Priorities for Public Procurement Reform Legislative & Policy Backdrop

NI Public Procurement Policy EU Directives/ UK Regulations NI Executives Public Procurement Policy Two sets of constraints on Departments

Achieving Best Value for Money In todays climate of tight budgets and ever-increasing demand, it is critical that the Executive makes optimum use of the resources available to it. Minister for Finance & Personnel

Achieving Best Value for Money In todays climate of tight budgets and ever-increasing demand, it is critical that the Executive makes optimum use of the resources available to it. Minister for Finance & Personnel Dr Sean Farren MLA – Assembly – May 2002

NI Executives Strategic Approach Delivering Best Value for Money –Procurement Board –CPD –Centres of Procurement Expertise –Departments Accounting Officers Managing Public Money

Procurement Board Strategic Plan – 2012/ Delivering Best Value for Money in a challenging economic climate 2.To use Public Procurement to support economic growth in NI 3.To provide confidence in the public procurement environment

Managing Public Money Procurement should help deliver relevant departmental and government-wide strategies and policies.

A Serious Issue? Spending on goods, services &construction – approx 25% of the NI block Big impact on NI economy Key to delivering projects & business objectives Interest by PAC & Committees Serious reputational damage for organisations if not handled properly –NI Water/ NIHE/ Education Silent explosion in legal challenges

EU Regulation Departments have freedom to define what they want to procure –Policy /Budget/ Business case –But not unlimited Public procurement legislation directs & regulates how it is procured

EU Regulation Section 24, NI act 1998 –Minister or Department has no power to do any act that is incompatible with EU Community Law –Breach of public procurement law is breach of EU Community Law Actions are deemed lawful unless or until a court or other judicial body finds otherwise

EU Regulation Procurement is key strand in EU Single Market strategy Open opportunities across borders v local jobs for local people Prescribed & restricted procedures for the award of contracts v innovation & getting things done

Public Procurement Model Commissioning Identify needs Develop business case Develop Procurement Strategy Procurement Procedures Leading to Contract Award Market engagement Supplier selection Tender evaluation Contract award Delivery of Requirements Contract management Benefits realisation Project closure/Review Public Procurement

Priorities for Reform New EU Directive Simplification & standardisation –Simplified approach for below EU thresholds –Departments undertaking procurements valued < £30k –< £5k outside procurement rules but subject to value for money test SIB/ CPD & CBI/ CPD reviews