Date post: | 16-Dec-2015 |
Category: |
Documents |
Upload: | reynard-hodge |
View: | 216 times |
Download: | 1 times |
Achieving Value for Money in Procurement
Stephen Archer
Schools Commercial Team
Public Sector Procurement Reform
Efficiency and Reform Group (ERG) works in partnership with HM Treasury and government departments to deliver:•savings by ensuring that government acts as ‘one customer’ – through combining government’s buying power and increasing our pool of suppliers to government (including small and medium-sized enterprises)•assurance on the delivery of government’s most significant projects, on time, within budget and to a high quality•support for UK growth by allowing a wider range of UK businesses to bid for government contracts and making new commercial partnerships and businesses, including support for public service mutuals
How?
What does it look like?D
ept fo
r Ed
ucatio
n
Efficien
cy & R
eform
Gro
up
Collaborate to deliver £12bn savings
Centrally manage procurement of goods and services
Collaborate to deliver £12bn savingsDepartments to Focus Departments focus on truly unique commercial activity
Strengthen the procurement profession
Collaborate to deliver £12bn savingsDepartments to Improve Commercial awareness
Collaborate to deliver £12bn savingsDepartments to Simpler More flexible EU procurement rules
SMEs have access to government contract opportunities
Contract management – drive value from contracts
Review of efficiency in the schools system
https://www.gov.uk/government/publications/review-of-efficiency-in-the-schools-system
Procurement aspects
Benchmarking
Identifying new deals and driving uptake to existing contracts and arrangements.
save money get better value for money
be accountable for what you
spend
follow the law
How can procurement help you….
Managing Public Money
Is there a requirement for public bodies to achieve value for money?
Yes and do so following EU Treaty principles of transparency.
proportionality, equal treatment and non-discrimination.
The competitive process:• Helps ensure value for money• Helps demonstrate transparency
From 1st January 2014 EU Procurement Directives and
The Public Contracts Regulations 2006
For Schools thresholds are:
•£172,514 Goods & Services
• £4,332,012 Works
Regulations do not apply in full when the estimated value of contract is below threshold
but Treaty principles do
EU Financial thresholds
Revised directives agreed by EC June 2013. Anticipated to be UK law by end of 2014.
Changes to UK public sector procurement regulations will be highlighted to schools in BuyWays
Cabinet office training
www.gov.uk/transposing-eu-procurement-directives
New EC Procurement Directives
Core changes to the new Directives
‘Most economically advantageous tender’ (MEAT) will become the standard award criterion replacing “lowest price”.
This includes : •Quality, •Environmental & social•Innovative characteristics•Transparency in sub-contracting•Rules on abnormally low bids.
“Light Touch” regime for Education & Social Services
• We have negotiated an exemption for Education & Social Services (& Health) that enables us to use a “light touch” regime for services under 750,000 Euros.
• The UK is required to put in place “appropriate procedures” for the award of contracts under this process in the UK Regulations
• The Cabinet Office has consulted on this & we await their proposals
The current climateImportance of efficiency and financial management
Variation in back office spending
• Analyse expenditure
• Review your contracts
• Identify opportunities for rationalisation
• Deliver admin savings
• Collaborate across key strategic spend areas
• Benchmark and compare
What can you do?