Leeds City Council

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Leeds City Council

• Electronic Procurement
• San Sebastian - 11th 12th April 2005

Wayne Baxter Chief Procurement Officer
www.counciltenders.net
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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

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The Starting Point...
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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 SMEs
• Exploit opportunities for joint working between
  local authorities
• Linking procurement strategy and policy with
  other corporate priorities/strategies

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Drivers Objectives

• Progress towards meeting the Governments 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

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Overview Systems Processes
Value Added Services
High Value, Low Volume Procurement (TENDERS)
Low Value, High Volume Procurement (ORDERS)
Contract Management
Portals
e-Auctions
POLICY INFRASTRUCTURE TRAINING
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A Step by Step Approach
?
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Leeds Electronic Tendering System (LETS)
Leeds Contract and Supplier Management System
(LCSMS)
Leeds Electronic Purchasing System (LEPS)
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UK Central Government e-Procurement Initiatives
for Local Government
IEG Partnerships
National Procurement Strategy for L.Gov
Regional Centres of Excellence
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Fitting it all Together
Central Gov Agenda
Leeds Strategy
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Fitting it all Together
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The Catalyst...
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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
Prepare Response
Lodge Response
Open Tenders
Award/Notify Tenders
Evaluate Tenders
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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
Prepare Response
Lodge Response
Result/Status Published Online
Open Tenders
Award/Notify Tenders
Evaluate Tenders
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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

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The Home Page
www.counciltenders.net
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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

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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

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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 tenders status after
  lodgement (reduced phone calls).

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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

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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

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Toolkit OverviewBased on Supplier FAQs

• 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?

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Fitting it all Together
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National e-Procurement Project

• Project Overview

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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

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NePP - Why is the project needed?

• 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

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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)

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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

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NePP - More Information

• www.idea-knowledge.gov.uk
• www.nepp.org.uk

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Fitting it all Together
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West Yorkshire IEG Partnershipe-Procurement

• Project Overview

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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)

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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

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Sub-regional e-procurement strategy
Deliverable 1

• 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

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Standard documents procedures
Deliverable 2

• 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

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Electronic tendering
Deliverable 3

• 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

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Electronic procure-to-pay
Deliverable 4

• 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

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SME engagement enablement
Deliverable 5

• 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

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Joint contract/supplier management
Deliverable 6

• 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

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Joint contract/supplier management
Deliverable 6

• 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

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Fitting it all Together
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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

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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

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Questions
wayne.baxter_at_leeds.gov.uk