1. Best Practice Procurement for Schools
School Business Managers’ Forum – 23 May 2017
Marta Kolinska
Senior Corporate Procurement Officer

2. TODAY’S PRESENTATION WILL COVER TWO AREAS:
PART 1 – Stages of buying process
PART 2 – Terms and Conditions

3. PART 1 STAGES OF BUYING PROCESS

4. Planning 3 STAGES OF THE BUYING PROCESS: Contract Management
Procurement
Contract Management
Planning

5. STAGE 1 - PLANNING Analyse expenditure & review your contracts
Benchmark and compare:
HLT annual benchmarking reports
Collaborate with other schools across key strategic spend areas
Develop outline specification
Estimate the whole-life cost of the contract
Choose your procurement process
Get formal approval

6. STAGE 2 – PROCUREMENT Use existing frameworks
Hackney Council frameworks:
Cleaning, IT, Statutory Repairs & Maintenance, Agency Staff, Insurance, Energy
Proposal for Primary Schools Catering – SURVEY CLOSES 09 JUNE
school-catering-survey/
Public Sector frameworks:
Print & photocopying, Stationery, Grounds maintenance
ESPO:
Crown Commercial Services:

7. STAGE 2 – PROCUREMENT
Run your own procurement – Quotations or Tender?

8. EVALUATION CRITERIA – EXAMPLE
QUALITY
70%
Proposed Solution
35%
Staffing
15%
Project Management 5%
Quality Assurance
Account Management
Equality and Diversity
PRICE
30%

9. PR-ICEBERG (HIDDEN COSTS)
materials
labour
overheads
margin
warranties
distribution
stock
tooling
training
premiums
custom duties
returns
insurance
development
administration
consignment
transportation
responsiveness
quality levels
accessories

10. STAGE 3 – CONTRACT MANAGEMENT
Monitor progress against contract requirements
Set up review meetings and manage performance:
How is the supplier performing against SLA standards?
Is supplier meeting KPI targets?

11. STAGES OF BUYING PROCESS
END OF PART 1
STAGES OF BUYING PROCESS
QUESTIONS?

12. PART 2 TERMS AND CONDITIONS

13. Issue contracts using your own set of Ts & Cs
TERMS AND CONDITIONS – TRADING ON SCHOOL’S TERMS
Issue contracts using your own set of Ts & Cs
Adapt from DfE templates
Send out with quotes or tender documents

14. TERMS AND CONDITIONS – TRADING ON SUPPLIER’S TERMS
Read the small print
Negotiate
Do not sign until you agree final terms

15. Delivery time / time of performance
BUYER vs SUPPLIER – CONFLICTING CLAUSES EXAMPLES
Buyer
Supplier
Price
fixed
can be varied
Payment terms
invoice 30 days in arrears
in advance (cash)
Delivery time / time of performance
time is of the essence
time is not of the essence
Assignment
cannot sub-contract
can sub-contract
Termination
at any time
no early termination

16. END OF PART 2
TERMS AND CONDITIONS
QUESTIONS?

17. TRADED SERVICES – BASIC PROCUREMENT PACKAGE
Annual benchmarking report
Ad hoc procurement advice
Assistance with using public sector frameworks
Procurement Manual for Schools & procurement training
Currently £775 per year
HLT Procurement contact: /

18. QUESTIONS?