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Centre for Local Economic Strategies

Centre for Local Economic Strategies. Maximising the benefits of procurement 14 th November 2013, Manchester Matthew Jackson, Associate Director. Our reasoning and activities. Research work fuelled by 3 reasons: Scale of spend Myths around procurement

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Centre for Local Economic Strategies

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  1. Centre for Local Economic Strategies Maximising the benefits of procurement 14th November 2013, Manchester Matthew Jackson, Associate Director

  2. Our reasoning and activities Research work fuelled by 3 reasons: Scale of spend Myths around procurement Intrinsic link between procurement and local economic development 3 key activities: Evidence gathering Shifting cultures Influencing behaviour

  3. Our starting point • The Local Multiplier 3 (LM3 model) • Round 1 – total spend • Round 2 – spend upon (local) suppliers • Round 2 – spend upon (local) direct employees • Round 3 – re-spend of local suppliers upon their own local suppliers and their own local employees • Round 3 – re-spend of direct employees upon good and services in the local economy • LM3 = Round 1 + Round 2 + Round 3 Round 1

  4. Initial work with MCC • MCC spent £357m upon its top 300 suppliers (08/09) • MCC spent £183m upon Manchester based suppliers (51.5%) • £43m is spent in Ardwick • £87m is spent in Manchester neighbourhoods in 10% most deprived nationally • £309m is spent in Greater Manchester • Suppliers 25p in every pound received back in the Manchester economy • Range of wider local economic, social and environmental benefits

  5. Maximising benefit in Manchester • Cross-departmental procurement working group • Network of suppliers • Engagement with suppliers in area regeneration localities • Cost-benefit analysis study with Capital Programmes • Outcomes framework development • Spend analysis for financial year 2011/12 and 2012/13

  6. Key findings of further analysis

  7. Key findings of further analysis

  8. Progressing economic impact – how? • Service Commissioning • Linking procurement to wider corporate objectives e.g Northumberland • Engaging with communities in design of services e.g Camden • Procurement Strategy • Developing procurement strategies which have a common narrative e.g. Manchester • Developing accessible portals e.g. The CHEST • Packaging contracts to make them more accessible e.g. Cheshire West • Streamlining PQQ and ITT documentation e.g. North Lincs

  9. Progressing economic impact – how? • Pre-procurement • Working with local business to test markets e.g. Manchester • Engagement work with business networks e.g. Preston • Capacity building of SMEs and VCS organisations e.g. Croydon • Apprenticeships, labour and social clauses e.g. Derry • Delivery • Developing Suppliers networks and voluntary arrangements e.g. Manchester • Paying suppliers quickly • Continuous spend analysis and outcomes monitoring e.g. Manchester

  10. Why is this important now? • Area based initiatives have gone • Places operate as systems • Local authorities and the wider public sector are the stewards of place • We face massive challenges • Mainstream tools need to be used more effectively

  11. Maximising the benefits of procurement Finishing off • Final questions or queries? • Ongoing support from CLES • matthewjackson@cles.org.uk

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