Implementation of the EU procurement Directives and wider commercial reform. Lessons to learn from UK?

Transcription

1 Implementation of the EU procurement Directives and wider commercial reform. Lessons to learn from UK? Ed Green Deputy Director EU and Domestic Procurement Policy, Crown Commercial Service

2 The Crown Commercial Service The new commercial and procurement function for the UK Government Responsible for procurement policy and includes the team that successfully negotiated the reforms to the directives. Also provides expert commercial services and advice Brings together: Commercial function of the Cabinet Office, including Government procurement policy The Government Procurement Service (GPS) Common goods and services procurement undertaken by departments The new organisation offers: A fully managed, end-to-end commercial and procurement service An expert commercial advisory service The Crown Commercial Service will enable us to get better value from the 40 billion spent by Government each year 2 Commissioning Academy 2014

3 Reforming the landscape Retained departmental commercial activities Common but complex transactions joint working with depts Transfer of additional commercial activities CG & WPS Spend & Procurements currently transacted Strengthening functional leadership and improving commercial capability Extending our involvement in complex commercial activities e.g IT/BPO Transferring operations - 4 trailblazer depts circa 5bn of spend Developing managed services and building world class commercial capability 3 Commercial Reform

4 Developing a new DNA for commercial activities Managed Commercial Services delivered centrally - once on behalf of Government High Time spent on value added activity Before going to market Developing requirements that shape markets and the supply base to Government Procurement Process Simplifying process and reducing turnaround times & supplier bid costs Contract and supplier management Improving contract and supplier management capability through application of new standards Low Before Goal 4 Making Government More Accessible to SMEs

5 SMEs backbone of the UK economy Non-SMEs SMEs Rest SMEs SMEs are 99.9% of UK Private Sector businesses and: -employ 14.4m people (59.3% of private sector employment) -Have combined turnover of 1.6 trillion 48.1% of private sector turnover -Source: Business Population Estimates for the UK and Regions, 2013 (BIS/NAO) on Gov.uk posted 23 October Making Government More Accessible to SMEs

6 The Coalition Agreement We will promote small business procurement, in particular by introducing an aspiration that 25% of government contracts* should be awarded to small and medium-sized businesses and by publishing government tenders in full online and free of charge. Re-iterated in the Mid Term Review: We will aim to ensure that 25% of government spend goes to SMEs *by value directly and in the supply chain Direct SME spend increased from 2.9 billion in 2009/10 (6.5%) to 4.5 billion (10.5%) in 2012/13. Further 4 billion (9.4%) in indirect spend through the supply chain for 2012/13. Making Government more Accessible to SMEs 6 Making Government More Accessible to SMEs

7 Policy Delivery SMEs Implementing a wide range of measures to level the playing field for small companies, charities and voluntary organisations to be in the best possible position to compete for government contracts. OPPORTUNITY - Developing ways to make it easier to find opportunities to do business with Government Contracts Finder REFORM - Negotiating simpler, more flexible EU public procurement rules Supporting the commercial community to implement and comply with the legal and policy framework COMMITMENT - All departments have developed action plans and targets to increase their spend with SMEs and deliver their contribution to the 25% aspiration COMMUNICATION - SMEs given new channels of communication including Mystery Shopper, SME Panel, Crown Rep 7 Commercial Reform

8 Contracts Finder Government s one stop shop for suppliers to find procurement opportunities worth over 10,000-76,000 registered and guest users, -145,000 page views a week - 177bn of potential contracting opportunities across 19 sectors - We are refreshing Contracts Finder for this autumn to improve: - Accessibility easier to use, more functional - Scope extension to the whole Public Sector - Transparency encouraging large suppliers to highlight opportunities 8 Making Government More Accessible to SMEs

9 Mystery Shopper Enhanced service now in place which spot checks procurement documentation and processes with over 200 spot checks undertaken as of 30 April Making Government More Accessible to SMEs

10 GCloud -Launched April 2012 Transforming the way the public sector buys IT services simpler, clearer, faster, cheaper -5 versions to date most recent tendered February - great SME success story: -GCloud 5 88% of suppliers are SMEs -SME spend has increased from below 20m in April 2013 to above 80m by April Making Government More Accessible to SMEs

11 Main reforms from new EU directives Greater Freedoms Simplification & reduced red tape New, improved or clearer rules Greater Flexibilities New EU Commitment Allowing negotiation with suppliers - relaxation of the rules on the competitive negotiated procedure Assessing suppliers credentials - greater use of self-declarations Electronic Marketplaces & Dynamic Purchasing System Poor performing suppliers ability to exclude Public Service Mutuals & Social Enterprises contracts reserved before exposure to competition Review the effects of the EU thresholds Reduced times for suppliers to respond to adverts/tenders Skills & experience of individuals (consultants, lawyers & architects etc) to be taken into account Together - significantly changing the face of public procurement Social and environmental aspects Implementation by the end of Commercial Reform

12 12 Transposition Directives require transposition in Member States within 2 years of coming into force at EU level (i.e. by April 2016) There are complexities as we have to make several hundreds of pages of law: Government policy on consultation / policy choices to bottom out impact assessments training and embedding regulation-drafting (no gold-plating), making and laying Planning to transpose early, within the year, to realise economic benefits quickly, subject to results of consultation

13 13 Embedding Procurement Directives Face to Face Training Delivered through 140 volunteer trainers, trained by Crown Commercial Service E-Learning Materials Over 200 sessions across the UK in June and July 14 Hosted by CCS from June 14 60,000 capacity from Handbook available on the Gov.uk and CCS Website June 14, Guidance and specific materials will follow.