Scottish Procurement - Simplifying the Process using Best Practice and eTools

1. Scottish Procurement -Simplifying the Process using Best Practice and eTools Lawrie Willcox – Procurement Capability Development Manager Scottish Procurement and Commercial Directorate

2. McClelland Review 2006-09 Poor and inaccurate data An absence of collaborative procurement Inconsistent skills base Lack of controls on spending Accelerating Delivery 2010-12 Maximising efficiency and collaboration Delivering and demonstrating real cash saving across the public sector Improving access to public sector contracts, particularly for SMEs Embedding sustainable procurement at the heart of the reform agenda Scottish Procurement Reform

3. The Approach • Ministerial driven governance – Procurement Reform Board • Reform led policy – working with the Centres of Expertise. • Tried and tested and trusted standardised processes – the Procurement Journey. • Take a fresh look from the supplier’s perspective. • Delivery of Management Information tools. • Promotion of electronic tools to support Best Practice. • Drive accountability for procurement decisions across the Scottish Public Sector.

5. Single Point of Enquiry Provides advice and guidance to suppliers on: • Public procurement regulations • Remedies landscape • Policy and practice • Signposting to contacts or data

6. Supplier Journey

7. Procurement Journey – Standardised Process

8. Public Contracts Scotland • Working with the Scottish supply base to identify ways to make it easier to access and bid for contract opportunities and ensure that suppliers have a consistent experience when selling to the public sector. • Using feedback from suppliers and buyers to develop improved and standardised public sector buying processes, templates and systems to reduce bureaucracy, improve efficiency and embed best practice.

9. Quick-quote – simplification/standardisation

10. What Next ? The PQQ process needs to improve.

11. sPQQ Working group – constituted from private and public sector, We do not have all the answers, European Countries have the same issues, Issues are complex, Requirement to change behaviours of buyers and suppliers across Scotland, Scottish Government, suppliers and contracting organisations are working together to improve the process.

12. Vision : Standardised Contracting Including Prequalification - How Will This Be Achieved ? To produce an electronic process for suppliers and contracting organisations which enables a standardised approach to questions, guidance and evaluation to take place online, standardisation of key templates/sections with key standard questions for (PQQs) in Scotland, appropriate production of training and guidance notes to users of this service

13. Public Contracts Scotland - Tender …simplifies the tender process through templated PQQ / ITT standards, robust messaging and evaluation to reduce effort, ensure repeatability, and deliver robust reporting capabilities

14. P2P Capability • PECOS: • Used by 125 public sector organisations • Controls the authorisation of approx 1.5m PO’s per annum • Provides visibility on approx £3bn spend per annum • Over last 3 years 19.5m order lines have been classified in the Hub • Transacts with approx 109,000 suppliers • Provides 54,000 users with ability to search catalogues and punch-out sites • Supports Accounts Payable processes & payment performance

15. P2P Capability • Collaborative Content Management: • Single, central hub for catalogues and punch-out sites for all national, sectoral and local contracts • Controls the upload, validation, approval and publication process • Suppliers only load & maintain 1 version of catalogue • Buyers only approve & publish 1 version of catalogue • Ability to create ‘views’ of the source catalogue (i.e. core item lists) • Increases the accuracy of purchase orders and invoices

16. Contract Information Analysis

17. Local : Contract Performance

18. What is involved in a Procurement Capability Assessment? Sections • Leadership and Governance • Strategy and Objectives • Specification of Goods and Services • Sourcing Strategies and Collaborative Procurement • Contract and Supplier Management • Key Purchasing Processes and Systems • People • Performance Measurement

19. Benefits of Assessments for Health Boards …in their own words • “Shows you the way – the toolkit describes in detail what you need to do to do to achieve improved or superior performance” • “You know how you are doing in relation to others” • “Makes you acutely aware of what you should be doing” • “Promotes collaboration - you know who is good at what and where to get help” • “You realise you aren’t alone” • “Getting local support - ‘poor scores’ are a great way to get extra resource” • “A Voice – and a collective voice of challenge back…” • “Address the lack of understanding of the value of professional procurement can bring to organisation” • “A direct link to the Governance groups for reform – PPRB/PRDG and into Scottish Government”

20. Procurement Capability Assessment – Percentage of Sector Spend by Assessed Status

23. Sustainable Procurement Bill • 2012-13 legislative programme • Setting up working groups • Capture thinking of key stakeholders and expert advisers • Working with business • Supports Scottish economic development and jobs/training

24. Sustainable Procurement Bill Bill has 5 key themes: • Transparency • Public Contracts Scotland (PCS) • Prequalification • Publication of Information • Environmental • National sustainable specifications • Publication of sustainability performance • Social • Community Benefits clauses • Living wage • Economic • Improve how the market works • Standardised/streamlined and more efficient processes • Compliance • How do we make sure that measures in the Bill are adequately enforced?