Selling to the Public Sector Working with Cardiff Council Presented by Steve Robinson Head of Commissioning & Procurement Cardiff Council

About Cardiff Council Unitary authority since 1996 – delivering services to 346,000 residents Largest employer in Wales – 15,500 employees All areas of the Council rely on bought-in goods, services and works. In 2010/11: –9,591 suppliers / contractors –378,047 invoices processed –£316 million spent

Spend in 2010/11

Regional Spend Analysis

Our Challenge Public sector facing unprecedented financial pressure and need to reduce overall cost Deliver improved citizen-focused services Need to secure greater efficiency and effectiveness Focus on procurement –Deliver improved value and cashable savings –Reduce overall spend –Process efficiency improvements

Commissioning and Procurement Strategy Sets the Strategic Direction New ways of working –Commissioning –Category Management –Strategic Sourcing

Category Management Category Management – a strategic approach to procurement A structured approach to delivering value and efficiency savings by managing spend in discrete market facing categories Demand Side LeversSupply Side Levers Buy less or eliminate spendAggregate or Bundle Spend Standardise or change specification Change Nature of Supplier Relationship SubstitutionUnderstand Total Acquisition Cost

Four Strategic Priorities

Internal Rules All procurement carried out in accordance with the Council’s Contract Standing Orders and Procurement Rules ValueProcessAdvertisement Up to £3,000Minimum of 1 quotationNot normally advertised – Council staff directed to search Council’s Supplier Directory £3,000 to £10,000Minimum of 2 quotationsNot normally advertised – Council staff directed to search Council’s Supplier Directory £10,000 to £100,000 Minimum of three formal tenders must be invited Advertising discretionary – generally taken from Council’s Supplier Directory Over £100,000 to EU Threshold Minimum of four formal tenders must be invited Advertising discretionary – generally taken from Council’s Supplier Directory Above EU Threshold EU Procurement Directives applyAdverts placed in OJEU via Sell2Wales

EU / UK Regulations The Council must comply with EU and UK Procurement regulations EU Procurement Directives –Requires all tenders / contracts with spend in excess of £174k for goods and services and £4.3m for works to be subject to open competition –Provides minimum timescales for advertisements and tender submissions Tenders two stage – Select and Award Applies to both Open and Restricted Procedure

Managing Risk Select Stage / Pre-qualification viewed as key barrier to SME but Council needs to manage risk Current standing and past performance –Economic and Financial Standing –Capacity and Capability –Health and Safety –Sustainability / Equalities and Diversity Safety Schemes In Procurement (SSIP)

Safety Schemes In Procurement Mutual Recognition One Way Recognition Schemes registered at April 2012

Economic Wellbeing Although changes to be gradual they will result in: –Reduction in overall spend –Aggregation of spend across the Council –Greater use of collaborative arrangements –Improved compliance Reduction in the number of suppliers and contractors the Council directly contracts with Aggregation and collaboration will inevitably lead to larger value contracts

Smarter Procurement We need to act smarter –Understanding of business needs and market –Pre-tender market engagement –Use of Lotting Strategies –Ensure Pre-Qualification requirements proportional to contract –Encourage Consortia / Collaborative Bids –Contract clauses re Supply Chain Opportunities –Community Benefit Plans –Effective contract and supplier relationship management

Source Cardiff Source Cardiff is focused on improving access to lower value opportunities Focused on implementation of Opening Doors Charter / Barriers to Procurement Opportunities recommendations –Advertising opportunities for goods and services above £25K through Sell2Wales –Phased removal of approved supplier lists –Use of Sell2Wales SQUiD for pre- qualification –Standardised thresholds and documentation across Welsh public sector

Cardiff Council Website Website – to be upgraded over the next year Supplier satisfaction survey -