Corporate Procurement

Service

Presentation Objectives

Improve understanding of:

Procurement Processes

Local Spend

Supplier Incentive Programme

Innovation Programme

Level of Commercial Activity

Contract Activity

Future Developments

Corporate Procurement Service

What Governs Us:

Council Constitution

EU Regulations

Social Value Act 2015

What that Means for Suppliers:

Fairness & transparency

Equal treatment

Below threshold constitution ensures specific numbers of local suppliers are invited to quote

Above threshold requirement for advertising nationally (Contracts Finder/OJEU)

Tendering Process

Open procedure

Any interested party can tender for the contract.

Restricted procedure

Interested parties will need to complete and pass a selection

questionnaire stage in order to then be invited to tender.

Procurement Thresholds – Goods and Services

Up to £5,000

Minimum of 1 written quote from South Tyneside businesses

£5,001 and £25,000

Minimum of 1 written quote from South Tyneside businesses and 2 written

quotes from Tyne & Wear suppliers

£25,001 and £ 181,302 1

Minimum of 2 written quotes from South Tyneside businesses and 2 written

quotes from other suppliers, or advertise opportunity on an internet portal and

Contract Finder

Over £181,302

OJEU advert 1 From January 2018 as the threshold for Goods and Services is set every two years

Procurement Thresholds - Works

Up to £181,302 (the lower OJEU threshold)

Minimum of 3 quotes/tenders from South Tyneside businesses (sourced via

Constructionline where possible)

£181,302 and £500,000

Minimum of 4 tenders from the Tyne & Wear Construction businesses, including

2 South Tyneside firms (sourced via Constructionline where possible)

£500,001 and £4,551,4131

Advertise (including OJEU where appropriate) and invite a minimum 4 written

tenders

Over £4,551,413

Official Journal of the European Union (OJEU) advert

1 From January 2018 as the threshold for Works is set every two years

Tender Requirements

What we ask you to provide:

Depends on procurement (must be relevant/appropriate)

Financial Information

Health and Safety Information

Information Governance

Technical and Professional Ability (past performance)

Insurance details

Tender response including Pricing Information and Quality criteria

submission (typically involving proposed method statements to deliver

contract)

Council’s Contract Register

Where to find contract information: Details of our existing contracts can be found at

https://www.nepo.org/suppliers/opportunities Select Contract Register,

then choose South Tyneside Council from the drop down list

You will be able to see all our existing contracts with further details

Procurement Summary

All Contracts let according to the Council’s constitution or the EU

Regulations

Register on the NEPO portal

Ensure you include all the categories you would like to bid for

Exposure to more than just South Tyneside Council!

Keep information up to date e.g. emails, categories

There is a link to our full contracts database on the Council’s

Internet site under business/selling to the Council. Link to Corporate

Procurement website:

https://www.southtyneside.gov.uk/article/33531/Selling-to-the-Council

Please feel free to call BTST Procurement on 0191 424 7008 or

424 7017

Supply South Tyneside – initiative to support

local businesses Changes to internal procedure rules – thresholds

Supplier engagement events

KPI’s – currently achieving over 50% local (in borough) spend 2017-18 and spend with

Tyne & Wear based companies is currently over 75%

0

10

20

30

40

50

60

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

Supply South Tyneside – Value of Local Spend

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

£k

Over £700m local spend including 2017-18

Commercial Activity – £209M (total Oracle spend

17/18)

4%

15%

66%

15%

not known

Public sector

Private sector

3rd sector

Procurement Activity – Company Size

Micro

Small

Medium

Large

Commercial Activity 17/18 – By Area of Spend (£M)

NB. “Other” Consists of a number of Categories with annual spend below £1.5m

£0

£10

£20

£30

£40

£50

£60

Top Revenue Contracts 2017/18

Top 5 STC Capital Contracts 2017/18

Top 5 Housing Capital Contracts 2017/18

Large contracts for renewal 2018/19

New Large Contracts to be Procured 2018/19

Supplier Incentive Programme (SIP)

Improved cash flow for suppliers through early payment.

Increased process efficiencies through e-invoicing and same day invoice processing.

Dedicated invoice processing and query resolution.

Nominated account manager who will provide dedicated end-to-end service.

Small discount taken from invoice proportionate to how many days payment has been accelerated.

Participation in the programme is incorporated in all new contracts awarded from April 15.

178 Suppliers already signed up to programme.

More information can be found: https://www.southtyneside.gov.uk/article/33532/Supplier-Incentive-Programme

Future Developments

Social Value

• Performance management tool (Social Value Portal)

• National Delivery Group focusing on Themes, Outcomes

and Measures

• Putting a £ value on Social Value – ability to evaluate and

score – transparent process

• Regional delivery via NEPO to pilot on a project including

consultancy support

Future Developments (2)

Innovation Programme

Working with Council internal departments to identify areas of activity

either causing challenges or that may benefit from an outcome based

procurement, where it is felt the Market might be able to provide a

solution

• Propose to approach the Market in relation to a small number of such

activities – searching for innovative solutions

• Future Engagement Events Planned for 2018

― Innovation Programme

― Local Spend Gap Analysis

Finally

• Please visit our team of experts at the procurement

hub today if you have any queries/questions or

require further information