Bid number (for EG use) | |
Lead bidder | Fife College Of Further & Higher
Education
Sandy Stevenson
01592 207752
sandys@fife.ac.uk |
Brief description of the aims of the
project | To provide a collaborative procurement
approach and purchasing regime across the FE
Sector, which: - builds on existing initiatives already
demonstrating savings;
- is affordable to colleges;
- will be extendable to other small
public sector bodies educational or
non-educational.
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Clear description of what the EGF money
would be used to buy | Initial Feasibility Study Readiness Audit System Parameter Setting Staff Training System Implementation System Evaluation All activities listed above plus Interface with College financial systems - Leasing/Purchase of system
software
- Readiness Audit may identify
requirement for physical alterations to
accommodate system including any hardware
requirements.
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Partners to the project likely to commit
resources | The project has been discussed at a number
of colleges across the sector. The initial
colleges likely to commit resources to the
'stage 2 development funding' include: |
Names of other organisations with whom the
project has been discussed (to assist the
introductions process) | Preliminary discussions have taken place
with other colleges. Some of these colleges who
potentially could commit resources include: - Falkirk College
- Edinburgh's Telford College
- Glenrothes Colleges
- Plus expressions of interest from the 5
Colleges who participated in the WEB
Auctions Project - please see below
Discussion with the remaining colleges
across the sector will take place as part of
the initial phases of the project with the
intent that all Scottish colleges will have the
opportunity to participate and a substantial
number will. |
Evidence that suggested approach has been
deployed successfully elsewhere | The project will build on two Scottish
Funding Council projects which demonstrated
successful deployment of technologies to
achieve collaborative benefits in the
purchasing and procurement area: - Prosper Project - showing process
efficiency through more effective
purchasing processes
- Web Auctions - demonstrating price
savings through a number of web auctions
held over several months.
Other examples where technologies used by
these projects have been used in a
collaborative procurement and purchasing
approach can be provided in more detail. |
Are there any restrictions to potential for
enlargement of the project (i.e. technology,
number of partners etc.) | No explicit restrictions. The vision for the
project is that is designed so that is can be
scaled to the whole of the FE sector without
any constraints on number of colleges as
partners. The project would also be designed
such that it can harness 'best of breed'
technologies rather than be restricted to one
particular technology/supplier. |
Benefits projected from the project | - Implementation of effective business
processes to release front line resources
to concentrate on the businesses of
education
- Cost reduction in procurement processes
through a collaborative approach
- Price Savings through competitions and
use of technologies such as Web
Auctions
- More effective sourcing of
suppliers
- Better management and control of
spending
- After the early years of the project, a
high-level forecast is that is will become
self funding by year 3. This reflects the
initial period which will be used to
on-board participating colleges.
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Estimated financial projections | Total* | 2005/6 | 2006/7 | 2007/8 | 2008/9 |
Overall project cost | £5.1m | £1.5m | £1.2m | £1.2m | £1.2m |
Estimated projected benefits | £9.0m | £0.9m | £1.8m | £2.7m | £3.6m |
| - Note: Recurring benefits will
continue to increase in subsequent
years while projects costs are
anticipated to stay the same in real
terms. It is anticipated that it will
be possible to apply some of the
benefits from the project to the
ongoing costs of the project. Therefore
to assist SE in forecasting funding the
broad assumption should be made that
full cost for the first year would be
incurred and that in subsequent years
the benefits of the project could be
applied to cover the full costs of the
project. This assumption would lead to
a funding requirement of £1.5 million
in 2005/6, Nil in 2006/7, 2007/8 and
2008/9. This is more reflective of the
costs of the "change" process rather
than the services provided via the
changed process.
Further detailed projections would follow in
stage 2 application. |
Is a pilot required - see guidance notes | No pilot project is intended at this time as
the technologies that the proposed project
would likely use are already in use. In the
detailed application for stage 2 any 'go-no go
decision' will be highlighted such that the EG
team can apply funding in phased manner if
necessary. |
Additionally: why is EG funding required | EG funding is required because the nature of
the project is that initial investment is
required in setting up the project
infrastructure in the early year(s). This
initial investment is necessary to allow
recurring benefits to be realised in later
years. Individual colleges would not be able to
fund this initial investment nor release enough
front line resources to deliver it from
existing College individual resource. The EG
funding would allow the project to be initiated
and after which it is projected to become self
funding and continue to realise recurring
benefits, thus releasing front line
resources. |
Does this project complementary in anyway to
other EG work | This project is complementary to and part of
the objectives of eProcurement Scotland to
provide both public sector organisations and
their suppliers benefits through efficiency. It
is envisaged that the project would liaise with
the Scottish Executive and be part of a unified
eProcurement Scotland initiative using which
ever tools and technologies are appropriate for
specific organisations or sectors. One obvious
common area is where common commodities are
sought. As described above the project will not
be restricted by the choice of technologies
deployed. |
Is "stage 2 development funding"
requested? | Yes - To further develop the proposal - In particular, the financial model
- To conduct "readiness" audits in
participating Colleges
- To evaluate the most effective
management structure
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