Upload
camdyn
View
32
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Government Procurement Reform. IT Sector Briefing. 1. Agenda. Background Machinery of government Procurement reform Business participation All of Government contracts Sector specific data Conclusion. 2. Background. 3. Why reform procurement?. 30 – 70% of operating costs - PowerPoint PPT Presentation
Citation preview
Government ProcurementReform
IT Sector Briefing
1
Agenda• Background• Machinery of government• Procurement reform• Business participation• All of Government contracts• Sector specific data• Conclusion
2
Background
3
Why reform procurement?• 30 – 70% of operating costs
• Business feedback
• Economic downturn
• Unacceptable risk profile
• Lost efficiency opportunities
• Build strategic capacity
4
Ministerial Support & Scrutiny• Hon Bill English (Chair)• Hon John Key • Hon Gerry Brownlee• Hon Simon Power• Hon Tony Ryall• Hon Stephen Joyce• Hon Rodney Hide
5
Governance
• Expenditure Control Committee
• Chief Executive VfM Group
– Government Procurement Reform (MED)
– Administrative Services Review (The Treasury)
– Cross cutting Value for Money initiatives
6
Machinery of Government
7
Government Structure
PUBLIC SERVICE
e.g. Ministries
STATE SERVICE
STATE SECTOR
PUBLIC SECTOR
e.g. NZDF, Police, DHBs
e.g. NZ Post, Meridian
e.g. Local Government8
Reporting and barrier removal
• Quarterly reports to Cabinet
• Minister briefings
• Intervention reports to ECC as needed
• Ministers notified:– Good practice– Undermining behaviour– Ministerial intervention needed
9
Procurement Reform
10
Procurement Reform
1. Cost Savings
2. Capability and Capacity Building
3. Enhanced Business Participation
4. Governance, Oversight and Accountability
11
Key Reform aspects
• 4 Year programme
• Supports other VFM initiatives
• Transform procurement thinking
• Strategic procurement capability
12
Enhanced Business Participation
• Cutting red tape
• Improving transparency
• Increasing opportunities
• Sustainable markets
13
Business feedback• Procurement capability
• Conditions of contract
• Standard documentation
• Evaluation method
• Futile bidding enquiries
• IP risk
• Engagement
14
All-of-GovernmentContracts
15
Target Areas
Value
Ris
k
Tactical Sourcing
Strategic CriticalSecure Supply
Streamline
16
All-of-Government Contracts
• National/international market dominated
• Common needs
• Lower supply risk
• Reflect other jurisdictional experience
• Not syndicated contracts
17
Key Drivers• Need for change
• Strong performance management
• Reduce overhead
• Total cost evaluation
• Meet diverse customer needs
• Maintain/enhance competition
18
Transition
• Managed transition
• Soon as practical
• Aim for 100% by 30 June 2012
• Current contracts:– Extend till transition period
– Re-tender
19
Centres of Expertise (CoE)• Additional resources
• Dedicated category managers
• Strong market knowledge
• Relationship management
• Key performance measures
• Supplier incentives
20
Centres of Expertise (CoE)
• Desktops/Laptops - DIA
• MFD’s - DIA
• Vehicles - MED
• Stationery - MED
21
Key Data
Craig Doherty
22
Data Collection
• State Sector data
• 163 of 198 agencies responded so far
• Analysis based on information submitted
• Further validation to be undertaken
• Firm up demand during budget setting
23
Spend & Units by Sector – IT Hardware
Note: Number are rounded to $1M
Average Annual Spend
Average Annual Units
Desktops Laptops Desktops Laptops
Public Service $11M $6M 8500 3100
State Services $20M $7M 14600 3600
State Sector $10M $4M 6900 1800
24
Desktops: Total Spend over 4 Years
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
80% of total spend
2.0
4.0
6.0
8.0
10.0
12.0
$M
14.0
16.0
Pareto – Significant Procurers Desktops
25
Laptops: Total Spend over 4 Years
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,00080% of total spend
2.0
4.0
6.0
8.0
5.0
7.0
$M
3.0
1.0
Pareto – Significant Procurers Laptops
26
Desktop suppliers:
23%
14%
11%11%
10%
7%
4%
4%
3%
2%
11%
Dell
HP
Axon
Datacom
Gen-i
Cyclone Computers
Fujitsu
Silicon Systems
Acer
IBM / Lenovo*
Other
27
Laptop suppliers:
13%
13%
12%
12%6%
6%
5%3%
2%
1%
27%
Axon
HP
Gen-i
Dell
Datacom
Fujitsu
The Laptop Company
Cyclone Computers
Advantage Computers
Lenovo
Other
28
Timelines
• Establish CoE team now
• Market engagement
• Firm up demand by Christmas
• Out to Market quarter 3
• Contract award by June
• Mobilisation from July
29
Challenges
• Minister expectations
• Diverse client base
• Change management
• Undermining activities
• Sabotaging behaviour
30
Summary
• Change management project
• Strong agency support
• Ministers will remove barriers to progress
• Dedicated category management
• Supplier incentives
• Transition as soon as practical
31
Conclusion
32
Conclusion
• Open dialogue
• Centre of Expertise
• Improve efficiency
• Market sustainability
• Better value for tax-payers
33
Contacts:
CoE Manager:Craig Doherty – 04 495 7267 [email protected]
Reform Project Manager:Christopher Browne – 04 470 [email protected]
34