© OECD A joint initiative of the OECD and the European Union, principally financed by the EU The new public procurement procedures & instruments: Ankara 5 February 2008 Framework Agreements, Centralised and Coordinated Purchasing: the UK system

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Framework agreements Relevant provisions of 2004/18/EC implemented In UK Regulations (Public Contracts Regulations 2006) - consultation on the new regulations had indicated that the approach in Article 32 was helpful and that the OGC guidance of May 2004 was good - The UK regulations also implemented the provisions on central purchasing bodies

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Framework agreements Guidance - updated guidance produced to link with regulations coming into effect on 31 January training module covers frameworks Questions & issues: - who can use - how supplier is chosen at call-off satge - duration

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Framework agreements: benefits for purchasers - EU compliant procurement process - reduces timescales, so you can get what you want, when you want it - should obtain value for money - should allow for positive relations with suppliers

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Framework agreements: benefits for suppliers - EU compliant process - reduced tendering costs - if central framework, access to significant market - should allow for good relations with purchasers

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Role of Office of Government Commerce(OGC) & OGC buying solutions (OGCbs) l OGC set up in 2000 to: - co-ordinate departmental & Government purchasing power - improve procurement skills & improve performance of major projects l OGCbs - commercial arm of OGC, but non-profit making - key role to help public sector purchasers maximise procurement efficiency &vfm - income derived from a levy on frameworks paid by suppliers…

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU OGCbs frameworks Under the brand name Catalist, OGCbs has 5 framework groupings l Consultancy services l Resourcing services (for delivery of specific pieces of work) l IT for IT goods (hardware, software and infrastructure) l Business solutions (for a complete end-to-end solution to meet a particular business need) l Property solutions (including property and facilities management services, catering equipment, office equipment, furniture and furnishings)

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU OGCbs view of benefits - OGCbs frameworks provide access to 600+ suppliers & a vast range of products and services - 77 days can be saved from the standard procurement process, more if e-procurement is used - VfM obtained and prices are benchmarked via an independent organisation - supplier performance monitored and central professional support available - Suppliers have access to a wide market, there are economies of scale, reduced costs,standard contract terms, direct relations with customers.

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Collaborative procurement OGC’s role set out in Transforming Government Procurement “Acting collectively, rather than through separate departmental action, can be an important driver of value for money. Accounting officers have to take account of value for money for the Exchequer as a whole, rather than just the impact of a policy in achieving their own organisational objectives. This is particularly relevant in areas of common spend like commodity goods & services…”

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Collaborative procurement: why change? - Get a better deal for the taxpayer by understanding managing and leveraging £78 billion of common public sector spend - Deliver against public spending targets - Release resources to support front line delivery in the public sector - Deliver the Transforming Government Procurement agenda - Embed collaborative procurement into sustainable better practice

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Collaborative procurement l A growing number of collaborative, VfM deals are already available l The following pilot categories cover £9.6 bn of spend on common goods and services: - Fleet - Energy - Travel - Office Solutions A total of 55 separate categories have been identified

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU References l The Public Contracts Regulations 2006 l Framework agreements: OGC guidance ( ork_agreements.pdf) ork_agreements.pdf l Central purchasing bodies: OGC guidance ( _purchasing.pdf) _purchasing.pdf l Transforming Government Procurement ( treasury.gov.uk./media/E/6/government- procurement-pu147.pdf) treasury.gov.uk./media/E/6/government- procurement-pu147.pdf

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Thank you