The new public procurement procedures

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The new public procurement procedures
instruments Ankara 5 February 2008

• Framework Agreements, Centralised and
• Coordinated Purchasing the UK system

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Framework agreements

• Relevant provisions of 2004/18/EC implemented
• In UK Regulations (Public Contracts Regulations
  2006)
• consultation on the new regulations had indicated
  that the approach in Article 32 was helpful and
  that the OGC guidance of May 2004 was good
• The UK regulations also implemented the
  provisions on central purchasing bodies

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Framework agreements

• Guidance
• updated guidance produced to link with
  regulations coming into effect on 31 January 2006
  
• training module covers frameworks
• Questions issues
• who can use
• how supplier is chosen at call-off satge
• duration

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Framework agreements benefits for purchasers

• EU compliant procurement process
• reduces timescales, so you can get what you want,
  when you want it
• should obtain value for money
• should allow for positive relations with
  suppliers

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Framework agreements benefits for suppliers

• EU compliant process
• reduced tendering costs
• if central framework, access to significant
  market
• should allow for good relations with purchasers

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Role of Office of Government Commerce(OGC) OGC
buying solutions (OGCbs)

• OGC set up in 2000 to
• co-ordinate departmental Government purchasing
  power
• improve procurement skills improve performance
  of major projects
• OGCbs
• commercial arm of OGC, but non-profit making
• key role to help public sector purchasers
  maximise procurement efficiency vfm
• income derived from a levy on frameworks paid by
  suppliers

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OGCbs frameworks

• Under the brand name Catalist, OGCbs has 5
  framework groupings
• Consultancy services
• Resourcing services (for delivery of specific
  pieces of work)
• IT for IT goods (hardware, software and
  infrastructure)
• Business solutions (for a complete end-to-end
  solution to meet a particular business need)
• Property solutions (including property and
  facilities management services, catering
  equipment, office equipment, furniture and
  furnishings)

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OGCbs view of benefits

• OGCbs frameworks provide access to 600 suppliers
  a vast range of products and services
• 77 days can be saved from the standard
  procurement process, more if e-procurement is
  used
• VfM obtained and prices are benchmarked via an
  independent organisation
• supplier performance monitored and central
  professional support available
• Suppliers have access to a wide market, there are
  economies of scale, reduced costs,standard
  contract terms, direct relations with customers.

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Collaborative procurement

• OGCs role set out in Transforming Government
  Procurement
• Acting collectively, rather than through
  separate departmental action, can be an important
  driver of value for money.
• Accounting officers have to take account of value
  for money for the Exchequer as a whole, rather
  than just the impact of a policy in achieving
  their own organisational objectives.
• This is particularly relevant in areas of common
  spend like commodity goods services

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Collaborative procurement why change?

• Get a better deal for the taxpayer by
  understanding managing and leveraging 78 billion
  of common public sector spend
• Deliver against public spending targets
• Release resources to support front line delivery
  in the public sector
• Deliver the Transforming Government Procurement
  agenda
• Embed collaborative procurement into sustainable
  better practice

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Collaborative procurement

• A growing number of collaborative, VfM deals are
  already available
• The following pilot categories cover 9.6 bn of
  spend on common goods and services
• Fleet
• Energy
• Travel
• Office Solutions
• A total of 55 separate categories have been
  identified

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References

• The Public Contracts Regulations 2006
• Framework agreements OGC guidance
  (www.ogc.gov.uk/documents/guide_framework_agreemen
  ts.pdf)
• Central purchasing bodies OGC guidance
  (www.ogc.gov.uk/documents/Guide_central_purchasing
  .pdf)
• Transforming Government Procurement
  (www.hm-treasury.gov.uk./media/E/6/government-proc
  urement-pu147.pdf)

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• Thank you