1. Procurement Change Project
James Trotter

2. Structure Procurement Review – Desktop and interviews
Loughborough Procurement ‘As is’
Loughborough Procurement ‘To be’
Leicester examples
Change Plan, including timescales
Help needed!
Appreciate…resource issues and steps already being taken, e.g. workflow change and Category Manager recruitment

3. ‘As is’ Limited detail on how to run a procurement exercise
Predominantly transactional, confined to back-end
Ambiguous and out-of-date
No minimum levels of competition
No requirement for quotes/tenders to be based on University Ts&Cs (No Standard Ts&Cs beyond P/O Ts&Cs)
No trigger point at which Procurement manage the tendering exercise
Limited guidance, templates, and in-house training
Procurement approval back-end in Agresso (horse bolted)
No Contract Management rules or guidance

4. ‘To be’ Clear starting point
Clear and unambiguous Rules, with minimum competition levels
Early engagement
Procurement approvals front-end, purchase order approvals back-end
Front-end challengers, not back-end blockers
Intelligent clients that appreciate procurement timescales (see below)
The tools to do the job
Comprehensive Procurement Strategy Checklist (incl. Options Appraisal)
Risk-based policies and guidance (Risk assessment > Specification > Selection and Award criteria/questions > Contract Conditions)
User-friendly templates
Robust Standard Ts&Cs for Goods, Services, Consultancy, IT and Estates (JCT)
Intelligent clients (…no excuses)
Procurement Team Communications Plan
Clear, concise and up-to-date Procurement section on intranet
Rolling in-house Procurement and Contract Management training
Customer-focussed Category Management structured Procurement Team

5. Leicester’s Procurement Rules
‘Mandatory Contract’ in place? (e.g. Windows PCs, Furniture, Stationery, Vehicle Hire)
Suitable Framework Agreement available? If not…
Encourage requesting a quote from a local supplier where £10k-£24,999 and openly advertise where £25k+ [Where openly advertising at £25k+, must (also) advertise through Contracts Finder]
Registrar/Procurement Unit waiver approval required at £10k+
Procurement Unit approval required for variations where no contractual provision
Category Manager to be informed of all £25k+ contracts awarded
Head of Department to nominate Contract Managers for £25k+ contracts
Contract Value
Procurement Process
Below £10k
Obtain one written quote
£10k - £24,999
Seek three written quotes
£25k - £49,999
Obtain three written quotes using RfQ template
£50k - £99,999
Obtain three written tenders
£100k – EU Threshold
Obtain five written tenders
EU Threshold
EU tendering exercise
Red = Use In-tend and managed by the Procurement Unit
Red italic = Estates manage £50k-EU Threshold Works tenders

6. Category Management at Leicester
Contracts Officer…into...Category Manager!
Dual facing – Markets and Requirements across University
Internal consultant albeit with a Procurement bent (make comprehensive Procurement Policy Framework come alive)
Manage tenders from ‘cradle to grave’
Escalation for persistent and material supplier performance issues
Push for early (business case)/senior involvement in projects
Core documents – Contracts Register, Tendering Schedule & Savings Tracker
Look for collaboration opportunities, e.g. via NEUPC and local public sector organisations

7. Leicester’s Category Managers

8. Leicester’s Procurement Strategy Checklist

9. Leicester’s Procurement Strategy Checklist (cont’d)

10. Leicester’s Procurement Strategy Checklist (cont’d)

11. Leicester’s Procurement Strategy Checklist (cont’d)

12. Leicester’s rolling in-house training
Introduction to Procurement (2 hours)
Effective Contract Management (1½ hours)
Procurement Community
Dove-tailing of Category Manager and devolved procurer/contract manager roles
Public Procurement Principles
Procurement Rules & Law – Minimum levels of competition and timescales
Procurement Cycle
Links to guidance and templates on intranet
Specification writing tips
Importance of requesting quotes/inviting tenders based on University Ts&CS
Bid evaluation examples/tips
Risk-based policies and guidance
Signpost Category Managers

13. Change Plan (Phase 1) Building Block Launch Date
Restructure of Procurement Team on category basis, once two new Category Managers have commenced in post
Nov 2016
Rules, associated forms and approvals process (incl. recording savings) [Also ensure Procurement approve New Supplier Requests, whilst FSS continue to upload]
Nov
[Oct 2017]
Templates covering pre-procurement strategy, procurement and contract management
Dec
Suite of Standard Terms & Conditions
Re-vamped Procurement intranet section, incl. building blocks above
Jan 2017
Procurement Team Development Plan
Jan
In-house Procurement and Contract Management training
Feb
Policies and guidance
Nov 16 – Apr 17
Phase 2
Establish Procurement Monitoring Regime
Establish Procurement Performance Framework
Implement Supplier Relationship Management Policy
Review of IT systems underpinning procurement/category management activity

14. Need your help! Sense checking (Appropriate for Loughborough?)
Quality assurance
Testing out materials
Explaining the ‘lay of the land’ in different areas of the University
Supporting in-house training
Communicating the Change Plan