Agenda

2. Agenda • Introduction to Birmingham City Council • Relationship with Partners • Examples of Innovation • Trading Models • Susatainable Procurement Consortium • Finditinbirmingam.com • TVTTS • Jobs and Skills Framework • Becoming a Commissioning Organisation

3. One of most deprived areas in UK 12.5% of people are out of work 53,000 staff £3.4bn budget 1 million customers 20 million+ visitors 132 service areas – 6 Directorates 65,000 Council houses 4 million library visits 14 million school meals 177,000 pupils taught 2,675 acres of parks 2,500km of roads The Largest Local Authority in Europe

4. Understanding our BudgetGross Income Budget £3,383m

5. Understanding our BudgetGross Expenditure Budget £3,383m

6. Controllable Expenditure Budget by Cabinet Portfolio - £1,744m

7. Comprehensive Spending Review • >7% per year in real terms for 4 years – 28% • Effect equivalent to £330m • Council taxes ‘frozen’ • Schools budgets increase by 0.1% in real terms • Local gvt – some of biggest cuts in public sector • Birmingham one of 16 areas to operate ‘community budgets’ • Changes in NHS/PCTs impact adult social care • Expectations on what councils deliver will change

8. West Midlands Emergency Services Academic Orgs Health Trusts Counties Mets Counties Mets Other West Mids LAs Counties Mets Birmingham City Council Other West Mids LAs Mets Counties Other LA’s Core Cities OGC Buying Solutions Other LA’s Core Cities OGC Buying Solutions A&C E & C D V T C X C Y P F H & C Health Trusts Third Sector Orgs West Midlands Emergency Services Birmingham City Council Wider Environment – Relationship with Partners RIEP INFLUENCE BeBirmingham Influence

9. Sustainable Procurement Consortium Purpose • Will be a social enterprise, awarding locality based purchasing agreements for use by • Public sector • Third sector • Potentially private sector organisations. • Focus on supply markets to create jobs and training opportunities in target communities • Supporting the local economy • Reducing CO2 and the effects of climate change • Minimising environmental impacts • Supporting the Third Sector • Stimulating innovation • Birmingham Energy Savers – fitting photo-voltaic panels

10. Sustainable Procurement Consortium Structure & Benefits • Founder members from business, public and 3rd sectors • High quality framework agreements • Coverage matched to buyer and supply markets • Innovative products and services • Scope, process and criteria encourages local and sustainable solutions Benefits • Lower acquisition costs allows procurement to focus on core activity • Increased social value through procurement • Improved local supply chain • Easier access to markets for suppliers • Reduced tender costs

11. Initiative to assist small local businesses by making supply opportunities more visible • Opportunities posted from BCC, our suppliers, other public bodies, any private organisation • Web based portal plus free networking and business support events • Registered uses alerted when relevant opportunity posted • Since launch in May 2010 exceeded target of 5000 users • Developing a supplier accreditation approach

12. TVTTSThink Venues Think Third Sector • On line directory of third sector meeting rooms facilities across the city • Council policy to avoid expensive external meeting venues • If internal meeting facilities not available use the directory • Outcomes • Better pricing, Better quality, Better choice • Delivers a social outcome • Organisation now forming a cooperative

13. West Midlands Framework for Jobs & Skills Strategic Approach The strategic application of contract clauses to the end-to-end Procurement System The specific use of Contract Clauses Voluntary Agreements Jobs and Skills Charters • The strategic approach • Jobs and Skills outcomes embedded as core consideration throughout the City Council’s procurement and commissioning processes. • The specific use of Contract Clauses • Voluntary Agreements • Works with their existing contractors to secure commitments to specific jobs and skills outcomes. • Charters • Council shares its strategic priorities and goals around jobs and skills with current and prospective contractors • Thresholds

14. Left Brain - Right Brain Is this how some commissioners see procurement? Bureaucracy Systems Rule compliance Becoming a Commissioning Organisation Is this how some procurement people see commissioning? Risk taking Breaking the rules Informal

15. BCC as a Strategic Commissioner of ServicesWhat this means… • Challenging services we provide and how we provide them • Re-designing service delivery where not working efficiently • Working collaboratively with partners to common goals. • Delivered by the org best able to achieve desired outcomes • All service areas to have a commissioning approach • An independent challenge will be applied to commissioning strategies and business cases.

16. BCC as a Strategic Commissioner of ServicesPotential Benefits • Cost of service clearly defined – no additional overheads, asset or pension costs • Access to skills that are limited in-house • Greater flexibility to change terms of contract to reflect changes in demand • Price of service is competitively driven • Equipment utilisation is often greater externally • Larger client base gives economies of scale in use of assets • Access to technology and modern best practices

17. New Supplier Relationships • 2006 Joint Venture with Capita for 10 years • ICT and Transformation support • Current conditions and learning stimulate renegotiation • Major PFIs • Veolia 25 year agreement to 2019 • 25 year Highways PFI valued at £2.7bn – largest PFI in UK • 3 Schools PFIs • Procurement published Service Delivery Options detailing 13 ways opportunities for delivering services • Co-ordinating with other internal service providers to provide a joined up offer to others

18. The Government Spending Challenge Business Transformation is the biggest change BCC has ever faced, it created turmoil, uncertainty and challenge for managers and employees. We now need to findTHREE times the savings in HALF the time There is colossal change ahead – we need to manage this change as leaders, with members, with employees and with our customers.