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Leeds City Council

Leeds City Council. Electronic Procurement San Sebastian - 11 th & 12 th April 2005. Wayne Baxter Chief Procurement Officer. www.counciltenders.net. Leeds City Council - Background/Context. North of England - West Yorkshire 2nd largest UK local authority Serves a population of 730,000

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Leeds City Council

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  1. Leeds City Council Electronic Procurement San Sebastian - 11th & 12th April 2005 Wayne Baxter Chief Procurement Officer www.counciltenders.net

  2. Leeds City Council - Background/Context • North of England - West Yorkshire • 2nd largest UK local authority • Serves a population of 730,000 • Unitary - providing full range of services • 33,000 employees • € 2 bn annual budget • € 805 m procurement spend

  3. Leeds City Council’s Best Value Review of Procurement The Starting Point...

  4. E-Procurement: Main Principles • More than ‘shopping electronically’ • Get the ‘offline’ procurement in shape first (Business NOT technology led) • Modular approach to implementation • Encourage local suppliers and SME’s • Exploit opportunities for joint working between local authorities • Linking procurement strategy and policy with other corporate priorities/strategies

  5. Drivers & Objectives • Progress towards meeting the Government’s targets for Electronic Service Delivery • Improve the efficiency, effectiveness and economy of the procurement process • Demonstrate leadership in the adoption of e-technology and promote its use in the local business community • Improve the competitiveness of the local economy

  6. Buyers Suppliers Small Businesses Contractors Large Corporations Agencies Not-for-Profit E-procurement Policy & guidelines / buyer profiles Consultants Overview: Systems & Processes Value Added Services High Value, Low Volume Procurement (TENDERS) Low Value, High Volume Procurement (ORDERS) Contract Management Portals e-Auctions POLICY INFRASTRUCTURETRAINING

  7. Yorkshire Regional Electronic Tendering System (CouncilTenders) Main Strategy Leeds (or Regional) Supplier Management Call Centre Phase 1 Phase 2 Phase 3 A Step by Step Approach   Leeds Electronic Tendering System (LETS) Leeds Contract and Supplier Management System (LCSMS) Leeds Electronic Purchasing System (LEPS)

  8. UK Government - Implementing Electronic Government (IEG) Agenda Current Position e-Gov Pathfinder Programme & Dissemination National e-Procurement Project (NePP) 2001/2 2002/3 2003/4 2004/5 2005/6 UK Central Government e-Procurement Initiatives for Local Government IEG Partnerships National Procurement Strategy for L.Gov Regional Centres of Excellence

  9.  Fitting it all Together… Central Gov Agenda Leeds Strategy

  10. Pathfinder Regional E-Tendering  Fitting it all Together…

  11. Leeds City Council’s Best Value Review of Procurement Local Government On-Line Pathfinder Programme Partnership with the State Govt of Western Australia The Catalyst...

  12. ………………. CONTRACT ……………………………………….. Tendering - Traditionally Prepare Tender Advertise Tender S U P P L I E R S Register Interest B U Y E R S Provide Tender Lodge Response Prepare Response Open Tenders Evaluate Tenders Award/Notify Tenders

  13. Early Advice Advertised Invited New User or Logon Electronic Download Electronic Lodgement Online Tender Opening ………………. CONTRACT CONTRACT ……………………………………….. Tendering - Electronically Electronically Electronically Electronically Electronically Electronically Electronically Electronically Electronically Electronically Electronically Prepare Tender Advertise Tender S U P P L I E R S Register Interest B U Y E R S Provide Tender Lodge Response Prepare Response Result/Status Published Online Open Tenders Evaluate Tenders Award/Notify Tenders

  14. What is an Electronic Tendering System? Being able to perform tendering functions as a buyer and a supplier in an electronic manner as an extension of the existing procurement processes. • Tender Advertising (Early & Current) • Invited Tenders • Tender Search & Classification • Tender Document Download • Electronic Tender Lodgement • Attachments (Documents & Drawings) • Tender Status & Results • Archiving

  15. The Home Page www.counciltenders.net

  16. Benefits: BUYERS • Improve transparency & openness • Provide the ability to decentralise tendering • Improve communication with suppliers • Reduce tender advertising, paper & overhead costs • Make the process easy to manage & easy to use • Provide the opportunity for partnerships with other Councils

  17. Benefits: SUPPLIERS (1 of 2) • Direct access to latest tenders and contracts - 24 hrs / 7 days per week • Simple to register & to use • Tenders can be downloaded electronically • No need to wait for the tender to come to them • No need to notify the Council of their interest in a tender first • Can always view the specification of a tender before deciding whether to tender

  18. Benefits: SUPPLIERS (2 of 2) • Provide the ability to find out about award details • Tenders can be lodged electronically • No last minute rush to the tender box • Reduced postage & handling costs – simply lodge the e-version • Auto confirmation of tender being received • Ability to always view a tender’s status after lodgement (reduced phone calls).

  19. System Usage Information • 17,320 registered users • 3,110 tenders placed on site (€ 3.2bn) • 96% electronic download rate • 58% electronic submission rate • 95% of feedback ‘good’ or ‘very good’ • 12 other Councils using the system Statistics for Leeds only - as at Feb 2005

  20. ‘GoDigital’ Toolkit An EU funded initiative that sought to: • promote the efficient use of e-business by SMEs • provide assistance to enable SMEs to participate in and take full advantage of the e-economy

  21. Toolkit OverviewBased on Supplier FAQ’s • What equipment do I need? • Have I got the right skills? • Is electronic tendering secure? • What will it cost? • What will I need to do differently?

  22. NePP Regional Solutions  Fitting it all Together…

  23. National e-Procurement Project Project Overview

  24. NePP - Aims of the project • To enable councils to take full advantage of e-procurement by the target date of 2005 • To raise the profile of procurement in all councils • An e-procurement toolkit (web-based) • A programme of local authority experience sharing • Standards, and products tailored to reflect local authority requirements

  25. Survey of 168 authorities in 2003: 85% of authorities had taken steps to meet 2005 e-government targets 35% of authorities had completed a business case for e-procurement Only 13% had implemented e-procurement by the end of 2002 NePP - Why is the project needed?

  26. NePP - The Project Strands and Lead Authorities • Getting the Story Right (IDeA and BuyIT) • Technical Requirements (Kirklees) • Regional Solutions (Leeds) • Organisational Change Management and Communications (Cambridgeshire) • Standards (Bristol) • Supplier Adoption and Economic Development (Newham)

  27. NePP - Shape of the project • A web-enabled toolkit • A database of authorities • A programme of seminars • Comprehensive Guidance • Support targeted at those authorities that need it most • Experience Sharing workshops

  28. NePP - More Information www.idea-knowledge.gov.uk www.nepp.org.uk

  29. Partnership IEG funding Supplier/Contract Management and e-purchasing  Fitting it all Together…

  30. West Yorkshire IEG Partnershipe-Procurement Project Overview

  31. Project Details • Implementing Electronic Government (IEG) • 2005 target - all services online • Annual IEG statements record progress • IEG partnership funding linked to statements • Project Details • Focuses on eProcurement • € ¾ million funding - completion March ‘04 • Collaborative working / partnerships • Sub-regional focus (West Yorkshire)

  32. Objectives • Speed up the introduction of eProcurement • Collaborative approach to systems development • Sharing existing tried and tested solutions • Easier for businesses to trade with us • Raising awareness & encouraging participation • Common procurement systems & procedures • More efficient and effective procurement • Sharing costs of implementing eProcurement • Joint procurement and contracting arrangements

  33. Deliverable 1 Sub-regional e-procurement strategy • Publishing a co-ordinated short to medium-term approach to eProcurement across the WY region • Embracing IEG principles • Aligning strategies across the WY Councils • Building-block for ongoing collaboration beyond IEG funded project • Inform businesses of future developments in the region

  34. Deliverable 2 Standard documents & procedures • Easier for firms to do business with Councils • Easier for WY Councils to work together • Initial priority areas: • Vetting standards for supplier pre-qualification • Standard contractual terms and conditions • Documents/procedures around tendering • Approaches to contract and supplier management

  35. Deliverable 3 Electronic tendering • Migrating “CouncilTenders” (formerly LETS) from Australia to the UK • All WY Councils to share same electronic tendering system (ETS) • Modifying ETS to capture information on local sourcing and SME usage

  36. Deliverable 4 Electronic procure-to-pay • Further roll-out and development of Marketplaces • Review of ‘procurement management information’ needs across the Councils • Pilot projects looking at e-enabling elements of the ‘procure to pay’ cycle (Ordering, Payment, Invoices) • Regional electronic auctions

  37. Deliverable 5 SME engagement & enablement • Research supplier concerns around working with councils generally and around e-procurement • Programme of joint events ‘demystifying’ working with Councils in West Yorkshire • Information booklet and website: “How to do business with West Yorkshire Councils”

  38. Deliverable 6 Joint contract/supplier management • Supplier Management • Online supplier management system • Suppliers register information once but info available to all WY Councils • Avoid filling out similar forms for all WY Councils • Avoids all WY Councils vetting same firms • Shared approved lists • Allows initiatives to be developed in line with political strategies e.g. local sourcing and SME support and development

  39. Deliverable 6 Joint contract/supplier management • Contract management • Online contract register for WY Councils • Better contract planning, packaging and design • Identify opportunities for joint contracting • Single source of business opportunities • Market development and management • ‘Opportunity Matching’ through business support organisations

  40. National Procurement Strategy & Regional Centres of Excellence  The Future Fitting it all Together…

  41. Regional Centres of Excellence • 9 Regional Centres in the UK • Leeds City Council hosts the Regional Centre of Excellence for Yorkshire and the Humber (21 local authorities) • Government funded to 2008 then self-funding • Centres will deliver • Gershon Efficiency Savings • National Procurement Strategy

  42. National Procurement Strategy • Milestone targets for 2004, 2005, 2006 • Key themes • Leadership and Building Capacity • Partnering and Collaboration • Doing Business Electronically • Stimulating Markets • Achieving Community Benefits • Leeds already making good progress • Targets embedded into LCC own strategy

  43. Questions wayne.baxter@leeds.gov.uk

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