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Efficient Government Fund EGF)1)1)12 eProcurement for HE FE institutions

DescriptionProject to extend the benefits of e-procurement to HE/FE institutions across Scotland through their progressive migration onto the eProcurement Scotl@and (EPS) Programme.
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Website Publication DateNovember 24, 2005

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EFFICIENT GOVERNMENT FUND

Stage 1 application - expression of interest

Part 1: Summary Table

Bid number (for EG use)

Lead bidder

Proc-SNI - the purchasing consortium for universities, colleges and research institutes in Scotland and Northern Ireland

Convener - Dr Peter W A West, Secretary of the University of Strathclyde, McCance Building, 16 Richmond St.,

Glasgow G1 1XQ. Tel. 0141 548 2001 Fax 0141 553 1521

Email: p.west@mis.strath.ac.uk

Secretary - J Douglas Bell, Proc-SNI, 34 Buccleuch Place, Edinburgh EH8 9JT Tel 0131 650 4082 Fax 0131 667 9801

Email: douglas.bell@ed.ac.uk

Brief description of the aims of the project

To extend the benefits of e-procurement to HE/FE institutions across Scotland through their progressive migration on to the proven eProcurement Scotl@nd (ePS) programme. To use that platform to develop procurement collaboration between Proc-SNI and public sector bodies to secure value for money improvements and more resource for front line deployment.

Clear description of what the EGF money would be used to buy

The project would be in three parts.

  1. Consultancy services to carry out a detailed, sector-wide scope of readiness assessment, to conduct an options appraisal for an integrated procurement strategy for the tertiary education sector in Scotland, to propose a preferred option and supporting business case coupled with a costed implementation programme.
  2. An implementation programme based upon the findings of part1.
  3. Provision of additional resource within Proc-SNI for project co-ordination, programme management and benefits tracking.

Partners to the project likely to commit resources

Resources will be drawn from participating member institutions of Proc-SNI (see list attached). Indications at present are that most of these institutions will participate although a small number are considering / pursuing independent routes.

Names of other organisations with whom the project has been discussed (to assist the introductions process)

Universities Scotland

Scottish Funding Councils for Higher and Further Education Scottish Executive Procurement Directorate

Evidence that suggested approach has been deployed successfully elsewhere

The proposed project builds upon the considerable experience gathered by the Scottish Executive Procurement Directorate in rolling out ePS to a wide range of public service partners in Scotland. The scope of readiness assessment and options appraisal is recognised as a key component in capturing the attention and support of senior management in what is effectively a programme of business change to practices and processes.

The initial consultancy period for this project will be based upon the 'sector wide' initial approach adopted successfully in the NHS in Scotland and that used for the West of Scotland Local Authorities.

Are there any restrictions to potential for enlargement of the project (i.e. technology, number of partners etc)

Very few HE or FE institutions have made much progress with the implementation of e-Procurement systems and platforms. Costs and complexity of migration coupled with uncertainty as to the service offering to select have been impediments to progress, as have classic organisational change issues. The project will seek to remove all such impediments and should be embraced by all institutions except those very few that are considering, or have committed themselves already to, other service providers.

Benefits projected from the project

  • Cost and price reductions
  • Reduced process costs for both buyers and suppliers
  • Increased contract compliance and adherence to business workflows
  • Control of off-contracting spending
  • Reductions in time from order to acquisition
  • Automated record-keeping, generation of procurement data and improved management information
  • Resource savings from more collaborative contracting
  • Business benefits to suppliers
  • Improved measurement and planning
  • Shared approach to supplier engagement

Estimated financial projections

Total

2005/6

2006/7

2007/8

2008/9

Overall project cost (please see narrative for detail)

£4,848,500

£375,000

£3,175,000

£647,500

£651,000

Estimated projected benefits (please see narrative for detail)

£18,000,000

-

-

£9,000,000

£9,000,000

Is a pilot required - see guidance notes

No

Additionally: why is EG funding required

e-Procurement implementation would not extend across the HE/FE sector in Scotland in a rapid, coordinated way without the catalyst of such funding. If it happened at all it would be in a fragmented and less efficient / effective way.

Is this project complementary in any way to other EG work

Yes, it extends both the aims and the reality of the spread of ePS and also represents a previously unidentified set of savings opportunities and targets in the HE / FE sector and is therefore in addition to already identified EG targets.

Is "stage 2 development funding" requested?

Yes. The initial piece of work is to identify fully the scope of the overall opportunity and to develop a specified and costed programme implementation plan. Consequently, the phase 1 bid underpins the specification of the whole programme and provides the business case for stage 2.

Page updated: Thursday, July 7, 2005