The Procurement Route Choices Toolkit
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- Spencer Nichols
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1 Entering into the wrong type of contract can be expensive and lead to poor partnerships in service delivery. Local highway authorities typically start the process of procurement for highway maintenance services by undertaking research and determining their strategy for procurement and delivery methodology in isolation. This can often be time consuming for client, current service provider and other service providers with whom the client interacts. It is inefficient for every client to make the same journey and for service providers to have to react to each individual procurement exercise. The Procurement Route Choices Toolkit was designed to overcome these problems and meet the key drivers of: Using best practice to identify and inform the procurement and delivery strategy and choices available, based on each Local Highway Authority s inputs and constraints. efficiencies and savings estimated at 50,000 per local highway authority for procurement by use of a standardised approach Developed by members of the CIHT Procurement and Delivery Panel (P&D) for the Highways Maintenance Efficiency Programme (HMEP), the web-based Toolkit complements the wider work on procurement route choices undertaken by Infrastructure UK. Launched in March 2013, it combines evidenced case studies with current good practice. ( In a step by step process the Toolkit: helps the user determine how closely their service is aligned to current thinking before asking the user to score their service aspirations; John Amos Page 1 of 8 V
2 encourages users to asses their need for change and fully evaluate all the alternatives; indicates which route(s) are best aligned to user requirements based on responses; enables further exploration of these routes to refine the thinking to achieve the procurement strategy that matches the authority s needs substantiates the choices made. Background In 2011 the Government funded the HMEP, a sector-led transformation programme designed to maximise returns from highways investment and deliver efficient and effective services. Aimed at the local highways sector, the programme runs to 2018 and is sponsored by the Department for Transport who are providing 6 million of government funding. HMEP is a partnership between the public and private sectors that provides practical guidance on efficiencies that will be of interest to all local authorities, supplier organisations and representative bodies and also identifies opportunities for efficiency savings and changes to the way the sector works. The aim is to build on existing good practice and collaboration between public and private partners, and develop new products where a need is identified. The products are divided into four themes: Collaboration Procurement, Contracting and Standardisation John Amos Page 2 of 8 V
3 Asset Management Benchmarking and Performance A Procurement Route Choices Toolkit had been identified to provide advice as part of the Procurement, Contracting and Standardisation Theme. The brief was to: Provide a best practice Toolkit to identify and inform on the procurement route strategy, choices and delivery Provide an interactive web based system with a guidance document including evidenced case studies Link to other HMEP initiatives including: Standard specification and standard details for highway maintenance services Standard form of contract for highway maintenance services Local authorities collaborative alliance toolkit Shared Services Toolkit Pre-Qualification Questionnaire Contract document compiler and hosting platform Asset management In 2011 Matthew Lugg, chair of the HMEP Programme Board, turned to the CIHT Procurement and Delivery Panel. Since 2008, the Panel had been working on developing a framework to broker cross-sector advice for procurement guidance and John Amos Page 3 of 8 V
4 provide this on the CIHT web site. HMEP could build on this work and the knowledge already gained by Panel members, saving time and resources. The Toolkit Development Team In late 2011 URS were appointed by HMEP as Project Managers with Kevin Sloan (M) of URS as Project Manager and John Amos (F), Stephen Child (F), Martin Duffy (M) and Keith Fountain (F) retained from the P&D Panel as consultants to develop the Toolkit. Pixl8 as CIHT web site developers were appointed to develop the web site as easy to use and update and CIHT were appointed to manage the website once it was live in The CIHT P&D Panel has a review role and will recommend updates and improvements to the Toolkit. John Amos Stephen Child Martin Duffy Keith Fountain Kevin Sloan During 2012 the Toolkit was developed through a survey of users, a series of workshops, consultations and demonstrations. Toolkit Development In October 2011 a survey was carried out to which 74 out of 151 Local Highway Authorities responded and these were used in developing the Toolkit. There were 49 questions on: John Amos Page 4 of 8 V
5 existing arrangements: scope, provider, procurement procedure changes planned for the future: anticipated contract arrangement, procurement method, collaboration suggestions and ideas: clear strategy for procurement, standard documents, reducing procurement costs, make best practice available, streamline processes The Toolkit Process was then evolved through a series of workshops, consultations and demonstrations involving representatives from12 local highway authorities, DfT, HA, Adept, HTMA, ICE and others. Procurement Route Choices: the process Introduction Assess Influences Need for Change Explore Options Evaluate Options Political Acceptability Market Appetite Define Contract Guidance Document to explain the process, delivery models, procurement procedures and timescales with case studies Initial considerations User input... Identify Risks Identify benefits Assess Influences user input to assess the current service and identify need for change using RAG process... Summary of position and influences to explore User input... Explore Options user input to define the future service which will select appropriate Select User input... Evaluate by user using appraisal template Preferred delivery model... Member Briefing and approval to inform and test market Committee Report Member Approval... Test preferred delivery model Confirm risks and benefits... Procure Reference: Case Studies, Examples, Notes, Codes of Practice, Websites, Procurement Rules, Surveys, etc. HMEP Workstream Links: Collaborative Procurement, Client Leadership, Governance, Key Business Processes, Managing Change etc John Amos Page 5 of 8 V
6 Figure 1: The Process It took into account iinitial considerations through to defining the contract and referred to other HMEP initiatives to avoid duplication. Three key interactive elements were identified and developed: Assess influences to assess the current service and identify need for change Explore to define the future service which will select appropriate Evaluate by user using an appraisal template The interactive elements were subject of further consultation and demonstrations to get feedback from potential users and also to refine the process, content scores and weightings A Guidance document was developed to include the evidenced case studies and is referred to and linked throughout the website. Website testing took place in December 2012 with 6 local highway authority representatives. Fourteen authorities provided case studies for inclusion in the guidance document to illustrate good practice: Procurement Route Choices Toolkit ( or John Amos Page 6 of 8 V
7 This Toolkit acts as a detailed guide to map out the various considerations and alternatives when procuring highway maintenance services as can be seen from the Process in Figure 1 The Process. It enables authorities to consider everything from private funding to In-house delivery with the option to consider various parts of the service differently if so required. The Toolkit is offered as free guidance to the sector and can be used for the following: (a) to establish the current position of service delivery in relation to current thinking and hence the need for change in various aspects. There is opportunity for the user to answer a variety of questions and so derive the most suitable delivery model solution for their highway maintenance service needs. (b) to help authorities narrow down the service delivery that can be procured in order to refine their selection and obtain an option which most suits their authority s characteristics and aspirations. John Amos Page 7 of 8 V
8 (c) throughout the process the user is encouraged to set down the justification for the decisions made and responses given to clarify the reasons for decisions made and to facilitate the audit process. The Toolkit was successfully launched on 1 March 2013 by webinar see the CIHT website: Feedback to date has been positive: The site is well laid out, easy to use and the links to the relevant parts of the guidance document throughout is useful. The tool should prove useful to help guide organisations through the process, particularly where in house procurement/contract management skills have been diluted words John Amos FCIHT is an independent consultant specialising in highway procurement and management. He has advised on tenders and business strategy for a number of highway contractors and organisations, having previously worked for consultants including Mouchel and Atkins together with local authorities. John has been a member of the CIHT Procurement & Delivery Panel since 2001 and chairs the Transport Professional Panel. John Amos Page 8 of 8 V
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