Procurement Change Project James Trotter

Structure Procurement Review – Desktop and interviews Loughborough Procurement ‘As is’ Loughborough Procurement ‘To be’ Leicester examples Change Plan, including timescales Help needed! Appreciate…resource issues and steps already being taken, e.g. workflow change and Category Manager recruitment

‘As is’ Limited detail on how to run a procurement exercise Predominantly transactional, confined to back-end Ambiguous and out-of-date No minimum levels of competition No requirement for quotes/tenders to be based on University Ts&Cs (No Standard Ts&Cs beyond P/O Ts&Cs) No trigger point at which Procurement manage the tendering exercise Limited guidance, templates, and in-house training Procurement approval back-end in Agresso (horse bolted) No Contract Management rules or guidance

‘To be’ Clear starting point Clear and unambiguous Rules, with minimum competition levels Early engagement Procurement approvals front-end, purchase order approvals back-end Front-end challengers, not back-end blockers Intelligent clients that appreciate procurement timescales (see below) The tools to do the job Comprehensive Procurement Strategy Checklist (incl. Options Appraisal) Risk-based policies and guidance (Risk assessment > Specification > Selection and Award criteria/questions > Contract Conditions) User-friendly templates Robust Standard Ts&Cs for Goods, Services, Consultancy, IT and Estates (JCT) Intelligent clients (…no excuses) Procurement Team Communications Plan Clear, concise and up-to-date Procurement section on intranet Rolling in-house Procurement and Contract Management training Customer-focussed Category Management structured Procurement Team

Leicester’s Procurement Rules ‘Mandatory Contract’ in place? (e.g. Windows PCs, Furniture, Stationery, Vehicle Hire) 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 Contract Value Procurement Process Below £10k Obtain one written quote £10k - £24,999 Seek three written quotes £25k - £49,999 Obtain three written quotes using RfQ template £50k - £99,999 Obtain three written tenders £100k – EU Threshold Obtain five written tenders EU Threshold EU tendering exercise Red = Use In-tend and managed by the Procurement Unit Red italic = Estates manage £50k-EU Threshold Works tenders

Category Management at Leicester Contracts Officer…into...Category Manager! Dual facing – Markets and Requirements across University Internal consultant albeit with a Procurement bent (make comprehensive Procurement Policy Framework come alive) Manage tenders from ‘cradle to grave’ Escalation for persistent and material supplier performance issues Push for early (business case)/senior involvement in projects Core documents – Contracts Register, Tendering Schedule & Savings Tracker Look for collaboration opportunities, e.g. via NEUPC and local public sector organisations

Leicester’s Category Managers

Leicester’s Procurement Strategy Checklist

Leicester’s Procurement Strategy Checklist (cont’d)

Leicester’s Procurement Strategy Checklist (cont’d)

Leicester’s Procurement Strategy Checklist (cont’d)

Leicester’s rolling in-house training Introduction to Procurement (2 hours) Effective Contract Management (1½ hours) Procurement Community Dove-tailing of Category Manager and devolved procurer/contract manager roles Public Procurement Principles Procurement Rules & Law – Minimum levels of competition and timescales Procurement Cycle Links to guidance and templates on intranet Specification writing tips Importance of requesting quotes/inviting tenders based on University Ts&CS Bid evaluation examples/tips Risk-based policies and guidance Signpost Category Managers

Change Plan (Phase 1) Building Block Launch Date Restructure of Procurement Team on category basis, once two new Category Managers have commenced in post Nov 2016 Rules, associated forms and approvals process (incl. recording savings) [Also ensure Procurement approve New Supplier Requests, whilst FSS continue to upload] Nov [Oct 2017] Templates covering pre-procurement strategy, procurement and contract management Dec Suite of Standard Terms & Conditions Re-vamped Procurement intranet section, incl. building blocks above Jan 2017 Procurement Team Development Plan Jan In-house Procurement and Contract Management training Feb Policies and guidance Nov 16 – Apr 17 Phase 2 Establish Procurement Monitoring Regime Establish Procurement Performance Framework Implement Supplier Relationship Management Policy Review of IT systems underpinning procurement/category management activity

Need your help! Sense checking (Appropriate for Loughborough?) Quality assurance Testing out materials Explaining the ‘lay of the land’ in different areas of the University Supporting in-house training Communicating the Change Plan