Centralised Category Overviews

1. Centralised Category Overviews

2. Category Overview | Energy | Category Scope The energy category regulates the purchase and management of electricity and gas supplied to Central Government, health and wider public sector customers. The category also facilitates the purchase and management of liquid fuels, lubricants and coal for use by all customers. Other services such as automatic meter reading and carbon offsetting are available to assist customers in generating savings. Category Overview • Centralisation of Central Government spend into single supply contracts, where possible, to aggregate demand and optimise energy prices. • The energy portfolio is effectively risk managed by market experts in line with a tailored energy purchasing strategy. • Savings are generated through innovative framework agreements reducing costs to customers in comparison to market prices. • Services and solutions enable customers to monitor, control and manage demand improving sustainability and savings. • Origination schemes harness unused energy produced on the Government estate and interact with the market to generate further savings. • The long term goal is to access energy generators and producers (rather than wholesale suppliers) to further reduce price risk. • A Customer Governance Board, created in July 2011, meets quarterly to review performance. Implementation Timescales Customer Access Routes • New half hourly electricity procurement awarded for supply from April 2012. • Gas procurement awarded ahead of schedule in October 2011. • Non-half hourly electricity extension in place until September 2013. A replacement procurement will commence in June 2012. • The project to transfer all MoD, DWP and health customers to the gas, half hourly and non-half hourly electricity frameworks in April 2012 has completed in line with agreed timescales. • Customer access to online site data and consumption is planned for winter 2012/13. • All frameworks can be accessed via our website at http://gps.cabinetoffice.gov.uk/i-am-buyer/find-a-product-or-service • Customer Access Agreements and supply contracts are completed by all Departments regarding the supply of electricity/gas. • Existing electricity and gas frameworks are already used by all Departments and are also available for health and other public sector customers, with energy product confirmations completed annually. • eAuctions for carbon offsetting are against the framework on a quarterly basis. Benefits Summary • The award winning category is the largest buyer of gas and electricity in the UK with in-house skilled market analysts, risk management specialists and robust independent governance. • We offer a transparent, not for profit service with dedicated internal energy customer teams and supplier managers. • A range of services to help monitor, control and manage demand. For example, automatic meter reading, additional origination services and carbon offsetting. Improved demand management will reduce Departments usage and improve sustainability. • Savings are calculated using an average of market pricing opportunity against actual price achieved during the buying window. Further calculations are also being developed to capture the benefits in other areas such as ‘bid/offer spread’, ‘cost to serve’, ‘out of contract’ savings, ‘aggregations’, ‘load shaping’, liquid fuels, carbon offsetting and automatic meter reading (subject to approval). Published version 9.0 – 7 June 2012

3. Category Overview | Fleet | Category Scope Fleet covers the purchase, lease and spot hire of vehicles including passenger vehicles, motorcycles, car derived vans, light commercial vehicles under 7.5 tonnes and medium to heavy and specialist commercial vehicles 7.5 tonnes and above. Plus, fleet management services, fuel cards, tyres, vehicle conversions and insurance. Category Overview • Department requirements are gathered by the central team and aggregated volumes are sourced via existing frameworks. • Scope of vehicle lease and purchase frameworks have been expanded to ensure Department needs are met. For example, buses and motorbikes now included, in-house workshops can be authorised and non-standard vehicles are fully warranted. • eEnablement solutions such as eAuctions and an online fleet portal are used in conjunction with the frameworks. • Third parties such as leasing and fleet management companies can use the purchase framework terms in their leasing cost calculations to ensure Departments get the most favourable price whether purchasing or leasing vehicles. • Vehicle specifications have been standardised incorporating Government Buying Standards and relevant environmental legislation/standards. • Standardised fleet policy, vehicle allowances and better data visibility help control spend. • Use of fuel cards as a best practice approach to fleet management. • Suppliers are performance managed and benchmarked to ensure competitiveness is maintained and brand-led decision making is eradicated. Implementation Timescales Customer Access Routes • Migration of Departments to centralised route as current arrangements expire or sooner if terms and conditions allow. • New frameworks for tyres, vehicle conversions and insurance are being developed. • Tyres and Vehicle Conversions are due to award in September 2012. • Insurance will cover all types of insurance including vehicle insurance and is due to award in December 2012 in time for April 2013 renewals. • In the first instance, discuss your vehicle and fleet management needs with the fleet team to ensure your requirements are aggregated with other Departments. The team will advise on the best procurement route. • All existing frameworks can be accessed via our website at http://gps.cabinetoffice.gov.uk/i-am-buyer/find-a-product-or-service • Cars and light commercial vehicles up to 3.5 tonnes can be procured via the fleet portal at https://vehicleleasing.buyingsolutions.gov.uk/ • The ITQ facility is available for other vehicle types and spot hire further competitions. • eAuctions are suitable for all vehicle types. We are currently gathering Department volumes for vehicle purchase eAuctions. Benefits Summary • Improved whole life cost of vehicles through leveraging consolidated volumes, including Central Government and public sector customers. • By standardising specifications the unnecessary costs associated with variation and choice are removed. • Demand is managed by a central team to help drive further savings and ensure Government fleet usage is maximised. • More accessible management information helps manage driver behaviour to ensure compliance with policy. • Fuel cards provide savings on fuel prices and full visibility of usage for cost control management. • Four vehicle purchase eAuctions in 2011/12 delivered savings of £1.8m for customers including the Ministry of Defence, HMRC, Highways Agency, Nuclear Decommissioning Authority, Metropolitan Police and the Coal Authority. Published version 9.0 – 7 June 2012

4. Category Overview | ICT | Category Scope The ICT category provides access to ICT commodities and supporting services in hardware, software, telecoms and networks. Category Overview • Lead the commercial implementation of the Government ICT Strategy and associated commercial actions. • Aggregate spend where possible and purchase once as the ‘Crown’ – one price for Government. • Procure common ICT goods and services against a set of standard specifications, as defined by the CIO community. • Increase efficiencies through the use of online catalogues via the Government eMarketplace. • Further develop Software Asset Management expertise to facilitate transfer and reuse of assets across Government. Move to culture of reuse before purchase. • Improve interoperability between solutions through the use of open standards. • Embed full transparency in all new ICT contracts to enable effective management of the supply chain, pricing and unit costs. Implementation Timescales Customer Access Routes • The ICT Commercial Strategy was approved by MCO and further ratified by CIO Delivery Board in October 2011. • Online catalogues for hardware, software, document management and ICT disposal are available now. • New Payroll, HR and Finance Services framework awarded October 2011. • G-Cloud Services awarded in February 2012. Phase II will commence in June for award in August 2012. • PSN Connectivity awarded in April 2012 and PSN Services is due to award in June 2012. • IT Hardware and Solutions due to award in June 2012. • Application Development, Delivery and Support Services due to go to OJEU in June and award in September 2012. • Hosting due to go to OJEU in July and award in December 2012. • Service Integration and Management due to go to OJEU in July and award in December 2012. • Desktop21 phase II due to go to OJEU in August and award in December 2012. • In the first instance, discuss your ICT requirements with the category team to ensure your requirements are aggregated with other Departments. The team will advise on the best procurement route. • Centralised deals with catalogues will be made available through the Government eMarketplace. • All existing frameworks can be accessed via our website at http://gps.cabinetoffice.gov.uk/i-am-buyer/find-a-product-or-service Benefits Summary • Improved pricing on contracted services and verifiable cash savings. For example, Managed Telecommunications Convergence Framework, GSi Convergence Framework and Payroll, HR and Finance Services. • Standardised specifications for hardware and services will bring price transparency for all and facilitate reuse/redeployment of assets. • Software licensing optimisation has delivered over £7m of savings to date through licence transfer and renegotiation of terms. • Online catalogues for commodities will make purchasing easier and will offer Open Source alternatives for new software investments. • New procurement vehicles will provide access to new telecom offerings compliant with PSN standards. • eAuction for 16,000 desktops for HMRC delivered over £1m of savings. Published version 9.0 – 7 June 2012

5. Category Overview | Office Solutions | Category Scope Office Solutions for Central Government Departments covers the provision of office supplies, multi-functional devices (MFDs), postal & courier services and document management. Print services and printing papers are covered under the Print category (see slide 6 for details). Category Overview • The Government Office Supplies Contract (GOSC – RM917) provides a centralised, single contracting route for all Departments (plus a number of named public sector organisations) for office products and electronic office consumables. A total of 270 named organisations are eligible to use the contract. • The following frameworks are also available to all Central Government Departments (as well as all other public sector customers): • - Multi-Functional Devices and Service, Managed Print and Print Audit Services (RM1159) provides leasing and rental options for office print solutions. • - Postal Services (RM782) provides a range of services from consolidation of mail through to hybrid mail. • - Courier Services (RM465) provides access to an extensive range of logistic and courier services. • A new framework for document storage (RM1689) covering physical storage and management and related services was awarded in April 2012. • The Office Supplies (RM781) framework remains available for wider public sector customers only. Implementation Timescales Customer Access Routes • GOSC is managed by HMRC. 171 organisations, including all Central Government Departments currently able to join, have now migrated to this centralised contract. Further organisations are due to come on board during this financial year. • MFDs next generation offering was awarded in February 2012. • Plans are underway (led by HMRC) to go to market for 3 courier contracts in 2012. A DWP/ HMRC closed Dedicated Network is currently being developed. The contract will be enabled for other Departments to set up their own networks. National and regional solutions will follow. • The new Document Storage framework (for both Central Government and wider public sector) was awarded in April 2012. • Print Services (for wider public sector only) awarded in May 2012. This will complement the Print Vendor Partner contract which is for Central Government only (see slide6). • GOSC can be accessed by Departments via online catalogues on Government eMarketplace, through Departmental P2P systems or web, fax and phone routes. • Further competition and eAuction facilities are available for Departments to access other frameworks. • A customer toolkit is available for Postal Services customers offering support in identifying the correct requirements to take to ITQ. • All existing frameworks can be accessed via our website at http://gps.cabinetoffice.gov.uk/i-am-buyer/find-a-product-or-service Benefits Summary • Aggregation and leverage opportunities for Central Government spend, for example GOSC will deliver cashable savings of 12%-29% through a single contracting access route with agreed and transparent pricing, standardised products, a choice of service wraps and a ‘closed loop’ paper recycling service. • Improved management information and reporting systems help with demand management and compliance. • Supplier performance is managed with monthly and quarterly strategic reviews to ensure competitiveness and service is maintained. • Savings benefit calculations based on 09/10 baseline pricing and market indices where available. GOSC core catalogue savings declared for September 2011 - March 2012 are £4,825,516. • Sustainably sourced products are available, for example remanufactured print and toner cartridges. • The new MFD framework will deliver 46% savings on hardware costs and 49% savings on service costs for standard specification multi-functional devices. Published version 9.0 – 7 June 2012

6. Category Overview | Print | Category Scope The print category helps deliver savings and efficiencies through the implementation of industry best practice for the provision of print & print management, printing paper & envelopes and digital asset management (DAM). Category Overview • Control spend by moving to a Managed Service Provider model to implement best practice and deliver visible and coherent management information and performance data. • Aggregate and leverage spend and buying power through three primary contractual vehicles 1. HMRC Print Vendor Partner contract (PVP) 2. DWP Print & Associated Services Solution (PASS) 3. DfE Publishing & Delivery Service (PDS). • The Managed Service Provider manages the second tier supply chain to harness industry expertise, exploit market capability and supply innovation to deliver efficiencies. • Consistency of pricing, products and services with an incentivised cost model based on payment by results. • Strategic goals are being implemented across all primary vehicles (subject to existing contractual constraints). • Standardisation of product specifications and processes to reduce demand. • Transition and transformation through the life of the contract to deliver ongoing cashable savings. • Digital asset management will provide a central asset repository and be a key enabler for standardisation and rationalisation. Implementation Timescales Customer Access Routes • HMRC PVP contract covering print management, print, printing paper & envelopes was awarded in July 2011. The contract went live in October 2011 and was transferred to Government Procurement Service on 16 December 2011. • Departments are being migrated in phases as existing contracts expire (timelines to be agreed): • Phase 1 – Main PEB members. • Phase 2 – Remaining PEB and all EPEB members. • Phase 3 – Existing long term contracts: DWP and DfE. • A wider public sector contracting vehicle for print/paper/envelopes went live in May 2012. • Timings for deployment of digital asset management to be confirmed during implementation. • The HMRC PVP contract is available to all Departments, their ALBs and NDPBs. • Customer access to the contract is determined through the implementation process. To join the contract or for further information please email hmrc.cpprintimplementationteam@hmrc.gsi.gov.uk • Existing contracts (DWP & DfE) should be accessed by existing customers in the usual way only until contract expiry. Benefits Summary • Customers do not need to conduct call-offs/further competitions once using the centralised arrangement. • Customers can access market innovation and knowledge through the expertise of the supply base. • Sustainable savings are delivered through aggregation and quality of specification. • Improved data and price transparency through matrix pricing. • Delivery of estimated savings of approximately 23%+ and between £20m-£25m over the life of the contract. • Increase value of spend through SMEs. Published version 9.0 – 7 June 2012

7. Category Overview | Professional Services | Category Scope Professional Services consists of a range of existing frameworks, plus new centralised services which are currently being developed. The first are consultancy and contingent labour. Existing services are management consultancy services, contingent labour, permanent recruitment, legal services, face to face interpretation services and learning & development. Category Overview • Control spend through stronger governance, mandatory approval processes within Departments and improved quality and use of data. • Centralise management consultancy spend through a new single framework for Central Government, replacing 16 current frameworks. • Open the consultancy market up to SMEs by openly competing sub-£100k work and implementing an ‘SME Charter’. • Aggregate contingent labour through a new procurement vehicle to be determined after a period of testing. Non Permanent Staff and Non Medical, Non Clinical Resources are the current routes for contingent labour. • Working with Civil Service Learning to provide flexible access to a range of eLearning and classroom training solutions to improve the overall quality of training provision. • Legal services includes the provision of external legal services to support Departmental commercial activities (with the exception of litigation). • Recruitment services for permanent staff and face to face interpretation services are also available to support Department needs. Implementation Timescales Customer Access Routes • ConsultancyONEframework is due to be launched in late 2012. • A new contingent labour procurement vehicle will be launched in September 2012. • Civil Service Learning contract awarded in February 2012. • A new Legal Services framework is due to award in September 2012. • An online catalogue for face to face interpretation services is now available on Government eMarketplace. • A new framework for Environmental and Sustainability Advice, Support and Delivery Services went live in May 2012. • All existing frameworks can be accessed via our website at http://gps.cabinetoffice.gov.uk/i-am-buyer/find-a-product-or-service • eAuctions and aggregation with other Departments. • Contingent labour access route to be determined once testing of models complete. • Consultancy: below £100k will be accessed via Government eMarketplace, £100K-£2m access route to be agreed and communicated. • Online catalogues are accessible through the Government eMarketplace. Benefits Summary • Continuation of ERG ‘actions and processes’ is reducing demand and overall costs. • ConsultancyONE will provide improved management information to help with demand management and compliance. It is also designed to offer greater choice and opportunity for new entrants. • Customers can access central expertise through the Government Procurement Delivery Centre shared service. • Access to improved pricing for contingent labour through aggregation, leverage and the application of rate cards (where appropriate). • The cost of classroom courses has been cut by up to 70% and the cost of eLearning has dropped from an industry average of 38p per hour to just 11p per hour. Published version 9.0 – 7 June 2012

8. Category Overview | Property Solutions | Category Scope Property Solutions covers facilities management (FM), project management, building materials (including estates consumables), signage, furniture, laundry, estates professional services, modular buildings, environmental and sustainability services for the built environment, commercial catering and refrigeration. Category Overview • A centralised strategy for property/FM is being developed and spend will be controlled through a governance board. • Frameworks are being rationalised and placed into more logical groupings to reflect the Government Property Unit (GPU) regional strategy and Cabinet Office SME agenda. Anticipate reducing from 19 to 10 frameworks by 2014. • Department volumes will be aggregated through eAuctions and regional further competitions. • Data quality and usage is being significantly improved to help control spend. • A demand management strategy is in place for furniture through reuse and reconfiguration. • Reduced core product list for furniture. • Online catalogues including estates consumables, signage, refrigeration and furniture. • Existing frameworks are being used to deliver value-added services, such as dilapidations, and assist with the delivery of the GPU construction strategy, for example standardised building materials. Implementation Timescales Customer Access Routes • Existing frameworks covering FM, building services, furniture, laundry, modular buildings and estates professional services are available to access now. • A new Commercial Catering & Commercial Refrigeration Equipment framework is expected to award in October 2012. • New Environmental and Sustainability Advice, Support and Delivery Services framework (including built environment and waste lots) went live in May 2012. • GPU Property/FM strategy presented to PEX and details of proposed procurement to support strategy delivery will follow. • Furniture core product list was made available in December 2011. • Online catalogues for furniture, signage and refrigeration are available now. • New procurement for furniture will commence in June and award in September 2012. • New procurement for estate professional services is due to commence in June and award in October 2012. • In the first instance, discuss your needs with the property solutions team to ensure your requirements are aggregated with other Departments. • The online catalogues will be accessible through the Government eMarketplace. • eAuctions and further competitions will be run against existing frameworks. For example, building materials and laundry & linen. • All existing frameworks can be accessed via our website at http://gps.cabinetoffice.gov.uk/i-am-buyer/find-a-product-or-service Benefits Summary • Reducing the core product list for furniture limits choice and provides a single reduced price per product. • More effective use of existing assets through reuse and reconfiguration will reduce waste and improve sustainability. • Aggregated volumes deliver improved rates across Government. • Improved data is being used to help better manage demand and influence decision making. • Rationalised framework offering will improve efficiency and make access simpler. Published version 9.0 – 7 June 2012

9. Category Overview | Travel | Category Scope Travel covers the booking of UK and international business travel, including air, rail, hotels and meetings & events, via Travel Management Companies (TMCs). Category Overview • The Central Government Travel Management Services contract centralisesall Government spend with two TMCs based on two standardised travel profiles. • Direct contracts with key air, rail and hotel providers are being negotiated, in conjunction with TMCs, to maximise Government leverage. • Greater use of online booking tools to maximise efficiency. • Adoption of travel policy principles to help control Department spend and drive higher standards of compliance. • Significantly improved data from suppliers and Departments to ensure greater visibility of spend and compliance. • Reuse of existing assets, for example use of Government estate for meetings & events will feature in the new Central Government Meetings & Events contract which is currently being developed. • TMCs will be performance managed and benchmarked to ensure competitiveness is maintained. Implementation Timescales Customer Access Routes • The Central Government Travel Management Services contract was awarded in November 2011. Departments will migrate to the new contract over the next year and the process is now underway. The first nine Departments moved to the new contract at the start of April 2012. • The Central Government Meetings & Events OJEU was published in April 2012 and is expected to award in June 2012. Departments will migrate spend to the new contract as their existing arrangements expire or sooner if terms and conditions allow. • All requirements will be booked through the Department’s appointed TMC, with online booking as the preferred route. • Direct contracts with key air, rail and hotel providers will also be accessed through the TMC. • The existing Travel Management Services Provider and One-Stop-Shop frameworks remain available for wider public sector customers with travel and meetings & events requirements. Benefits Summary • Consolidated volumes and direct contracts deliver improved rates and consistent pricing across the whole of Government. • Online booking tools reduce transaction costs and improve efficiency making selection of best rates quicker and easier. • Improved, more accessible management information helps better manage demand and influence traveller behaviour. • TMCs are contracted on a transaction fee only basis and do not retain commission. • Effective use of Government estate reduces duplication and waste. • By following current best practice we expect Departments to be able to deliver savings of 10-20%. • Government is already saving over £80m a year on prices paid for hotel, rail and air bookings under the new strategy and the contract is expected to deliver a further £5 million a year of savings on booking costs. Published version 9.0 – 7 June 2012

10. Category Overview | eEnablement | Category Scope The eEnablement strategy supports the sourcing, procurement and management of contracts and suppliers. It includes Contracts Finder, Government eMarketplace, eSourcing tools, a spend analysis solution, a new procurement portal and external hosting solutions for supplier data. Category Overview • Contracts Finder is where all new Government contract opportunities over £10,000 are posted. • Government eMarketplace hosts centrally negotiated contracts and catalogues for products and services where fixed prices can be clearly defined. • Dynamic Marketplace on Government eMarketplace enables suppliers, especially SMEs, to bid for contracts below the EU threshold of £100,000 through a quick, effective request for quotation service. • The eSourcing tools enable compliant sourcing of requirements over £100,000, including further competitions, eAuctions and contract/supplier management. • The spend analysis solution provides visibility of every Department’s spend by common category and supplier. This replaces PSPES data. • A more secure, robust external hosting solution provides consolidated management information. • Organisations who source on behalf of Government Procurement use their own solutions, but all documents will be stored centrally. Implementation Timescales Customer Access Routes • Contracts Finder and Dynamic Marketplace are available now. • There are now over 50 online catalogues available on Government eMarketplace. • The new tool for further competitions against our frameworks is available on the new the portal. • Call-off user licences for Departments needing to conduct their own strategic sourcing activity will be available from July 2012. • A short term tactical replacement for PSPES was awarded in September 2011. 2010/11 data is now available. A long term solution has now been procured and we are currently collecting 2011/12 data. • The new procurement portal is available now. • The new portal provides a single point of access for all of these tools at http://gps.cabinetoffice.gov.uk/ • Contracts Finder can be accessed now at http://www.contractsfinder.businesslink.gov.uk/ • For further information about signing up to Government eMarketplace email info@gps.gsi.gov.uk or call 0345 410 2222. Benefits Summary • Contracts Finder helps support the transparency agenda and increases competition. • Dynamic Marketplace gives quick and easy access to suppliers for low value requirements. • One easy access point for centrally negotiated deals ensures consistent pricing for common goods and services across all Departments. • Government eMarketplace fully integrates into Department’s back office applications. • The eSourcing tools support standardised, lean procurement processes and improve performance management. • A consolidated view of spend helps identify opportunities for further savings, drive compliance and reduce data burden on Departments. • The portal provides a “one stop shop” for customers and suppliers to the full suite of tools, plus information and guidance on accessing the centralised arrangements and other framework agreements. • Simplified access to all centralised arrangements will help drive compliance. Published version 9.0 – 7 June 2012

11. Category Governance Boards Communication Services Energy – meets quarterly Fleet – meets bi-monthly ICT Governance Board to be established. Published version 9.0 – 7 June 2012

12. Category Governance Boards Office Solutions Print The Print Governance Board is currently being finalised. Members will include the current contract owners: Rebecca Scanlon, Government Procurement Service; Liz Rowlands, DfE; Hilary Brierley, DWP and Darren Thompson, DVLA. Property Solutions Existing Governance structure is managed by the Government Property Unit via the Property Champions Group and Property and Facilities Management Board representing Departments. Published version 9.0 – 7 June 2012

13. Category Governance Boards Professional Services Travel – meets bi-monthly Published version 9.0 – 7 June 2012

14. Useful links Published version 9.0 – 7 June 2012 Procurement plan: an overview of procurements that are being planned or are in progress - http://gps.cabinetoffice.gov.uk/i-am-buyer/procurement-pipeline About us: further information about Government Procurement Service can be found here - http://gps.cabinetoffice.gov.uk/about-government-procurement-service/about-us Savings approach: an explanation of how we calculate savings can be found here - http://gps.cabinetoffice.gov.uk/about-government-procurement-service/savings-approach FAQs: frequently asked questions can be found here - http://gps.cabinetoffice.gov.uk/information/FAQs-info