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Colin Cram Marc1 Ltd Tel: 01457 868107 Mobile: 075251 49611

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Presentation on theme: "Colin Cram Marc1 Ltd Tel: 01457 868107 Mobile: 075251 49611"— Presentation transcript:

1 Colin Cram Marc1 Ltd Tel: 01457 868107 Mobile: 075251 49611

2 TOWARDS TESCO 1. Public Sector Procurement is Vast A New Integrated Model could Deliver Huge Benefits 2. Outsourcing and Shared Services Is Chaotic and Costly Huge Potential Remains Propositions: A New Outsourcing Model? A Proposition for Delivery of Public Services


4 £220 Billion pa £3,500 per Adult and Child pa One Third of Total UK Public Spending One Sixth of UK Gross Domestic Product (GDP) 0.75% of Global GDP Size makes it Critical to Delivery of Public Services Effective Management is Essential to Reduce Public Spending Deficit and Deliver Government Procurement Policies LOCAL GOVERNMENT PROCUREMENT- £42bn Alone would put UK in top 25% of national GDPs

5 65% Non-Central Government 50% Common Categories, Goods, Services Professional Services £35bn Construction £21bn ICT £10bn Facilities Management £10bn Energy £4bn Reprographics £3bn Travel £3bn Fleet £3bn Food £2bn

6 Some Major Central Government Department Organisations Some Large Specialist Organisations NHS Outsourcing Buying Agencies: 40+ OGC and Category Teams Several Thousand Small to Medium Procurement Units 40,000+ Procurement Points Absence of Mandation BUT Increasing Collaboration/Joint Procurement

7 Indiscipline Different Procedures/Contract Ts and Cs Complexity – e.g. Tender Procedures/Ts and Cs Multiplicity of Tenders Multiplicity of ‘Duplicate’ Contracts and Contract Managers Specifications Inconsistency of Capability, Expertise, Processes


9 Furniture 30% FM/Outsourcing/Major Contracts Up to 35% Laboratory Consumables Up to 90% IT 5 – 80% Construction 5 – 25% Excellent Construction Management 5 – 15% Social Care 10% Legal Services 10% Good Contracts Management 5 – 35% © C M Cram

10 Right Procurement Structures/Joint Procurement Common and Complete Databases Common Information/IT Systems Common Procedures Common Specifications Commodity, Markets, Procurement Expertise Specialist Management Best Practice Procurement Techniques

11 PUBLIC SECTOR PROCUREMENT IN 5 YEARS TIME? Central/ Major Departments/ Buying Solutions Industry Specific Regional P Hubs/ Medium Depts Local/Med/ Small Departments Major National Contracts/Suppliers ** Common Categories ** Relationship Management ** Market Management ** Industry Specific ** PPIs/Major Project Support * ** Regional/Large Local Contracts/Suppliers * Small Local Contracts ** Discipline/Implementation/ Compliance ** © C M Cram


13 BENEFITS Coherent Framework for the Strategic Management of Public Sector Procurement spend - the whole spend, not just 'common' categories Delivery of the massive procurement savings that are needed Accountability for the delivery of savings, value for money and public procurement policies Clarity about the costs of doing public sector procurement Consistent and expert procurement for all contracts, framework agreements, projects Enable best supply management and market management tools to be used effectively for all areas of procurement for the whole of the public sector

14 BENEFITS Continued Consistent approaches to procedures, specifications etc. Consistent approach to interpreting EU procurement directives and government procurement policies Eliminate Duplication 100% compliance with framework agreements Procurement personnel with the authority to challenge the need for procurements and query specifications Career development path for Public Sector Procurement Personnel.

15 HOW CAN OUTSOURCING AND SHARED SERVICES BUSINESS BE BOOSTED? Eliminate obstacles High Costs Long Timescales Complex Procedures Varied Procedures Duplicate Specifications Create Model Approach Create Vision for Public Service Delivery

16 PUBLIC SPENDING £bn Central Local Total Pensions 110 110 Health/Social Care 117 117 Education 28 52 80 Defence 38 38 Welfare 60 50 110 Protection 16 17 33 Transport 13 10 23 General Government 13 13 26 Other Spending 71 32 103 Interest 30 1 31 TOTAL 496 175 671

17 ELIMINATE OBSTACLES: CREATE MODEL APPROACH Create Range of Model Specifications Create Matrix of Service Providers and Services that the Public Sector can use without further EU Tendering Provide those Services through building on Existing Service Centres/Creating New Ones

18 SERVICES © C M Cram SERVICES SERVICE PROVIDERS 1.2. 3. 4.5. 6. Roads √√ Call Centres √√√ HR √√ Finance √√√ Construction Services √√ ICT √√√√ Legal √

19 HOW? Create Range of Model Specifications Follow EU Procurement Directives to Create Matrix Evaluation Criteria: Capability Obtain Indicative Prices? Grow Matrix Organically Consider Dynamic Purchasing System

20 WHAT SERVICES COULD BE COVERED? ALMOST ANYTHING! Whitehall Policy HR Payroll Print and Design Finance Internal ICT Legal Services Agile Working Solutions Procurement Construction Asset Management Roads Revs and Bens Debt Collection Managed CCTV CRM Out of Hours Services ICT Hosting Data Centre Operations Environmental health Elements of Children’s Services and Adult Social Care

21 PROPOSITION FOR PUBLIC SERVICE DELIVERY What should be Delivered by the Public Sector? What should be Delivered by the Private Sector? Benefits of Proposition Overall Model for Public Service Delivery VISIONARY – Nothing Ruled Out

22 Colin M Cram Marc1 Ltd Tel: 01457 868107 Mobile: 075251 49611

23 MAKING IT HAPPEN Outsourcing Industry to Take Lead? Create Steering Group with TORs - membership private and public sectors Commission and Fund Initial Work – to investigate feasibility/sources of funding etc Draft Programme of Work and Implementation Plan

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