DWP SME conference (11 March 2014) - DWP SME Conference Opportunities in DWP (Andrew Forzani, DWP Commercial Director).

1. DWP SME Conference
Opportunities in DWP
Date: 11th
March 2014
Andrew Forzani, DWP Commercial Director

2. 2Department for Work & Pensions
Commercial Strategy – 5 strands
1) Supporting the Government’s Procurement reform Agenda
2) Development of a new Commercial Organisation
3) Increasing our professional capability
4) Changing our contracting approach by breaking up larger bundled
contracts to create a more competitive and diverse supply chain
5) Improving our management of key suppliers and contracts

3. 3Department for Work & Pensions
Current position:
2013/14 YTD 2014/15
SME spend 2012/13 Q1 Q2 Full Year
Total Spend 15% 15.11% 13.88%
DWP Target 18% 22% 22% 25%

4. 4Department for Work & Pensions
DWP SME Success Stories
• Welfare to Employment – Health and Work Services – Use of bootcamps
and an open webinar increased pre market engagement with SMEs. This
category continues to provide high levels of expenditure with supply chain
SMEs through the Prime Supplier model.
• CMG – A consortia of 3 SMEs have won a Paid for Media Campaign
contract worth £200,000. Their innovation and flexibility has allowed them to
meet tight deadlines whilst providing a cost saving against the GPS rate card.
• IT – Jobcentre E-Signing capability – Xyzmo has been awarded a contract
worth £6 million over 3 years, which is their largest ever implementation. This
service is currently live in the Jobcentre of the future and set for wider rollout.
• Estates – Government Space for Growth – 5 locations available for SMEs
across the South East. Telereal Trillium continue to report a 20-25% spend
with SMEs through its DWP contract.

5. 5Department for Work & Pensions
DWP SME Action Plan
Our focus is on:
• Upstream and systematic engagement with the market
• Opening up procurement opportunities & increasing visibility
• Breaking down requirements to their optimum market size
• Introduction of Lean procurement
• Review of procurement documents: ensuring proportionality
• Increasing the use of SMEs through the supply chain
• Raising awareness across DWP and suppliers
• Improving accounting of SME spend
• Pursuing Small Business Research Initiative (SBRI) opportunities
• Increase the use of G-Cloud & Digital Services where appropriate

6. 6Department for Work & Pensions
Opportunities
Our biggest opportunity is to change our approach to the market and the way that
we procure:
The forward strategies for the IT Transformation Programme, Welfare to Work,
Disability Employment, Medical Services and Estate contracts will include
considerations to encourage working with SMEs either directly or indirectly.
This will be achieved through:
• Improved market intelligence and early market engagement to positively
influence the strategy and requirement
• Use of SBRI to develop innovative solutions
• Upfront engagement with the market
• Simplified and proportionate procedures and contracts (e.g. change in EU
Directives)
• Use of contract management meetings to benchmark and explore
opportunities to increase the use of SMEs
Where the market precludes direct engagement with SMEs, Prime suppliers will be
required to work with SMEs through the supply chain

7. 7Department for Work & Pensions
Challenges
• Timing: large procurement opportunities are not due until late 2014, early 2015
• The full impact of our IT strategy may only be felt until after 2015
• Increased number of inexperienced SMEs may increase the risk of performance
delivery
• The size and complexity of DWP’s requirement is not always suitable for
disaggregating into smaller lots
• Central government mandation of GPS frameworks can limit opportunities to
work with SMEs where they have not got onto the framework
• Amount of funding available to support the SBRI expansion
• Successful SMEs may grow organically or be taken over by larger companies
• The payment by results model
• Last minute requirement/decisions that can prevent the critical pre-procurement
market engagement phase