Leeds City Council Wayne Baxter Chief Procurement Officer Electronic Procurement San Sebastian - 11 th & 12 th April

Leeds City Council - Background/Context  North of England - West Yorkshire  2nd largest UK local authority  Serves a population of 730,000  Unitary - providing full range of services  33,000 employees  € 2 bn annual budget  € 805 m procurement spend

The Starting Point... Leeds City Council’s Best Value Review of Procurement

E-Procurement: Main Principles  More than ‘shopping electronically’  Get the ‘offline’ procurement in shape first (Business NOT technology led)  Modular approach to implementation  Encourage local suppliers and SME’s  Exploit opportunities for joint working between local authorities  Linking procurement strategy and policy with other corporate priorities/strategies

Drivers & Objectives  Progress towards meeting the Government’s targets for Electronic Service Delivery  Improve the efficiency, effectiveness and economy of the procurement process  Demonstrate leadership in the adoption of e- technology and promote its use in the local business community  Improve the competitiveness of the local economy

e-Auctions Overview: Systems & Processes Value Added Services Portals Contract Management Low Value, High Volume Procurement(ORDERS) High Value, Low Volume Procurement(TENDERS) Small Businesses Contractors Large Corporations Agencies Not-for-Profit Consultants Suppliers POLICY INFRASTRUCTURE TRAINING E-procurement Policy & guidelines / buyer profiles Buyers

A Step by Step Approach Phase 1Phase 2Phase 3 Main Strategy Leeds Electronic Tendering System (LETS) Leeds Contract and Supplier Management System (LCSMS) Leeds Electronic Purchasing System (LEPS) Yorkshire Regional Electronic Tendering System (CouncilTenders) Leeds (or Regional) Supplier Management Call Centre

UK Central Government e-Procurement Initiatives for Local Government 2001/22002/32005/62003/42004/5 IEG Partnerships National Procurement Strategy for L.Gov Regional Centres of Excellence e-Gov Pathfinder Programme & Dissemination UK Government - Implementing Electronic Government (IEG) Agenda National e-Procurement Project (NePP) Current Position

Fitting it all Together…

Regional E-Tendering Pathfinder

The Catalyst... Local Government On-Line Pathfinder Programme Leeds City Council’s Best Value Review of Procurement Partnership with the State Govt of Western Australia

SUPPLIERSSUPPLIERS Tendering - Traditionally Prepare Tender Advertise Tender Register Interest Provide Tender Prepare Response Lodge Response Open Tenders Award/Notify Tenders BUYERSBUYERS Evaluate Tenders ………………. CONTRACT …………… …………… ……………..

SUPPLIERSSUPPLIERS Prepare Tender Advertise Tender Register Interest Provide Tender Prepare Response Lodge Response Open Tenders Award/Notify Tenders BUYERSBUYERS Evaluate Tenders Tendering - Electronically Electronically ElectronicallyElectronicallyElectronically Electronically ElectronicallyElectronically Early Advice AdvertisedInvited New User orLogon Electronic Download Electronic Lodgement Online Tender Opening Result/StatusPublishedOnline ………………. CONTRACT …………… …………… …………….. CONTRACT

What is an Electronic Tendering System? Being able to perform tendering functions as a buyer and a supplier in an electronic manner as an extension of the existing procurement processes. Tender Advertising (Early & Current) Tender Advertising (Early & Current) Invited Tenders Invited Tenders Tender Search & Classification Tender Search & Classification Tender Document Download Tender Document Download Electronic Tender Lodgement Electronic Tender Lodgement Attachments (Documents & Drawings) Attachments (Documents & Drawings) Tender Status & Results Tender Status & Results Archiving Archiving

The Home Page w w w. c o u n c i l t e n d e r s. n e t

Benefits: BUYERS  Improve transparency & openness  Provide the ability to decentralise tendering  Improve communication with suppliers  Reduce tender advertising, paper & overhead costs  Make the process easy to manage & easy to use  Provide the opportunity for partnerships with other Councils

 Direct access to latest tenders and contracts - 24 hrs / 7 days per week  Simple to register & to use  Tenders can be downloaded electronically  No need to wait for the tender to come to them  No need to notify the Council of their interest in a tender first  Can always view the specification of a tender before deciding whether to tender Benefits: SUPPLIERS (1 of 2)

 Provide the ability to find out about award details  Tenders can be lodged electronically  No last minute rush to the tender box  Reduced postage & handling costs – simply lodge the e-version  Auto confirmation of tender being received  Ability to always view a tender’s status after lodgement (reduced phone calls). Benefits: SUPPLIERS (2 of 2)

System Usage Information  17,320 registered users  3,110 tenders placed on site (€ 3.2bn)  96% electronic download rate  58% electronic submission rate  95% of feedback ‘good’ or ‘very good’  12 other Councils using the system Statistics for Leeds only - as at Feb 2005

An EU funded initiative that sought to: ‘GoDigital’ Toolkit promote the efficient use of e-business by SMEs provide assistance to enable SMEs to participate in and take full advantage of the e-economy

Toolkit Overview Based on Supplier FAQ’s  What equipment do I need?  Have I got the right skills?  Is electronic tendering secure?  What will it cost?  What will I need to do differently?

Fitting it all Together… Regional Solutions NePP

National e-Procurement Project Project Overview

NePP - Aims of the project  To enable councils  To enable councils to take full advantage of e- procurement by the target date of 2005  To raise the profile  To raise the profile of procurement in all councils toolkit (web-based)  An e-procurement toolkit (web-based) experience sharing  A programme of local authority experience sharing  Standards  Standards, and products tailored to reflect local authority requirements

NePP - Why is the project needed? 168 authorities in 2003: Survey of 168 authorities in 2003:  85% of authorities  85% of authorities had taken steps to meet 2005 e-government targets  35% of authorities  35% of authorities had completed a business case for e-procurement 13% implemented  Only 13% had implemented e-procurement by the end of 2002

NePP - The Project Strands and Lead Authorities  Getting the Story Right (IDeA and BuyIT)  Technical Requirements (Kirklees)  Regional Solutions (Leeds)  Organisational Change Management and Communications (Cambridgeshire)  Standards (Bristol)  Supplier Adoption and Economic Development (Newham)

NePP - Shape of the project toolkit  A web-enabled toolkit database  A database of authorities seminars  A programme of seminars Guidance  Comprehensive Guidance  Support  Support targeted at those authorities that need it most  Experience Sharing  Experience Sharing workshops

NePP - More Information

Fitting it all Together… Supplier/Contract Management and e-purchasing Partnership IEG funding

West Yorkshire IEG Partnership e-Procurement Project Overview

Project Details  Implementing Electronic Government (IEG) 2005 target - all services online Annual IEG statements record progress IEG partnership funding linked to statements  Project Details Focuses on eProcurement € ¾ million funding - completion March ‘04 Collaborative working / partnerships Sub-regional focus (West Yorkshire)

Objectives  Speed up the introduction of eProcurement Collaborative approach to systems development Sharing existing tried and tested solutions  Easier for businesses to trade with us Raising awareness & encouraging participation Common procurement systems & procedures  More efficient and effective procurement Sharing costs of implementing eProcurement Joint procurement and contracting arrangements

Sub-regional e-procurement strategy  Publishing a co-ordinated short to medium-term approach to eProcurement across the WY region Deliverable 1 Aligning strategies across the WY Councils Embracing IEG principles Inform businesses of future developments in the region Building-block for ongoing collaboration beyond IEG funded project

Standard documents & procedures  Easier for firms to do business with Councils  Easier for WY Councils to work together  Initial priority areas: Vetting standards for supplier pre-qualification Standard contractual terms and conditions Documents/procedures around tendering Approaches to contract and supplier management Deliverable 2

Electronic tendering  Migrating “CouncilTenders” (formerly LETS) from Australia to the UK  All WY Councils to share same electronic tendering system (ETS)  Modifying ETS to capture information on local sourcing and SME usage Deliverable 3

Electronic procure-to-pay  Further roll-out and development of Marketplaces  Review of ‘procurement management information’ needs across the Councils  Pilot projects looking at e-enabling elements of the ‘procure to pay’ cycle (Ordering, Payment, Invoices)  Regional electronic auctions Deliverable 4

SME engagement & enablement  Research supplier concerns around working with councils generally and around e-procurement  Programme of joint events ‘demystifying’ working with Councils in West Yorkshire  Information booklet and website: “How to do business with West Yorkshire Councils” Deliverable 5

Joint contract/supplier management  Supplier Management Online supplier management system Suppliers register information once but info available to all WY Councils Avoid filling out similar forms for all WY Councils Avoids all WY Councils vetting same firms Shared approved lists Allows initiatives to be developed in line with political strategies e.g. local sourcing and SME support and development Deliverable 6

Joint contract/supplier management  Contract management Online contract register for WY Councils Better contract planning, packaging and design Identify opportunities for joint contracting Single source of business opportunities Market development and management ‘Opportunity Matching’ through business support organisations Deliverable 6

Fitting it all Together… National Procurement Strategy & Regional Centres of Excellence The Future

Regional Centres of Excellence  9 Regional Centres in the UK  Leeds City Council hosts the Regional Centre of Excellence for Yorkshire and the Humber (21 local authorities)  Government funded to 2008 then self-funding  Centres will deliver Gershon Efficiency Savings National Procurement Strategy

 Milestone targets for 2004, 2005, 2006  Key themes Leadership and Building Capacity Partnering and Collaboration Doing Business Electronically Stimulating Markets Achieving Community Benefits  Leeds already making good progress  Targets embedded into LCC own strategy

Questions