CBI Northern Ireland - Public procurement conference - Des Armstrong, CPD

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Des Armstrong, director, CPD, presentation - understanding the NI Public Procurement Market at the CBI Northern Ireland public procurement conference, 05 March 2009

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CBI Northern Ireland - Public procurement conference - Des Armstrong, CPD

  1. 1. Understanding the NI Public Procurement Market Des Armstrong, Director, CPD
  2. 2. NI Public Procurement - Review <ul><li>1999 - £1.6 Billion Annual Spend </li></ul><ul><li>No central policy </li></ul><ul><li>Little central co-ordination or monitoring </li></ul><ul><li>Ad-Hoc collaboration </li></ul><ul><li>Procurement undertaken by wide range of staff </li></ul>
  3. 3. NI Public Procurement - Policy <ul><li>Approved by the Executive in May 2002 </li></ul><ul><li>Best Value for Money </li></ul><ul><li>“ the optimum combination of whole life cost & quality (or fitness for purpose) to meet the customer’s requirements”. </li></ul><ul><ul><li>Compliance with regulations (EU) </li></ul></ul><ul><ul><li>Integration with wider Executive policies </li></ul></ul><ul><ul><li>Environment/ Social Inclusion/ Economic Development </li></ul></ul>
  4. 4. NI Public Procurement - Policy <ul><li>Accountability </li></ul><ul><li>Consistency </li></ul><ul><li>Efficiency </li></ul><ul><li>Integration </li></ul><ul><li>Legality </li></ul><ul><li>Informed Decision Making </li></ul>12 GUIDING PRINCIPLES <ul><li>Competitive Supply </li></ul><ul><li>Effectiveness </li></ul><ul><li>Fair Dealing </li></ul><ul><li>Integrity </li></ul><ul><li>Responsiveness </li></ul><ul><li>Transparency </li></ul>
  5. 5. Procurement - Organisations <ul><li>Procurement Board </li></ul><ul><ul><li>Chair – Nigel Dodds, OBE MP MLA </li></ul></ul><ul><ul><li>Permanent Secretaries </li></ul></ul><ul><ul><li>Two External Experts </li></ul></ul><ul><ul><li>Chief Officer of Accounts </li></ul></ul><ul><ul><li>Director CPD </li></ul></ul><ul><ul><li>Observers – SIB & NI Audit Office </li></ul></ul>
  6. 6. NI Public Procurement - Organisations <ul><li>Central Procurement Directorate </li></ul><ul><ul><li>Lead on policy & best practice </li></ul></ul><ul><ul><li>Modern Professional Procurement Service </li></ul></ul><ul><li>Centres of Procurement Expertise (CoPEs) </li></ul><ul><li>Heads of Procurement Group </li></ul><ul><ul><li>Procurement Practitioners Group </li></ul></ul>
  7. 7. NI Public Procurement - Organisations <ul><li>Centres of Procurement Expertise (CoPEs) </li></ul>Education & Library Boards
  8. 8. Procurement Expenditure (£m) <ul><ul><li>Category 07/08 02/03 </li></ul></ul><ul><li>Construction/ Maintenance 897 580 </li></ul><ul><li>Medical/ Surgical 235 140 </li></ul><ul><li>Energy 140 85 </li></ul><ul><li>Consultancy Services 115 85 </li></ul><ul><li>TOTAL £2.2b £1.6b </li></ul>
  9. 9. Procurement Board Strategic Plans <ul><li>1 st Phase (2002 – 2005) </li></ul><ul><ul><li>setting up the structures & implementing recommendations of the review </li></ul></ul><ul><li>2 nd Phase (2005 – 2008) </li></ul><ul><ul><li>Focus on identifying & recording the benefits of professional procurement </li></ul></ul><ul><ul><li>£250m Value for Money savings </li></ul></ul><ul><ul><ul><li>£254m achieved – CPD £58.9m </li></ul></ul></ul>
  10. 10. Programme for Government (08/11) <ul><li>Cross-cutting themes </li></ul><ul><ul><li>A shared & better future for all </li></ul></ul><ul><ul><li>Sustainability </li></ul></ul><ul><li>Public Service Agreements </li></ul><ul><ul><li>PSA 11 – Driving Investment & Sustainable Development </li></ul></ul><ul><ul><li>PSA 21 – Enabling Efficient Government </li></ul></ul>
  11. 11. Procurement Board Strategic Plan 3 rd phase – 2008 -2011 <ul><li>Achieving efficiency savings based on Best Value for Money (i.e. taking quality and policy outcomes into account alongside cost) </li></ul><ul><li>Embed equality of opportunity & sustainable development </li></ul><ul><li>‘ Achieving Excellence in Construction’ </li></ul>
  12. 12. 3rd Phase – 2008 – 2011 (cont) <ul><li>Procurement through CPD or CoPEs </li></ul><ul><li>Award contracts on ‘Most Economically Advantageous Tender’ not ‘Lowest Price’ </li></ul><ul><li>Accreditation of CoPEs by the Procurement Board </li></ul><ul><li>CoPEs to engage with key markets to secure capacity </li></ul>
  13. 13. Sustainable Procurement <ul><li>Generic Sustainable Procurement Action Plan approved by the Procurement Board </li></ul><ul><li>CoPE Sustainable Procurement Action Plans </li></ul><ul><li>Statutory requirement on Departments to take sustainable development into account </li></ul><ul><li>Departments to prepare annual spending plans as part of Public Service Agreements </li></ul>
  14. 14. Sustainable Procurement <ul><li>Equality Commission/ CPD guidance </li></ul><ul><ul><li>Identifying need to procure </li></ul></ul><ul><ul><li>Specification </li></ul></ul><ul><ul><li>Selection </li></ul></ul><ul><ul><li>Tender Evaluation </li></ul></ul><ul><ul><li>Contract Management </li></ul></ul>
  15. 15. Suppliers should expect <ul><li>12 principles being applied consistently </li></ul><ul><li>Procurement through an accredited CoPE </li></ul><ul><li>Award - a combination of quality & price </li></ul><ul><li>Requirements in contracts that relate to wider Executive policies </li></ul><ul><li>A focus on contract management to deliver Best Value for Money </li></ul>

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