overly complex, and deliver continuous improvement. Performance is managed effectively through visible and robust reporting. Our continuous improvement activity focuses on: Processes: a structured review of the major procurement processes using Lean methodology to create processes that efficiently and effectively deliver the needs of our customers. People: up-skill staff with problem solving skills and gain staff engagement to embed a culture of continuous improvement through performance measurement. Strategic: create a strategic path to ensure Lean thinking is embedded across the organisation and in how we contract and manage customers.

12 Contact us 0345 410 2222 Visit us at
Or Or call our customer service desk on

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