1 / 9

Balanced Scorecard Approach for Rail Procurement Design

Learn about the innovative "Procuring for Growth" approach, balancing cost with key factors for successful rail procurement design. Discover its strategic themes, critical success factors, and benefits for both buyers and suppliers. Suitable for all rail clients and Tier 1 suppliers.

abenitez
Download Presentation

Balanced Scorecard Approach for Rail Procurement Design

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Balanced Scorecard Approach for Rail Procurement Design Pete Colley, PKLG Services RIA Knowledge Hub 15th May 2019

  2. Creating Market Conditions for Growth • Key pillar of Rail Supply Group Sector Strategy • Listened to supply chain to understand “barriers” to growth • Difficulties posed by client and Tier 1 approach to procurement • Government facing similar challenge • Need to improve Pre-Procurement Market Engagement • Balanced Scorecard approach - “Procuring for Growth” - published in 2016

  3. What is it? • Balances cost against other factors when developing requirements and evaluation criteria • time, quality, social, environmental and broader economic considerations • Already used by HS2 and Olympic Delivery Authority • Fully defines Value for Money: • 15 variable Critical Success Factors (CSFs) across sevenStrategic Themes • Generic Enablers required for all procurements

  4. Industry Consultation • Positive feedback from all key stakeholders, incl. Govt representatives

  5. Strategic Themes & CSFs Solution Quality Cost Delivery Employment & Skills Supply Chain Health & Safety and Security Environment Community & Legacy Benefits Output/ Outcome Quality Whole Life Costs On Time Delivery Employment Supply Chain Accessibility Health, Safety & Wellbeing Energy Efficiency & Climate Change Community Benefits Production/ Delivery/ Construction Process Delivery to Cost Customer Experience/ Disruption Workforce Skills Supply Chain Management Security & Business Continuity Resource & Waste Management Legacy Benefits Supply Chain Learning & Continuous Improvement New Amended Compared to CCS ‘Balanced Scorecard – Procuring for Growth’

  6. Generic Enablers • Smooth, Visible Future Demand • Proportionate Terms, including Fair Payment Terms • Passenger/Customer Focus • Pre-Procurement Market Engagement • Collaborative Business Relationships • Behaviours • Efficient Procurement and Contract Management • Risk Identification, Assessment, Allocation & Management • Legislative/Regulatory Compliance • Effective Contract and Supplier Performance Management

  7. Who should use it? When? • All rail clients and major Tier 1 suppliers • All projects above £4.5m (app. OJEU threshold) for Works; projects above £1m for Services and Goods • Excluding call-off/tendering activities off frameworks

  8. Benefits “Buyers” • Greater assurance that the procurement will deliver a full Value for Money solution; and • demonstrate pursuit of Value for Money to Government and other key stakeholders “Suppliers” • Better informed bid/no bid decisions • A less “noisy” bid process • in the event of success, greater assurance around achieving contracted profit

  9. Next Steps • Complete Case Studies, based on recent procurements • Handover to Rail Sector Deal Delivery Programme • Developing sustainable UK rail sector at home and abroad (Owner) • SME Growth through Collaboration (Midlands Pilot)

More Related