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Paul Charkiv

Local Government Procurement in Wales “Sharpening the Public Procurement Pencil” Bangor University Law School 10 October 2012. Paul Charkiv. Head of Efficiency and Procurement WLGA. Paul Charkiw.

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Paul Charkiv

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  1. Local Government Procurement in Wales “Sharpening the Public Procurement Pencil” Bangor University Law School 10 October 2012 Paul Charkiv Head of Efficiency and Procurement WLGA Paul Charkiw

  2. The Welsh Local Government Association (WLGA) represents the interests of local government and promotes local democracy in Wales. It represents the 22 local authorities in Wales and the 4 police authorities, 3 fire and rescue authorities and 3 national park authorities are associate members. The WLGA’s primary purposes are to promote better local government and its reputation and to support authorities in the development of policies and priorities which will improve public services and democracy. Welsh Local Government Association

  3. Local Government Procurement in Wales – An overview “Sharpening the Pencil” Presentation

  4. Annual Expenditure £4.3bn Estimate of Total Procurement Expenditure of Welsh Public Sector

  5. LG Procurement Expenditure 2010/11 £2.4bn by Local Authority

  6. LG Procurement Expenditure 2010/11 £2.4bn £670m £522m £183m

  7. LG Procurement in Wales • LG Procurement Consortia North Wales Procurement Partnership Welsh Purchasing Consortium

  8. The Institute for Fiscal Studies (IFS): • “The financial situation for Unitary Authorities looks difficult until at least 2020-21" • In what the IFS calls its "most pessimistic" scenario, councils' spending power will fall by 18%. • “Such a bleak financial climate means that councils may be forced to cut, or scale back spending on a vast array of services that they have traditionally delivered.” • Councillor Aaron Shotton, WLGA “Sharpening the Pencil”

  9. Public Sector procurement - to achieve savings AND support SMEs in Wales • Collaboration and development of national and regional procurement consortia • E-procurement • Common Processes and Documentation • Review of the EU Procurement Directives Review Reports: • Reform of EU Public Procurement Policy- NAfW • Maximising the Impact of Welsh Procurement Policy– McCelland Review “Sharpening the Pencil”

  10. Reform of EU Public Procurement Policy- NAfW Maximising the Impact of Welsh Procurement Policy– McCelland Review Overview • Shortage of qualified procurement capacity resource • Lack of procurement management information • More collaboration needed – NPS • E-procurement • Next Steps…….Public Procurement Policy Statement • - Jane Hutt, Minister for Finance, Welsh Government (scheduled for Autumn ’12). Review Reports

  11. SME Support - Procurement Tools • OJEU & sub-OJEU • Collaboration, Aggregation and Lotting • Organisational financial regulations and CPR’s • Market knowledge and experience • Communication and Advertising Supporting SMEs in Wales

  12. SME Support - Current Supporting Initiatives • Squid • Construction • XChangeWales • Common Contract Procedure Rules • Common Documentation • Review of the EU Directives …….. • WLGA lobbying …..Simplification, flexibility…..SME support Supporting SMEs in Wales

  13. % Estimate of Total Public Sector Expenditure to Wales Based Suppliers

  14. FSB Report The report was based on their ‘UK Voice of Small Business’ member survey, February 2012 and a further survey of public sector procurers in local government across the UK. This closed in May 2012 and included data from 8 Welsh Unitary Authorities. Supporting SMEs in Wales

  15. FSB Report Observations, specific to Welsh Local Government: • Over 85% of authorities responding in Wales record the amount they spend in their local authority boundary • All of the authorities in Wales felt that their procurement strategy linked ‘very well’ or ‘well’ to wider corporate priorities. • All of the authorities responding from Wales used the Sell2Wales electronic portal to advertise tender opportunities; Only 53 of 119 authorities in England responding to the survey utilised a national portal such as Contracts Finder. Supporting SMEs in Wales

  16. FSB Report The report concluded that Welsh unitary authorities would: • be more likely to record local spend; • have greater levels of spend in their local authority boundary; • be more likely to record SME spend; • be less likely to think SMEs face barriers in accessing procurement opportunities; • be less likely to use different processes for below EU threshold tenders; • be more likely to use national portals for advertising tender opportunities; • be less likely to think achieving cost savings is an issue of high importance. Supporting SMEs in Wales

  17. FSB Report Reports averageSME spend by geographical area: • London 27% • South West of England 43% • Scotland returned 51% • Wales reported as 61% Supporting SMEs in Wales

  18. Influencing the Modernisation of EU Procurement Policy (May 2012) Recommendation 3: • The Welsh Government to provide Welsh local authorities and other public contracting authorities with strong guidance on achieving the appropriate balance between risk management and creativity in public procurement…….. National Assembly for Wales Enterprise and Business Committee

  19. “Let a million flowers bloom” - Chairman Mao

  20. Local Government Procurement in Wales “Sharpening the Public Procurement Pencil” Bangor University Law School 10 October 2012 Paul Charkiw Head of Efficiency and Procurement WLGA

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