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Collaboration in ICT – A presentation to the West Midlands
24th January 2014
Will Laing, Senior Relationship Manager – Local Government
Why collaborate at all?Information• £187bn public sector spend on good s and services – over 200,000 suppliers
• £40bn in CG: over 50% supplied by the Top 39 suppliers
• The £500m LG software market is dominated by 3 suppliers (70% share)
• A public sector organisation should be able to access knowledge on commercial engagements with suppliers from across the public sector – we need to end self-defeating “commercial confidentiality”
Capability• Leverage
• Specialist skills
• Shared services
• Improved supplier management and performance
• Driving innovation – internally and through supply chains
Efficiency• Lower costs of procurement
• Faster and more agile
• Better outcomes on price and quality
2 Commercial Reform
ObjectivesCrown Commercial Service to be operational• Revised Governance arrangements and senior management team
• Driving Service, Savings, and Reach (e.g. Managed Service rather than “just frameworks”)
• Covering both Central Government and Wider Public Sector
• Increase “true” Spend Under Management from approximately £1Bn towards the longer term goal of £10Bn+ (SUM stated today to be £11Bn)
• Advisory as well as a Direct Commercial service (Procurement and Contract Management)
Building Capability• Moving from approximately 600 staff today (450 GPS and 150 Efficiency Cluster) towards c1,000 by 2016/17
• Formal programme to develop the senior leadership to be a High Performing Team
• Formal recruitment hub established and showing results; significant recruitment activity
• Improved technology plan to be established and implemented
Common goods and services to be transferred• By end 2014/15, substantial spend will have been transferred
• Four trailblazer departments leading the way with spend and people transferred into CCS
3 Commercial Reform
Crown Commercial Service - reforming the commercial landscape
Retained departmental
commercial activities
Common but complex
transactions – joint working with
depts
Transfer of additional
commercial activities to CCS
CG & WPS Spend &
Procurements currently
transacted by CCS
4 Commercial Reform
Developing managed services and building world class commercial capability
Transferring operations to CCS - 4 trailblazer depts
circa £5bn of spend
Extending our involvement in complex commercial
activities e.g BPO
Strengthening functional leadership and improving
commercial capability
Influence and service
“We are creating a world leading organisation, providing fully managed end-to-end direct commercial and advisory service”
5 Commercial Reform
The new DNA for commercial activitiesBus
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ier
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Goal
High
Low
Time spent on value added activity
Before going to market
ProcurementProcess Contract and
supplier management
Managed Commercial Services delivered centrally - once on behalf of Government
UNCLASSIFIED
Developing requirements that
shape markets and the supply base to
Government
Improving contract and supplier management
capability through application of new
standards
Simplifying process and reducing
turnaround times & supplier bid costs
Av’ge turnaround times for EU procurements now less than 100 days (200 days in 2011)
Circa 20% of spend is now with SMEs (baseline 6% - direct spend only)
Before
Published pipelinesCross Government contract review
What CCS will expect from suppliers
Commercial Reform
To embrace competition
To be innovative through proposals
for how we can improve services
To be transparent through open book
accounting
To demonstrate high levels of
corporate responsibility
To deliver what we are asking for as
an intelligent client
To deal effectively with CCS as one customer - the
Crown
To make a reasonable but not
excessive profit
To provide opportunities to
SMEs in the supply chain
To deliver savings for taxpayers
6 Commercial Reform
Early examples of CCS in action
Commercial Reform
• Managed service provides access to a pool of 175 agile digital services suppliers (84% are SMEs and 38% are new suppliers to government).
Digital services Framework
• £2bn worth of energy procured and delivered across the public sector in 2012/13 with savings to the public purse in excess of £109m.
EnergyFacilities
management• New contracting model being
procured. Estimated savings over current model in the region of 10% to 15% (up to £350M) over the life of the vehicle (4 years).
G- Cloud
• 4th Generation contracting vehicle in place providing access to 1000 suppliers (84% are SMES). £64m of spend transacted through G-Cloud since inception in April 2012 via circa 4000 procurements.
• 63% of business by value has been won by SMEs.
7 Commercial Reform
8 Commercial Reform
ICT Category Management Governance Structure
London Procurement Strategy Board
London Connects
ICT Cat Mgt Project Board
Wireless Datacentres
Apps SRM eAuctions
Camden (Terry Brewer)
Newham (Geoff Connell)
Haringey (David Airey)
Camden (PMO)
Enfield (Tim Kidd)
Society of London Treasurers
GPS DeliveryTeam
The National Strategy
LGA National Procurement Strategy for Local Government• ICT one of three priority categories (construction and energy are the others)
• National category lead is Terry Brewer, Divisional Director, LB Harrow
• ICT leadership provided through SOCITM and the Local CIO Council
• A first iteration of the category strategy for ICT is with the LGA’s National Advisory Group for Procurement (NAG4LGP)
Key Themes• Local ownership and local leadership – each region can address its own priorities
• Technology opportunities – desktop alliance, data centre rationalisation, digital innovation in service delivery and citizen access
• Savings – our own target is 20% of the £2.1bn spend over three-years
Operational Delivery• Major national agreements developed in partnership between CCS, GDS and the Pro5
• CCS has a significantly expanded regional Customer Service function
• Drive as much input and influence as possible from customers
• Have defined roles for LG staff that want to get involved
9 Commercial Reform
LG Software Applications - Now£500m + spend per year in Local Government
Councils report common issues around value, technology capability and service support
Multiple, independent budget-driven solutions – often extending failing agreements
A complex pattern of bespoke deployments and licensing model creates lock-in
A complete lack of transparency and control
Huge waste and lost opportunity
10 Commercial Reform
LG Software Applications – A Major Opportunity for 2013/14
A common procurement platform which enables access toALL major systems
All commodity unit costs explicit
Flexible access through direct award and further competition
A range of technology models: hosted, licensed, SAAS
A master standard SLA to enable agile deployment
Developed, owned and used by Local Government
TCO reduction? …could be up to 50%
11 Commercial Reform
IT Products, Associated Services and Solutions
Transactional IT Procurement System (TIPS)
1 Contract
4 Lots
6 Lots
Information Assurance (Product and Services)
Commodity Software Solution Services
IT Products & Value Add Services
End User Computing Devices
Transactional portal for COTS IT Hardware and Software Products
Packaged Software & Value Add Services HR
Document Management
Data Management
ERP
Finance / Accounting
CRM
Proposed Procurement Vehicles & Lot Structure
12 Commercial Reform
IT End User Computing Devices
IT Product and Value Added Services
Information Assurance
YES
YES
IT Products, Associated Services and Solutions (IT PASS)
Targeted Audience
Value Added Resellers
End User Devices providers
Anticipated Suppliers
10 – 15 Suppliers 7 – 12 Suppliers
3 – 7 Suppliers
Service Requirement
Wider range vendor neutral products
Close to the box IT hardware related services
IT consumables and accessories.
Value-add associated services
Desktop computer bundle
Laptops, Tablets, Thin client, Hybrid device
Accredited vendor neutral IT Product providers
Secure destruction & disposal
HMG compliant facility (List X )
Framework Access
Further competitions
Regular eAuction Further competition
Further competitions
IT PASS – Framework Agreement structure
Packaged Software Value Added Services
Large Account Resellers
P2P Further competition
10 – 15 Suppliers
Wide range vendor neutral products
Enterprise Software licenses
Implementation and configuration services
Value added associated services
Large Account Resellers
13 Commercial Reform
Recommended