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Priorities for Public Procurement Reform

Priorities for Public Procurement Reform. Legislative & Policy Backdrop. NI Public Procurement Policy. Two sets of constraints on Departments. EU Directives/ UK Regulations NI Executive’s Public Procurement Policy. Achieving Best Value for Money.

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Priorities for Public Procurement Reform

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  1. Priorities for Public Procurement Reform Legislative & Policy Backdrop

  2. NI Public Procurement Policy Two sets of constraints on Departments • EU Directives/ UK Regulations • NI Executive’s Public Procurement Policy

  3. Achieving Best Value for Money “In today’s climate of tight budgets and ever-increasing demand, it is critical that the Executive makes optimum use of the resources available to it.” Minister for Finance & Personnel

  4. Achieving Best Value for Money “In today’s climate of tight budgets and ever-increasing demand, it is critical that the Executive makes optimum use of the resources available to it.” Minister for Finance & Personnel Dr Sean Farren MLA – Assembly – May 2002

  5. NI Executive’s Strategic Approach • Delivering Best Value for Money • Procurement Board • CPD • Centres of Procurement Expertise • Departments • Accounting Officers • Managing Public Money

  6. Procurement Board Strategic Plan – 2012/ 2015 • Delivering Best Value for Money in a challenging economic climate • To use Public Procurement to support economic growth in NI • To provide confidence in the public procurement environment

  7. Managing Public Money • Procurement should help deliver relevant departmental and government-wide strategies and policies.

  8. A Serious Issue? • Spending on goods, services &construction – approx 25% of the NI block • Big impact on NI economy • Key to delivering projects & business objectives • Interest by PAC & Committees • Serious reputational damage for organisations if not handled properly • NI Water/ NIHE/ Education • “Silent explosion in legal challenges”

  9. EU Regulation • Departments have freedom to define what they want to procure • Policy /Budget/ Business case • But not ‘unlimited’ • Public procurement legislation ‘directs’ & ‘regulates’ how it is procured

  10. EU Regulation • Section 24, NI act 1998 • Minister or Department has no power to do any act that is incompatible with EU Community Law • Breach of public procurement law is breach of EU Community Law • Actions are deemed lawful unless or until a court or other judicial body finds otherwise

  11. EU Regulation • Procurement is key strand in ‘EU Single Market’ strategy • Open opportunities across borders v “local jobs for local people” • ‘Prescribed & restricted procedures for the award of contracts’ v “innovation” & “getting things done”

  12. Identify needs Develop business case Develop Procurement Strategy Commissioning Public Procurement Public Procurement Model Market engagement Supplier selection Tender evaluation Contract award Procurement Procedures Leading to Contract Award Contract management Benefits realisation Project closure/Review Delivery of Requirements

  13. Priorities for Reform • New EU Directive • Simplification & standardisation • Simplified approach for below EU thresholds • Departments undertaking procurements valued < £30k • < £5k outside procurement rules but subject to value for money test • SIB/ CPD & CBI/ CPD reviews

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