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Efficient Government Fund EGF)1)1)5 Tayside Public Sector Procurement

DescriptionSTATUS - UNSUCCESSFUL - To develop and implement a public sector procurement framework within Tayside.
ISBN (Web Only)
Official Print Publication DateJanuary 2005
Website Publication DateDecember 07, 2005

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EFFICIENT GOVERNMENT FUND

STAGE 1 BID - JANUARY 2005

TAYSIDE PUBLIC SECTOR PROCUREMENT

EGF/1/1/005

LEAD BIDDER

Dundee City Council

David K Dorward
Depute Chief Executive (Finance)
01382 433359
david.dorward@dundeecity.gov.uk

BRIEF DESCRIPTION OF THE AIMS OF THE PROJECT

The project is to develop and implement a public sector procurement framework within Tayside. The local health authority and local authorities within Tayside would implement the eProcurement Scotl@and platform and join the ABC buying consortium as associate members. The public sector bodies would engage consultants to develop a collaborative procurement strategy and thereafter appoint professional procurement staff to implement the procurement strategy developed.

The major advantage of this project is that the public bodies will achieve economies and efficiencies which can then be reinvested in improving front-line services. In addition it will ensure that the public sector bodies in the Tayside area meet the Governments e-procurement target.

CLEAR DESCRIPTION OF WHAT THE EGF MONEY WOULD BE USED TO BUY

Establish a Tayside Public Sector Procurement project team.

Procure consultancy support to develop a procurement strategy collectively and for each individual body.

Commission a spend analysis for each participating organisation.

Procure and implement the e-Procurement Scotl@and service.

Design, organise and implement procedures for collaborative procurement.

Implement professional procurement staffing structure.

Join ABC purchasing consortium.

PARTNERS TO THE PROJECT LIKELY TO COMMIT RESOURCES

NHS Tayside

Angus Council

Dundee City Council

Perth & Kinross Council

NAME OF OTHER ORGANISATIONS WITH WHOM THE PROJECT HAS BEEN DISCUSSED

Tayside Police

Tayside Fire Brigade

Tayside Valuation Joint Board

Tayside Contracts

In addition to the above organisations with whom the project has been discussed, and who have given a provisional commitment to the project, the following organisations/sectors are also potential partners:-

Dundee College

Angus College

Perth College

University of Abertay

Tayside Voluntary Sector

BENEFITS PROJECTED FROM THE PROJECT (OTHER THAN CASH OR TIME)

Eliminate inefficient, uncoordinated and "maverick" purchasing.

Considerably accelerate the implementation of e-procurement within the Tayside public sector.

Joint Working on procurement will foster other joint working opportunities between the public sector organisations.

Ensure consistent compliance with European procurement legislation.

Improvement in specifications for goods and services, thus reducing the risk of poor or incorrect goods being purchased.

Due to direct delivery by ABC suppliers, there will be a reduction in organisations stock/store keeping costs.

OVERALL PROJECT COST

The following projected costs are analysed into two discrete types, being those for the initial four partners and those for the potential other organisations who may join the project.

INITIAL PARTNERS

2005/06
£000

2006/07
£000

2007/08
£000

2008/09
£000

Consultants

108

-

-

-

Procurement Staff

200

400

300

300

Procurement Training

80

20

20

20

ABC Consortium

120

120

120

120

E-Procurement Scotl@nd

247

236

236

209

755

776

676

649

OTHER ORGANISATIONS

Consultants

72

-

-

-

Procurement Staff

-

125

125

125

Procurement Training

40

10

10

10

ABC Consortium Fees

60

60

60

60

E-Procurement Scotl@and

165

118

118

104

337

313

313

299

TOTAL PROJECTED COSTS

1,092

1,089

989

948

ESTIMATED PROJECTED BENEFITS

The estimated projected benefits are predominately savings in costs due to the combination of e-procurement capability and consortium buying powers. The estimated benefits has been arrived at by projecting the level of supplies and services purchased by each of the partners and other organisations that are capable of being procured through e-procurement and the ABC buying consortium. Therefore a conservative average saving of 20% has been assumed, commencing in 2006/07.

The annual benefit for the 4 partner organisations is estimated to be £4m, with a further £0.5m per annum for the other public sector organisations by year 4

(ie 2008/09). It is anticipated that these levels of benefits will not start to be achieved to the organisations until 2006/07.

Page updated: Monday, July 4, 2005