Transcription

1

2 What is good procurement and what can you do to improve this? Find out what Advantage SW has achieved and what they are looking to do for members and nonmembers alike, including members from participating RSLs.

3 A LLP owned by 4 Partners: Award winning house designs Over 2,300 built Procurement club

4 Started in January 2008 Procurement shared service 2 Full time staff 10 RSLs & 2 Councils 75,000 properties Products selected by Members not Contractors Over 8m savings delivered so far

5

6 Awards single supplier frameworks for products Members need: New build Planned replacement Responsive repairs Not repair or installation except doors & windows Members award contracts from the frameworks Members or their contractors place orders Over 90% usage of frameworks

7 Better prices and value for money Not about lowest price Products selected by Member not contractor Residents involved in the product selection Consistent products As good as, or better, products As good as, or better, guarantees As good as, or better, service levels

8 Better products: less likely they will need repairing Resource savings on specification Reduced procurement costs Time to concentrate on the installation contracts Legislative compliance Reduced risk Shared expertise

9 Use your own existing contractors Do the work yourselves Removes an area of SME cost disadvantage More competitive SMEs

10 Annual subscription Based on number of properties: A fixed fee Plus a variable fee per property 5,000 joining fee

11 Members save more than their subscription Income equated to 2.5% of spend Income equated to 7.5% of savings No income to Advantage SW from: Rebates Spend related payments Savings related payments

12 Not about lowest price Robust specification Less than half contracts awarded to the lowest priced tenderer Year Savings m m m m Total 8.1m

13 Help Members avoid increasing business costs Now measure RPI avoidance 790,000 inflationary increase avoided in 2012/13

14 Bathroom equipment Ideal Standard Taps Vado UK Kitchen units Moores Radiators Stelrad Heating controls Pegler External doors Britdoors Aids & Adaptation products AKW Medicare Slip resistant & safety flooring Tarkett

15 Electrical heating Air source heat pumps PVCu windows Solar Thermal systems Consumer units Fans Boilers Creda Daikin Airconditioning Wrekin Windows BDR Thermea (Baxi) Electrium Group EnviroVent Worcester Bosch, Baxi, Glowworm, Vaillant,

16 Advantage SW Contracts Manager Framework implementation Helps resolve issues Identifies actual savings Product groups Problem solving New products Product improvements Service improvements Benchmarking

17 Re-letting existing contracts Air source heat pumps Windows Electrical heating Other contracts Member Purchasing Managers working collaboratively Green Deal ECO, Provider strategy Renewable Heat Incentive Utilities DLO stores items

18 Fuel Poverty Heating system training cascade & support Energy tariff switching Heating video instructions Website costed energy efficiency savings Process sharing & improvement Training co-ordination Library of Documents Member spend analysis

19 7 Product Groups All Members can be represented on all groups Members set the specification Members set the PQQ & ITT questions and weightings Members analyse the tenders Residents assess the products tendered Prices submitted in a reverse electronic auction Procurement projects managed by Advantage SW

20 Kitchens, bathrooms, taps St Austell (Ocean Housing) Exeter (Kenn Centre) Yeovil (Yarlington Housing) 25 th September 26 th September 27 th September External doors, radiators, heating controls, flooring St Austell (Ocean Housing) 27 th November Exeter (Kenn Centre) 28 th November Yeovil (Yarlington Housing) 29 th November Almost 200 residents provided their input

21 ASHP, Windows St Austell (Ocean Housing) Exeter (Kenn Centre) Yeovil (Yarlington Housing) 16 th September 18 th September 19 th September

22 All Members represented on Product Groups Procurement Consortium Group oversees work PCG made up of senior managers Product Groups make recommendations to PCG Tender shortlists ITT questions PCG makes recommendations to Advantage Board Awards frameworks

23 Fuel Poverty group Training on how to use heating systems Tie-up with Energylinx to promote gas & electricity tariff switching Sharing knowledge & good practice New technologies Monitoring running costs First sight of future products

24 Benchmarking Liaising with other agencies, eg Central Government HCA, DECC, MPs Western Power Distribution Water companies E-tendering system E-auctions Spend analysis Training courses

25 Category Score (5.00) Performance 4.63 Contract Management 4.24 Communication 4.59 Member focus 4.71 Resident engagement 4.18 Overall 4.74 Average 4.59

26 Quarterly newsletter Bespoke annual report for each Member Website Secure website

27 Advantage SW Some pointers on procurement

28 Give yourself enough time Plan to act as you enter the last year of the contract Talk to possible contractors What is good practice Is there capacity in the market? Have standards changed? Talk to other landlords Who is tendering at the same time collaboration? Who has just tendered issues? Sharing documents and resources

29 Consider TUPE & liaise with incumbent about this (legal advice?) How will you manage the contract? How does this need to be reflected in the contract? Do you have the expertise to deliver the project? Technical Procurement Do you have the time to deliver the project?

30 Must comply with the Public Contract Regulations Goods, works & services Ensure you categorise your contract correctly Huge difference between thresholds Even sub-threshold needs to comply with the principles of the EU Treaty TUPE implications? Use an e-tendering system in-built audit Social Value Act

31 Performance specification Functional specification Mixture of both How do you include best practice in a performance specification? How proscriptive are the British & European Standards? If a lifetime detailed, how will it be guaranteed?

32 No ambiguity Sell your organisation Deal with TUPE responsibly Clear pricing methodology Clear questions, scoring criteria and weightings Clear specification Options identified if relevant Contract management Performance indicators

33 Capabilities and Capacities Not about how they would do your contract Detail minimum requirements and disqualify those who don t meet them Don t frighten off SMEs Small number of questions Be transparent about scoring Have a minimum pass score

34 Give them enough information Give them enough time Questions must be relevant to the contract If exceeding your requirement is not a benefit, don t award it points: have hurdle questions Don t ask too many questions Only ask questions: You intend to score the response Must have an answer Tell them how you will score, and stick to it

35 Pricing mechanism will drive behaviour Fixed price can lead to reductions in quality Variable price can lead to increase in costs How will you manage these? Advantage SW Members hybrid approach take the products outside of the tender tenderer prices other items

36 Supplier challenge process is a global phenomenon Under PCRs unsuccessful tenderers must have a written debrief Must provide their scores and successful company s Must explain why the successful company won Must detail comparative advantages and characteristics of successful tender

37 Don t let and forget Work closely with the incumbent and future supplier The incoming supplier will not know how you operate Establish acceptable standards for workmanship Get the communication routes sorted Get the admin sorted Make sure they know how to invoice

38

39 Groundwork Specification Service levels Performance indicators Continuous improvement

40 Resource Skills Challenge Recognise non-compliance Recognise poor performance Monitor Pis Knowledge Specification Service levels Contact details

41 Process Use the PIs Reporting performance Control of variations Change control Progress meetings Sanctions Evidence non-performance Know sanctions and how to apply Exit strategy

42