Business Services Marketplace Update Presented By Tom Crowe

Business Services Marketplace Update Presented By: Tom Crowe, Head of Procurement

Business Services Marketplace Introduction • LLWR Requirements • Business Services Marketplace • Dynamic Purchasing System – What & Why • Procurement Process • Next Steps

Business Services Marketplace What LLWR need……. LLWR require supply chain support across the following categories: • • • • Business (Change Management / Business Cases / Technical Authors ) Commercial (Sourcing / Claims / Quantity Surveying) Engineering (Advice / Asset Management / Maintenance / CDM) Environment (Advice / Consultancy / Ecology) Finance (Advice / Taxation / Auditing) Health and Safety (Advice / Consultancy / Specialists) Human Resources (Recruitment / Training / Facilitation) Legal (Advice / Corporate / Contract / Employment / Planning) Portfolio, Programme and Project Management Programme Controls (Planning / Estimating / Cost / Risk Management) Public Affairs (Photos / Reprographics / Marketing / Comms. / Events) Quality (Assurance / Process Improvements / Management System) Security (Advice / Consultancy / Specialists)

Business Services Marketplace What features must it have……. • Desired Characteristics from the Business: • • • Simple (We can just get quotations rather than tenders) Fast (Be in contract in less than 2 weeks) Flexible (Tell suppliers what we think we need) Dynamic (Add in new suppliers when needed) Value Added (We can access the companies that care about our needs? ) Desired Characteristics for the Commercial Team: • Suppliers that care about the SLC, the community and see meaningful opportunities • Accessible to All Suppliers (Level the playing field) • Range of Pricing Options (Fixed / Reimbursable) • Cost Efficient (Reduce multiple tiers of sub-contracting) • Simple to administer (Electronic / Standard Terms)

Business Services Marketplace What LLWR chose to use……. • A Dynamic Purchasing System • NEC 3 Professional Services Short Contract. • Multiple pricing options, based on further competition scopes. • NDA Flowdowns included on a ‘case by case’ basis, price dependant. • Insurance levels expected to be as low as legally required. • A duration of four years

Business Services Marketplace What is a Dynamic Purchasing System (DPS) • An efficient ‘route to market’ compliant with the Public Contract Regulations Feb. 2015. • A DPS is a two stage process: • Initial setup (Qualification) stage • Further Competition stage • A DPS can be divided into multiple categories. • Suppliers, in accordance with the Regulations, ‘self-certify’ their compliance with the selection requirements. • Suppliers can join the DPS at any time within the ‘term’.

Business Services Marketplace Why choose a DPS…… • Establishing a Dynamic Purchasing System achieves the following: • • • Simpler solution for Buyer and Supplier Use of existing IT solution Easier to be fully compliant (reduced sole source demands) Suppliers go through Selection once Ability to add in new suppliers over time Accessible to Large Enterprises / SMEs / Local Suppliers Can breakdown requirements into small one-off packages Can contract for larger multi-year services Cost of tendering / evaluation reduced Increased competition

Business Services Marketplace Procurement Process Overview • Tender process conducted via CTM: https: //sharedsystems. eu-supply. com/llwr. asp • An ‘open market’ product designed to provide access to a pool of Potential Suppliers where new Potential Suppliers can join at any time. • Potential Suppliers wishing to join the Business Services Marketplace must ONLY complete a Pre-Qualification Questionnaire (PQQ). • The completed PQQs are evaluated on a pass/fail basis to establish the Supplier’s general capability for provision of the required services.

Business Services Marketplace Our reasons for something NEW…. • Unsuccessful suppliers can reapply at any time; • Level of effort to access the DPS is decreased; • SME Friendly; • Opportunity to stimulate the Local Supply Chain; • Suppliers choose whether to bid for each further competition.

Business Services Marketplace Timescales Sourcing Strategy February 2016 LLWR Internal Sanctioning Ho. Ps SSAG DPS Questionnaire April 2016 Publish to Supply Chain Further Competitions May 2016 Onwards Issue to Approved Suppliers

Business Services Marketplace Questions