Effective Models of Procurement in Asset Management Louise Chase Procurement and Contracts Manager

Agenda Sector Overview – Current Issues Regulatory Requirements Procurement “the positive solution” Risk and Governance What are your procurement options? Managing Procurement Capacity Commercial Opportunities

Sector Overview – Current Problems 1% cut over next 4 years What does this mean? Reduced budget to manage assets and priority setting required Reduction in services/ service levels to customers Review of current contract T&C’s Reduction in staff to re-procure

Service Redesign Do less Do it cheaper Service level reduction – managing expectations Do something different

Regulatory Requirements What you MUST do. Advertise all contracts above new thresholds (amended Jan 2016): Supplies and Services = £164,176 (CV) Works = £4, Light Regime for Services = £589,148

Regulatory Requirements Use Government standard PQQ documentation Use Contracts Finder to advertise as well as OJEU Adhere to Social Value and Modern Slavery Acts Publish all documentation at Contract Notice stage Adhere to new timescales. Consider SME agenda Increased documentation requirements – cabinet office requests.

Risk and Governance Cost of challenge vs. cost of procurement. Reduced procurement activity (priorities) Increased risk of non compliant contracts (thresholds) Risk of challenge if extending contracts Increasingly litigious marketplace – mischief! Increasing interest from Boards with governance and managing risk.

Procurement Options Frameworks Bespoke In – House

Managing Procurement Capacity

Commercial Opportunities

Any questions?