Building Capacity for Estates Collaborative Procurementpresented by Mark Swales - Director of Estates and Facilities Sheffield Hallam University

Today's Agenda

1. HE Context for Collaborative Procurement

2. Introduction to NEUPC and details of Estates and Facilities

collaborative procurement current position

3. Identified barriers to increased collaborative procurement

4. Identification of opportunities

5. Next Steps

HE Context for Collaborative Procurement

Procurement as a strategic asset

Procurement is concerned with delivering value for money and ensuring that organisations access the goods, services and works they need in order to fulfil their strategic objectives. Effective procurement, making better use of collaborative solutions and developing in-house capability and capacity helps to ensure that maximum value is realised from available resources.

HEFCE Efficiency and Effectiveness in Higher Education 2011

HE Context for Collaborative Procurement

• Procurement as a strategic asset

• Collaborative procurement in UK higher education• Developing capacity in procurement• Strategic direction, competition and targets• Regulation and procurement

HEFCE Efficiency and Effectiveness in Higher Education 2011

• A minimum target of 30 per cent of non-pay spend - to be addressed through effective collaborative arrangements. To be achieved by 2016.

• Target should be increased over time

• Estates represent the largest opportunity for both universities and consortia

• Relevant sector bodies should work together to establish a model for England based on Scotland's best practice (APUC)

• Establish an Academy for Procurement in Higher Education

Recommendations - what is the challenge?

Project Managers

Estates Programme

Projects

Financial

PhysicalFunctional

Strategic

Specific Users

Building Users

Campus Users

Devolved Budgets

Fac/Dir Finance

University Finance

Local AOP

Fac/Dir Strategic Plans

Corporate Strategy

Corporate Real Estate Management

Sheffield Population Spatial Impact

Economic ImpactStakeholders

economics: matching goals- resources

space uses and space quality

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Sustainable Finance

Sustainable Development

Competitive Advantage

Productivity

Estate key performance ratio's

Condition Surveys - quality

Space allocations by type and user

Carbon footprint/environmental impact

Output measures ; space utilisation; income per m2; functional suitability

Space allocation per user; energy use per user; retail, leisure, sport, shared spaces

Attractiveness of City/Region

University reputation

University outputs:degreespublicationscitationsknowledge transferpatents

Alumni

users:studentsacademic staffsupport staff

Visitors

City community related to the University

Knowledge workers; alumni; profile and skills of staff; values; Student and staff housing, culture and lifestyle

Valued employer; economic impact (users and visitors); start-ups; purchasing power; cost of ownership/total costs; attractiveness to business

AUDE and NEUPC

• Estates Procurement professionals with varying degrees of involvement in networking in the region and in own institutions

• NEUPC communications mainly through institutional procurement strategic leads therefore does not always engage effectively with Estates Procurement Professionals

• Directors of Estates awareness of NEUPC low • Probably individual institutions in the NEUPC region have many different approaches to estate and facilities procurement

My Initial Findings - Warning this slide contains sweeping statements!!

Estates Agreements

Agreements in Place

Furniture (Lot 1-4) (Office, Catering, Residential, Bespoke Teaching, Security)

Vehicle Hire & Leasing

Lift Maintenance Electrical Materials & Associated Products

Plumbing, Ceramics, Heating and Ventilation Equipment

Recycling Bins

Air Filters Pest & Vermin Control

Sports Fitness and Gym Equipment Refrigeration & Air conditioning Maintenance

Electrical White Goods Lift Consultancy

PAT Testing Fixed Wire Testing

Soft Furnishings (bedding, window coverings) (Lot 1-3)

Tool Hire

Removals & Relocation Services Water Quality Management

Electronic Components & Batteries (Lot 1-4)Engineering & Design Consumables and Storage & Materials Handling

Asbestos Removal ServicesSmoke alarms and carbon monoxide detectors Lot 1-4

Asbestos Consultancy Services Signs & Signage (in progress)

Total Estates Spend (20 institutions) = £590.2m

Excluding construction and utilities (£260m) of £330m impactable spend Influenced 4.1%

Category 13/14 Supplier MI

Estates £2.5m

Furniture £11m

Total £13.5m

Estates Spend

Estates£590.2m

Estates & Buildings

£479.2m

Workshop & Maintenance Supplies &

Services£42.4m

Vehicle Supplies & Services

(Purchase, Lease & Contract Hire)

£3.4m

Furniture

£12.2m

Utilities

£53m

Source: Spikes Cavell

What are the Barriers to Estates Collaborative Procurement?

Barriers to Collaborative Procurement

• Past experience and perceptions• Agreement competiveness and value for money• Trust, confidence and experience• Lack of estates input into defining requirements• Existing suppliers are local• SME accessibility in tender process• Lack of estates engagement and consultation• Institutional structures• Supplier behaviour• Too complex• Alternative collaborative bodies available• Time to collaborate

What Actions would you advise to mitigate these?

Key Actions

• Estates marketing and communications strategy

• Establish estates category group

• Workshop to identify barriers and inform estates category

strategy

• Develop estates category strategy and forward contracting

plan

• Make use of expert resource including estates professionals

and consultant QS

• Simply tender process working with lead institution

Ten Key Areas of Spend

1. Professional Services 2. Specialist Building Services 3. Plant Purchase 4. General Building Repairs and Maintenance 5. Security, Fire Alarms and CCTV 6. Electrical Sundries and Components 7. Ironmongery, Door Furniture and Locksmiths 8. Temporary Buildings 9. Statutory Testing 10. Air Conditioning

Next Steps

• Further analysis on current spend behaviours to gain as

comprehensive data set as possible

• Develop an estates category strategy

• Gain approval from NEUPC Board for additional resources

• Deliver on communication plan

• Deliver on quick wins

Any Questions?