Procurement for Local Government An Update
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1 Procurement for Local Government An Update 18 th February 2015 Local Government Operational Procurement Centre (LGOPC) The Reeks Gateway, Killarney, County Kerry. Catherine Carmody Head of LGOPC 1
2 OGP Led Categories Sector Led Categories Professional Services Facilities Management and Maintenance Utilities ICT and Office Equipment Marketing, Print and Stationery Travel and HR Services Fleet and Plant Managed Services Local Government Minor Building Works & Civils Plant Hire Health Medical Professional Services Medical and Diagnostic Equipment and Supplies Medical, Surgical and Pharmaceutical Supplies Defence Defence and Security Education Veterinary and Agriculture Laboratory, Diagnostics and Equipment
3 What is covered: Minor Building Works and Civils Building Civil Electrical Mechanical/Plumbing Supply of Materials Roadworks Plant Hire Hiring of Plant and Equipment (with or without Driver/Operator) Incorporating Local Government and Other Sectors
4 Legal Background European Treaties European Directives National Rules & Guidelines Common Law Local Guidelines & Circulars New Directive (2014/23/EU, 2014/24/EU and 2014/25/EU) Government Policy Not yet law. Will be transposed into law by the 18 th April Aimed at supporting SMEs Smaller lots Consortium or joint bids Greater use of open tendering Reduced turnover requirements Support innovation 4
5 Principles Guiding Public Procurement Transparency Mutual Recognition Equal treatment of tenderers Nondiscrimination Proportionality
6 Thresholds Less than 25,000 Quotations sought Compliance with local guidelines 25,000 EU Thresholds (Supplies & Services Advertise on EU Thresholds Advertise in EU Journal via > 209,000 Supplies & Services > 5,225,000 Works * Exclusive of VAT 6
7 Tendering Procedures Open Single stage procedure Restricted Two stage process Those who meet minimum requirements invited to tender Minimum Number Invited to Tender (5) Competitive Dialogue Very complex requirements/specialist Provides more flexibility in the process Negotiated RFT issued & responses form basis of negotiation 7
8 What s New? Dynamic Purchasing Solution (DPS) Procurement vehicle for procuring commonly used works, services and goods which are easily available on the market. A DPS creates a wholly electronic marketplace (SupplyGov in our case, a suitable IT system ) through which contracting authorities can source requirements by inviting tenders admitted to the wholly electronic system. The DPS is a two-stage process and must be set up using a restricted procedure to appoint suppliers as participants in the DPS. Evaluated at stage one: Must meet Minimum Suitability Criteria One of the major advantages of a DPS over a framework agreement is that other suppliers can subsequently apply to join the DPS at any time in the life of the DPS. 8
9 Process Flow for Dynamic Purchasing System (DPS) Identfy Categories Suitable for DPS Restricted Procedure Dynamic Purchasing Solution (DPS) Process Flow Advertised for Min of 30 days Draft Documents Legal Proofing & Work Group Advertise in EU Journal Closing Date QW1 Suppliers/Contractors express their interest via SupplyGov Initial Call Subsequent Submissions Notes: * No limit on No. of Suppliers/Contractors * Regulation 34 * Stage 1 covers exclusions and selection criteria * OJEU Contract notice specifies requirements & quantities or values * Suppliers self-certify * No standstill * The Period of Validity must be stated in original OJEU notice * Sign Declaration Annually Submission to be evaluated within 10 days Initial closing date, Trance One. There can be subsequent closing dates Evaluate Submissions Received Successful/ Unsuccessful? No Supplier/ Contractor Informed Supplier/ Contractor Reapplies Can t re-apply until the DPS is active Yes Supplier/ Contractor Informed New Supplier/ Contractor apply to get on DPS Activated on DPS Send No Letters of Acceptance or F.A. Terms & Conditions included in Form of Tender, at pre-qual Stage Local Authority conducts minicompetition via SupplyGov Advertised for Min of 10 days Can reduce number of days (eg 5 days) if agreed at Pre-Qual stage Evaluate Submissions Received Successful/ Unsuccessful? Yes No Supplier/ Contractor Informed Notes: * All approved Suppliers/Contractors must be invited * MEAT or Lowest Price Contracting Authority decides Supplier/Contractor offered the work & awarded the contract Performance Management * Pass/fail criteria can be included at mini-competition stage such as resources available, delivery within specified timeframe, H&S specific to job, etc. Requirement to Publish Contract Award Notices in OJEU Quarterly 9
10 Local Authority Frameworks/DPS Sample Minimum Suitability Criteria Economic & Financial Standing Evidence of Turnover ( 2 x Contract Value) Technical & Professional Ability List of similar works completed over the previous 5 years Educational & Professional Qualifications (Management) Educational & Professional Qualifications (Personnel) Insurances, Tax Compliance, Pay Rates, etc. Personal Situation Declaration Form
11 Local Authority Frameworks/DPS Sample Minimum Suitability Criteria (contd.) Health & Safety Competency (PSCS competency if applicable) Approach to be compliant with Procurement Regs but consistent with DPER Circular 10/14 Initiatives to assist SMEs in Public Procurement As much as possible, Declarations only required at Framework Application Stage
12 LGOPC Live Frameworks Value & Number of Suppliers/Contractors Framework Category SubCategory Est. Annual Spend Status # of Suppliers Tendered per Framework # of Successful Suppliers per FA # of Contracting Authorities per Framework Plant Hire Services 2015 (extended 2016) Plant Hire Plant Hire 65,000,000 Live Road Making Material (Supply and Placement) Minor Works Road 14,590,472 Live Road Making Material (Supply only) Minor Works Road 9,726,981 Live Footpath, Roadway Restoration and Ancillary Works Minor Works Road 12,381,335 Live Ready Mix Concrete (Supply only) Minor Works Materials 2,349,573 Live Road Marking Services 2014 Minor Works Road 1,549,644 Live Bitumen 2016 Minor Works Road 40,000,000 Live Mechanical Road Condition Surveys Regional & Local Road (Pavement Management Survey) Minor Works Road 350,000 Live Fuels Fuel Fuel 20,000,000 Live Total 165,948,
13 2016 LGOPC Pipeline of Projects Framework Est. Annual Spend Status # of Suppliers Tendered per Framework # of Successful Suppliers per FA On Hold pending 2015 Extended Plant Hire 65,000, DPS (DPS Dec 2016) Energy Retrofit Regions 1-6 Draft Tender Docs 74 Q2 30,000,000 Energy Retrofit Dublin Region Draft Tender Docs 28 Q2 Voids Refurbishment & Adaption of LA Housing Stock 20,000,000 Draft Tender Docs 1500 Q2 Ready Mix Concrete (Supply) 2,349,573 Draft Tender Docs 105 Q2 Road Marking Services 1,549,644 Draft Tender Docs 116 Q3 Plumbing Services 10,000, Q3 Electricial Services 10,000, Q3 Road Making Materials (Supply Only) 9,726, Q3 Footpath, Roadway Restoration & Ancillary Works (for works anticipated to be less than 50,000). Road Making Materials and Ancillary works (Supply & Place) (for works anticipated to be greater than 50,000). 12,381, Q3 14,590, Q3 Totals 175,598,
14 Areas of Planned Activities Other Sectors Other Sectors: Transport Infrastructure Ireland (TII) Office of Public Works (OPW) Irish Prison Service Education HSE Defence Forces Waterways Ireland Irish Water Local Authorities Regional Training Centres
15 Risks to Contracting Authority Planning Phase Not clearly defining specification Understand the market Evaluation Evaluation criteria not clearly defined Competent Evaluation team Award Lack of agreement/contract Required in Milestone 4 Performance Management
16 LGOPC Procurement Portal Launched on the 5 th of August 2015 Operates in same manner as LAQuotes.ie Buyers and Suppliers register Buyers use to run all Mini-Competitions (Request for Tenders) Can also issue Request For Quotations ( <25k) Developed and enhanced to provide more user friendly experience Upgraded security and compliance functionality increased audit function, increased validation when requesting RFT/RFQ Compatible with Tablets and Smartphones Dynamic Purchasing System SupplyGov module under construction
17 Questions And Answers 17
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