Productivity Procurement and the Potential

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Productivity Procurement and the Potential. Andrew Smith OBE Chief Executive, Hampshire County Council Lead for Procurement, Capital and Shared Assets Workstream 27 September 2011 Reshaping Public Services. Agenda. Progress to date Lessons and barriers to overcome - PowerPoint PPT Presentation

Text of Productivity Procurement and the Potential

  • Productivity Procurement and the Potential

    Andrew Smith OBE Chief Executive, Hampshire County Council Lead for Procurement, Capital and Shared Assets Workstream

    27 September 2011Reshaping Public Services

  • AgendaProgress to dateLessons and barriers to overcomeCentral and local government joint workingBest practice fundamentalsOpen Public Services implicationsLocal best practice examplesRisks and opportunitiesConnecting the thinking

  • Progress to date

    Delivery of Phase 1 of LGG Workstream: 1. Quick Wins 2. Big Wins 3. Proposed strategy to deliver Phase 2 the NPA LG examples of best practice NIEP CAP thinking Joint working with Cabinet Office / DCLG / DfE / DfT Networks and connections improving

  • Lessons and barriers to overcome Barriers are political and cultural not technical Sovereignty and adoption are key issues People misinterpret localism and leverage The need to compel rather than mandate No current coherent strategy The risk that LG does not get its act together

  • Central and local government - Joint Working

    Both sectors need to operate from effective spend and supplier data: becoming a more informed and powerful client sector Best value from: increased volumes, improved market share, best deals, joint use of technology and capacity, deployment of private sector contribution, SME participation, Working together where it makes sense (e.g. market shaping, best deals)(Probably) one of the biggest initiatives ever taken in this landscape ambition of both sidesDelivering government policy through procurement: providing local economic, social and environmental benefit localism and leverage

  • Collaborative Procurement Models

    Principal FocusMarket aggregationMarket makingDeveloping category spend

    Principal BenefitsMaximise buying power of governmentDelivery of sustainable savingsLeveraging capability and volumesDriving policy through procurement

  • Localism and leverageNational Procurement Agency would create the interface with the Government Procurement ServicesLocal Authorities have access to a range of arrangements by category of spendLocal decision remains with local governmentLocal and Central government bring market strength together through market segmentation and shaping

  • Collaboration a proven example

  • Best practice fundamentalsDevelop a procurement strategyUp-skill staff or find capacityCarry out a spend analysisUse a category management approachDevelop an asset reduction strategy

  • Best practice fundamentalsCollaborateReview costs and specificationsUtilise technologyDevelop a supplier management planManage demand

  • Category Management ApproachCategory management learning from the private sectorIntegrating commissioning and procurement thinking

  • Capital and Assets Pathfinder thinking benefitsTime0Elapsed time

    Commissioningapproach

    One offprojectJoined up programme (multi projects)Joined up programme(multi projects)One offprojectOne offproject2-5%Construction,procurement

    10-15%Construction,procurement

    20%+Reduced need Construction, procurement,

    OpportunitiesUnderstand needShared servicesAssets and capital assessedDriver for strategic procurement programme local economic benefit and greening agendaOpportunitiesEconomic developmentInter authority collaborationOpportunitiesBetter deliveryPredictability

    Opportunities lost as time passes

  • Hampshire - Pathfinder

  • Hampshires Pathfinder Winchester Case

  • Havant Public Service Village

  • Havant PSP - OutcomesHCC space reduction 1,000m2 (-30%)Reinvestment of Capital Receipts - 2.5mEnhanced space utilisation (circa +20%)Backlog Maintenance avoided (2m)Revenue savings of 70k pa targetReduced carbon footprint: 35% - 40%Joined up services e.g. youth, connexions and housing Reduced levels of avoidable contact

  • Open Public Services White Paper Local governments strong track recordWell placed to lead many opportunities for usLocal design and implementationCommercial and regulatory considerationsDiversity of potential delivery solutionsOutcome focusResist urge for bureaucracyPolicy through procurement

  • Local best practice examples - National

    Creating SME lots - Yorkshire & Humber Efficiency North Improving market access - Find It In Birmingham Social benefit through frameworks WM Jobs & SkillsGrowing capacity Gateshead Voluntary Organisations CouncilShaping new markets East Riding External Service DesignSharing services - Nottingham Joint Service Centre

  • Local best practice examples - HCCSME and Voluntary free bid supportChildrens CentresAdult services personalisationExtra-Care programmeHampshire Police, Fire and CC shared approach

  • Commissioned services - RisksCreating post-code lotteries of service provisionMaintaining effective accountabilityManaging fall-back positions if a service deliverer failsBalancing democracy with efficiency

  • Commissioned services - OpportunitiesWelcome a wider range of opportunities to meet service needDevelop and shape markets dont just be a procurerMove towards outputs not inputsDrive policy through procurementEncourages sharing services and assets Integrate commissioning and procurement thinking joint category planning

  • Connecting the thinking

  • Connecting the thinkingCategory Plan approach Capital and asset pathfinder thinkingPolicy through procurementMarket shapingDelivering localism with leverage

  • Practical help LGG Procurement, Capital and Shared Assets Workstream

    www.niepbuiltenvironment.org.uk/documents/PCSAWorkstream-QuickWinsStrategyOct2010.pdf www.niepbuiltenvironment.org.uk/documents/DraftBigWinsDocument-1.doc

    Quick WinsBig WinsMichael Lee

  • Thank you

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