Success in uk public procurement

796 views

Published on

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
796
On SlideShare
0
From Embeds
0
Number of Embeds
33
Actions
Shares
0
Downloads
23
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Success in uk public procurement

  1. 1. Success in UKPublic Procurement Wednesday 27 March 2013
  2. 2. Success in UK public procurementSally CollierDeputy Chief Procurement Officer27 March 2013
  3. 3. Procurement’s role in Government’s response tothe UK’s economic challenges Efficiency Savings Preventing waste and focusing resources on genuinely beneficial Reduce the activities. 1 Deficit Public Sector Reform A longer term view of transforming public services while reducing future expenditure. Promote Growth 2 Using pan-Government resources to implement existing UK economic policy while looking for new ways to support business and stimulate opportunities for growth.3
  4. 4. Efficiency and Reform Group (ERG) Historically:  Government lacked a strong corporate centre  Government Departments worked in silos ERG was created in June 2010 to:  Support the £80 billion reduction in Government expenditure  Join the work of Cabinet Office and Her Majesty’s Treasury  Introduce central controls  Improve co-ordination to exploit economies of scale4
  5. 5. Government efficiency savings in 2011/12 By tackling wasteful spending across Whitehall, the Government saved over £5.5 billion for the taxpayer in 2011/12 on top of the £3.75 billion saved the previous year. Francis Maude, Minister for the Cabinet Office: “This is not the sexy end of politics – its about the minutiae of procurement and financial management. No one who has been a supplier to government can honestly deny that there was waste and inefficiency in the way goods and services were procured and managed in the past”5
  6. 6. A more focussed commercial team at the heart of Government Chief Procurement Officer & DG Efficiency Government Commercial Procurement ICT Procurement Relationships Policy infrastructure Service Managing strategic suppliers Modernising Government The largest buying as a single customer for the procurement to reduce the organisation in the UK with first time. cost and speed of doing £8.4bn spent in 11/12. Implement smarter ICT business with Government platforms including: Supported by tough spending Enabling Government and controls, requiring Cabinet Strengthening civil service PSN, Cloud, EUD strategy wider public sector bodies to Office approval for all spend capability and supporting and improve hosting. secure better deals by over £5 million with strategic wider agendas including aggregating buying power. suppliers. SMEs.6
  7. 7. Early success at reforming procurement Pre-qualification Contracts Finder launched, 6,000 pages of procurement questionnaires cut entirely with 12,900 contracts guidance replaced with 50 for smaller contracts published so far 700 civil servants trained in 17 Pipelines published with Direct spend with SMEs up LEAN procurement £84bn of likely future from 6.5% to 10% processes: use of open requirements procedures doubled in 20127
  8. 8. Easier to find Reformed the Introduced the opportunities to SMEs given Big is not procurement SME Crown do business new channels Focus in always process Representative with of departments beautiful – ‘removing for SMEs – Government – communication and reporting starting in ICT barriers’ – they have a Contracts including spend with contract length abolished PQQ voice at the top Finder, Mystery SMEs and size will below table Dynamic Shopper be reduced threshold Marketplace SMEs8
  9. 9. EU public procurement rulesThe UK Government wants significant simplification of the EU publicprocurement regime to free up markets and support growth: – Reduce lengthy and burdensome procurement processes that add cost to business and barriers to market competition – Modernise the procurement procedures and provide more flexibility for purchasers to follow best commercial practice to achieve the best procurement outcomes – Support measures to enhance SME access to public procurement, where such measure are non-discriminatory and are consistent with a value for money approach – Allow a flexible approach towards employee-led organisations/mutuals so they can gain experience of running public services prior to full and open competitionNegotiations in Council and European Parliament continue.Mid-late 2013: EU expected to adopt new rules / national transposition9
  10. 10. For more informationCabinet Office Efficiency and Reform Group www.gov.uk/government/organisations/efficiency-and-reform-groupGovernment Procurement Service gps.cabinetoffice.gov.uk/Contracts Finder www.contractsfinder.businesslink.gov.uk/Cabinet Office Twitter @cabinetofficeuk10
  11. 11. Network Rail Connecting Britain:Delivering a 21st Century RailwaySimon KirbyManaging Director, Infrastructure Projects
  12. 12. Passenger Growth = Project Investment 30 25 20 Enhancements (£bn) 15 Enhancements 10 & renewals (£bn) 5 0 CP3 CP4 CP5
  13. 13. A fundamentally different company• Devolved route business units aligned with our customers• National Centre• A separate projects business working in collaboration with our supply chain
  14. 14. Hooley Cutting - StabilisationPrincipal Contractor: BAM Nuttall Route: Sussex
  15. 15. Infrastructure Projects ambition Our ambition is to be the best rail infrastructure project delivery organisation in the UKWe will be a rail infrastructure solutiondeveloper, integrator solution developer, integratorand deliverer; whilst also offering additional support servicesand deliverer; whilst also offering additional support servicesto our clients such as engineering design and asset protection.
  16. 16. Kings Cross
  17. 17. Southern Facade
  18. 18. ThameslinkBedford East Coast Main Line Key Luton 12 Car Operation 2011St Albans 12 Car Operation 2018 St Pancras International Blackfriars London Bridge Kent Elephant & Castle East Croydon Rochester Orpington Sevenoaks Maidstone East Gatwick Airport Grinstead Horsham Brighton
  19. 19. 20
  20. 20. Date 00.00.00 Presentation title to go here 21
  21. 21. Borders Rail Shawfair A720 City Bypass A7 Hardengreen Eskbank Newtongrange Falahill Summit A7 Gorebridge Gorebridg e Heriot Stow Fountainhall Bowshank Tunnel Galashiels Torwoodlee Tunnel Tweedbank
  22. 22. New GSM-R Network has gone live FTN Construction GSM-R Construction 98.4% Complete 90.4% Complete 14,591 Km 2934 sites
  23. 23. Hitchin 25
  24. 24. Waverley 26
  25. 25. ROC
  26. 26. RSAR, Aerial View, Oct ‘12 28
  27. 27. Reading Station
  28. 28. Innovation
  29. 29. Innovation
  30. 30. Innovation
  31. 31. Innovation Westbury Lane
  32. 32. A separate projects businessworking in collaboration with our supply chain
  33. 33. Select partners early Select the best Align incentivesLong term relationshipsDate 00.00.00 Presentation title to go here 35
  34. 34. Looking ahead to CP5 36
  35. 35. Passenger traffic and demand Passenger Traffic & Demand Passenger Train KM Index Passenger KM Index 1.70 1.60 1.50 1.40(2004-5 = 1.000) 1.30 Index 1.20 1.10 1.00 0.90 CP3 CP4 CP5 0.80 2004/5 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 Financial Year
  36. 36. Network Rail efficiency 100 90 27% 80 70 23% 60% 16% 50 40 30 Actual 20 IIP 10 0 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 CP3 CP4 CP5
  37. 37. Network Rail Connecting Britain:Delivering a 21st Century RailwaySimon KirbyManaging Director, Infrastructure Projects
  38. 38. Presentation TitleSuccess in UK Public Procurement
  39. 39. Malcolm StephenDirector, Business Development BAM Nuttall Ltd
  40. 40. Royal BAM – OperatingCompanies Construction & M&E Civil Engineering Property Public-private Partnerships Services BAM Utiliteitsbouw BAM Civiel AM BAM PPP Netherlands AM Real Estate BAM Woningbouw BAM Infratechniek Development Heilijgers BAM Rail BAM Techniek BAM Wegen BAM Wallonie BAM Wallonie Belgium Betonac CEI-De-Meyer CEI-De-Meyer Immo BAM Interbuild Kaïros United Kingdom BAM Construction * BAM Nuttall BAM Properties * Ireland BAM Building ** BAM Civil ** BAM Property ** Germany BAM Duetschland W&F Ingenieurbau Worldwide BAM International BAM International Sector * BAM Construction and BAM Properties together form BAM Construct UK Operating Company ** BAM Building, BAM Property and BAM Civil together form BAM Contractors Active in this sector BAM Utiliteitsbouw, BAM Woningbouw and Helijigers also operate as developers on construction projects in the property sector
  41. 41. BAM in Europe
  42. 42. BAM Worldwide
  43. 43. Royal BAM – Performance Turnover by region Ireland 3% Belgium Germany 11% 10% Worldwide 7% Netherlands United 36% Kingdom 33% PPP Property 6% 7% Construction & M&E Services Civil 41% Engineering 46% Turnover by sector
  44. 44. Royal BAM Results  Turnover - €7,000m  Profit - €100m  Order Book - €10,900m  Share Price - €3.34  Employees - 26,000
  45. 45. BAM in the UK
  46. 46. Our Market Sector 2012 2013 2014 2015 Public Housing 3554 3128 3065 3126 -20 -12 -2 +2 Private Housing 13301 13700 14659 15392 -5 +2 +7 +5 Infrastructure 11351 12085 13428 14502 -13 +6 +11 +8 Public Non-housing 9779 7823 7041 6900 -21 -20 -10 -2 Private Industrial 3289 3453 3557 3699 +1 +5 +3 +4 Private Commercial 21647 19699 18517 18517 -10 -9 -6 nc Values - £mSource: Experian Construction Forecasts (Winter 2012 / 13)
  47. 47. Primary procurement routes Early Contractor Involvement NEC Options ICE Form JCT Form Bespoke
  48. 48. Current Government actions on procurement reforms Building Information Modelling BS11000 Supporting the customer business case Whole life costing LEPs / DCLG Frameworks Government guarantees
  49. 49. Influences from EU Overseas competition increasing JV requirements Behaviour and culture considerations
  50. 50. Customer trends in procurement Early engagement of supply chain Portfolio finance Customer support Quality important to customers Innovation
  51. 51. Importance of CSR related activity CSR (Corporate Social Responsibility) What is important to the public procurement bodies
  52. 52. Challenges facing UK procurement over the next few years Funding / finance Planning regulations Use of section 106 money People

×