1. Building Capacity for Estates Collaborative Procurement presented by Mark Swales - Director of Estates and Facilities Sheffield Hallam University

2. Today's Agenda 1. HE Context for Collaborative Procurement 2. Introduction to NEUPC and details of Estates and Facilities collaborative procurement current position 3. Identified barriers to increased collaborative procurement 4. Identification of opportunities 5. Next Steps

3. HE Context for Collaborative Procurement Procurement as a strategic asset Procurement is concerned with delivering value for money and ensuring that organisations access the goods, services and works they need in order to fulfil their strategic objectives. Effective procurement, making better use of collaborative solutions and developing in-house capability and capacity helps to ensure that maximum value is realised from available resources. HEFCE Efficiency and Effectiveness in Higher Education 2011

4. HE Context for Collaborative Procurement Procurement as a strategic asset Collaborative procurement in UK higher education Developing capacity in procurement Strategic direction, competition and targets Regulation and procurement HEFCE Efficiency and Effectiveness in Higher Education 2011

5. A minimum target of 30 per cent of non-pay spend - to be addressed through effective collaborative arrangements. To be achieved by 2016. Target should be increased over time Estates represent the largest opportunity for both universities and consortia Relevant sector bodies should work together to establish a model for England based on Scotland's best practice (APUC) Establish an Academy for Procurement in Higher Education Recommendations - what is the challenge?

6. Project Managers Estates Programme Projects Financial Physical Functional Strategic Specific Users Building Users Campus Users Devolved Budgets Fac/Dir Finance University Finance Local AOP Fac/Dir Strategic Plans Corporate Strategy Corporate Real Estate Management Sheffield PopulationSpatial Impact Economic ImpactStakeholders economics: matching goals- resources space uses and space quality primary processes : education, research and knowledge transfer cost and benefits of physical resources Sustainable Finance Sustainable Development Competitive Advantage Productivity Estate key performance ratio's Condition Surveys - quality Space allocations by type and user Carbon footprint/ environmental impact Output measures ; space utilisation; income per m2; functional suitability Space allocation per user; energy use per user; retail, leisure, sport, shared spaces Attractiveness of City/Region University reputation University outputs: degrees publications citations knowledge transfer patents Alumni users: students academic staff support staff Visitors City community related to the University Knowledge workers; alumni; profile and skills of staff; values; Student and staff housing, culture and lifestyle Valued employer; economic impact (users and visitors); start-ups; purchasing power; cost of ownership/total costs; attractiveness to business

7. AUDE and NEUPC Estates Procurement professionals with varying degrees of involvement in networking in the region and in own institutions NEUPC communications mainly through institutional procurement strategic leads therefore does not always engage effectively with Estates Procurement Professionals Directors of Estates awareness of NEUPC low Probably individual institutions in the NEUPC region have many different approaches to estate and facilities procurement My Initial Findings - Warning this slide contains sweeping statements!!

8. Estates Agreements Agreements in Place Furniture (Lot 1-4) (Office, Catering, Residential, Bespoke Teaching, Security) Vehicle Hire & Leasing Lift MaintenanceElectrical Materials & Associated Products Plumbing, Ceramics, Heating and Ventilation Equipment Recycling Bins Air FiltersPest & Vermin Control Sports Fitness and Gym EquipmentRefrigeration & Air conditioning Maintenance Electrical White GoodsLift Consultancy PAT TestingFixed Wire Testing Soft Furnishings (bedding, window coverings) (Lot 1-3) Tool Hire Removals & Relocation ServicesWater Quality Management Electronic Components & Batteries (Lot 1-4) Engineering & Design Consumables and Storage & Materials Handling Asbestos Removal Services Smoke alarms and carbon monoxide detectors Lot 1-4 Asbestos Consultancy ServicesSigns & Signage (in progress)

9. Total Estates Spend (20 institutions) = £590.2m Excluding construction and utilities (£260m) of £330m impactable spend Influenced 4.1% Category13/14 Supplier MI Estates£2.5m Furniture£11m Total£13.5m Estates Spend

10. Estates £590.2m Estates & Buildings £479.2m Workshop & Maintenance Supplies & Services £42.4m Vehicle Supplies & Services (Purchase, Lease & Contract Hire) £3.4m Furniture £12.2m Utilities £53m Source: Spikes Cavell

11. What are the Barriers to Estates Collaborative Procurement?

12. Barriers to Collaborative Procurement Past experience and perceptions Agreement competiveness and value for money Trust, confidence and experience Lack of estates input into defining requirements Existing suppliers are local SME accessibility in tender process Lack of estates engagement and consultation Institutional structures Supplier behaviour Too complex Alternative collaborative bodies available Time to collaborate

13. What Actions would you advise to mitigate these?

14. Key Actions Estates marketing and communications strategy Establish estates category group Workshop to identify barriers and inform estates category strategy Develop estates category strategy and forward contracting plan Make use of expert resource including estates professionals and consultant QS Simply tender process working with lead institution

15. Ten Key Areas of Spend 1. Professional Services 2. Specialist Building Services 3. Plant Purchase 4. General Building Repairs and Maintenance 5. Security, Fire Alarms and CCTV 6. Electrical Sundries and Components 7. Ironmongery, Door Furniture and Locksmiths 8. Temporary Buildings 9. Statutory Testing 10. Air Conditioning

17. Next Steps Further analysis on current spend behaviours to gain as comprehensive data set as possible Develop an estates category strategy Gain approval from NEUPC Board for additional resources Deliver on communication plan Deliver on quick wins

18. Any Questions?