Are you Tender Ready?

1. Are you Tender Ready? Procurement Taster Session – Third Sector 14thDecember 2017 Arwel Staples-Procurement Business Partner (Strategic)

2. Session Objectives • Welcome & Introductions • Raise awareness of procurement policy • Raise awareness of the procurement process. • Raise awareness of opportunities within EU Procurement Regulations • Light Touch Regime • Reserved contracts • E-Procurement Registration - PROACTIS Supplier Network Informal Dialogue Discussion • What can the Council do to make the procurement process easier for Third Sector to bid and win contracts? • Discuss future procurement support requirements for the Third Sector? • Next steps and the way forward?

3. Joint Corporate Procurement Team - Overview • Joint Procurement Service working across DCC & FCC • Team of 12 staff – based in Ruthin, Denbigh and Mold • 5 Category Managers with allocated spend areas • Social Care (Simon Beech) • ICT & Business Improvement (Lisa Price) • Construction, Highways and Site Services – (Helen Sutton) • Professional Services (Mike White) • Community Support (Andy Argyle) • Other Team members work on strategic projects – Procurement Strategy, CPR’s, E-Procurement, NWCF, Training, Local Supplier & Third Sector Development, Community Benefits & Contract Management

4. Why is procurement important? • Shift from Grant core funding to competitive bidding • The Councils spent in the region of £310 million of combined procurement spend in 2016/17 on the goods and services needed to deliver public services. With this level of spend we need to: • Achieve value for money for our residents and businesses through properly planned and executed procurements, and • Understand and improve the impact our procurement spend has on the local economy and the Third Sector

5. Background & Key Policy Drivers • Corporate Programme (DCC) – Economic and Community Ambition – Local Supplier & Third Sector Development (one strand) • Inspiring Resilient Communities Framework – Flintshire Local Services Board • Corporate Procurement Strategy (DCC & FCC) • Corporate Priorities across both Council’s • Welsh Procurement Policy Statement – WG • Well-Being of Future Generations (Wales) Act 2015 • Social Services and Wellbeing (Wales)Act 2014

6. Procurement Spend by Location • DCC -16/17 Financial Year - £113.2m • £34.4m within Denbighshire (30%) • £54.6m within North Wales (48%) • £60.5m within Wales (54%) • £2.1m within Mersey Dee Alliance (7%) • FCC – 16/17 Financial Year - £196.2m • £50.3m within Flintshire (26%) • £87.6m within North Wales (45%) • £94.7m within Wales (48%) • £72.2m within Mersey Dee Alliance (37%)

7. Corporate Procurement Strategy - Outcome 1 Council achieves value for money from the goods, services and works it procures. • Considering different delivery models • Continually reviewing and simplifying our processes • Making better use of technology • Improving our contract management • Investing in people and skills

8. Corporate Procurement Strategy - Outcome 2 Council improves the contribution it’s procurement activity has on the local economy. • Working proactively on local supplier and Third sector development • Developing new approaches to how we structure our offers to market • Delivering more and better community benefits

9. Procurement Compliance • Public Contract Regulations 2015 • OJEU notice - £164,176 (Supplies & Services) & £4,104,394 (Works) • Reserved Contracts to sheltered workshops – 30% workforce criteria • Social, Economic & Environmental tender award considerations • “Buy local policy” is illegal • Contract Procedure Rules (CPR’s) • Commissioning Form needs to be completed for all contracts above £25,000 • Community Benefits mandatory for projects above £1m • Up to £10,000 – 1 quotation • £10,000 to £25,000 – 4 quotations • £25,000 to OJEU (Supplies & Services) – Public advertisement on Sell2wales • £25,000 to OJEU (Works) – 4 tenders • OJEU + (Supplies, Services & Works) – Public advertisement in OJEU & Sell2wales • Welsh Procurement Policy Statement

10. Progress on Local Supplier& Third Sector Development • E-Procurement • Registered Suppliers notified of tender opportunities through PROACTIS Supplier Network & Sell2wales • A review of PROACTIS Portal Templates being undertaken to streamline processes for suppliers and buyers e.g. reduce number of PQQ questions • SQUID National PQQ questions adopted and PROACTIS Portal remembers supplier answers for common questions • E-invoicing options • Introduction of the “Commissioning Form” – promotion of SME lotting, Reserving contracts etc. and Community Benefits considerations • A “Selling to the Council” guide has been developed and published on Internet • List of current Council contracts > £25,000 published on internet (work in progress)

11. Progress on Local Supplier & Third Sector Development Actions (continued) • Closer working relationship with Business Wales including promotion of their services: • “How to Tender” Workshop • “Advanced Bid Writing” Workshop • 1 to 1 supplier support (Suppliers with turnover > £170k) • 1 to many supplier support • “Meet the Buyer” events held for individual tender projects • Support for suppliers to register and navigate on PROACTIS • Support for suppliers to understand the procurement process • Engagement with Wales Co-operative to promote the following support: • Brokering support for L.As in Wales to co-produce new delivery models with the third sector • Support through face-to-face advice and bespoke workshops to form consortia and develop delivery plan/strategy • Bespoke consortium agreements for joint bidding and general purpose collaboration (e.g. Joint Agreement and Memorandum of Understanding)

12. Light Touch Regime (LTR) - Background • Part A / Part B distinction GONE • New regime for certain health, social and other services – the "Light Touch Regime“ (LTR) • LTR contracts are subject to an express obligation to advertise in OJEU (unlike old Part B) if above threshold of £625,050 • Aim of LTR - new set of more flexible, less administratively burdensome rules

13. Below Threshold contracts (Below £625k) • The LTR regime and its advertising requirements within Europe do not apply • But General Treaty principles apply where contracts are of cross-border interest: • Many of these contracts will not be of cross-border interest • Contracting Authority (CA) have wide discretion to organise the choice of the service providers in the way they consider most appropriate ***** (but still complying with Treaty principles)

14. LTR – Obligations (1) • Advertise above threshold contracts £625,050 • OJEU - Contract Notice or PIN setting out (minimum) – • conditions for participation • time limit(s) for contacting the contracting authority • brief description of the main features of the award procedure to be applied • CAs shall determine the procedures to be applied at the outset • CAs shall ensure compliance with transparency and equal treatment

15. LTR – Obligations (2) • The procurement must be run the way CAs said it would be run in the notice particularly re: • conditions for participation • time limits for contacting the CA • the award procedure to be applied • Time limits must be reasonable and proportionate • CA can use standard procedures (e.g. open, restricted) OR parts of them OR can devise own procedures (so long as comply with transparency and equal treatment)

16. LTR - Award Criteria • Award criteria can take into account any relevant criteria including: • quality, continuity, accessibility, affordability, availability and comprehensiveness of the services; • the specific needs of different categories of users • the involvement and empowerment of users; and • Innovation • Restrict number of “tender elements” that bidders can compete for

17. Reserved contracts - Regulation 20 and 77 Regulation 20 - Reserved contracts • Regulation 20 is designed to support employment and training opportunities for disabled or disadvantaged persons. • Regulation 20 grants contracting authorities the ability to; • reserve the right to participate in public procurement procedures to sheltered workshops (referred to as supported factories and businesses in the UK) and economic operators whose main aim is the social and professional integration of disabled or disadvantaged persons, or • (b) provide for such contracts to be performed in the context of sheltered employment programmes • (c) provided that at least 30% of the employees of those workshops, economic operators or programmes are disabled or disadvantaged.

18. Reserved contracts - Regulation 20 and 77 Regulation 20 - Reserved contracts • Eligibility criteria for qualifying organisations Main aim is the social and professional integration of disabled or disadvantaged persons. • Main aim - The sole or main purpose for which the organisation has been set up. • Tests or measures - which buyers might adopt to establish the “main aim” of an organisation: • Whether the goal of assisting disabled/disadvantaged people to achieve social and professional integration is set out in the constitutional documents of the relevant organisation, for instance; • Memorandum and articles (if a company); • Charitable objects (if a charity); • Membership agreement or similar (if a partnership or unincorporated body)

19. Reserved contracts - Regulation 20 and 77 Regulation 20 - Reserved contracts • Eligibility criteria for qualifying organisations Main aim is the social and professional integration of disabled or disadvantaged persons. • Disabled or disadvantaged A ‘disadvantaged worker’ means any person who: a) has not been in regular paid employment for the previous 6 months; or (b) is between 15 and 24 years of age; or (c) has not attained an upper secondary educational or vocational qualification (International Standard Classification of Education 3) or is within two years after completing full-time education and who has not previously obtained his or her first regular paid employment; or (d) is over the age of 50 years; or (e) lives as a single adult with one or more dependants; or (f) works in a sector or profession in a Member State where the gender imbalance is at least 25 % higher than the average gender imbalance across all economic sectors in that Member State, and belongs to that underrepresented gender group; or (g) is a member of an ethnic minority within a Member State and who requires development of his or her linguistic, vocational training or work experience profile to enhance prospects of gaining access to stable employment.

20. Reserved contracts - Regulation 20 and 77 Regulation 20 - Reserved contracts • Eligibility criteria for qualifying organisations Main aim is the social and professional integration of disabled or disadvantaged persons. • Disabled or disadvantaged A ‘severely disadvantaged’ is any person who person who has been unemployed for 24 months or more The Public Contracts Regulations 2015 use the Equality Act 2010 (see section 6) definition of a disabled person. A ‘disabled person’ being; A person (P) has a disability if— (a) P has a physical or mental impairment, and (b) the impairment has a substantial* and long-term** adverse effect on P's ability to carry out normal day-to-day activities *‘substantial’ is more than minor or trivial, e.g. it takes much longer than it usually would to complete a daily task like getting dressed. **‘long-term’ means at least 12 months, e.g. a breathing condition that develops as a result of a lung infection (see Schedule 1 to the Equality Act 2010).

21. Introduction to Reg 20 and 77 -Reserved contracts Regulation 77 – Reserved contracts for certain services • Eligibility criteria for qualifying organisations • In order to be allowed to take part in a tender reserved under Regulation 77 ‘qualifying organisations mustmeetallof the following conditions; • The primary objective of qualifying organisations must be the pursuit of a public service mission linked to the delivery of services covered by the CPV codes relevant to Regulation 77. • (b) Profits are reinvested with a view to achieving the organisation’s objective, and • (c) The structures of management or ownership of the organisation are (or will be, if • (i) based on employee ownership or participatory principles, or • (ii) require the active participation of employees, users or stakeholders any distribution of profits is based on participatory considerations; and when it performs the contract)

22. Introduction to Reg 20 and 77 -Reserved contracts Regulation 77 – Reserved contracts for certain services • Under Regulation 77 …a contract is a reservable public contract only if it is exclusively for one or more of the services which are covered by CPV codes. 75121000-0 Administrative educational services; 75122000-7, Administrative healthcare services 75123000-4, Administrative housing services 79622000-0, Supply services of domestic help personnel 79624000-4, Supply services of nursing personnel 79625000-1, Supply services of medical personnel 80110000-8, Pre-school education services 80300000-7, Higher education services 80420000-4, E-learning services 80430000-7, Adult-education services at university level 80511000-9, Staff training services 80520000-5, Training facilities 80590000-6, Tutorial services and 85000000-9 Health and social work services 85323000-9, Community health services 92500000-6 - Library, archives, museums and other cultural services 92600000-7 - Sporting services 98133000-4 - Services furnished by social membership organisations 98133110-8 - Services provided by youth associations

23. Introduction to Reg 20 and 77 -Reserved contracts Regulation 77 – Reserved contracts for certain services • Contract duration and other limitations Contracts awarded under Regulation 77… • May not be awarded to organisations who have previously won contracts • (b) Any contract let under Regulation 77 provisions is limited to a maximum length tendered under Regulation 77 for the same services by the same contracting authority within the past 3 years, furthermore; of 3 years

24. PROACTIS Supplier Portal Registrationhttps://supplierlive.proactisp2p.com/Account/Login Click “Sign Up”

25. What information will I be asked to provide? • We want to make the registration process easy for you so we’ve created a list of information that you will be asked for so as you can collate this ahead of registration. Information marked with an * is mandatory. • •Company Registration Number (please enter if you have one) • •VAT Registration Number (please enter if you are VAT registered) • •DUNS Number (please enter if you know it) • •Organisation Type* • •Other Organisation Categories (please select at least 1) • •Company Address(es)* • •Users (people from your company)* • •What you sell*

26. What if I have Technical problems? Click – PROACTIS Support

27. PROACTIS Supplier Network – Home Page

28. Discussion – Informal Dialogue • What can the Council do to make the procurement process easier for Third Sector to bid and win contracts? • Future procurement support requirements for the Third Sector? • Next Steps and the way forward?