Low carbon opportunities Tuesday 21 November 2017
PHILIP MARGERISON MOD Outreach Presentation DOING BUSINESS WITH THE UK MOD/DEFENCE Contact details via: Email: dbscs-ecfinanceteam@mod.uk Tel: 0151 242 2000 Website: www.contracts.mod.uk 3 DOING BUSINESS WITH DEFENCE
What MOD spends to provide and sustain military capability • Fifth biggest Defence Budget in the world. MOD is UK industry’s biggest customer. • £178Bn on equipment and support in the next 10 years • In FY 2015/16 approx £20 Bn spent with third parties on a wide range of products & services – amounts to 40-45% of total Government spend with third parties • Direct spend with SMEs in FY 2015/16 of £762M with over 4,900 different SMEs • MOD achieved 18% spend on SMEs through supply chain. 4 DOING BUSINESS WITH DEFENCE
The areas we work in cover • Technology – ISS • Equipment – DE&S • Infrastructure - DIO • Common Goods and Services - CCS
KEY SUPPLIERS TO DEFENCE • • • Boeing Capita Serco • • • BAE Systems Thales AWE • • • Rolls Royce Qinetiq MBDA • • • Lockheed Leonardo HP Martin • Babcock • Airbus 4
WHY CHOOSE US? • We spend approximately £20Bn per annum with UK Industry • We are making it easier for small business to win contracts • We are making public sector procurement simpler • We are committed to continuously developing our commercial expertise and seeking innovative solutions for our customers 5
Contracts placed: In FY 2015/16 approximately 1,700 new contracts with a value of £13.5Bn • Approx 60% valued at less than £100K • 7,500 contractors with extant contracts • Approx 1,500 Commercial Officers in the overall MOD acquisition organisation 8 DOING BUSINESS WITH DEFENCE
Approach • Reasonable Opportunities to Compete • Impartiality & Consistency • Confidentiality • EU Public Procurement Regulations • Advertise Requirements 9 DOING BUSINESS WITH DEFENCE
Measures to Increase Opportunities for SMEs to Participate in Govt Procurement • Abolition of PQQs for requirements below £100K – adopted new common core PQQ across Govt • ‘Mystery Shopper’ service so business can tell Govt where there are still issues • Simplifying the contracting process, in particular for SMEs – introduction of standardised & simplified terms & conditions for less complex requirements below £250K • Set up of an £800M Innovation Fund to harness entrepreneurship & ingenuity of the private sector aimed at helping UK to maintain an operational edge over its adversaries. 10
Commercial Toolkit • Available to MOD staff & industry • Contains guidance on a wide range of commercial policy topics, DEFCONs, DEFFORMs etc • Available via the Acquisition Systems Guidance • www.gov.uk/acquisition-operating-framework (free use, requires no-cost registration) • Commercial Toolkit; https://www.aof.mod.uk/aofcontent/tactical/toolkit/content/defcons/defcon.htm • Select either ‘Guidance Topics’; ‘DEFCONs’ or ‘DEFFORMs’ 11 Defence Suppliers’ Service
Cyber Security • From 1 January 2016 MOD will require suppliers to have Cyber Essentials certification in place. This will apply to all new contracts • Covers transfer of MOD identifiable information, as defined in DEFCON 531, from customer to supplier or generation of information by supplier specifically in support of an MOD contract • Requirement for all potential suppliers to have Cyber Essentials certificate by contract start date & for annual renewal • Requirement to be flowed down supply chain where sub-contracts satisfy same criteria • Trade Associations informed & will flow down requirement to members & their supply chains • Information on Cyber Essentials at www.cyberessentials.org.uk 12 Defence Suppliers’ Service
DCO/Supplier Portal • Launched a refreshed Supplier Portal hosted on DCO Platform • Sign posts procurement opportunities; highlights policy and process • Provides links to relevant supporting bodies, research establishments and funding streams • Launched Twitter Feed (@defenceproc) – aimed specifically at providing information and support to new and prospective suppliers to Defence
Advertising MOD’s Requirements MOD routinely advertises: • All its competitive and non- competitive, ‘warlike’ and ‘non - warlike’ requirements for goods & services valued at £10,000 and above are advertised free of charge, on the Defence Contracts Online (MOD DCO)/Supplier portal (www.contracts.mod.uk) • MOD DCB magazine available on subscription starting at £325 pa • Requirements which meet the relevant criteria of EU Public Procurement Regulations & are above relevant thresholds also advertised in Official Journal of the European Union (OJEU) and ‘Contracts Finder’ portal as well as on the MOD DCO portal • MOD requirements valued at below £10K are not advertised centrally and are generally procured on a local or regional basis 14 Defence Suppliers’ Service
• Contract Notices • Contract Bidders’ Notices • Competitive/Non-competitive Contract awards • Email: bip@bipcontracts.com Sub-Contract Opportunities • Addendum Website: www.contracts.mod.uk 15 Defence Suppliers’ Service
Guide to Contract Notices Contract Notices Identification number Expressions of Interest deadline Issuing branch Summary QA Standards 16 Defence Suppliers’ Service
Dynamic Pre-Qualification Questionnaire • Launched in September 2013 as part of MOD DCO portal (www.contracts.mod.uk) • Allows MOD commercial staff to create an electronic PQQ – issued as part of contract notice • Potential suppliers will express an interest in the requirement by completing DPQQ online • Saves up to 28 days by combining two parts of procurement procedure • Reduces effort to create and complete a PQQ as suppliers can store information on their capabilities on MOD DCO portal 17 Defence Suppliers’ Service
Guide to Contract Notices Contract Bidder Tender No. ITT Issue Date Deadline Issuing Branch Summary of Requirements Issued To 18 Defence Suppliers’ Service
Guide to Contract Notices Non-Competitive Contract Awards Issuing Branch Summary of Requirements Contract No. Awarded To . 19
Guide to Contract Notices Competitive Contract awards Issue date Issuing branch Summary of Requirements Awarded to 20
Supplier Information Database (SID) • SID accessed via www.contracts.mod.uk website • Companies can submit their profiles free of charge • SID available to MOD acquisition staff as a resource to help draw up a tender list/source a product or service • Over 8,000 companies have submitted their profiles to the SID • By logging their profile on the SID, it does not guarantee that companies will be invited to tender for MOD requirements 21 DOING BUSINESS WITH DEFENCE
Contracts Finder Portal • Overseen by Crown Commercial Services (CCS) • Search across central Government & wider public sector for contract opportunities over £10K • Find out future opportunities • Search for details of previous tenders & contracts • Free to use; easy search facility; provide free e-mail alerts • £52Bn contract notices in last 12 months; £177Bn forecast contract opportunities over next 6 years • Updated early 2015 • Accessed via https://www.gov.uk/contracts-finder • Contact details – Service Support Team e-mail ContractsFinder@crowncommercial.gov.uk 22 DOING BUSINESS WITH DEFENCE
DOING BUSINESS WITH DEFENCE OUTREACH TEAM (formerly the DEFENCE SUPPLIERS’ SERVICE) Part of Supply Chain Development section of the Strategic Supplier Management (SSM) Team Doing Business with Defence Enquiries: Email: dbscs-ecfinanceteam@mod.uk Website: www.contracts.mod.uk Tel: 0151 242 2000 23 DOING BUSINESS WITH DEFENCE
Doing Business with the Defence Outreach Team • The Doing Business with Defence Outreach Team, is the MOD focal point for the provision of advice and guidance to companies (often SMEs) that are interested in doing business with Defence • As well as providing a help desk facility, as part of its ‘outreach’ service, its staff also attends various exhibitions, seminars and ‘meet the buyer’ events across the UK. They also give ‘selling to the MOD’ presentations on how and where to access MOD tender and contract opportunities 24 DOING BUSINESS WITH DEFENCE
Information Pack 25
Defence & Security Exports: Support for SMEs Howard Gibbs Head, Small Business Unit DIT Defence & Security Organisation
The Benefits of Exporting Influence • Defence Diplomacy; Strategic Relationships • Enhance Co-Operation/Interoperability Defence/Security Procurement benefits • Spread industry’s fixed overheads: reduce costs • Maintain key sovereign capabilities • Fill lulls in domestic product • Retain skills • Industry cannot succeed alone
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