Embed Size (px)
Citation preview
Procurement, Capital and Shared Assets Workstream
Cllr Paul Bettison Andrew Smith OBE
Friday 3rd December www.local.gov.uk
The productivity challenge…• Cultural not technical – who can afford sovereignty?
The productivity challenge…
• Designing for tomorrow today
The productivity challenge…
• Driving adoption
The productivity challenge…• Embracing localism
The productivity challenge…• Making a significant impact on costs
• 96% of spend is in construction, corporate services, social care and waste and in the last two costs are set to double
• Our solutions need to deliver for each of these markets
• Working with suppliers to reduce costs• We need to help suppliers reduce their costs, simply driving down margins
becomes counter productive• There is an expanding range of service providers in the private, and voluntary
and community sectors - we need to help them reduce their costs too
• The challenge isn't technical its in our behaviour• We haven't been good at collaborating in the past but we have some
examples of excellence• We can deliver significant quick wins and reshape whole markets• Building capacity in local government to make the changes is critical
Workstream plan
• Short term – Quick Wins Strategy
• Medium term – Big Wins Strategy and new service models
• Longer term – Remove barriers to adoption = Optimum Leverage
• 50% of spend is through third party suppliers• External spend for public sector in England is £221bn…• Of which £50bn is local government• 96% of our external spend is in 4 areas
WasteConstruction Asset Management
Corporateservices
Social care
Big Wins Strategy… Follow the money
Construction and Asset Management• Build using a managed framework approach
Helping localism through increased leverageDeveloping long term performance based supplier relationshipsUsing collaborative frameworks as a vehicle for local economic benefitOffering a core framework design for local adaption
• Offering a Collaborative Education Partnership service modelA local government led best practice approachEasy access, low cost and flexibleDeveloping programmes not projects
• Sharing assetsBetter use of what you currently have – start simple Shape and improve service outcomes through sharing assets
• Learn from CLG Capital and Asset PathfindersDeveloping new property vehicles and funding mechanisms
Corporate services• Outsourcing corporate services
Developing new contracts with flexibility and incentives to reduce costs
Delivering a framework for shared services with CBI and industry
Looking at open source software and shared processes
• Reducing the costs of commodity procurement
An online best deals service to compare prices
Development of the Spotlight on Spend service to make spend transparent. Joining up business portals to make contracts and tenders more transparent.
Reviewing the best deals in the top spend categories in collaboration
with central government
• Energy Buying Guidance
Developing proposals on optimum energy procurement
Reviewing local energy production and local government’s role in this
Social Care• Reduce unit costs
Across the SE, London, WM & EM the Care Funding Calculator continues to offer a method for delivering savings on residential care and supported living – Savings since 2008 to date of £13m
Putting this online and extending to children‘s services
• Reduce purchasing
Developing a proof of concept to help authorities to expand their Shared Lives schemes to deliver support to a wider range of people, and reducing spend of up to 60% on traditional high cost services such as residential care and day care
• Shared approaches to procurement
Geographic frameworks to manage the markets for traditional forms of care
Regional or sub-regional community equipment services
Opening ‘best deals’ offers care providers reducing costs of service to
the public sector and self-funders
Waste and Resources
• Transformation Support Service
A service for all councils pursuing early stage and advanced waste partnerships, access to a national waste partnership forum
• National and regional procurement delivering frameworks representing significant procurement savings; reducing the costs of existing contracts, and; providing access to reduction and recycling incentive schemes
• Knowledge Transfer Waste Information portal with over 95% of LA’s registered
• Self Assessment an online service, allowing local authorities to self-assess their service against a blueprint of best practice. 70 authorities already using this.
Accelerating the learning…an example
Benefit
Learning
Local Authorities
• Technical
• Collaboration Leverage (local choice) (aggregation benefits)
• Product shift – but less risk
• More adoption of what works
• Supply chain management• Scale• Standardisation?• Compliance
The Future
The Future continued…• Adaptive
• Sharing capacity / skills / people (is sovereignty dead?)
• Redesign aggregate procure deliver
• Elected member leadership
• Is the private sector prepared?
• Procurement models based on: Joint ventures Asset backed borrowing vehicles Geography or place based
• Leverage
Questions and answers…
• We have published a Quick Wins document– We would welcome your feedback
• We will publish shortly a Big Wins document– We would welcome your suggestions
• We recognise that to make the programme meaningful we have to implement change– If you want to help take the programme forward please get
in touch
Workstream contacts and further infoMember lead: Cllr Paul Bettison: [email protected]
Chief Executive lead: Andrew Smith: [email protected]
Managing Director: Andrew [email protected]
Programme Manager: Michael Lee: [email protected]
Visit our website and join the community of practice:www.local.gov.uk/place-based-productivitywww.southeastiep.gov.ukwww.niepbuiltenvironment.org.uk
Thank you
