University Procurement James Trotter

Structure HE environment / drivers Strategy Category Management Procurement Rules & Policies Purchasing consortia / Framework agreements Terms & Conditions Modern Slavery LBF Procurement event 2015 - Feedback

HE environment / drivers ‘Contracting Authority’ Governed by public law Student loans = (Indirect) public funds Increased budget pressures – 17% cut to BIS budget Greater competition – Removal of student cap Teaching Excellence Framework…Linked to fees Increasing customer (student) expectations…Employability Widening access – OFFA Agreement Brexit implications – Threatens EU funding and student nos. Department for Business, Innovation & Skills The Office for Fair Access

Leicester’s Strategy (LINKED) Who we will be… 1. EXCELLENCE AND INTERDISCIPLINARITY 2. INNOVATION, ENTERPRISE AND PARTNERSHIP 3. SYNERGY BETWEEN RESEARCH AND LEARNING 4.A STUDENT-CENTRED APPROACH AND WIDER PARTICIPATION 5.DIVERSITIES, EQUALITIES AND PEOPLE WHO FLOURISH 6.LOCAL IMPACT AND MAKING A DIFFERENCE FOR OUR CITY AND REGION 7.GLOBAL PRESENCE AND A FOCUS ON INTERNATIONALISATION 8.WELCOMING AND COHESIVE CAMPUS EXPERIENCE

Loughborough’s Strategy (LINKED) By 2020 we will have developed… A distinctive international reputation for excellence A life-shaping student experience Outstanding partnerships to deliver social, economic and cultural prosperity A culture of delivering excellence in all that we do One outstanding university: two vibrant campuses Robert Allison

Leicester’s Procurement Strategy (LINKED) Objectives 3.5% annual savings on impactable non-pay spend 30% collaborative spend 90% actively influencing impactable non-pay spend ‘Social value’ through procurement activity Four themes / balanced scorecard Savings - Category Management Partnership - Devolved procurers, collaborators and (potential) suppliers Social Value - Environmental, Economic & Social (incl. Equality) Organisation - Lean, holistic, comprehensive templating and catalogues reflecting contracts/frameworks

Category Management Contracts Officer…into...Category Manager! Dual facing – Markets and Requirements across University Structure - IT, Estates, Laboratory and Professional Services Core documents – Contracts Register, Tendering Schedule & Savings Tracker Collaboration opportunities – NEUPC and local public sector organisations

Leicester’s Procurement Rules (LINKED) ‘Mandatory Contract’ in place? (e.g. Windows PCs, Furniture) Suitable Framework Agreement available? If not… Encourage requesting a quote from a local supplier where £10k-£24,999 and openly advertise where £25k+ [Where openly advertising at £25k+, must (also) advertise through Contracts Finder] Registrar/Procurement Unit waiver approval required at £10k+ Procurement Unit approval required for variations where no contractual provision Category Manager to be informed of all £25k+ contracts awarded Head of Department to nominate Contract Managers for £25k+ contracts

Purchasing consortia and framework agreements Crown Commercial Service (Central government) Pro5 / Eastern Shires Purchasing Organisation (Local government) HE sector consortia – LUPC (London), SUPC (South), NEUPC (North East), NWUPC (North West), APUC (Scotland), HEPCW (Wales), TUCO (catering), and TEC (energy) Aggregate public sector requirements Established by way of one of the EU procedures Maximum of four years One or more suppliers (often lotted) Call off by way of direct award and/or further competition (only including suppliers on the framework)…If procuring organisation named in the OJEU Benefits of economies of scale, pre-agreed terms and conditions cover common risks, swift route to market Often default route for public procurer

Our Ts&Cs Equal opportunity Mitigate our risks Supplier Ts&Cs favour the supplier Goods, Services, Consultancy, IT and Estates (JCT with standard default amendments) Opportunity to amend pre-tender and tweak post-tender

Risk-based procurement policies (LINKED) Pre-procurement risk / opportunity assessment Relevant and proportionate to contract Selection criteria, specification and/or Ts&Cs amendments Financial Vetting Insurance & Indemnity Health & Safety Cloud Services Sustainable Procurement (e.g. Internship clause)

Modern Slavery Act 2015 ‘Transparency in supply chains’ provision requires £36m turnover+ “commercial organisations” which supply goods/services and carry on (part of) a business in the UK to publish a yearly “slavery and human trafficking statement” As of 29 October 2015, Statement should be produced as soon as reasonably practicable after the organisation’s financial year end, and in any event within six months Steps taken during the year to ensure that slavery and human trafficking not taking place in any of the organisation’s supply chains Signed by highest tier within the business Link to the Statement in a prominent place on website’s homepage Policies, training, due diligence/risk assessment processes and the effectiveness of the measures

Leicester’s response to Modern Slavery Act 2015 Risk assessment undertaken. High (country/sector) risk categories: Construction Facilities management Catering PPE Promotional goods Lab supplies, gloves Recruitment Computer supplies Already a member of Electronics Watch Prompt in procurement templates Slavery clause in our Ts&Cs Added to Sustainable Procurement Policy Covered in the in-house training for devolved procurers First Statement drafted

LBF Procurement event 2015 – We asked… What are your issues with public procurement? 2. How would you improve public procurement?

Myth-busting messages… Disproportionately high minimum standards "The legal status of a bidder (e.g. sole trader, partnership, ltd, plc) is for information only" "Financial vetting / insurance levels are proportionate/risk-based" Contract opportunities poorly advertised "All openly advertised contract opportunities can be found on Contracts Finder" "All buying organisations publish their Contracts Register on their website, allowing potential suppliers to see when contracts are up for renewal as well as potential sub-contracting opportunities" "Legislation, as well as policy, requires buying organisations to consider breaking high value requirements (over EU threshold) into lots, and where the decision is made not to do so, to formally record this" Inadequate tender information "Legislation restricts the use of the longer two-stage procurement procedure and limits the size of the initial pre-qualification questionnaire, where a two stage procedure is permitted" Overly protracted procurement processes "Procurement exercises are generally as short as practically possible, taking advantage of legislative provisions, and to satisfy end-users' often pressing requirements"

Myth-busting messages (cont’d)… Frameworks lock out SMEs "There is no charge to be on a framework agreement. Constructionline is not a framework agreement" “During the 2014-15 financial year, 76% of suppliers awarded contracts by ESPO were classified as an SME" Little or no feedback on tenders "Leicestershire's public/HE sector organisations rarely award contract based on price alone. Indeed, legislation increasingly limits the extent to which public contracts can be awarded based just on price." "Leicestershire's public/HE sector organisations are happy to debrief unsuccessful bidders; it makes for a more competitive marketplace" Other "Legislation has introduced new procurement procedures that allow for negotiation during the tender process" "Legislation now requires public bodies to publish their payment performance"

Action Plan Disproportionately high minimum standards Consider removing minimum financial standing for low risk contracts (as have Leic City) Minimise the weighting attributed to (public/HE sector) experience, wherever possible Contract opportunities poorly advertised Begin publishing procurement pipelines on a quarterly basis Share best practice on use of pre-procurement market sounding, outcome-based specifications and variant bids Inadequate tender information Share best practice on Specification Writing training, templates and Ts&Cs Overly protracted procurement processes Clearly present Leicestershire's public/HE sector organisations' contract value-based procurement processes in one place Provide bidder training on how to use Leicestershire's public/HE sector organisations' e-tendering systems Consider the sense and latitude for rationalising the number of e-tendering systems used Frameworks lock out SMEs Provide framework agreement training to local businesses; their purpose and various structures, including call-off mechanisms

Summary Challenging times in the HE sector Universities becoming more competitive Gaining value for money from procurement has never been more important Increasingly moving to category management, collaboration, gaining wider benefits through procurement Leicester/Leicestershire public/HE sector procurement organisations are listening to local suppliers

Contract and internship opportunities Contracts Finder (ALL openly advertised £25k+ contracts) Leicester’s e-tendering system (In-tend) registration How to do business with the University of Leicester Loughborough's e-tendering system (In-tend) registration Leicester University Internships & Placements Loughborough University Internships & Placements