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Achieving Value for Money in Procurement Stephen Archer Schools Commercial Team.

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Presentation on theme: "Achieving Value for Money in Procurement Stephen Archer Schools Commercial Team."— Presentation transcript:

1 Achieving Value for Money in Procurement Stephen Archer Schools Commercial Team

2 Public Sector Procurement Reform

3 Efficiency and Reform Group (ERG) works in partnership with HM Treasury and government departments to deliver: savings by ensuring that government acts as ‘one customer’ – through combining government’s buying power and increasing our pool of suppliers to government (including small and medium-sized enterprises) assurance on the delivery of government’s most significant projects, on time, within budget and to a high quality support for UK growth by allowing a wider range of UK businesses to bid for government contracts and making new commercial partnerships and businesses, including support for public service mutuals How?

4 What does it look like? Dept for Education Efficiency & Reform Group Collaborate to deliver £12bn savings Centrally manage procurement of goods and services Collaborate to deliver £12bn savingsDepartments to Focus Departments focus on truly unique commercial activity Strengthen the procurement profession Collaborate to deliver £12bn savingsDepartments to Improve Commercial awareness Collaborate to deliver £12bn savingsDepartments to Simpler More flexible EU procurement rules SMEs have access to government contract opportunities Contract management – drive value from contracts

5 Review of efficiency in the schools system ations/review-of-efficiency-in-the- schools-system Procurement aspects  Benchmarking  Identifying new deals and driving uptake to existing contracts and arrangements.

6 save moneyget better value for money be accountable for what you spend follow the law How can procurement help you….

7 Managing Public Money Is there a requirement for public bodies to achieve value for money? Yes and do so following EU Treaty principles of transparency. proportionality, equal treatment and non-discrimination. The competitive process: Helps ensure value for money Helps demonstrate transparency

8 From 1 st January 2014 EU Procurement Directives and The Public Contracts Regulations 2006 For Schools thresholds are: £172,514 Goods & Services £4,332,012 Works Regulations do not apply in full when the estimated value of contract is below threshold but Treaty principles do EU Financial thresholds

9 Revised directives agreed by EC June 2013. Anticipated to be UK law by end of 2014. Changes to UK public sector procurement regulations will be highlighted to schools in BuyWays BuyWays Cabinet office training procurement-directives New EC Procurement Directives

10 Core changes to the new Directives ‘Most economically advantageous tender’ (MEAT) will become the standard award criterion replacing “lowest price”. This includes : Quality, Environmental & social Innovative characteristics Transparency in sub-contracting Rules on abnormally low bids.

11 “Light Touch” regime for Education & Social Services We have negotiated an exemption for Education & Social Services (& Health) that enables us to use a “light touch” regime for services under 750,000 Euros. The UK is required to put in place “appropriate procedures” for the award of contracts under this process in the UK Regulations The Cabinet Office has consulted on this & we await their proposals

12 The current climate Importance of efficiency and financial management

13 Variation in back office spending

14 Analyse expenditure Review your contracts Identify opportunities for rationalisation Deliver admin savings Collaborate across key strategic spend areas Benchmark and compare What can you do?

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