Office of Government Procurement National Healthcare Conference

Paul QuinnChief Procurement OfficerWednesday 2 April 2014

An Overview of Procurement Reform

Operating Model

Agenda

Progress Update

Procurement Reform Overview

• A key public service reform programme - to reduce costs and achieve better value for money through reform of public procurement.

• The Office of Government Procurement (OGP):– launched in July 2013– operates as an office of the Department of Public Expenditure and

Reform, with its own Vote– strong governance model

• Savings target of €500m over 3 years.

• Operation of the new model commencing in first half of 2014.

To deliver sustainable procurement savings for the tax payer by optimising value for money

across the public service.

Customers will have easy access to high quality procurement services that they have

confidence in and procurement staff are proud to provide.

Vision and Mission

Common Policies

Common Systems, Processes and Data Management

Common Governance

Office of Government Procurement

Health

Defence

Education

Local Government

• The Public Service will speak with ‘one voice’ to the market.• Common goods and services will be sourced from one office, formed from resources

who will come together from across the civil and public service.• Health, Education, Local Government and Defence will each retain a single sector

procurement function to procure sector-specific categories.

Operating Model

How Procurement is Changing

OGP Led Categories

• Professional Services• Facilities Management and

Maintenance• Utilities• ICT and Office Equipment• Marketing, Print and Stationery• Travel and HR Services• Fleet and Plant• Managed Services

Sector Led Categories

• Local Government– Minor Building Works and Civils– Plant Hire

• Health– Medical Professional Services– Medical and Diagnostic Equipment and

Supplies– Medical, Surgical and Pharmaceutical

Supplies• Defence

– Defence and Security• Education

– Veterinary and Agriculture– Laboratory, Diagnostics and Equipment

• Objective is to deliver contracts that meet the needs of customer organisations and that deliver value for money for the tax-payer.

• Aim is not to homogenise everything the public sector buys.

• Role of Category Councils is decide the sourcing strategies for goods and services, taking into account customers’ requirements, market dynamics and the savings required.

• Each Council made up of members who are nominated by the Departments and Agencies that are the main users of the category. Each chaired by a Procurement Category Lead.

Customer Needs & Category Councils

Budgeting and

Planning

Sourcing and Category

Management

Contract Management

Requisition to Payment

Responsibility Split

The procurement function will focus on market sourcing strategies and tendering,and will support internal customers in budgeting and contract management.

• Important that new structures are accessible to all scales of suppliers, but may require different models such as consortia

• Addressing the Barriers• Pro-active engagement: ‘Meet the Buyer’• Briefing sessions with suppliers nationwide• Standardisation of procurement tender documents• Department of Finance Circular 10/10• Go 2 Tender Programme • SME working group • New EU Procurement Directives

SME Involvement

• Management Team appointed.• Office established in Bishop’s Square.• Website launched www.procurement.ie • Governance established with involvement from across public service at

Ministerial, Secretary General and Senior Management levels.• Recruitment campaign underway to staff new centre-led model from within

public service – staffing of OGP will be approx. 225 people from current 54.• Operation of the new model commencing in first half of 2014.

Establishing the Office of Government Procurement

Initiation Planning & Scoping Implementation Operation On-going

Review

• Procurement reform a key element of Government reform agenda with significant savings targeted.

• Policy and Operations are coming together into one office.

• Government investing in procurement across the public service through dedicated structures, increased professionalisation, and improving systems and data.

• Model will be centre-led, with OGP leading for common categories of spend and ‘One-Health’ for health-specific areas.

Key Messages

Thank You