Practical Procurement 1Pre-Procurement Planning and Building Specifications

Eleanor Stokes, Key Account Manager

OGP Client Conference

12-13 November 2019

Hibernia Conference Centre, Dublin Castle

Agenda

• A View from Policy – Corporate Procurement Plans and the Role of Procurement Officers

- Fergal Grogan, OGP Policy Unit

• Corporate Procurement Plan & Multi annual Procurement Plan Overview

- Emer Roy & Claire Keane, Dublin & Dún Laoghaire ETB

• Planning and Developing Specifications

- Gerard Dooley, Sourcing - Managed Print Services Category

• Q & A

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A View from Policy – CPPs and the Role of Procurement Officers

Fergal Grogan

OGP Policy Unit

OGP Client Conference

12 November 2019

ogp.gov.ie

National Public Procurement Policy Framework

1. Legislation (Directives, Regulations)

2. Government policy (circulars etc.)

3. Capital Works Management Framework for Public Works

4. General Procurement Guidelines for Goods and Services

5. Technical guidelines, template documentation and

information notes

5. Technical guidelines,

template documentation

and information notes

National Public Procurement Policy Framework

Procurement Officer Role

• Supports contracting authorities in meeting

procurement obligations

• Higher levels of compliance and efficiency

• Scale of procurement-related spend and related risk informs role and responsibilities

Procurement Officer Role

Governance and Planning

• Corporate Procurement Plan and Contracts Register

• Governance obligations and risk management

• Report (internally)

• 40/02 Annual Return

Support

• Advise and Assist

• Public Procurement Guidelines

• Engagement

Communication

• Liaise with and update budget holders

• Review documentation and communicate onwards

• OGP Customer Service Team support@ogp.gov.ie

• Procurement planning - integral part of business planning

• Purpose of information note - assist in the preparation of a CPP

• Benchmark current procurement policies and practices and identify future procurement needs

Corporate Procurement Plans

Corporate Procurement Plans – Key stages

Corporate Procurement Plans – Objectives

Corporate Procurement Plans - Benefits

Corporate Procurement Plans – What goes in …

National Public Procurement Policy Framework

1. Legislation (Directives, Regulations)

2. Government policy (circulars etc.)

3. Capital Works Management Framework for Public Works

4. General Procurement Guidelines for Goods and Services

5. Technical guidelines, template documentation and

information notes

Pre Procurement Planning - Government Policy

• Central frameworks• Circular 16/13 – Encourage and promote the use of central frameworks

• SME Access• Circular 10/14 – Consider measures to encourage SME participation

• Environmental & Social Considerations• Circular 20/19 – Consider GPP and social considerations in CPP & criteria in

procurements

End note

Aiming for …

• Better public procurement

• Strategic approach to public procurement

• VFM on goods and services

• Better outcomes for all

Thank you

Dublin

and D

ún L

ao

ghair

e

Education a

nd T

rain

ing B

oard

Corporate Procurement Plan

And MAPP

Overview of the process undertaken by

Dublin & Dún Laoghaire ETB

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/03

/17

Objectives

Creation of a Corporate Procurement Plan (Requirement under Code of Governance for ETBs)

Creation of a Multi Annual Procurement Plan (MAPP) which will form part of an overall wider ETB sectoral annual MAPP submission to the Education Procurement Service (EPS)

An

alys

is Non Pay expenditure in previous year

Levels of spend –increase/ decrease

One off purchases

Disaggregation of spend

Iden

tify Where contracts are

required

Where non-contracted suppliers are not being used

Compliance rates with contracted suppliers

Pla

nn

ing Tenders to be run in

coming year

Resources

Categories of spend which require contracts

Liaising with budget holders and senior management on estimated projections for year ahead

Initial Process Timeline

Step 1

September 2018

Assign resource to project

Step 2

Process involved Mapping SUN

General Ledger (GL) Codes to EPS Product Groups

and Codes

Step 3

Oct to Dec 2018

Completed Expenditure Analysis

and created the MAPP

Step 4

December 2018 Completion of

MAPP

Challenges

• Identifying and allocating dedicated resource to the project.

• Financial systems: MAPP requires VAT exclusive figures. SUN can only provide VAT inclusive figures.

• Miscoding's in SUN can make it difficult to identify correct GLs for expenditure analysis.

• No direct access to SAP expenditure – had to be requested and interrogated separately.

• Catch all GL’s such as “class materials” or “office expenses” require deeper analysis at invoice level

• Initially a time consuming process as we were trying to figure out the most efficient process to use. We commenced in September 2018 and completed our first draft MAPP in December 2018.

• In Year 2 (2019) we commenced the analysis in April 2019 and completed the MAPP in August 2019.

Expenditure Analysis

Step 1 - Analysis of Contracted Suppliers

• We used our Contracted Suppliers List (all companies we have a formal contract in place with following a tender process) to identify suppliers and ran Citrix expenditure reports from January to December 2017

• We entered the data into the MAPP for all contracted suppliers according to the relevant product code they were identified with.

Expenditure AnalysisStep 2 – Analysis of Non–Contracted Suppliers

• We ran Citrix reports to interrogate SUN for the spend analysis. Editing data on the report to create meaningful expenditure reports.

• Citrix expenditure reports ran for January to December for all 97 Non Pay GL Codes

• Identify suppliers within a GL where the expenditure was more €8k per annum as the cumulative spend would be € 25k+ over a 3 year period.

• Used P2P to review invoices and identify suppliers areas of business where it wasn’t clear what they were supplying to our schools

Expenditure Analysis

• Ran Citrix expenditure reports by Supplier as often the expenditure was distributed over a number of GL Codes

• Grouped expenditure of these suppliers within the GL Code e.g. Woodwork Class Materials, Exam Papers

• Group of suppliers are reported on together in one line on the MAPP

• Incorporated the Training Centres expenditure information into the MAPP

• No of transactions identified

• Once initial MAPP is completed, a secondary drill down of non-compliant spend was commenced which required the input of budget holders. The resulting secondary analysis resulted in some changes to the MAPP

Expenditure Analysis

On completion of the expenditure analysis the following information was entered on the MAPP

MAPP Field Data EnteredProduct Group Buildings, Estates & Facilities Management Product Code Description Cleaning Services Contract Name of Service Cleaning (3650) – GL Description and CodeDescription of Requirement Contract Cleaning Current Contract Own ContractIf own / other contract Pre National Framework Agreement / Contract Contract Expiry Date 31/05/2021 Contract extension option 31/05/2023Number of Procurement Transactions in year - 696Estimated Annual Contract Value 2018, 2019, 2020 - €xxx,xxx (2017 expenditure in each of the 3 fields)Estimated Annual Contract Value Cumulative Value (auto populates)Expenditure Type RecurringComment Supplier name entered for our records but we will remove data from this cell

when submitting to ETBI/ EPS

Lessons Learned• The MAPP is primarily a tool for planning and identifying supplies/ services which need to be

procured but is also used to identify areas of non compliant expenditure.

• Defining “compliance”. Compliance with internal procurement policy very different to compliance with national guidance and Directives.

• Set a limit on how far you will drill down – what level of detail will be possible given your resources and time.

• Enlist the assistance of the budget holders in carrying out the secondary analysis of the expenditure

Lessons Learned• Commence analysis earlier in the year (January) to facilitate any audits which may be scheduled

• Developed a supplier driven MAPP for internal use by including supplier in own column on MAPP –has become a very useful tool for our internal expenditure analysis.

• Initial exercise requires resources while establishing process and system however the investment in year 1 will facilitate the MAPP to be completed more efficiently in the following years.

• Suppliers on P2P system – some duplication of suppliers will require clean up

• Contracted suppliers list – supplier codes to be included to prevent schools using the wrong version of the supplier

Thank You

Planning and Developing Specifications

Gerard Dooley

Sourcing - Managed Print Services Category

Office of Government Procurement

Agenda

• Planning

• Building your specification – seeking advice

• Importance of recording

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Planning and Developing Specifications

What do you want to procure?

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What do you want? Are you sure?

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PLAN

•Is there a Budget for this planned procurement?

•Bring all of your stakeholders together

•Understand what is needed

•Did you procure these goods/services previously? Can you examine the data?

•Distinguish ‘Wants from Wishes’

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PLAN

• Remember the 6 ‘R’s’:

• Right Product/Service

• Right Quantity

• Right Quality

• Right Time

• Right Place

• Right Price

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PLAN

• Get to know your market and the players

• Has there been market changes since you last contracted?

• Has your organisation changed how it now carries out this function?

• Consider a RFI – Request for Information

• Examine the Risks. How can these be mitigated?

• Are there innovation in this marketplace?

• Developing you qualitative and award criteria

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Seek advice

• Are there Frameworks available from the OGP or Sector Partners that can be used to procure the Goods/Services your organisation require?

• If you are unsure check the buyerzone at ogp.gov.ie or email support@ogp.gov.ie

• Technical guidelines, template documents and information notes are readily available to you at all times

• Take legal advice – before not afterwards!

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Seek advice – be familiar with the rules

• Remember the fundamental European Treaty Principles – Non-Discrimination, Equal Treatment, Transparency, Proportionality and Mutual recognition

• Choose the appropriate procedure – Open, Restricted, Competitive Procedure with Negotiation and Competitive Dialogue

• Understand the timelines regarding the chosen procedure

• Know the thresholds - EU & National

• Consider the public procurement circulars

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Record as you go

• Always develop a procurement audit trail

• You are obliged under Article 84 (EU Public Contracts Directive) to record the process

• These documents may be discoverable under the Freedom of Information Act

• When a determination is made, at any stage, ensure an appropriate memo or note is saved to file that reflects on the why and how of the decision taken

• Best to record now than try remember later!

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Case Study

• Managed Print Services Framework

• Requirement for Printer and Usage Details to go-to-market

• Client ‘understood MPS’

• On reviewing final documents client had questions regarding pricing

• Client was paying click charge and rental

• Following evaluation of bids the client not only save the rental but also reduced click charge

• Research your markets

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Plan well

Seek advice

Record as you go

Key messages

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Thank you.

Q & A

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