Selling To The Public Sector 2009 A Presentation For Suppliers

Procurement Reform Public Procurement Reform Programme Workstreams: Collaborative Contracting, People and Skills, Competitive Supply Base, Management Information, Policy and Best Practice, eCommerce Policy Handbook: 08/12/ /0

Governance Public Procurement Reform Board Procurement Advisory Committee Single Point Of Enquiry: ent/Procurement/Selling/supplier-enquiries

Major Influences The new EU Procurement Directive The McClelland Review of Public Sector Procurement in Scotland The Scottish Executive Efficiency Agenda Increasing commitments to sustainability The drive towards trading electronically Freedom of Information

The EU Directive Increased Requirement For Competition At All Levels Increased Allowance for Sustainability Criteria Provision For Electronic Business Provision For Framework Arrangements Competitive Dialogue Increased Willingness To Take Legal Action Mandatory Standstill Period

The McClelland Review / http:// / Recommendations Aims To Save £200M Per Year Collaboration on A, B, and C Commodities Public Procurement Reform Board/Procurement Advisory Group Orders Required For EVERY Invoice Suppliers’ Charter: Procurement/Selling/Supplierscharter2/

Benefits Of Collaboration Reduced Duplication of Procurement Effort Better utilisation of scarce resources and skills Aggregation of spend to create greater purchasing power which will in return result in greater cost savings A less complex and more efficient interface to suppliers utilising the efficiency of systems and other refinements of e-trading Spread of best practice including sharing of market intelligence

Category A Commodities IT Hardware IT Standard application software Telecoms (including mobile telephony) Travel Stationery Office Supplies Certain professional services and consulting (requires further definition) Light vehicles

Scotland Excel Local Authority Centre of Excellence/Expertise Overall Governance of Local Authority Category B Commodities Regional Offices Timescales

Governance Joint Committee, Elected Members for all Member Councils Executive Sub-Committee Chief Executives Management Group Scottish Local Government Procurement Forum

Category B Commodities (EXCEL) Currently 80+ In Debate Covering: Waste Management Street Lighting and Road Marking Recruitment & HR Stair Lifts Financial Services Marketing Services Subscriptions and Publications Water Transport and Distribution Education Supplies Vehicle and Plant Hire Grit and Aggregates Aids and Adaptations

The Central Government Centre of Procurement Expertise (CGCoPE) Works with Scottish Government Agencies, Non-Departmental Public Bodies (NDPBs), Tribunals and Public Corporations Professional team of public sector purchasing staff delivering best practice in procurement. Around 80 organisations members of CGCoPE Purpose - conducting and facilitating collaborative procurement activity User Intelligence Group's - used to ascertain and collate requirements HIE representation : –member of Procurement Collaboration Group –highlight and identify local requirements and considerations

Category B Contracts 2008/2009 (CGCOPE) Currently assessing and prioritising categories of spend & workplan for 2009 and beyond. Current categories of spend as follows: –Professional Services –Marketing –Facilities Management –Corporate Services –Travel –Financial Services –Vehicle –Catering

Efficiency Agenda Shared Services Across All Councils Procurement Is A Main Element 13% of Overall Total Savings Target Standard Approach Across All Public Bodies: PQQs, Ts and Cs Single Point Of Contact For Tender Notices

Electronic Trading E-Procurement Systems Purchase Cards E-Tendering Reverse Auctions

Public Sector Procurement: How to tender for contract opportunities.

Background £8 billion spent in Scotland each year on goods and services Any business can become a supplier to this market Contract values are an estimate of the value of the whole requirement over the period of a contract. For example: –local authority contract for services valued at £160K –The value could relate to a period of 4 years, –The contract could be more attractive at a level of £40K per year

 Scottish public sector organisations advertise tender opportunities via the Public Contracts Scotland website :  HIE also advertise candidates Invited to Tender and the winning suppliers for their own contracts on their web site to allow local suppliers to collaborate/subcontract with these suppliers: Where to find Scottish Contract Opportunities

Other Contract Opportunities These and other links are available on the HIE tenders page

 These tips are expanded upon in the Tendering for Public Contracts booklet or online at:  Only bid for work that you are sure you can do.  Familiarise yourself with the format you will have to use to fill in the buyer’s documents.  Identify key Dates and Deadlines.  Plan and cost the full extent of delivering the contract  Answer all questions asked and ensure your bid reflects the contract requirements. Public Procurement Tips

 If you are not sure of anything, ask the buyer in good time.  Remember that at the Invitation to Tender stage you are being evaluated in line with the criteria identified.  Remember, your bid will be evaluated only on the information you provide as part of the tender process.  Request feedback about your proposal to allow you to identify areas for improvement when submitting your next tender. Public Procurement Tips

 All public sector organisations must ensure they obtain value for money.  In Scotland, it is policy to award contracts on the basis of Most Economically Advantageous Tender (MEAT).  To assess MEAT, a quality: price ratio will be applied  HIE typically apply this ratio on an 80:20 split  The relative importance of the criteria on which the contract will be awarded will be listed in the tender documentation. Understanding the Evaluation of Tenders

Subcontracting opportunities  Some of the highest-value government contracts may go to large companies. Smaller or newer organisations may become engaged in these contracts through: -sub-contracting, -partnering/consortia -consultancy work.  You can identify and contact a supplier who won a major contract through the Public Contracts Scotland and the HIE website. Supplier Opportunities

Collaboration Collaboration on public sector contracts is now a high priority Public Sector will be using these contracts more frequently The aim of this is to achieve value for money Opportunities for H&I businesses: - Offer to service the contracts in our area - Bid for these when they appear - Work in partnership with others - Attend national supplier briefing days advertised on PCS

Supplier Opportunities Freedom Of Information Request winning tender submissions All tender submissions are subject to FOI Monitor Contract Award Notices and request winning submissions Request feedback

A copy of this presentation will also be available on the HIE website tenders page. Further Information on Public Procurement

Electronic Trading E-Procurement Systems Purchase Cards E-Tendering Reverse Auctions

E-Procurement Systems Greater Understanding Of Transactional Purchasing Greater Auditability and Control Greater Contract Compliance Process Savings Increased Ability To Compete Requirements Best Value In Purchasing

E-Procurement Systems More Accurate Invoicing Quicker Payment Less Process At Your End

Purchase Cards Increased Flexibility In Purchasing Out Of Hours/Emergency Purchasing One-Off Purchases Improved Audit Trail Over Paper Lower Costs In Supplier Base Administration Levels 1, 2, and 3 Immediate Payment

E-Tendering Minimisation Of Process Cost Increased Process Efficiency Increased Auditability Minimisation Of Waste Clearer Evaluation Process Faster Communications

Freedom Of Information Entitlement To Debriefs Elimination Of Blanket Confidentiality Clauses Obligation To Disclose As Much As Possible Records Not Processes Ongoing Protection Of Intellectual Property And LINE ITEM Pricing As Long As It Is Live

Advertising and Publicity OJEU Government Opportunities Buyer Profile Moving Away From Press Adverts

Summary Pace Of Change Is Quickening Public Bodies Must Change, And Need Suppliers To Change With Us Auditability And Competitiveness Are Increasing