Guy Sanderson & Nimisha Patel CCH Conference: 11 th May 2019 1
The act of obtaining or buying good and services (The Business Dictionary) It is the process of finding and agreeing to terms, and acquiring good, services or works from an external source, often via a tendering or competitive bidding process (Wikipedia) Why? The process is often used to ensure the buyer receives goods or services at the best possible price when aspects such as quality, quantity, time, and location are compared . 2
Goods Works Services 3
A gas contractor Roofing works Customer survey Windows Grounds maintenance services Housing services 4
• Reduced Costs - through elimination of waste and increased efficiency • Fulfilment of Value for Money objectives • Increased revenues • Increased customer satisfaction , as result of improved performance and product quality Business Benefit its • Staying current – enabling the organisation to capture the best the market has to offer of Procurement • Increased capacity, capability or flexibility – through developing supplier and supply chains • Improved reputational equity – through consistent quality performance, ethical sourcing and trading, environmental Sustainability etc. 5
Identify the Business need Contract/Supplier management: monitor, Gather information review and maintain performance The main stages of the procurement process is depicted as a cycle, all steps should be regularly reviewed Develop Contract Award the contract Terms i.e. length and maintained within procurement Source the Market, Approve selection, Identifying the normally by board suppliers Analyse quotations and Invite quotations or select most promising tenders supplier 6
1. Identify business need ‣ Performance of contractor is poor ‣ Service is expensive ‣ Gas contract never tendered, hard to demonstrate value for money 2. Gather information for the tender ‣ List of properties and what type of boilers are installed ‣ Current position on gas safety inspections (i.e. are they up to date? Are there any outstanding?) ‣ Dates when inspections are due 3. Develop contract terms ‣ Decide on type of contract. For gas it is usual for a price per property per year for servicing, gas certificate and maintenance. ‣ Decide contract length 7
4. Source the market, choose a tender list ‣ This would normally include more than is required, as a number of tenders often withdraw, don’t bid. ‣ Tenderers can be selected from a framework, from recommendations or from responses to an advertisement 5. The Tender ‣ The tender will include all the background information ‣ Will include any KPI’s i.e. 100% inspections on time; maintenance response times 6. Analyse and evaluate the tender ‣ It is normal for coops to select a panel to do the evaluation ‣ Evaluations normally have a mix of questions, scoring on price and quality to determine best value. ‣ Through the scoring process a successful bidder will become apparent. 8
7. Approve selection ‣ Panel recommend awarding contract to successful bidder ‣ Chair or board approve decision 8. Appoint contractor ‣ Contract is awarded ‣ Mobilisation period is normally agreed before they start, to ensure systems and processes are set up 9. Contract/Supplier management ‣ Performance should be reviewed regularly 9
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Good procurement will help to: • Control spend • Increase income by reducing cost, negotiating prices and decreasing waste • Discourages complacency by keeping it competitive 11
Guy Sanderson Pratik Popat Nimisha Patel Head of PRS and New Contracts Coop Contract Manger Group Head of Housing M: 07808 790713 T: 0333 600 2500 M: 07850 607816 guy.sanderson@pinnaclepsg.co.uk M: 07834 726869 nimisha.patel@pinnaclepsg.co.uk pratik.popat@pinnaclepsg.co.uk 12
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