Project Name: SCOTLAND EXCEL | Current Stage |
SRO: Sandra Black, Dir Finance and IT, Renfrewshire Council, 0141 842 5051, sandra.black@renfrewshire.gov.uk | |
Vision |
PM: | Project Commissioning |
Project Initiation |
DA Lead | Assets |
Design |
KM Lead | Construct |
Implement |
SE Lead officer | |
Estimated Project Cost | Operate |
Estimated Start / End | |
What is the background to the project and the context in which it was established, what were the issues/drivers/opportunities which led to its inception- why?Background and context: |
Project focuses on the delivery of benefits through a Local Authority Centre of Procurement Excellence and developing a scaleable solution that can be expanded to include all 32 Scottish Local Authorities in strategic partnership with COSLA and SOLACE. Following stage 1 bid approval Renfrewshire council formed a new project board to review the scope of the bid, establish a project team, appoint consultants and manage stages 2 and 3 of the bid process. Driving out value by developing procurement skills and capability in local government and creating a vehicle for delivering the recommendations of the McClelland report on a sustainable basis - through a Centre of Procurement Excellence. |
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What are the aims/objectives/benefits & deliverables that the project is seeking to achieve, what improvements will there be as a result of this project - what?Objectives & Benefits - |
The main objectives and benefits of the project are: Increasing the level of expertise and capacity in Local Authority procurement by developing a comprehensive coaching, mentoring, training and development framework aimed at all relevant staff in all functions · Reducing costs and increasing the quality of service from suppliers through collaborative procurement initiatives · Facilitating more effective dialogue between procurement professionals and partner service departments by creating a customer orientated organisation · Delivering business benefits with the supply community by fostering innovation and effective partnership with key suppliers, SME's trade associations and other public and private bodies at all levels · Developing an approach which is scaleable to all 32 Local Authorities · A project team has been in place since April 2007 and it is anticipated that Excel will be delivering benefits after 1 st April 2008. |
The project is seeking to achieve the following savings Benefits of approximately £35m to be achieved through collaborative work by the end of year 3 (2011) | Improvements / Benefits as a result of this project will be: Improve the level of best practice procurement capacity and capability by offering a comprehensive advisory service and sponsoring approximately 1,000 days training per annum in calendar year 2007/08 with further training events scheduled for calendar year 2008/2009. Create a forum and communication and medium for engaging with the supply community on issues such as innovation, relationship management and business support. |
Which organisations are involved in delivering the project, what are their roles and responsibilities, who is accountable? Who are the key stakeholders to whom the project is relevant?- who?Stakeholders and governance- |
Partners in bid are: Angus, Argyll & Bute, the Authorities Buying Council Consortium, Comhairlie nan Eilean Siar, Dumfries & Galloway, Dundee City Council, East Ayrshire, East Dunbartonshire, East Renfrewshire, Glasgow City, Highland Council, Inverclyde, North Ayrshire, North Lanarkshire, Perth & Kinross, Renfrewshire, South Ayrshire, South Lanarkshire, Strathclyde Fire and Rescue, Strathclyde police, West Dunbartonshire Council. Project sponsor - Chair of the Chief Executives Management Board (Renfrewshire Council) Project Director - Dorothy Cowie Implementation team of around 15 people from range of backgrounds. Steering Group - Chief Executives Management Board plus representation from Scottish Government. |
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What are the timeframes, milestones and deadlines for these activities to be undertaken and how much progress has been made with these activities to date- when?Work plan- |
Plan to create Centre of Procurement Excellence (CoPE) in 3 stages: Stage One Stage 1 of the project ran from January 2007 and was completed at the end of July. This stage of the project focused on the creation of a project team; the compilation of a detailed project plan; and, the gathering of very significant amounts of data in relation to the current abc organisation and how this should evolve in to Scotland Excel. The other major focus during this period had been on the compilation of data in relation to commodity spend across the local authority sector and what contracting arrangements were currently in place. The work undertaken in Stage 1 provided the necessary background information to take forward the development of the Excel organisation. Stage Two Stage 2 of the project started in August 2007 and was completed by the end of October. The main focus during this stage was on the establishment of Excel as an organisation; providing clarity to member Councils on their funding requirements, and in establishing contracts that will generate savings in relation to category B commodities. The commodities have been split into three waves: Wave 1 consists of contracts that will be renewed during the period 2008/2010 depending on the expiry dates on existing contracts, analysis on the next wave of contract opportunities has commenced and a contract programme will be completed over the coming months. A series of workshops were completed with procurement and operational professionals to explore and assess the Wave 1 commodities. User Intelligence Groups are being implemented to progress the Wave 1 contracts and will also be used for the next waves of commodity areas where it is felt there is an opportunity for a more collaborative approach to be developed. A programme of effective and relevant training events are being designed to support the improvement of local authority's procurement capability together with a series of courses for Council Members, Heads of Service and non-procurement staff. A series of events and conferences have been held and the inaugural Scotland Excel conference took place on 28th November 2007. Stage Three Stage 3 of the project commenced at the beginning of November 2007 and is due for completion by the end of March 2008, prior to the launch of Scotland Excel on 1 st April 2008. The main focus during this stage is on the establishment of Excel as an organisation . |
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What is the overall budget for the project and how is this to be released? What is the spend to date, is this as forecast?- how much?Budget- |
March 2008 followed by ongoing set up costs and subsidy over the period to 2010/11 of £2.8million to provide stability to Excel until 100% sign up and targeted efficiencies are achieved.stThe initial set up costs of approximately £1.70million will be incurred in the period up to 31 |
What are the main risks in terms of project management, stakeholder engagement and communications, delivery approach and benefits realisation? What can be done to mitigate against these risks?- what if?Risks- |
Risks | Impact/Probability | Actions |
Partners not involved in design process | | Continuity of bid team to ensure the consultative process continues and visions is maintained. Communications and consultation strategies in place. | Interim organisation does not have recognised authority to carry out work on behalf of the partner organisations | | Ensure that a robust interim governance model is in place which has all partner support | Partners focus is on the implementation of McClelland recommendations in own authorities and therefore unable to release resources to engage with centre | | Ensure centre develops services in line with the needs of partners. Ensure effective governance, management and resources to progress initiatives. Seek central funding for local initiatives | Transformation team geographic location perceived to continue west of Scotland bias | | Indicative operating model provides facility for regionally located elements. | 30% efficiency saving on additional cost of new structure compared to existing abc structure not achieved | | Strong project board and partner involvement in detailed organisation design to ensure robust business case for proposed organisation | Number of councils do not participate in new organisation | | Centre must demonstrate through achievement at an early stage. Regional organisation to support Account Management and cluster activities. Support from McClelland and Reform Board to promote growth to 32 | Partner council non-compliant with contracts/best practice developed by centre | | Ensure contracts strategy process is genuinely consultative and meets service user requirements. Partners to have sponsoring senior officer responsible for ensuring compliance | Role of centre is agreed by CEOs but not effectively communicated throughout partner organisations | | Ensure partner councils clearly and effectively communicate and support role of centre at senior level | Level of savings disputed not clearly defined double counted or real difficulties maintaining data across 32 authorities | | Ensure that a clear definition of savings is agreed and that a robust benefits tracking system is in place | There is a risk of failure to comply with collaborative contracts, which could result in savings not being achieved; friction between members and Scotland Excel; members pulling out, Excel loses funding. | | LA's need to promote a compliance culture by demonstrating the benefits compliance provides in terms of savings. Scotland Excel will support this with management information and best practice guidance. | There is a risk that the project is insufficiently resourced which could result in delays; additional costs; outcomes being compromised. | | Project resources are being monitored on a weekly basis to ensure resource gaps are identified quickly and action taken to fill gaps. | There is a risk that key Local Authority contacts are unavailable for consultation which could result in project delays; poor quality information being used; criticism of lack of consultation. | | Regular progress reports to the Steering Group and other forums, eg SLGPF, will highlight when consultation is needed and should ensure LA resources are made available when required. |
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Recommendation & Funding: |
Would project Proceed in the Absence of Change Funding: | No |
| Financial Year | Revenue | Capital |
Funding Period(s) | 2006/07 | Nil | Nil |
| 2007/08 | £1.7m | Nil |
| 2008/09 | £2.8m | Nil |
Funding Not In Scope | Financial Year | March 2008 to ensure management of the project.stConsequences of further funding being unavailable: Major impact on project proceeding as planned. All funding to be received by Scotland Excel by 31 |
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