Building Schools for the Future: Procurement Review

Transcription

1 Building Schools for the Future: Procurement Review ICT in BSF 18 March 2008 Tim Byles Chief Executive Partnerships for Schools

2 Background Strong programme momentum Focus to date on pre-engagement and pre-procurement Three key issues: - the place of design - the integration of ICT - partnering in the operational LEP Commissioned PricewaterhouseCoopers (PwC) in Autumn 2007 to conduct a review of the procurement phase

3 Drivers for change Increasingly mature supply market Current process keeps three bidders in the process for too long Use of a high number of sample schemes adds procurement cost without procurement benefit Early procurement process is too congested Long-term partnering issues are not given enough focus early on

4 Consultation process 120 Organisations Operational LEPs PfS / PwC Experience Consultation workshops and interviews Consensus on Issues Range of options Clear themes emerging Value in continuing consultation

5 Fundamental considerations Stakeholders Procurement Outputs Market Local Authority Programme Effective Competition Procurement Context Design Quality Partnering Integration

6 Key recommendations More comprehensive bidder pre-qualification Sample scheme design restricted to two projects Reduction in design work required by three bidders ICT integration More effective focus on partnering Deselect to two bidders more quickly A small reduction in the overall procurement time up to 2 months Potential for up to 30% saving in bid costs

7 Current and Proposed Approach Current Process - 82 week Proposed Process - 75 week Weeks Bidders Weeks Bidders Prequalification 0 8 All Prequalification 0 9 All Long-listing Dialogue Phase bidders Dialogue Phase bidders Evaluation 29 Dialogue Phase bidders Evaluation 43 Dialogue Phase bidders Final tender preparation Final tender preparation Evaluation 55 Evaluation 61 Close and mobilisation 62 Partner Close and mobilisation Partner 81 BSF Procurement review on behalf of PfS PricewaterhouseCoopers LLP February 2008

8 Proposed Procurement Process BSF Competitive Dialogue Process - 75 week Outcome Procurement Stage Weeks Bidders Key Measures Capability Prequalification 0 9 All Track record Long-term relationship Dialogue Phase 1 10 Evaluation 29 3 bidders Partnering Sample scheme initial view Detailed Proposition Dialogue Phase bidders Final tender preparation Evaluation 55 Sample scheme detail ICT and FM Integration Commercials Mobilisation Close and mobilisation Partner Effective mobilisation BSF Procurement review on behalf of PfS PricewaterhouseCoopers LLP February 2008

9 ICT benefits of integration Working within an integrated delivery vehicle should help produce better designs and service delivery to schools Potential for ICT partner to influence building design Potential for better integration of ICT solutions into the buildings Contractual interfaces between ICT and construction are covered by PfS standard documents LEP takes all risk on ICT integration, performance and delivery LA only has to run one procurement process

10 ICT procuring ICT separately The LA has to manage the integration risk between the construction, FM and ICT elements The overall procurement process can take longer But Where good ICT services are already being delivered to schools within an LA then some deviation from the standard approach should be allowed on a case by case basis In this case the LEP procurement needs to ensure that the ability of each of the bidders to integrate these existing services is taken into account

11 Market response to the review The new revised procurement process is the outcome of a constructive dialogue between public and private sectors. The result is a high quality proposal that will contain contractors bid costs and authority procurement costs. This will help sustain the attractiveness of BSF to the market and ensure that the private sector continues to deliver value for money to the public sector. Chris Whitehead, Managing Director New Business, Balfour Beatty Capital and Chair of the Public Private Partnerships Forum

12 Summary: Consequences of the review Local Authorities Suppliers Partnerships for Schools Market depth Pre-procurement Core scope Long-term partnering relationship Reduced bid costs Greater certainty over outcome Commitment to BSF Programme resource Police the core scope Invest in procurement documents