Office of Government Procurement
National Healthcare Conference
Paul Quinn
Chief Procurement Officer
Wednesday 2 April 2014
An Overview of
Procurement Reform
Operating Model
Agenda
Progress Update
Procurement Reform Overview
• A key public service reform programme - to reduce costs and
achieve better value for money t...
To deliver sustainable procurement savings for
the tax payer by optimising value for money
across the public service.
Cust...
Common Policies
Common Systems, Processes and Data Management
Common Governance
Office of
Government
Procurement
Health
De...
How Procurement is Changing
OGP Led Categories
• Professional Services
• Facilities Management and
Maintenance
• Utilities...
• Objective is to deliver contracts that meet the needs of customer
organisations and that deliver value for money for the...
Budgeting
and
Planning
Sourcing and
Category
Management
Contract
Management
Requisition to
Payment
Responsibility Split
Th...
• Important that new structures are accessible to all scales of suppliers,
but may require different models such as consor...
• Management Team appointed.
• Office established in Bishop’s Square.
• Website launched www.procurement.ie
• Governance e...
• Procurement reform a key element of Government reform agenda with
significant savings targeted.
• Policy and Operations ...
Thank You
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Paul Quinn, Chief Procurement Officer, Department of Public Expenditure and Reform

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  • The government has recognised that procurement, done differently, will yield significant savings within the public sector – that will include the 34 local authorities, the universities and institutes of technology, the hospitals and health serviceAn Accenture report in 2012 suggested that savings of between €249m and €637m were possible over 3 years through procurement reformThrough this programme, we’re targeting €500m, but the changes are radical and will be a first for the public service – never before has anyone attempted to lift a functional responsibility out and elevate it at this scale – there are risks but it is achievable and has been done elsewhere – Northern Ireland, Scotland, Wales. We have to remember we’re a small island nation and our structures are small.
  • Goods and services bought by the public service have been grouped into 16 categories8 categories cover goods and services that are common across the public sector. OGP (central) will put in place contracts for these categories from which all public service bodies will buyHealth, Education, Local Government and Defence will retain sector procurement functions for the other 8 predominately sector-specific categories, which they will procure on behalf of all the public service
  • Customer organisations retain full responsibility for (Yellow):budgeting control/planning , day-to-day contract management, non-sourcing aspects of purchase-to-payOGP takes on responsibility for (Blue):developing category strategies, executing compliant sourcing solutionsOGP and customer organisations share (Green):identifying customer requirements and estimating costs, contract management escalation
  • Paul Quinn, Chief Procurement Officer, Department of Public Expenditure and Reform

    1. 1. Office of Government Procurement National Healthcare Conference Paul Quinn Chief Procurement Officer Wednesday 2 April 2014
    2. 2. An Overview of Procurement Reform Operating Model Agenda Progress Update
    3. 3. Procurement Reform Overview • A key public service reform programme - to reduce costs and achieve better value for money through reform of public procurement. • The Office of Government Procurement (OGP): – launched in July 2013 – operates as an office of the Department of Public Expenditure and Reform, with its own Vote – strong governance model • Savings target of €500m over 3 years. • Operation of the new model commencing in first half of 2014.
    4. 4. To deliver sustainable procurement savings for the tax payer by optimising value for money across the public service. Customers will have easy access to high quality procurement services that they have confidence in and procurement staff are proud to provide. Vision and Mission
    5. 5. Common Policies Common Systems, Processes and Data Management Common Governance Office of Government Procurement Health Defence Education Local Government • The Public Service will speak with ‘one voice’ to the market. • Common goods and services will be sourced from one office, formed from resources who will come together from across the civil and public service. • Health, Education, Local Government and Defence will each retain a single sector procurement function to procure sector-specific categories. Operating Model
    6. 6. How Procurement is Changing OGP Led Categories • Professional Services • Facilities Management and Maintenance • Utilities • ICT and Office Equipment • Marketing, Print and Stationery • Travel and HR Services • Fleet and Plant • Managed Services Sector Led Categories • Local Government – Minor Building Works and Civils – Plant Hire • Health – Medical Professional Services – Medical and Diagnostic Equipment and Supplies – Medical, Surgical and Pharmaceutical Supplies • Defence – Defence and Security • Education – Veterinary and Agriculture – Laboratory, Diagnostics and Equipment
    7. 7. • Objective is to deliver contracts that meet the needs of customer organisations and that deliver value for money for the tax-payer. • Aim is not to homogenise everything the public sector buys. • Role of Category Councils is decide the sourcing strategies for goods and services, taking into account customers’ requirements, market dynamics and the savings required. • Each Council made up of members who are nominated by the Departments and Agencies that are the main users of the category. Each chaired by a Procurement Category Lead. Customer Needs & Category Councils
    8. 8. Budgeting and Planning Sourcing and Category Management Contract Management Requisition to Payment Responsibility Split The procurement function will focus on market sourcing strategies and tendering, and will support internal customers in budgeting and contract management.
    9. 9. • Important that new structures are accessible to all scales of suppliers, but may require different models such as consortia • Addressing the Barriers • Pro-active engagement: ‘Meet the Buyer’ • Briefing sessions with suppliers nationwide • Standardisation of procurement tender documents • Department of Finance Circular 10/10 • Go 2 Tender Programme • SME working group • New EU Procurement Directives SME Involvement
    10. 10. • Management Team appointed. • Office established in Bishop’s Square. • Website launched www.procurement.ie • Governance established with involvement from across public service at Ministerial, Secretary General and Senior Management levels. • Recruitment campaign underway to staff new centre-led model from within public service – staffing of OGP will be approx. 225 people from current 54. • Operation of the new model commencing in first half of 2014. Establishing the Office of Government Procurement Initiation Planning & Scoping Implementation Operation On-going Review
    11. 11. • Procurement reform a key element of Government reform agenda with significant savings targeted. • Policy and Operations are coming together into one office. • Government investing in procurement across the public service through dedicated structures, increased professionalisation, and improving systems and data. • Model will be centre-led, with OGP leading for common categories of spend and ‘One-Health’ for health-specific areas. Key Messages
    12. 12. Thank You

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