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Supplier Forum FY 2019-20 20 October 2020
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Page 1: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Supplier ForumFY 2019-20

20 October 2020

Page 2: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Welcome

Philip Sarbutt

Director Category Management - Human & Professional Services

NSW Procurement

2

Page 3: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Agenda

• NSW Government Contingent Workforce Strategy Update

• Contractor Central Update

• Fiscal Year 2019/20 Overview

• Scheme 0007 Metrics and Analysis

• Scheme 0007 Update

• Other updates

• Q & A

3

Page 4: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

What is Contractor Central?

4

Contractor Central

Managed Service Providers (MSP)

Panel of providers responsible for delivering

efficiencies by implementing agreed cost saving

strategies and process improvements

Vendor Management System (VMS)

Whole of government SaaS platform to support

the management of the contingent workforce

and in-scope SOW engagements

Contingent Workforce

Prequalification Scheme (SCM0007)

A panel of contingent labour suppliers established through a pre-qualification Scheme

Statement of Work (SOW) Prequalification

Schemes, Panels or Contracts

Selected whole of government or cluster specific

supplier arrangements established through a

scheme, panel or contract

Page 5: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

5

Highlights: FY 2019-20

Contractor Central

• NSW Transport and Treasury implementation. All agencies now have Contractor Central!

• 335 suppliers have completed onboarding in at least one instance of Contractor Central

SCM0007

• 380+ suppliers now prequalified. No suppliers removed by NSWP during COVID-19

• Its now easier to apply for additional categories! Scheme questions streamlined.

Spend and volume

• $1.483 billion spend under management, nearly $1 Billion through the VMS (-7.6% vs FY19)

• Over 14 million hours logged (approx. 8,000 FTE) with 14,000 total workers during the course of the year

COVID-19

• Remote / Flexible working arrangements

• Overall stability of NSWG contractor workforce and hours worked

Page 6: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

6

NSW Government Economic Recovery Plan

• https://www.nsw.gov.au/covid-19-recovery-plan

• https://www.nsw.gov.au/covid-19/businesses-and-

employment/keeping-people-jobs-and-businesses-

business

• https://www.nsw.gov.au/covid-19/safe-

workplaces/workers

Page 7: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

7

NSW Government Contingent Workforce Strategy

Contractor Central

Prequalification Scheme(s)

A panel of suppliers established through a

prequalification Scheme for Contingent

Workforce or Statement of Work

Vendor Management

System (VMS)

Whole of government SaaS platform to

support the management of the

contingent workforce

Managed Service Providers (MSP)

Panel of providers responsible for

delivering efficiencies by implementing

agreed cost saving strategies and process

improvements

Payroll Providers

A panel of payroll providers to assist in building a NSW Govt

specific pool of

contingent workers

Page 8: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

Transport Education StrongerCommunities

Health EligibleCustomers

PlanningIndustry andEnvironment

CustomerService

Treasury Premier andCabinet

External toGovernment

Sector

FY 18/19 FY 19/20

Spend by ClusterFY 2019 - 2020

Total: $1.48b

$ Millions

-8% Compared to

FY 2018/19

Source: VMS and Supplier reported spend data

Page 9: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Spend by CategoryFY 2019-20

Total: $1.48b

$ Millions

$0 $100 $200 $300 $400 $500 $600

N Home Care Service

M NSW State Emergency Services

L Other

K Education

J Transport

I ICT Applications,…

H ICT Management,…

G ICT Network and Equipment

F Technical

E Professional

D Industrial

C Specialist

B Finance

A Administration

2018-19 2019-20

Source: VMS and Supplier reported spend data

Page 10: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Top 20 Suppliers Market ShareFY 2019-20

0% 5% 10% 15% 20% 25% 30% 35%

HCM

Ashdown

Infopeople

Spinifex

Allegis

Capstone

Bluefin

Greythorn

TRS

Clicks

Finite

Robert Walters

Paxus

Chandler Macleod

Peoplehank

Charterhouse

Ethos and Quay

Talent International

Randstad

Hays

Other

69%

Page 11: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Spend by business sizeFY 2019-20

111 95

35

47 61

34

Small Medium Large Suppliers

$202m

$682m$609m

Small Medium Large Suppliers

Suppliers without spend

70%

61%

51%

NB: Size is determined by the number of FTE staff employed by the supplier. That is: Small 1-19, Medium 20 – 200 and Large 200+

Source: VMS & Supplier Reported spend data, www.tenders.nsw.gov.au – Total number of supplier as at July 2020.

Suppliers

with reported

spend

Spend

by Supplier

type40%46%

14%

Page 12: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Aboriginal Procurement Policy FY 2019-20

The NSW Government Aboriginal Procurement Policy sets targets for clusters to

increase indigenous supplier engagement

3% of all Goods and Service Contracts 1% of all addressable spend

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

Mill

ion

s

+439%

2019/20

https://buy.nsw.gov.au/policy-library/policies/aboriginal-procurement-policy

Page 13: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

VMS vs Non-VMS SpendFY 2019-20

13

Supplier Reported

Contractor Central

0%

10%

35%

56%61% 62%

100%

90%

65%

44%39% 38%

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

VMS SUPPLIER

Page 14: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Supplier performance responses to Job PostingsFY 2019-20

5,652Job Postings

(Job postings may result in several hires)

Approx. 3 Suppliers

invited per Job

posting(Sector Average)

17,812Total individual invitations

issued to suppliers(Requests sent to suppliers)

43,445CVs Submitted

Declined4%

Ignored12%

Response84%

12,405are shortlisted

6,747are hired

Page 15: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Top 10 Contractor Central Role Types by HeadcountFY 2019-20

0 500 1000 1500 2000 2500 3000 3500 4000

Business Analyst

Customer Service Officer

Program or Project Administrator

Disability Care Workers

ICT Specialist

ICT Business Analyst

ICT Project Manager

Call Or Contact Centre Operator

Project Coordinator / Project Manager / Program Manager

Clerical and Administrative Workers

2019 2020

Page 16: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

16

2015 2016 2017 2018 2019 2020

• Education

• Health

• FACS

• DFSI (Customer Service)

• Justice

• Industry

• Planning & Environment

• ACT Govt

• TAFE

• Sydney Water

• icare

• Premier & Cabinet

• Transport Ph 2:- NSW Trains

- NSW TrainLink

- Sydney Metro

• Transport Ph 1:- Corporate Services

- People & Culture

• Treasury

In progress

Contractor Central Implementation update

• In 2020 all NSW Government clusters, plus the ACT Government, have introduced Contractor Central

for management of the Contingent Workforce (SCM0007). We currently have 14 separate Vendor

Management System (VMS) instances.

https://buy.nsw.gov.au/schemes/contingent-workforce-scheme

Page 17: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Machinery of Government update

Key cluster-level changes 2019 / 2020

Changes to agencies under each cluster are not depicted above

Full details can be found on https://www.dpc.nsw.gov.au/assets/dpc-nsw-gov-au/Governance-Arrangements-Blue-Chart.pdf

• Justice

• FACS

• Stronger

Communities

• Regional NSW

• Single MSP by end 2020

• VMS consolidation of Justice & FACS VMS instances by mid-

2021

• If you have workers in the Stronger Communities cluster,

Contractor Central will manage the consolidation of workers and

support you through the process

• Industry

• Planning &

Environment

• Planning,

Industry &

Environment

• No immediate changes to existing Contractor Central arrangements

• Separate VMS instances & MSPs to continue at present for

i. Industry

ii. Planning & Environment

• New cluster announced in April 2020

• Serviced under DPIE (Industry) Contractor

Central arrangements

Impact to Contractor Central arrangements

Page 18: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

SCM0007 – Applications statusFY 2019-20

1 60

207

77

129

229

13

41

1

88

185

52

NEW APPLICATION RESUBMISSION VENDOR PROFILE UPDATE

Successful Unsuccessful Waiting Decision Withdrawn

594Applications

489updates

Page 19: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

SCM0007 – Certificates of Currency

2020 Expired Certificates of Currency

Check your insurance certificates today !www.tenders.nsw.gov.au

0

100

200

300

400

500

600

Q1 Q2 Q3

Public Liability Professional Indemnity Workers Compensation

Source: www.tenders.nsw.gov.au

Page 20: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

SCM0007 – Application processing timesFY 2019-20

SLA

0 weeks

1 weeks

2 weeks

3 weeks

4 weeks

5 weeks

6 weeks

7 weeks

8 weeks

9 weeks

10 weeks

0

10

20

30

40

50

60

70

80

90

100

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

2019 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2020

Avera

ge P

rocessin

g T

ime

Applic

ations R

eceiv

ed

Applications Recevied Weeks (Average)

Page 21: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

• Due on the 10th day of the month (or) the previous working

day if the 10th falls on a weekend or public holiday

• Always download an up-to-date template from buy.nsw

• Report transactions outside of the VMS only

• Report “NIL” if all your workers are in the VMS

Reporting Reminder

All suppliers must report each month

Page 22: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Cyber Security

Useful references

• https://www.digital.nsw.gov.au/digital-transformation/cyber-security/resources

• https://www.smallbusiness.nsw.gov.au/sites/default/files/2019-07/Cyber-Aware-full-report.pdf

Page 23: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Supplier Hub

23https://suppliers.buy.nsw.gov.au/ict/

Page 24: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Q&A

24

Please ask any questions in the chat bar to the right.

Questions not answered in today's forum will be responded to in

Q&A responses after the forum.

Questions?

Page 25: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Q&A

25

Q. I’m new to SCM0007. What is the best way to contact hiring

managers to introduce myself and market my services?

A. You no longer need to maintain an extensive list of hiring manager

contact details. The Contractor Central team in each cluster is your

point of contact. If you have not already done so, you should meet

with each Contractor Central team and make them aware of what

types of workers you can provide.

Q. Who are the specific contacts for each area or cluster, and the

sub-clusters? Do they work on a geographical basis?

A. Each cluster or agency’s Contractor Central team is the single point

of contact for both suppliers and hiring managers, for all geographical

areas. Contact details are available from

https://buy.nsw.gov.au/schemes/contingent-workforce-scheme

Page 26: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Q&A

26

Q. I have not received a Job Posting for several months. I am

compliant with reporting and insurance requirements. Why am I

not receiving opportunities?

A. It is important to stay in regular contact with your Contractor Central

team so they are aware of what types of workers you can provide. The

contact details for each cluster’s Contractor Central team are available

from https://buy.nsw.gov.au/schemes/contingent-workforce-scheme

Page 27: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Q&A

27

Q. Will there be any review of the set margins under SCM0007?

A. No, we do not have any plans to review the supplier fee.

Q. What happened to the monthly expenditure report previously

published on data.nsw.gov.au?

A. The 2019-20 Proactive Release of Information is now available on

https://buy.nsw.gov.au/schemes/contingent-workforce-scheme

All future reports will be published in the same location.

Page 28: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Q&A

Q. What are you doing to support small businesses during the

recession?

A. NSW small businesses (with less than 20 employees) that supply to

participating NSW Government agencies may be eligible for faster

payments under the Faster Payment Terms policy. Small businesses

must be registered with the Small Business Commissioner:

https://www.smallbusiness.nsw.gov.au/what-we-do/our-work/faster-

payment-terms

Additionally, some NSW Government clusters and agencies have

shortened their invoice payment terms to support suppliers through this

period.

28

Page 29: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Q&A

Q. Who is the person to contact in NSW Procurement if

communication with clusters is difficult?

A. Please contact the buy.nsw Service Centre at:

[email protected] | Phone 1800 679 289

A member of the Human and Professional Services team will

respond to your enquiry.

Q. Would you consider reviewing the reduction after 12 months

for part time workers? For example, if someone works three days

per week for 12 months?

A. We do not have any plans to review the supplier fee under

SCM0007.

29

Page 30: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Q&A

Q. Why are suppliers not allowed to speak to hiring managers,

particularly when briefings do not explain what the hiring

managers are looking for?

A. Each agency / cluster defines their business processes for the

engagement of contingent workers. The MSP will facilitate any further

dialog between you, other suppliers and the hiring manager. This

ensures a clear understanding of the role requirements is provided to

all invited suppliers.

Q. What response time should we expect when the enquiry

concerns a change to entity due to acquisition?

A. Requests to Novate are not automatically granted and the time

required to assess a novation can vary depending on complexity, the

number of workers involved and the assessment of risk. On average

this may take between 2-4 weeks. 30

Page 31: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Q&A

Q. Do suppliers work on a geographical basis? We see plenty of

Sydney agencies advertising in Newcastle.

A. All suppliers are authorized to provide workers across NSW.

Q. As a new supplier, who do we speak with if we can't get a

response from the MSP for an introduction meeting?

A. You should escalate this to NSW Procurement via 1800 679 289.

Q. Is there a reciprocal notice period for engagements through

SCM0007? (if not stated in writing by MSP or Hiring Manager)?

A. If not otherwise stated at the beginning of the engagement, the

default notice period is 0 days.

31

Page 32: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Q&A

Q. If a candidate leaves a role for 4 weeks and is then re-engaged,

is tenure restarted?

A. The SCM0007 scheme rules do not determine tenure.

Rather, the Scheme provides conditions that determine when a

sourcing fee (7.05%) is to be used over a payroll fee (5.14%).

Several factors need to be considered when determining what fee is

payable for the reengagement of an existing worker and these may

vary at a cluster / agency level.

Please contact your MSP for further advice.

32

Page 33: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Q&A

Q. There are good policies about engaging indigenous owned

businesses, my question is that is there any policy or target to

engage businesses that support disabilities?

A. Suppliers who drive positive social change are an important part of

our supplier base. NSW Procurement has included questions in the

supplier application process to identify suppliers who can

accommodate job seekers with a disability.

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Page 34: Supplier Forum · 2021. 1. 19. · Supplier Forum FY 2019-20 20 October 2020. Welcome ... E Professional D Industrial C Specialist B Finance A Administration ... Source: VMS & Supplier

Thank you

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