Ruth Brothwell Supply Chain Manager Supply London supplylondon@pera.com

Buyers do NOT want to buy from you!

Unless……!

Annual purchasing spend of public sector in the UK estimated as £450 billion p.a. Central Government is £13 billion p.a.

Local Authorities Central Government Departments and Agencies Schools, Colleges and Universities National Health Service Emergency Services Transport (e.g. TFL, Crossrail) Museums, Libraries and Galleries Housing Associations

500 Local Authorities in England & Wales 335 UK Universities 24,000 State & Independent Primary Schools 3,500 Secondary Schools 300 NHS Trusts 4500 Housing associations/RSLs 40 Police Services 40 Ambulance Services 60 Fire Services 25 Government Departments

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Olympic Tender Expressions of Interest 1274 PQQ submissions 700 Suppliers submissions 381 Being evaluated: Lot 4 – litho 89 Lot 5 – digital 67 Lot 6 - stationery 48

Olympic Tender Being evaluated: Lot 4 – litho 89 Lot 5 – digital 67 Lot 6 - stationery 48 Going to tender: 5 – 10 per lot

500 Local Authorities in England & Wales 335 UK Universities 24,000 State & Independent Primary Schools 3,500 Secondary Schools 300 NHS Trusts 4500 Housing associations/RSLs 40 Police Services 40 Ambulance Services 60 Fire Services 25 Government Departments

Southwark Council Spend/Tender limits Procedure £0-5,000 Purchase Order £5,000-49,999 3 Written Quotations From £50,000 Advertised Tender Over £144,371 EU tender

Bexley Council Spend/Tender limits Procedure £1 – 50,000 Competitive Quotes £50,000 - £144,371 Advertised Tenders Over £144,371 EU Tender

Greater London Authority Spend/Tender limits Procedure £0-4999 Purchase Order £5000-14,999 3 Quotes 15,000-24,999 3 Written Quotes 25,000-49,999 Mini Tender From £50,000 Full Tender Over £144,371 EU tender

Proportionality Rule: Contracts are unlikely to be awarded that represent more than 20-25% annual turnover Risk mitigation for buyers

GLA TRANSPORT FOR LONDON East London Line DLR extension

GLA Balfour Beatty Carillion TRANSPORT FOR LONDON East London Line DLR extension Balfour Beatty Carillion

Balfour Beatty Carillion Railway Design Scott Wilson Bachy Solentanche Piling Signals Westinghouse Balfour Beatty Carillion Fairfield Mabey Thales Steel Telecomms Mansells

Tiered Supply Chains Where do you fit into the supply chain Public Sector Buyer Office Support Contract Marketing Consultancy Translation Printing Uniforms Recruitment consultancy Use examples to explain how tiered supply chains work, and help the delegates identify where they would fit in to the supply chain. For small groups, it is worth taking the time to go through each company (or type of company) individually to help explain whether or not they are likely to be first-tier suppliers. Lots of organisations will never become first tier suppliers to the public sector, and therefore they do not need to attend the rest of the workshops. For example, a company that manufactures door handles will probably not be a direct supplier to a local authority. The first tier supplier might be an FM company, who might subcontract work to a joinery or fit-out company, who would probably buy their door handles from a builder’s merchants. The manufacturer would need to supply the builder’s merchant, or maybe the joinery company, but the local authority would not be purchasing directly.

This serves the purpose of fairly reducing the number of competing suppliers to a manageable number

It’s not about supplying a great product or service It’s about being a great supplier!!!

It’s not about supplying a great product or service It’s about being a great supplier!!!

Selling Your Business Be very clear about: Your advantages and unique selling points What makes your business the best choice for this particular opportunity? “Local” by itself is not an advantage, but how about: Fast response time leading to better service Allows customers to change their requirements at short notice Improved environmental impact of shorter travel distance Specialised knowledge of local issues or local communities Others?

You must have your 4 key policies! “Small” public sector contracts can still be up to £94k or more in value Commissions below the thresholds can often be secured with quotations and proposals rather than full tenders Many smaller contracts are placed via Approved Supplier Lists and/or Framework Agreements You must have your 4 key policies! Get the group to summarise learning points onto a flip chart Learning outcomes should be: What are the thresholds for larger contracts How a stepped procurement process works What is an Approved Supplier List and how does it work? What is a Framework Agreement and how does it work? What is OGCbuying.solutions and how can I become a part of an OGC framework agreement?

Ruth Brothwell Supply Chain Manager Supply London www.supplylondon.com