Office of Government Procurement

1. Office of Government Procurement
National Healthcare Conference
Paul Quinn
Chief Procurement Officer
Wednesday 2 April 2014

2. An Overview of
Procurement Reform
Operating Model
Agenda
Progress Update

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. 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. 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. 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. • 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. 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. • 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. • 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. • 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. Thank You