1. University Procurement
James Trotter

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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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)

12. 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

13. 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

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

15. 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"

16. 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 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"

17. 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

18. 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

19. 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