Tag: Contracts

New Model for Government Procurement

The government faces the challenge of making progress on its new procurement operational model while working with departments’ existing contracts, industry experts said.

At the end of 2010, John Collington of the Efficiency Reform Group (ERG), announced that his team aimed to transform the way government buys commonly used goods and services through category management, standard specification and aggregation of spend, to save 25% over 4years.

The 9 categories to begin this central procurement model are:

Energy, office supplies and professional services as the first three categories to be undertaken by March 2011.

Travel, fleet and telecoms will be addressed by June 2011

IT commodities, print management and advertising and media will be tackled by September 2011.

With March 2011 fast approaching, it is the wise supplier who keeps abreast of developments in this area

A spokesman for Price Waterhouse Coopers said, “Some contracts could be terminated, others will have to run their course,” he said. “The costs of ending contracts could be more inefficient than keeping them alive. There could be many different deals kept running when less have been identified as needed. It will take longer than nine months to get all nine areas tackled.”

The Cabinet Office declined to comment on how it would end multiple contracts with existing suppliers in individual Whitehall departments in order to enable the introduction of a centralised model.

Cabinet Office consultation on public contracts

Cabinet Office sign

In December 2010 the Cabinet Office invited feedback on the effectiveness of the public procurement rules. The purpose of that exercise was to inform the UK’s involvement in the ongoing review of the rules by the European Commission.

The Commission’s review is still underway, and it has now released a formal public consultation paper to which the Cabinet Office is preparing a UK response. Since the Commission’s recent consultation paper is substantially more detailed than the information previously provided by the Cabinet Office, they have extended the deadline for comments until 25th February.

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Solar Power Tenders – Summer Must be on It’s Way!

Did you know: 1 University, 2 Housing Associations and 3 Councils are installing up to 15k Solar Panels over the next 3 years. And that is just the tenders for one week! Someone out there must be predicting a scorcher this summer!

It is so nice to see the Public Sector looking for alternative means of energy, after all it was in 1997 (Kyoto Protocol) the UK Government promised to reduce greenhouse gases by 12.5% by 2008 to 2012. Last year the UK Government vowed its ‘greenest year ever’ and promised central government would reduce its carbon emissions by 10% within 12 months  60.5 million tonnes of greenhouse gases are created by the UK each year and the Public Sector is only responsible for 3%. That is any easy enough target to reduce, only 5.7 million tonnes!

See tips for suppliers after the jump…..>

Avoiding Risky Business

I recently attended our latest training courses on completing PQQs and Bid Writing. One of the messages I picked up was that the public sectors’ evaluation of suppliers is a lot like a risk assessment exercise.  Public sector authorities have to be scrupulous when spending tax-payers’ money.  They have to balance various priorities, including quality, budget, delivery, timescales, policies on equality, sustainability, supporting SMES and local businesses, and abiding by the relevant regulations, while also avoiding the risk of anything going wrong during the course of the contract.

So, as a supplier going through the tendering process, your task is not only to demonstrate to the purchasing authority that you can provide the requirement (and more if possible), but also that you can mitigate any risks that might be involved.

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Not winning any contracts?

Are you going for lots of tender opportunities but finding that you just can’t seem to get a look in?  Could you be guilty of bidding “blind”?

I sometimes get the sense that businesses new to public sector tenders (or sometimes even those with years of experience) think that on submitting a PQQ or a Bid,  as long as they’ve made some sort of submission, they’re in with as much  chance as anyone at  getting into the next round or winning the contract outright.  A bit like hoping your lottery numbers come up on a Saturday night or sending out reams of speculative CV’s on the hunt for a new job.

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Does Size Matter? SMEs in Public Sector Procurement

The public sector is a potentially lucrative source of business, as the UK spends about £222 billion a year on procurement.  There are also certain advantages to working with public sector organisations; they are required by EU law to be transparent and fair in the way they choose suppliers, they are very stable and reputable, and usually make prompt payments.

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