Leeds City Council

Wayne BaxterChief Procurement Officer

Electronic ProcurementSan Sebastian - 11th & 12th April 2005

www.counciltenders.net

Leeds City Council - Background/Context

North of England - West Yorkshire 2nd largest UK local authorityServes a population of 730,000Unitary - providing full range of

services33,000 employees€ 2 bn annual budget€ 805 m procurement spend

The Starting Point...

Leeds City Council’s Best Value Review of ProcurementLeeds City Council’s Best Value Review of Procurement

E-Procurement: Main Principles

More than ‘shopping electronically’ Get the ‘offline’ procurement in shape first

(Business NOT technology led) Modular approach to implementation Encourage local suppliers and SME’s Exploit opportunities for joint working

between local authorities Linking procurement strategy and policy

with other corporate priorities/strategies

Drivers & Objectives

Progress towards meeting the Government’s targets for Electronic Service Delivery

Improve the efficiency, effectiveness and economy of the procurement process

Demonstrate leadership in the adoption of e-technology and promote its use in the local business community

Improve the competitiveness of the local economy

e-Auctionse-Auctions

Overview: Systems & ProcessesValue Added ServicesValue Added Services

PortalsPortals

Contract Contract ManagementManagement

Low Value, High VolumeLow Value, High VolumeProcurementProcurement

(ORDERS)(ORDERS)

High Value, Low VolumeHigh Value, Low VolumeProcurementProcurement(TENDERS)(TENDERS)

Small Businesses

Small Businesses

ContractorsContractors

Large Corporations

Large Corporations

AgenciesAgencies

Not-for-ProfitNot-for-Profit

ConsultantsConsultants

SuppliersSuppliers

POLICY POLICY INFRASTRUCTUREINFRASTRUCTURE TRAININGTRAININGPOLICY POLICY INFRASTRUCTUREINFRASTRUCTURE TRAININGTRAINING

E-procurementE-procurement

Policy & Policy & guidelines / buyer guidelines / buyer

profilesprofiles

BuyersBuyers

A Step by Step Approach

Phase 1 Phase 2 Phase 3

MainStrategy

Leeds ElectronicTendering System(LETS)

Leeds Contract andSupplier ManagementSystem (LCSMS)

Leeds ElectronicPurchasing System(LEPS)

Yorkshire RegionalElectronic

Tendering System(CouncilTenders)

Leeds (or Regional)Supplier

ManagementCall Centre

UK Central Government e-Procurement Initiatives for Local Government

2001/2 2002/3 2005/62003/4 2004/5

IEG Partnerships

National Procurement Strategy for L.Gov

Regional Centres of Excellence

e-Gov Pathfinder Programme & Dissemination

UK Government - Implementing Electronic Government (IEG) Agenda

National e-Procurement Project (NePP)

Current Position

Fitting it all Together…

Fitting it all Together…

Regional E-Tendering

Pathfinder

The Catalyst...

Local Government On-Line Pathfinder ProgrammeLocal Government On-Line Pathfinder Programme

Leeds City Council’s Best Value Review of ProcurementLeeds City Council’s Best Value Review of Procurement

Partnership with the State Govt of Western Australia Partnership with the State Govt of Western Australia

SUPPLIERS

Tendering - TraditionallyPrepare Prepare Tender Tender

Advertise Advertise Tender Tender

Register Register Interest Interest

Provide Provide Tender Tender

Prepare Prepare Response Response

Lodge Lodge Response Response

Open Open TendersTenders

Award/Notify Award/Notify TendersTenders

BUYERS

Evaluate Evaluate TendersTenders

……………….CONTRACT………………………………………..

SUPPLIERS

Prepare Prepare Tender Tender

Advertise Advertise Tender Tender

Register Register Interest Interest

Provide Provide Tender Tender

Prepare Prepare Response Response

Lodge Lodge Response Response

Open Open TendersTenders

Award/Notify Award/Notify TendersTenders

BUYERS

Evaluate Evaluate TendersTenders

Tendering - ElectronicallyElectronicallyElectronicallyElectronicallyElectronicallyElectronicallyElectronicallyElectronicallyElectronicallyElectronicallyElectronicallyElectronicallyElectronicallyElectronicallyElectronicallyElectronicallyElectronicallyEarly AdviceEarly AdviceAdvertisedAdvertised

InvitedInvited

New UserNew Useroror

LogonLogon

Electronic Electronic DownloadDownload

Electronic Electronic LodgementLodgement

Online Online Tender Tender

OpeningOpening

Result/StatusResult/StatusPublishedPublished

OnlineOnline

……………….CONTRACT………………………………………..

CONTRACT

What is an Electronic Tendering System?

Being able to perform tendering functions as a buyer and a supplier in an electronic manner as an extension of the existing procurement processes.

Tender Advertising (Early & Current)Tender Advertising (Early & Current) Invited TendersInvited Tenders Tender Search & Classification Tender Search & Classification Tender Document Download Tender Document Download Electronic Tender LodgementElectronic Tender Lodgement Attachments (Documents & Drawings)Attachments (Documents & Drawings) Tender Status & ResultsTender Status & Results ArchivingArchiving

The Home Page

www.coun

ciltenders.

net

Benefits: BUYERS

Improve transparency & opennessProvide the ability to decentralise

tenderingImprove communication with suppliersReduce tender advertising, paper &

overhead costsMake the process easy to manage & easy

to useProvide the opportunity for partnerships

with other Councils

Direct access to latest tenders and contracts - 24 hrs / 7 days per week

Simple to register & to use

Tenders can be downloaded electronically No need to wait for the tender to come to them No need to notify the Council of their interest

in a tender first Can always view the specification of a tender

before deciding whether to tender

Benefits: SUPPLIERS (1 of 2)

Provide the ability to find out about award details

Tenders can be lodged electronically No last minute rush to the tender box Reduced postage & handling costs – simply

lodge the e-version Auto confirmation of tender being received

Ability to always view a tender’s status after lodgement (reduced phone calls).

Benefits: SUPPLIERS (2 of 2)

System Usage Information

17,320 registered users

3,110 tenders placed on site (€ 3.2bn)

96% electronic download rate

58% electronic submission rate

95% of feedback ‘good’ or ‘very good’

12 other Councils using the system

Statistics for Leeds only - as at Feb 2005

An EU funded initiative that sought to:

‘GoDigital’ Toolkit

promote the efficient use of e-business by SMEs

provide assistance to enable SMEs to participate in and take full advantage of the e-economy

Toolkit OverviewBased on Supplier FAQ’s

What equipment do I need?

Have I got the right skills?

Is electronic tendering secure?

What will it cost?

What will I need to do differently?

Fitting it all Together…

Regional Solutions

NePP

National e-Procurement Project

Project Overview

NePP - Aims of the projectNePP - Aims of the project

To enable councilsTo enable councils to take full advantage of e-procurement by the target date of 2005

To raise the profileTo raise the profile of procurement in all councils

An e-procurement toolkit toolkit (web-based)(web-based)

A programme of local authority experience experience sharingsharing

StandardsStandards, and products tailored to reflect local authority requirements

NePP - Why is the project needed?NePP - Why is the project needed?

Survey of 168 authorities 168 authorities in 2003in 2003::

85% of authorities85% of authorities had taken steps to meet 2005 e-government targets

35% of authorities35% of authorities had completed a business case for e-procurement

Only 13%13% had implemented implemented e-procurement by the end of 2002

NePP - The Project Strands and NePP - The Project Strands and Lead AuthoritiesLead Authorities

Getting the Story Right (IDeA and BuyIT)

Technical Requirements (Kirklees)

Regional Solutions (Leeds)

Organisational Change Management and Communications (Cambridgeshire)

Standards (Bristol)

Supplier Adoption and Economic Development (Newham)

NePP - Shape of the projectNePP - Shape of the project

A web-enabled toolkittoolkit A databasedatabase of authorities A programme of seminarsseminars Comprehensive GuidanceGuidance Support Support targeted at those authorities

that need it most Experience SharingExperience Sharing workshops

NePP - More InformationNePP - More Information

www.idea-www.idea-knowledge.gov.ukknowledge.gov.uk

www.nepp.org.ukwww.nepp.org.uk

Fitting it all Together…

Supplier/Contract Management and e-purchasing

Partnership IEG funding

West Yorkshire IEG Partnershipe-Procurement

Project Overview

Project Details Implementing Electronic Government (IEG)

2005 target - all services online Annual IEG statements record progress IEG partnership funding linked to statements

Project Details Focuses on eProcurement € ¾ million funding - completion March ‘04 Collaborative working / partnerships Sub-regional focus (West Yorkshire)

Objectives Speed up the introduction of eProcurement

Collaborative approach to systems development

Sharing existing tried and tested solutions

Easier for businesses to trade with us Raising awareness & encouraging participation Common procurement systems & procedures

More efficient and effective procurement Sharing costs of implementing eProcurement Joint procurement and contracting

arrangements

Sub-regional e-procurement strategy Publishing a co-ordinated short to medium-term

approach to eProcurement across the WY region

Deliverable 1

Aligning strategies across the WY Councils

Embracing IEG principles

Inform businesses of future developments in the region

Building-block for ongoing collaboration beyond IEG funded project

Standard documents & procedures

Easier for firms to do business with Councils

Easier for WY Councils to work together

Initial priority areas: Vetting standards for supplier pre-

qualification Standard contractual terms and conditions Documents/procedures around tendering Approaches to contract and supplier

management

Deliverable 2

Electronic tendering

Migrating “CouncilTenders” (formerly LETS) from Australia to the UK

All WY Councils to share same electronic tendering system (ETS)

Modifying ETS to capture information on local sourcing and SME usage

Deliverable 3

Electronic procure-to-pay Further roll-out and development of

Marketplaces

Review of ‘procurement management information’ needs across the Councils

Pilot projects looking at e-enabling elements of the ‘procure to pay’ cycle (Ordering, Payment, Invoices)

Regional electronic auctions

Deliverable 4

SME engagement & enablement

Research supplier concerns around working with councils generally and around e-procurement

Programme of joint events ‘demystifying’ working with Councils in West Yorkshire

Information booklet and website: “How to do business with West Yorkshire Councils”

Deliverable 5

Joint contract/supplier management

Supplier Management Online supplier management system Suppliers register information once but info

available to all WY Councils Avoid filling out similar forms for all WY Councils Avoids all WY Councils vetting same firms Shared approved lists Allows initiatives to be developed in line with

political strategies e.g. local sourcing and SME support and development

Deliverable 6

Joint contract/supplier management

Contract management Online contract register for WY Councils

Better contract planning, packaging and design

Identify opportunities for joint contracting

Single source of business opportunities

Market development and management

‘Opportunity Matching’ through business support organisations

Deliverable 6

Fitting it all Together…

National Procurement Strategy&

Regional Centres of Excellence

The Future

Regional Centres of Excellence

9 Regional Centres in the UK

Leeds City Council hosts the Regional Centre of Excellence for Yorkshire and the Humber (21 local authorities)

Government funded to 2008 then self-funding

Centres will deliver Gershon Efficiency Savings National Procurement Strategy

National Procurement Strategy

Milestone targets for 2004, 2005, 2006 Key themes

Leadership and Building Capacity Partnering and Collaboration Doing Business Electronically Stimulating Markets Achieving Community Benefits

Leeds already making good progress Targets embedded into LCC own strategy

QuestionsQuestionswayne.baxter@leeds.gov.ukwayne.baxter@leeds.gov.uk