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Government Procurement Reform Programme

Government Procurement Reform Programme. Update Briefing - November. Agenda. Cabinet report back Support structure All-of-Government Contracts Capacity building Next steps. Cabinet Report Back. October 2009. Key issues. Funding Savings Ministerial intervention. Ministerial Directions.

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Government Procurement Reform Programme

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  1. Government Procurement Reform Programme Update Briefing - November

  2. Agenda • Cabinet report back • Support structure • All-of-Government Contracts • Capacity building • Next steps

  3. Cabinet Report Back October 2009

  4. Key issues • Funding • Savings • Ministerial intervention

  5. Ministerial Directions • Direct MED to report back to the ECC with information on any Public Service Department or State Services agency that wishes to opt out of, or takes actions that may undermine the savings available from an A-o-G contract approach

  6. Ministerial Directions • Agree that Public Service Departments and State Services agencies transition to A-o-G contracts as soon as possible from June 2010; and that agencies should not enter into new or extend existing arrangements that may undermine the planned A-o-G contracts

  7. Resources • 09/10 - $3.0M • 10/11 - $5.6M • 11/12 - $5.6M • 12/13 - $5.7M • Out years - $5.7M • Headcount increase

  8. Funding/Savings • Year 1 central funding • Year 2 funded from savings delivered • Agencies count savings against their individual targets • On-going support dependent on benefits evidence

  9. Support structure Delivering procurement reform

  10. Governance • Strategy • Future direction, business participation • Procurement Development • Technical support, sounding board • Cost Savings • Contract strategy, scrutiny • Client Groups • Service requirements, technical input

  11. Advisory Groups - Invited

  12. Team Leader appointments • John Ivil Manager AoG Contracts • Paul Simonsen Team Leader - Vehicles • Gareth Charles Team Leader - IT • Neville Johnson Team Leader - Stationery • Peter Cooper Team Leader - Capability • TBA Policy Development

  13. All-of-Government Contracts Collaborate to deliver efficiencies

  14. Contract areas

  15. Summary Data IT Equipment

  16. Spend & Units by Sector – IT Hardware Note: Number are rounded to $1M

  17. 16.0 80% of total spend 14.0 12.0 10.0 8.0 6.0 4.0 2.0 $M Pareto – Significant Procurers Desktops

  18. 8.0 80% of total spend 7.0 6.0 5.0 4.0 3.0 2.0 1.0 $M Pareto – Significant Procurers Laptops

  19. Desktop suppliers:

  20. Laptop suppliers:

  21. Summary Data Vehicles

  22. Spend & Units by Sector – Vehicles 24 Note: Number are rounded to $1M

  23. $70M $60M $50M $40M $30M $20M $10M $0 Pareto – Significant Procurers Vehicles 25

  24. Vehicle suppliers: 26

  25. Spend & Units by Sector – MFD Note: Number are rounded to $1M 24

  26. 12.0 80% of total spend 10.0 8.0 6.0 4.0 2.0 $M Pareto – Significant Procurers MFDs 25

  27. MFD suppliers: 26

  28. Summary Data Stationery

  29. Spend by Sector – Stationery

  30. Current Stationery Supply

  31. Pareto – Significant Stationery Procurers 80% of spend

  32. Breakdown of Agency Spend

  33. Data Set 2 - Surveys • Desktops/Laptops 3 December • Multi-functional devices 3 December • Vehicles 17 December • Stationery 17 December

  34. All-of-Government Contracts Challenges

  35. Current challenges • Change management • Supplier conditioning • Transition dates

  36. Engagement • Ministerial intervention • Chief Executive engagement • Work groups • Supplier engagement • Client Groups

  37. Summary • Generally strong support • Few cases of undermining behaviour • Testing reform resolve • Ministerial intervention • Savings = Investment in Procurement

  38. Capacity & Capability Building Resource, training & education

  39. Skilled migration • “Professional Procurement” NZIS • Long term skills shortage register • MCIPS qualified • 5 Years experience • Job offer not pre-requisite • Prioritisation in process

  40. Education • Year 1 focus on CIPS • Year 2 broaden curriculum • E-Learning Platform (levels 3, 4, 5, 6) • Workshops (20 plus per year) • feasibility of pod cast under investigation • Study Guides

  41. Education • Pathfinder assessment to determine optimum route for individuals • Offer up to 50 places Year 1, 100 by year 4 • High subsidy (50-100%) • Details to be worked through with Development Group • Finalisation/establishment work • Likely to start in May ‘10

  42. Training • On the job training • Scope to be agreed: • Procurement Introduction (101) • Procurement Leaders Event • Strategic Procurement • Negotiation • Out to market soon • Subsidised 50% to 100%

  43. Conclusions Procurement reform is happening

  44. Conclusions • Reform is happening • Significant investment • Generally good support • Pockets of resistance • Ministerial personal intervention • Increase engagement

  45. Government Procurement Reform Programme Update Briefing - November

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