1. Collaboration in ICT – A presentation to the West Midlands 24 th January 2014 Will Laing, Senior Relationship Manager – Local Government

2. Why collaborate at all? Information £187bn public sector spend on good s and services – over 200,000 suppliers £40bn in CG: over 50% supplied by the Top 39 suppliers The £500m LG software market is dominated by 3 suppliers (70% share) A public sector organisation should be able to access knowledge on commercial engagements with suppliers from across the public sector – we need to end self-defeating “commercial confidentiality” Capability Leverage Specialist skills Shared services Improved supplier management and performance Driving innovation – internally and through supply chains Efficiency Lower costs of procurement Faster and more agile Better outcomes on price and quality 2Commercial Reform

3. Objectives Crown Commercial Service to be operational Revised Governance arrangements and senior management team Driving Service, Savings, and Reach (e.g. Managed Service rather than “just frameworks”) Covering both Central Government and Wider Public Sector Increase “true” Spend Under Management from approximately £1Bn towards the longer term goal of £10Bn+ (SUM stated today to be £11Bn) Advisory as well as a Direct Commercial service (Procurement and Contract Management) Building Capability Moving from approximately 600 staff today (450 GPS and 150 Efficiency Cluster) towards c1,000 by 2016/17 Formal programme to develop the senior leadership to be a High Performing Team Formal recruitment hub established and showing results; significant recruitment activity Improved technology plan to be established and implemented Common goods and services to be transferred By end 2014/15, substantial spend will have been transferred Four trailblazer departments leading the way with spend and people transferred into CCS 3Commercial Reform

4. Crown Commercial Service - reforming the commercial landscape Retained departmental commercial activities Common but complex transactions – joint working with depts Transfer of additional commercial activities to CCS CG & WPS Spend & Procurements currently transacted by CCS 4Commercial Reform Developing managed services and building world class commercial capability Transferring operations to CCS - 4 trailblazer depts circa £5bn of spend Extending our involvement in complex commercial activities e.g BPO Strengthening functional leadership and improving commercial capability Influence and service “We are creating a world leading organisation, providing fully managed end-to- end direct commercial and advisory service”

5. 5Commercial Reform The new DNA for commercial activities Business need identification Supplier relationship management and negotiation Execution of sourcing strategy Market analysis Sourcing strategy Supplier identification Finalisation of contract Contract management £ Goal High Low Time spent on value added activity Before going to market Procurement Process Contract and supplier management Managed Commercial Services delivered centrally - once on behalf of Government UNCLASSIFIED Developing requirements that shape markets and the supply base to Government Improving contract and supplier management capability through application of new standards Simplifying process and reducing turnaround times & supplier bid costs Av’ge turnaround times for EU procurements now less than 100 days (200 days in 2011) Circa 20% of spend is now with SMEs (baseline 6% - direct spend only) Before Published pipelines Cross Government contract review

6. What CCS will expect from suppliers Commercial Reform To embrace competition To be innovative through proposals for how we can improve services To be transparent through open book accounting To demonstrate high levels of corporate responsibility To deliver what we are asking for as an intelligent client To deal effectively with CCS as one customer - the Crown To make a reasonable but not excessive profit To provide opportunities to SMEs in the supply chain To deliver savings for taxpayers 6Commercial Reform

7. Early examples of CCS in action Commercial Reform Managed service provides access to a pool of 175 agile digital services suppliers (84% are SMEs and 38% are new suppliers to government). Digital services Framework £2bn worth of energy procured and delivered across the public sector in 2012/13 with savings to the public purse in excess of £109m. Energy Facilities management New contracting model being procured. Estimated savings over current model in the region of 10% to 15% (up to £350M) over the life of the vehicle (4 years). G- Cloud 4 th Generation contracting vehicle in place providing access to 1000 suppliers (84% are SMES). £64m of spend transacted through G-Cloud since inception in April 2012 via circa 4000 procurements. 63% of business by value has been won by SMEs. 7Commercial Reform

8. 8Commercial Reform ICT Category Management Governance Structure London Procurement Strategy Board London Connects ICT Cat Mgt Project Board WirelessDatacentresAppsSRMeAuctions Camden (Terry Brewer) Newham (Geoff Connell) Haringey (David Airey) Camden (PMO) Enfield (Tim Kidd) Society of London Treasurers GPS Delivery Team

9. The National Strategy LGA National Procurement Strategy for Local Government ICT one of three priority categories (construction and energy are the others) National category lead is Terry Brewer, Divisional Director, LB Harrow ICT leadership provided through SOCITM and the Local CIO Council A first iteration of the category strategy for ICT is with the LGA’s National Advisory Group for Procurement (NAG4LGP) Key Themes Local ownership and local leadership – each region can address its own priorities Technology opportunities – desktop alliance, data centre rationalisation, digital innovation in service delivery and citizen access Savings – our own target is 20% of the £2.1bn spend over three-years Operational Delivery Major national agreements developed in partnership between CCS, GDS and the Pro5 CCS has a significantly expanded regional Customer Service function Drive as much input and influence as possible from customers Have defined roles for LG staff that want to get involved 9Commercial Reform

10. LG Software Applications - Now £500m + spend per year in Local Government Councils report common issues around value, technology capability and service support Multiple, independent budget-driven solutions – often extending failing agreements A complex pattern of bespoke deployments and licensing model creates lock-in A complete lack of transparency and control Huge waste and lost opportunity 10Commercial Reform

11. LG Software Applications – A Major Opportunity for 2013/14 A common procurement platform which enables access to ALL major systems All commodity unit costs explicit Flexible access through direct award and further competition A range of technology models: hosted, licensed, SAAS A master standard SLA to enable agile deployment Developed, owned and used by Local Government TCO reduction? …could be up to 50% 11Commercial Reform

12. IT Products, Associated Services and Solutions Transactional IT Procurement System (TIPS) 1 Contract 4 Lots 6 Lots Information Assurance (Product and Services) Commodity Software Solution Services IT Products & Value Add Services End User Computing Devices Transactional portal for COTS IT Hardware and Software Products Packaged Software & Value Add Services HR Document Management Data Management ERP Finance / Accounting CRM Proposed Procurement Vehicles & Lot Structure 12Commercial Reform

13. IT End User Computing Devices IT Product and Value Added Services Information Assurance YE S IT Products, Associated Services and Solutions (IT PASS) Targeted Audience  Value Added Resellers  End User Devices providers Anticipated Suppliers 10 – 15 Suppliers 7 – 12 Suppliers 3 – 7 Suppliers Service Requirement  Wider range vendor neutral products  Close to the box IT hardware related services  IT consumables and accessories.  Value-add associated services  Desktop computer bundle  Laptops,  Tablets,  Thin client,  Hybrid device  Accredited vendor neutral IT Product providers  Secure destruction & disposal  HMG compliant facility (List X ) Framework Access  Further competitions  Regular eAuction  Further competition  Further competitions IT PASS – Framework Agreement structure Packaged Software Value Added Services  Large Account Resellers  P2P  Further competition 10 – 15 Suppliers  Wide range vendor neutral products  Enterprise Software licenses  Implementation and configuration services  Value added associated services  Large Account Resellers 13Commercial Reform

14. Contact Details Will Laing will.laing@ccs.gsi.gov.uk 07775 561287 will.laing@ccs.gsi.gov.uk