Winning Business Event Working with Cardiff Council Steve

Winning Business Event Working with Cardiff Council Steve Robinson Head of Commissioning and Procurement Cardiff Council 24 th October 2013

What I will cover • About Cardiff Council, the challenges and key changes to procurement • How to access and respond to tender opportunities • Questions and Answers

About Cardiff Council • Unitary authority since 1996 – delivering services to 346, 000 residents • Largest employer in Wales – 15, 500 employees 12, 000 FTE in Dec 2011 • Diverse range of statutory and discretionary services including – Highways and Waste Management – Adult and Children’s Social Care – Social Housing – Leisure Centres and Parks 3

The Challenge Facing Cardiff • Cardiff facing continuing financial pressure and needs to reduce overall cost - c. £ 125 m over the next 3 financial years • Increasing demand expectation - citizen-focused services • Need to become more efficient and effective • Focus on what we buy – goods, services and works – Deliver improved value and cashable savings – Reduce overall spend – Improving efficiency of sourcing, ordering and paying – Make sure we are buying the right things

Why Procurement Matters 2012/13 Spend data £ 353. 7 million 285, 700 invoices Number of Suppliers / Contractors – 8, 826 3, 500 Cardiff based suppliers

Where We Spend 2012/13 61% spent in Wales

Commissioning and Procurement Strategy 2011 – 2015 • • • Sets the Strategic Direction Establishes key policy principles Sets out what we are going to do Provides a framework to plan and deliver change www. cardiff. gov. uk/procurement

What has changed? • Internal management of spend in accordance with our Contract Standing Orders – Increasing spend under management – Ensuring competition – Use of contracts and frameworks • Improved awareness, visibility and control of what we are buying – Challenge what we buy and reduce demand • Increased use of collaborative frameworks – Regional e. g. SEWSCAP – Welsh Purchasing Consortium (WPC) – National Procurement Service (NPS)

What needs to change? • Need to drive down costs will mean we need to look for opportunities to aggregate and consolidate spend • Need to improve use of technology – Not only when tendering but also day-to-day ordering and payment processes • Change nature of relationships – Continuous improvement • Look for innovation to meet service outcomes – Budget position will not allow us to carry on as we are

Economic Wellbeing • Local spend a major driver of local economic development • Although changes will be gradual they will result in: – Reduction in overall spend – Consolidation of fragmented spend across the Council – Greater use of collaborative arrangements • Reduction in the number of suppliers and contractors the Council directly contracts with • Aggregation and collaboration will inevitably lead to larger value contracts • Need to be smarter when tendering large value contracts • Need to improve access to lower value opportunities

Smarter Procurement We need to act smarter – – – – Understanding of business needs and market Pre-tender market engagement Use of Lotting Strategies Ensure Pre-Qualification requirements proportional to contract Encourage Consortia / Collaborative Bids Contract clauses re Supply Chain Opportunities Community Benefit Plans Effective contract and supplier relationship management

Source Cardiff / Regional • Source Regional is focused on improving access to lower value opportunities • Regional aspect working with Caerphilly, RCT and Torfaen to share practice and standardise • Focused on implementation of Opening Doors Charter / Barriers to Procurement Opportunities recommendations – Advertising opportunities for goods and services above £ 25 K through Sell 2 Wales – Phased removal of approved supplier lists – Use of Sell 2 Wales SQu. ID for pre-qualification – Standardised thresholds and documentation across Welsh public sector • Selling to Cardiff Council Guide

Legislation and Procedures • The Council must comply with EU and UK Procurement regulations • EC Treaty Principles – Open up competition, ensure transparency, fairness, equal treatment and non-discrimination of bidders • EU Procurement Directives – Requires all tenders / contracts with spend in excess of £ 174 k for goods and services and £ 4. 3 m for works to be subject to open competition – Provides minimum timescales for advertisements and tender submissions • Procedures – Open, Restricted, Competitive Dialogue and Negotiated

Contract Standing Orders & Procurement Rules All procurement carried out in accordance with the Council’s Contract Standing Orders and Procurement Rules Value Process Advertisement Up to £ 3, 000 Minimum of 1 quotation Not normally advertised – Council staff directed to search Alito £ 3, 000 to £ 10, 000 Minimum of 2 quotations Not normally advertised – Council staff directed to search Alito £ 10, 000 to £ 100, 000 Minimum of three formal tenders must be invited Advertising discretionary – generally taken from Alito Over £ 100, 000 to Minimum of four formal EU Threshold tenders must be invited Advertising discretionary – generally taken from Alito Above EU Threshold Adverts placed in OJEU via Sell 2 Wales EU Procurement Directives apply Alito – Council’s Supplier Management System which is used to register suppliers and contractors interested in doing business with Cardiff. From Dec 2013 it will no longer be an ‘approved list’

Source Cardiff - Proposed Changes • Recommendations in line with Welsh Assembly and Welsh Local Government Association (WLGA) recommendations: Recommendation Reason for recommendation Increase tender threshold from £ 10 K to Standardise tender thresholds across £ 25 K (To be phased in) public sector Use of Sell 2 Wales SQu. ID* for prequalification Simplify and standardise prequalification stage Advertise opportunities for goods and services above £ 25 K Increase awareness and access to opportunities Use of Sell 2 Wales RFQ* process for opportunities below tender threshold Retain visibility of quotation activity Simplify and standardise RFQ process Phased removal of approved lists Approved lists counter to EC Treaty principles of fairness, equal treatment * SQu. ID – Supplier Qualification Information Database / RFQ – Request for Quotation

How Do I Find Out About Opportunities? • Contracts over EU Thresholds are advertised in the Official Journal of the European Union (OJEU) • National Procurement website www. sell 2 wales. co. uk publishes public sector tendering opportunities – Cardiff currently reviewing use for below threshold tenders and quotations • Alito Supplier Directory – email notification • Occasionally - Local and National newspapers / Trade Journals • Contracts and Frameworks Calendar

How Do I Apply For Contracts? • Contract Notice or advertisement will advise procedure to be followed • Supplier Suitability – Restricted Procedure – issued with a PQQ and an ITT if selected – Open Procedure – issued with an ITT with prequalification questions included • Regardless of procedure the process consists of two key stages – Selection and Award PQQ – Pre-Qualification Questionnaire ITT – Invitation to Tender

Selection Stage (or Pre Qualify) • This stage is used to identify and select bidders who are acceptable entities to contract with and who have the capability to deliver the required product or service • Focus on bidders past experience and current situation – – – Economic and Financial Standing Contractor competencies / certification Capacity and Capability Health and Safety Sustainability / Equalities and Diversity • SQu. ID aims to simplify completion of selection stage PQQ information by standardising questions and ensuring they are proportional to contract • Self Declaration Form – based on SQu. ID questions • Consider consortia / collaborative bid

Safety Schemes In Procurement www. ssip. org. uk • Nationally recognised forum founded May 2009 • Supported by the Health and Safety Executive • Umbrella organisation to facilitate mutual recognition between health and safety pre-qualification schemes where possible • Assessment and registration costs – These vary from one scheme to another and can usually be found through the scheme’s web site – If you are already registered compliant with another SSIP scheme member and you meet the qualifications needed for a “deemed to satisfy” registration, you will not have to pay a full assessment fee

Safety Schemes In Procurement Mutual Recognition One Way Recognition Schemes registered at September 2013

Award Stage • This stage is used to evaluate the specific proposals being put forward by bidders in order to evaluate – How effective their proposed service and / or solution will be – Value for money • Proposals will normally form basis of contract • Evaluation criteria and relative weightings included in tender documents

Tendering Dos and Don’ts

Further Information • Cardiff Council Website www. cardiff. gov. uk/procurement • Selling to the Council Guide • Briefings/Newsletter • Contact – procurement@cardiff. gov. uk

Category Management in Cardiff

Category Management • The way procurement is managed in Cardiff Council is changing through the introduction of category management • Key aspect of the Council’s transformation agenda aimed at delivering improved value and savings in excess of £ 20 m over five years • Recognised as best practice approach to managing procurement • Will work by organising all Council spend into specific market facing categories to improve management of spend • New way of working is supported by a new organisational structure which aligns teams and individuals to specific categories • Delivers improved value by challenging what we buy and how we buy it

Category Management Teams • Corporate: – Transport, Facilities Management, Corporate & ICT • Environment: – Construction, Special Projects, Building Maintenance, Highways, Waste & Parks • Social & People: – Adult Social Care, Children Social Care, People & Professional Services

Corporate Chris Mc. Lellan - Senior Category Manager Overview of spend 2012/13 School Supplies & Equipment £ 5. 7 m £ 4. 6 m Passenger Transport Services £ 20. 2 m Advertising, Print, Design & Post Fleet Services & Material s £ 8. 7 m Transport £ 31. 9 m Corporate £ 101. 4 m Events £ 8. 6 m Corporate & ICT £ 41. 2 m ICT £ 18. 6 m Facilities Managemen t £ 28. 2 m Utilities & Energy £ 11. 7 m £ 5. 8 m Catering Services & Materials This chart shows the key spend categories.

Corporate • Key Contracts – Passenger Transport Framework (Multi lot Home to School – Sep 2014) • Opportunities – Next Passenger Transport Framework – PIN notice issued – Events – 3 Lot Framework covering lighting, stages, screens, marquees, exhibitions, project management

Environment Dylan Roberts - Senior Category Manager Overview of spend 2012/13 Mechanical & Electrical Services General Buildin g Service s £ 18. 2 m Buildings Construction Projects £ 50. 9 m £ 7. 9 m Buildings Maintenanc e £ 29 m Construction & Special Projects £ 62. 4 m Environment £ 108. 3 m Highways, Waste & Parks £ 9. 5 m £ 16. 9 m Civil Construction Projects Waste Management This chart shows the key spend categories. £ 6. 2 m £ 5. 2 m Highways Maintenance & Construction

Environment • Key Contracts – Building Maintenance Services Framework – South East Wales Highways Framework Contract (“SEWHFC”) – South East Wales Schools Capital Working Group Framework (“SEWSCAP”) • Opportunities – Subcontracting opportunities via the above key contracts • www. sell 2 wales. co. uk and similar websites

Social, People & Professional Services Craig Woolcock – Senior Category Manager Overview of Spend 2012/13 Domiciliary Care for Adults £ 18. 0 m Residential Care £ 8. 6 m for Children Nursin g Care for Adults £ 9. 8 m Social, People & Professional Services £ 143. 9 m Adult Social Care £ 73. 3 m Residentia l Care for Adults £ 18. 5 m Supporting People £ 22. 7 m Fostering Services £ 10. 8 m Children’s Social Care £ 27. 9 m People & Professional Services £ 42. 7 m Agency Works £ 20. 0 m This chart shows the key spend categories. Professional Services £ 16. 1 m

Social, People & Professional Services • Key Contracts – – Agency Workers (Comensura) Framework for Domiciliary Care Services Framework for Fostering & Residential Learning Disability Support Living • Opportunities – – – Learning & Development Leaving Care Services Care Support & Education Package (previously grant funded) Advice Package (previously grant funded) Variety of Learning Disability Day Services (previously grant funded)

Meet the Teams Caernarfon Room Caerphilly Room Harlech Room ENVIRONMENT SOCIAL & PEOPLE CORPORATE Adult Transport Children Facilities Management People & Professional Services ICT Dylan Roberts Craig Woolcock Construction Chris Mc. Lellan Special Projects Building Maintenance Highways Waste & Parks Main (Coch) Suite Strategy & Development Team Business Wales Advisers