DOING BUSINESS WITH THE MOD

Transcription

1 PHILIP MARGERISON DSS OUTREACH PRESENTATION DOING BUSINESS WITH THE MOD Tel: /32843/32832 Website: 1

2 What MOD spends to provide and sustain military capability In FY 2014/15 approx 19.6Bn spent with third parties on a wide range of products & services amounts to 40-45% of total Government spend with third parties Direct spend with SMEs in FY 2015/16 of 762M with over 4,900 different SMEs MOD achieved a total spend (direct & indirect) of 3.8Bn with SMEs (19.4%) In order to achieve a target of 25% by 2019/20, this figure will need to increase to around 4.9Bn 2

3 Contracts placed: In FY 2015/16 approximately 1,700 new contracts with a value of 13.5Bn Approx 60% valued at less than 100K 7,500 contractors with extant contracts Approx 1,500 Commercial Officers in the overall MOD acquisition organisation 3

4 Measures to Increase Opportunities for SMEs to Participate in Govt Procurement Abolition of PQQs for requirements below 100K adopted new common core PQQ across Government Greater use of lotting strategies & outcome-based specifications Mystery Shopper service so business can tell Government where there are still issues Simplifying the contracting process, in particular for SMEs introduction of standardised & simplified terms & conditions for less complex requirements, below 250K Setting up an 800M Innovation Fund to harness entrepreneurship & ingenuity of the private sector aimed at helping UK to maintain an operational edge over its adversaries 4

5 Advocacy, Outreach & SMEs In March 2016 MOD refreshed its SME policy with intent to do more to tap into SME potential New Supply Chain Champion & network of Supply Chain Advocates Fresh assault on red tape ; unnecessary bureaucracy amended or scrapped New online tool for suppliers highlights opportunities, explains Departmental policy & advises suppliers how to target funding streams Supply Chain Advocates (SCAs) embedded across Department SCAs work on behalf of existing & potential suppliers; provide impartial advice & guidance; understand local needs & requirements; identify any positive or negative trends & escalate appropriately Aim to expand SME supplier base & promote supply chain that is fair, diverse, competitive & agile whilst obtaining best value for money 5

6 Contracting, Purchasing & Finance (CP&F) Programme CP&F will provide a single, on-line, end-to-end procurement system for all MOD procurement activity All other processes, especially paper-based systems, will either be replaced or subsumed CP&F will manage all procurement activity from identifying a need to procure, to securing a contract, through to procuring the item or service & payment Will promote enhanced visibility & greater competition CP&F is being introduced incrementally & scheduled to be fully implemented in early 2017 Contact details: DefComrclCPF-BTT@mod.uk 6

7 The Defence Equipment Plan Published January 2013 updated in successive years SDSR 2015 has increased planned spend to 178Bn over 10 year period 68.5Bn on procurement of new equipment 18.3Bn on support arrangements for new equipment 65.8Bn on support for existing in-service equipment - Includes spend for routine spares & maintenance; ship refits; support arrangements for communications & infrastructure; running costs for nuclear propulsion & weapons production facilities 4.3Bn contingency provision Full Defence Equipment Plan available at: Defence_Equipment_Plan_2015.pdf 7

8 Defence Growth Partnership (DGP) Govt & Industry working in partnership to ensure UK s Defence Sector grows in future by strengthening global competitiveness & inspiring next generation Led by Department of Business Energy & Industrial Strategy (BEIS) & Defence industry with support from MOD Working to secure a truly competitive, sustainable & globally successful UK Defence sector UK Defence Solutions Centre (UK DSC) established as new collaborative working environment identify innovative & tailored solutions to meet customers needs DGP will broaden & deepen engagement across vast range of organisations that contribute to this vibrant sector from Prime Contractors to SMEs to Academia HMG investment in Defence, Technology, Equipment & Support = approx 16.4Bn per year over next 10 years Website: 8

9 Crown Commercial Services (CCS) CCS brings together policy, advice & direct buying; providing commercial services to the public sector & saving money for the taxpayer Makes savings for customers in both central government & the wider public sector Improve quality of service delivery for common goods & services across government Offices in Liverpool, Norwich, Newport, Leeds & London; MOD s CCS team leads MOD engagement with Cabinet Office on the pan-government Managed Service for Common Goods & Services Categories include; communications; construction; energy; facilities management & property; vehicle hire; lease & purchase; elearning & classroom training solutions; office solutions; print; professional services & travel List of CCS Framework Agreements Customer Support: Supplier Support: Website: 9

10 MOD Procurement Policy Obtaining value for money through: Whole life costs Performance Delivery Quality 10

11 Approach Reasonable Opportunities to Compete Impartiality & Consistency Confidentiality EU Public Procurement Regulations Advertise Requirements 11

12 Competitive Tendering Competition preferred procurement route wherever feasible or possible Vendor assessment and pre-qualification techniques, where appropriate Prospective bidders limited to around six Currently approx 100 acquisition teams in DE&S Include exportability option, where appropriate Industry Days Announcements sections of MOD DCO/DCB 12

13 Tender Criteria Third party Quality Assurance certification Financially sound Managerial capability Technical competence 13

14 Supplier Selection Generally no more than 6 suppliers in competition Expressions of interest from industry Objective evaluation of relevant factors MOD encourages approaches from consortia of small companies that may be better able to offer a solution & accept the risk than individual SMEs MOD requirement for Consortia to have a proper legal identity as a basis for receiving a contract But sometimes there is only one supplier 14

15 Non-Competitive Contracts Single Source Regulations Office (SSRO) independent regulator of non-competitive defence contracts Aims to ensure vfm obtained in single source contracts & single source supplies paid fair & reasonable price All non-competitive contracts priced on basis of equality of information (E of I) Pricing agreed prior to contract placement No Acceptable Price, No Contract (NAPNOC) Mandatory for all non-competitive 1M+ contracts Approx 5.1Bn non-competitive contracts placed in FY 2015/16 All non-competitive requirements advertised in MOD DCO & DCB for possible sub-contract opportunities 15

16 The Tender Process Formal invitation to tender Clear documentation, evaluation criteria and weightings Clarification questions Tenders submitted through independent Tender Board Tenders assessed Tender Assessment panel evaluate against pre-agreed criteria 16

17 Contract Award Criteria Technical & contractual compliance Clear-cut decision Winning and losing bidders normally informed at the same time Debrief available 17

18 Defence & Security Industrial Engagement Policy Policy aims: Contact: To sustain & enhance the capability of the UK s defence and security industry in order to support front-line capability Encourage overseas-based companies to engage, on a voluntary basis, with UK companies with a view to attracting supply chain work, research & development (R&D) & inward investment to the UK No longer any link to MOD s procurement decisions Nine companies have signed up to DSIEP E: desirg-2e@mod.uk; Tel:

19 Cyber Security From 1 January 2016 MOD will require suppliers to have Cyber Essentials certification in place. This applies to all new requirements This entails the transfer of MOD identifiable information, as defined in DEFCON 531, from a customer to supplier or generation of information by a supplier specifically in support of the MOD contract will be in scope MOD requirement for all potential suppliers of these requirements to have a Cyber Essentials certificate by contract start date, at latest & for annual renewal Requirement must be flowed down supply chain where sub-contracts satisfy same criteria MOD has issued letter to MOD suppliers through Defence Trade Associations for circulation to their members & their supply chains Information on Cyber Essentials at 19

20 Commercial Toolkit Available to MOD staff & industry Contains guidance on a wide range of commercial policy topics, DEFCONs, DEFFORMs etc Available via the Acquisition System Guidance (free use, requires no-cost registration) Commercial Toolkit; Select either Guidance Topics ; DEFCONs or DEFFORMs 20

21 MOD routinely advertises: Advertising MOD s Requirements All its competitive and non-competitive, warlike and non-warlike requirements for goods & services valued at 10,000 and above are advertised free of charge, on the Defence Contracts Online (MOD DCO) portal ( MOD DCB magazine available on subscription starting at 325 pa Requirements which meet the relevant criteria of EU Public Procurement Regulations & are above relevant thresholds also advertised in Official Journal of the European Union (OJEU) and Contracts Finder portal as well as on the MOD DCO portal MOD requirements valued at below 10K are not advertised centrally and are generally procured on a local or regional basis 21

22 European Procurement Law All public procurement in the UK subject to Treaty on the Functioning of the European Union (TFEU) Principles are: - Non-discrimination (on grounds of nationality) - Equal treatment (of all suppliers in any procurement context) - Transparency (so that all parties can see that MOD is acting in a fair and nondiscriminatory manner) - Mutual recognition (of equivalent documents, standards and certificates from other EU Member States) Thresholds reviewed every 2 years by EU 22

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24 Contract Notices Contract Bidders Notices Competitive/Non-competitive Contract awards Sub-Contract Opportunities Addendum Website: 24

25 Guide to Contract Notices Contract Notices Identification number Expressions of Interest deadline Issuing branch Summary QA Standards 25

26 Dynamic Pre-Qualification Questionnaire (DPQQ) Launched in September 2013 as part of MOD DCO portal ( Allows MOD commercial staff to create an electronic PQQ issued as part of contract notice Potential suppliers will express an interest in the requirement by completing DPQQ on line Saves up to 28 days by combining two parts of procurement procedure Reduces effort to create a PQQ & to complete a PQQ as suppliers can store information on their capabilities on MOD DCO portal 26

27 Guide to Contract Notices Contract Bidder Tender No. ITT Issue Date Deadline Issuing Branch Summary of Requirements Issued To 27

28 Guide to Contract Notices Non-Competitive Contract Awards Issuing Branch Summary of Requirements Contract No. Awarded To. 28

29 Guide to Contract Notices Competitive Contract awards Issue date Issuing branch Summary of Requirements Awarded to 29

30 Supplier Information Database (SID) SID accessed via website Companies can submit their profiles free of charge SID available to MOD acquisition staff as a resource to help draw up a tender list/source a product or service Over 8,000 companies have submitted their profiles to the SID By logging their profile on the SID, it does not guarantee that companies will be invited to tender for MOD requirements 30

31 Contracts Finder Portal Overseen by Crown Commercial Services (CCS) Search across central Government & wider public sector for contract opportunities over 10K Find out future opportunities Search for details of previous tenders & contracts Free to use; easy search facility: provide free alerts 52Bn contract notices in last 12 months: 177Bn forecast contract opportunities over next 6 years Portal updated early 2015 Accessed via Contact details Service Support Team ContractsFinder@crowncommercial.gov.uk 31

32 DEFENCE SUPPLIERS SERVICE Part of Supply Chain Development section of the Strategic Supplier Management (SSM) Team Help Desk Website: Tel: /

33 The (DSS), is the MOD focal point for the provision of advice and guidance to companies (often SMEs) that are interested in doing business with Defence As well as providing a help desk facility, as part of its outreach Service, DSS also attends various exhibitions, seminars and meet the buyer events across the UK. They also give selling to the MOD presentations on how and where to access MOD tender and contract opportunities 33

34 Collaborative Working (CW) CW also known as joint working covers a variety of ways that 2 or more organisations can work together. Options range from information networks and alliances, through joint delivery of projects to full merger. Essentially, the MOD & industry working together to achieve joint objectives in order to enable success and mutual benefit for all parties BS an 8-phased model providing a recognised framework, guidance and auditable process that organisations can adopt, without major investment, to improve collaborative relationships. It also highlights key elements that will lead to success using route maps to allow integration between organisations as well as providing a structure to monitor progress. 34

35 Collaborative Working (CW) What are the benefits of BS Collaborative Business Relationships? Define roles and responsibilities to improve decision making processes Share cost, risks, resources and responsibilities Provide staff with wider training opportunities Build better relationships that lead to improved results MOD policy is to work to the principles of BS 11000, but accreditation to the Standard is optional. BS transitions to ISO in late

36 21 st Century Supply Chain (SC21) Programme Launched in 2006: MOD signed up to SC21 in 2008 SC21 is a change programme designed to accelerate competitiveness of aerospace & defence industry by raising performance of supply chains Benefits include: reduced overheads; lean principles; operational improvement; increased competitiveness; leaner production; cost reduction Costs nothing to subscribe to SC21 to fully engage will require commitment of resources but benefits will outweigh costs Three key workstreams Accreditation, Performance & Development; Relationship Further information - or Phil Curnock Head of Supply Chain Tel: / phil.curnock@ads.group.org.uk 36

37 Centre for Defence Enterprise Part of DSTL first point of contact in MOD for anyone with an innovation with potential defence application Funds innovative research that could lead to cost-effective capability for UK Armed Forces Opens up defence & security challenges to widest possible audience of providers Helps take CDE-funded projects to market Aims to extent reach to new SMEs with innovative ideas Holds regular themed competitions Awarded more than 23M of research contracts since 2008 approx half to SMEs New improved on-line submission service launched November Contact tel:

38 Other Points of Contact Department for International Trade s Defence and Security Organisation Small Business Unit Contact: Howard Gibbs Head of Small Business Unit Tel: howard.gibbs@trade.gsi.gov.uk Website: 38

39 Information Pack 39