CIPFA Scotland Conference 2016 Welcome by chair David
CIPFA Scotland Conference 2016
Welcome by chair David Robertson CIPFA Scotland Branch Chair
Keynote address Jack Black Mindstore
Scotland’s rock ‘n’ roll Provost Jim Todd East Ayrshire
Paul Mc. Nulty Deputy Director, Procurement Policy Procurement and Commercial Directorate From shared services to efficiencies – Procurement Reform and E-commerce
Background • Procurement Reform Programme; • Scottish model – essentially a shared service; • e-commerce systems; and • Changes to the procurement rulebook and how to prepare for them.
Government Led Public Sector Owned • Strong political leadership • Single overall strategy for improving public procurement in Scotland • Focus on collaboration • Centres of expertise • Procurement Capability Assessment
In Partnership With Business SAVINGS ? ? % contract awards SMEs
Scottish Model of Procurement Improving supplier access to public contracts Quality Cost Embedding sustainability in all we do Maximising efficiency & collaboration Delivering savings and benefits Sustainability
Supporting Sustainable Economic Growth
Shared Services +? ? % QUICK QUOTE >£? ? bn 20 15 10 5 0 2009 20011/12 PECOS
Public Contracts Scotland • Advertising Portal Launched in 2008; Provided by a Scottish SME • In 2015 19, 300 suppliers awarded contracts: – 77% were Scottish; – 62% were Scottish SMEs; and – 78% were SMEs from all locations. • Over 60, 000 supplier registrations and 6, 000 buyers held • Mandated to be used by all Scottish Public Sector contracting organisations for all regulated procurements from 18 April 2016 • Provides a publicly viewable Contract Register
Scottish Procurement Information Hub • An online tool that allows over 100 Scottish Public Sector bodies to examine procurement spend by analysing their Accounts Payable data. • In 2014/15 over £ 10 bn of spend analysed by: – Size (the ability to identify SME spend); – Region (Scottish based suppliers identified); – Category (suppliers classified by their main category of trade). • Identifies key suppliers, collaborative opportunities, invoice activity and spend with contracted suppliers • Ten years worth of spend data available for analysis
PECOS • National Purchase-to-Pay (P 2 P) platform, launched in 2001. • Embeds compliance to internal procurement, finance and audit processes/procedures • 89 user organisations from across health, local authorities, central government, universities and colleges • During calendar year 2015, captured 2. 5 million orders covering £ 5. 1 billion of spend • NHS enabling access for parents who need to order medical equipment for children being cared for at home
Catalogue Content Management (CCM) • Central hub hosting catalogues for national, sector and local contracts • Enables procurement teams to validate, approve and publish catalogues • 78 user organisations from across all sectors • Over 2, 760 registered suppliers and 6, 770 catalogues detailing 1. 5 million individual product lines
e. Invoicing • EU Directive requiring public bodies to accept e. Invoices from Nov 2018 • Capability being delivered through PECOS • Presents the invoice in an electronic format for matching and payment • Began roll-out in Oct 2014 after successful pilot at West Lothian Council, a further 6 local authorities and 1 college are now live; 89 public bodies actively engaging • Since pilot project commenced in 2013, over 45, 400 invoices have been processed
Legislative changes Transparency Simplification Sustainability Procurement Reform (Scotland) Act 2014 Procurement (Scotland) Regulations 2016 Public Contracts (Scotland) Regulations 2015 Utilities Contracts (Scotland) Regulations 2016 Concessions Contracts (Scotland) Regulations 2016
Procurement (Scotland) Regulations 2016 Procurement Reform (Scotland) Act 2014 commenced 18 & 19 Jan 2016 analysis report published Public Contracts (Scotland) Regulations 2015 18 Dec 2015 Consultation responses 10 Aug 2015 Public consultation on policy options 9 Feb - 30 Apr 2015 Key steps to new legislation
Key Change Sustain Simplify • Sustainable Procurement Duty • Fair work practices • Community Benefits • Supported Businesses • Public Contracts Scotland • European Single Procurement Document • Procurement Journey Transparent • Procurement strategy • Annual report • Contract register
Scotland’s new Procurement Legislation Public Contracts (Scotland) Regulations 2015 OJEU value contracts Procurement (Scotland) Regulations 2016 Goods / service contracts ≥ £ 50, 000 Works contracts ≥ £ 2, 000 Concession Contracts (Scotland) Regulations 2016 OJEU value contracts Utilities Contracts (Scotland) Regulations 2016 OJEU value contracts Procurement Reform (Scotland) Act 2014 20
Implementation Timescales In Force Public Contracts (Scotland) Regulations 2015 18 th April 2016 Procurement Reform (Scotland) Act 2014 18 th April 2016 Sustainable Procurement Duty & Community Benefits Procurement Strategies 1 ST June 2016 31 st Dec 2016 Procurement (Scotland) Regulations 2016 18 th April 2016 Statutory Guidance Selection of tenderers and award of contracts Health and social care services Sustainable Procurement Duty use of Community Benefits Procurement strategies & annual reports 18 th April 2016 1 st June 2016 31 st Dec 2016 21
All communication by electronic means, all other contracting authorities 18 Oct 2018 Provide the ESPD in electronic format only 18 Apr 2018 Community benefit requirements apply All communication by electronic means - central purchasing bodies 18 Apr 2017 and Produce procurement strategy 31 Dec 2016 All Scottish contracting authorities use ESPD form Sustainable procurement duty 1 Jun 2016 Procurement Regulations transposing the European Directives and provisions under the Act come into effect 18 Apr 2016 Key Dates
Guidance Statutory Guidance People Systems Policy Support PCS E-learning PCS-Tender Face-to-face training
Your Next Steps Upskill • Training • Support Review • • Policies Procedures T&C’s Template documents Communicate • To all your staff not just procurement teams • Engage suppliers & communities
“From shared services to efficiencies” • Efficiencies – yes, our strength is in sharing good practice and resources. • 2009 Audit Scotland report found we have met John Mc. Clelland’s targets, probably well in excess of £ 2 bn saved since 2006 • And we have delivered substantial wider socio-economic benefits through community benefit clauses
Thank you. • Q&A?
Refreshments followed by workshops
Reflections on the budget and leading public services under spotlight Rob Whiteman CIPFA
Workshops followed by lunch
A social bite Alice Thompson Social Bite
Growth and Reform: the ambition for Greater Manchester Mike Owen Chief Executive, Bury Council
GM is now “Officially the Most Exciting Place in the UK!” (The Guardian – 25 th Feb 2015)
Greater Manchester: a history of working together Metrolink Business Leadership Council Established From 1986 2008 GMCA & LEP established Prosperity for All: GM Strategy 2009 GM City Deal 2010 Publication of the MIER 2012 2011 Thematic Commissions established AGMA, GMITA & Airport Growth & Reform Plan developed Growth Deal 2013 Community Budget pilot Tf. GM established 2014 Devolution Agreement Refreshed New. GM GM Strategy Interim Mayor appointed 2015 2012 Further Devolution announced Health Mo. U
The Greater Manchester economy
GM as a net contributor to the national economy £ 30 £ 25 £bn £ 20 £ 15 £ 10 £ 5 £- 2008 2009 2010 2011 Total GM spend (incl. proportion of national spend) 2012 2013 2014 Total GM Tax income • A vision to move GM from being a cost centre to a net contributor to national public finances • GM’s economy currently generates £ 20 billion in taxes but requires £ 27 billion in public spending • GM is seeking greater control over the levers and resources available to the public sector to close this gap
Our ambition • A financially self-sustaining city region, sitting at the heart of the Northern Powerhouse, with the size, assets, skilled population and political and economic influence to rival any global city • Driving sustainable growth across GM, and ensuring that all GM residents are able to contribute to and benefit from that growth – Creating the conditions for growth by making the best use of our land supply and investing in our infrastructure and assets – Increasing total productivity by improving the skills base of our population and driving higher levels of business growth – Helping our citizens to become independent and self-reliant, focusing on person-centre delivery models to provide integrated programmes of support, increasing the proportion of residents in work and helping them to progress through work • Our priorities are exemplified by the Northern Powerhouse: a strategy that enables empowered City regions to collaborate through greater connectivity, supporting the re-balancing of our national economy 38
Growth and Reform
GM Devolution: key milestones Nov 2014 First Devolution Agreement Feb 2015 Health & social care MOU March 2015 Budget Statement July 2015 Nov 2015 Budget Statement Spending Review GM devolution is based on: • strong, stable and effective governance arrangements • a clear and evidenced strategic vision • a proven track record of delivery • a “roadmap” to reform and a recognition that full devolution will take time and require a staged approach • a series of clear propositions to Government, setting out what we would do differently and the benefits that would bring Government clear that in return some form of directly elected leadership at GM level was required
What is being devolved to GM? • • • A multi-year financial settlement for transport Franchised bus services with power over fares, routes, frequency and ticketing The ability to shape local rail station policy Strategic planning powers, including the power to create a statutory spatial framework for GM A £ 300 m housing investment fund The power to establish a GM Land Commission to make best use of publicly owned land The responsibilities currently discharged by the Police and Crime Commissioner and GM Fire and Rescue Authority Business support provision The ability to re-shape and restructure GM’s further education provision Joint commissioning of employment support programmes with Government A fundamental review of the way that services for children are delivered All funding and decision making for health and social care within GM
Evolving governance arrangements • Interim Mayor, as an 11 th member of the CA, appointed at the June 2015 GMCA AGM • Legislation to create the role of a directly elected Mayor now in place – First elections anticipated in 2017 – Chair of the GMCA and Cabinet – 10 Leaders with portfolio responsibilities allocated by the Mayor • Devolution of some new responsibilities has been possible without legislation and have passed to the GMCA. Others dependent on the implementation of the city region Mayoral model • On public service issues the GMCA members and the Mayor will each have one vote • The directly elected Mayor required to consult the GMCA Cabinet on strategies and spending plans – which a two thirds majority can reject or amend
GM devolution: implications • Devolution is a game changer for GM: a significant shift of power and responsibilities from the centre to a local area • GM’s devolution settlement helps GM deliver its strategic ambitions by taking a truly integrated approach to driving economic growth and the reform of public services • Powers and responsibilities transferred from Government to GM are geared towards accelerating growth, boosting skills and encouraging local decision-making and increased self-sufficiency • Devolution gives GM a much stronger national and global voice giving the message that Greater Manchester in a great place for business • Further opportunities to agree further devolution in the months and years ahead
Devolution and reform gives us the opportunity to work together in new ways, linking more of our residents to the opportunities of growth
We’re focusing on early intervention and prevention Working in collaboration to support GM residents and improve outcomes Local Government • Thinking about cumulative impact rather than single service planning • Identifying and addressing demand before it escalates • Supporting individuals and families collaboratively, working across organisational boundaries • Reducing demand on expensive, reactive services Health services Police Fire & Rescue Housing
Core principles underpin our approach to reform, which rely on place leadership GM REFORM PRINCIPLES 1. A new relationship between public services and citizens, communities and businesses that enables shared decision making, democratic accountability and voice, genuine co-production and joint delivery of services. Do with, not to. 2. An asset based approach that recognises and builds on the strengths of individuals, families and our communities rather than focussing on the deficits. 3. Behaviour change in our communities that builds independence and supports residents to be in control 4. A place-based approach that redefines services and places individuals, families, communities at the heart 5. A stronger prioritisation of well being, prevention and early intervention 6. An evidence led understanding of risk and impact to ensure the right intervention at the right time 7. An approach that supports the development of new investment and resourcing models, enabling collaboration with a wide range of organisations.
Delivering our ambition: aligning reform across GM H&SC TRANSFORMATION WIDER REFORM ACROSS GM
To deliver our ambition, our workforce must develop… Working in collaboration Making use of, having access to, and sharing appropriate data to support decision making Linking people to assets in their communities Being empowered to make decisions Having new roles Having a different conversation
…success is reliant on a different model of leadership • Understanding the GM ambition • Leading places and systems as well as our organisations • Taking asset based approach (focus on strengths, not deficits) • Following the evidence of what works, build a GM data set that enables us to collaborate • Ensuring all decisions are informed by professional / clinical information and judgement together with consideration of the consequences for the people and places impacted by those decisions • Being democratically astute and champion accountability • Building strong connections and relationships • Acting with authenticity and integrity • Creating the conditions where people can thrive • Connecting with and respect other people, their stories and history • Being resilient, curious and relentless • Understanding the challenges associated with transforming places as well as organisations and systems
Questions?
Workshops followed by refreshments
Being an entrepreneur: an accountants tale Nigel Chadwick Stream Technologies
Close of Day One
Fringe event: The EC referendum debate
- Slides: 54