PLEASURES AND PI OF PROCUREMENT

Transcription

1 Brick Workshop 28 29/06/2017 Brymbo Ironworks PLEASURES AND PI OF PROCUREMENT

2 PROCUREMENT The purchase of work, services, goods and assets PROCUREMENT PROCESS The actions taken in purchasing work, services, goods and assets PROCUREMENT POLICY The methodology, guidelines, rules and framework followed by an organisation in purchasing work, services, goods and assets

3 AIMS OF PROCUREMENT PROCESS Fairness Competitiveness Equality Transparency Proportionality UK Treasury standards for public spend include: honesty, fairness, impartiality, integrity, openness, transparency, accountability, objectivity, accuracy and reliability You are using grant and public money and so you are fully accountable for what you spend

4 OUTCOMES OF GOOD PROCUREMENT Correct goods and services are purchased/procured Process is safe Process is legal (in the spirit as well as to the letter of the law) Process is timely and meets programme requirements Avoidance of any conflict of interest Compliancy with grant conditions VALUE FOR MONEY In doing so you minimise the risk of pitfalls

5 PROCUREMENT GUIDELINES It is the responsibility of Trustees to ensure that robust procurement policies are in place and that these policies are clearly communicated as it is the Trustees who are accountable

6 PROCUREMENT GUIDELINES HLF guidance: In all applications, regardless of the level of funding, we will ask you to give us details of the procurement (buying), tendering and selection process for all parts of your project. > 50,000 Provide proof of competitive tender process with a report on tenders received and the decision about which to accept 10,000-50,000 At least three competitive tenders or quotes and show that you have selected the one which provides best value for money < 10,000 Neil Competitive Richardsonquotes or fixed price tenders depending on value

7 FUNDER REQUIREMENTS Systems for responsible record keeping and reporting Ongoing confirmation by lottery funders of adherence to process and funder guidelines May be required to provide evidence and /or procurement reports as necessary TOTALITY OF PROCUREMENT/CONTRACT VALUE

8 VALUE FOR MONEY Value for money is not necessarily the cheapest price although you do need to be able to justify your choice Value for money is the best mix of quality and effectiveness for the least outlay over the period of use of the goods or services procured or purchased How to determine value for money

9 VALUE FOR MONEY COST VERSES QUALITY MATRIX % total score cost % total score quality Consideration of ethical procurement COST ASSESSMENT Full points awarded to lowest bid Other bids assessed against lowest bid based on formula: Lowest price Tender Price Being Considered x Score

10 VALUE FOR MONEY QUALITY ASSESSMENT

11 ASSESSMENT PROCESS BOARD / ASSESSMENT PANEL Representation and skills sets appropriate for assessment Clear instructions and guidelines (do s and don ts) Declaration of any potential conflict of interest Independent scoring (individually or in pairs) Discussion and clarity leading to final scores INTERVIEWS Presentation by tenderer Established format and questions (assessed) Interrogation of tender return Inclusion of an observer PROCUREMENT REPORT

12 PROCUREMENT: WORKS CONTRACTS CONSIDERATIONS Value of works and OJEU thresholds (impact of Brexit) Public sector partnerships Access to framework agreements Forms of contract / procurement methods PROCUREMENT PLAN TWO-STAGE (RESTRICTED) PROCUREMENT PROCESS Pre Qualification Questionnaire Invitation to Tender PROCUREMENT REPORT

13 PROCUREMENT: WORKS CONTRACTS PRE QUALIFICATION QUESTIONNAIRE (PQQ) Effectively a preliminary assessment of compliancy and quality, and ensures only suitably qualified tenderers shortlisted for interview Following PQQ the scoring matrix for tenders can have a higher weighting toward cost in order to drive competitive pricing Contact information Supplier acceptability Economic and financial standing Capability and capacity Management Equal opportunities Neil Environmental Richardson / H&S

14 PROCUREMENT: WORKS CONTRACTS INVITATION TO TENDER (ITT) ITT document Instructions Tender evaluation Tender response Specification Design packages (architecture, CDM, mechanical, electrical, structural, landscape) Bills of Quantity

15 PROCUREMENT: WORKS CONTRACTS YOU ARE THE CLIENT What do you require over and above major works? Does the site need to remain open at any time? Is access to site required and if so then for what purpose? What training opportunities should be provided? Does the contractor need to document construction works and if so then in what format? What level of community engagement is required? What interaction is required with the Trust? Interviews of contractors Communications and progress meetings Approval and sign off of architect instructions

16 PROCUREMENT: PROJECT SERVICES Project Manager or consultancy Design team Other project officers and support CONSIDER Costs verses quality rating Decision about including contract value ASSESSMENT Day rates and time allocation Understanding Experience Neil Methodology Richardson and approach T

17 PROCUREMENT: OTHER SERVICES PROJECT DELIVERY PHASE Professional advice (VAT, legal services) Interpretation and exhibition design Branding and website design Signage and other graphics design Tech services Fire safety OPERATIONAL PHASE Catering services Janitorial services Cleaning and maintenance Neil IT Richardson and networking services

18 PROCUREMENT: GOODS Networking infrastructure IT equipment AV equipment Furniture and other fitout CCTV and security H&S equipment CONSIDERATIONS How to assess when there isn t like-for-like How to specify high-tech equipment

19 PROCUREMENT: STAFFING ORGANISATIONAL POLICIES FOR STAFFING AND RECRUITMENT FUNDER GUIDELINES Job specifications should be approved by funders Recruitment should be open, competitive, fair and equal Funded positions should be advertised

20 YOU ARE NOT ALONE WHAT TO DO WHEN YOU DON T KNOW WHAT TO DO: Start from first principles: What is important to you Main aims of procurement Proportionality Cost verses quality Qualitative priorities WHERE TO GO FOR HELP HEL Ask for input and advice from your grant officer Seek guidance from procurement officers Ask for advice, models, templates and procurement plans from Neil other Richardson projects because it has inevitably been done before

21 PLEASURES AND PITFALLS Fairness Competitiveness Equality Transparency Proportionality

22 QUESTIONS The OJEU rules are there to ensure the Authority gets best value for money FALSE The purpose of the procurement regime is to ensure open competition, not to secure the most favourable terms for the public authority

23 QUESTIONS All public procurement is subject to the procurement rules TRUE Even if below the thresholds, public procurement must be transparent, not discriminatory, afford equal treatment, and be carried out proportionately.

24 QUESTIONS It is the responsibility of the Authority to ensure its procurement process is conducted in compliance with procurement law TRUE Whilst they can get advice, they are ultimately responsible.

25 QUESTIONS The Authority must award the contract to the cheapest supplier FALSE Criteria will be set by the Authority as to the conclusion of the contract, and often incorporates a balance of quality and price. Hence, the cheapest might not always win.

26 QUESTIONS Abnormally low tenders must be excluded from the competition FALSE This was true under the 2006 regulations. However, under the 2015 regulations, an Authority must now require an explanation from the bidder as to why their tender price is abnormally low. If the tenderer cannot provide a satisfactory reason, then they are excluded from the competition.

27 QUESTIONS The Authority can withhold certain information about how it intends to evaluate bids, otherwise it will be giving bidders the answer FALSE The Authority must make clear its evaluation process so it is fair and transparent.

28 QUESTIONS Where bidders change the identity of their key subcontractors, this should not give rise to any procurement law concerns FALSE It could be seen that material amendments to the provisions of a contract can be treated as having resulted in a new contract, and so the need for a new tendering process. It s possible for such things to pass, but there s always the chance!

29 Brick Workshop 28 29/06/2017 Brymbo Ironworks PLEASURES AND PI OF PROCUREMENT THANK YOU