Procurement

Public sector procurement for significant projects is often an expensive and slow exercise, both for the client and the bidding suppliers. All too often by the time the procurement has reached a conclusion, the original requirements need revising because circumstances have changed in the intervening months.

Clients often feel they need to have tight controls over suppliers and so are very prescriptive in specifying requirements. Often what seems like a strong contract in year one turns out to be too inflexible later in the contract's life.

Coraledge can help you with the entire procurement process, from developing the business case and securing budget and commitment, to evaluating bids in fair a way that genuinely reflects business priorities and encourages suppliers to innovate and add value. Crucially, we have a great track record of getting the procurement completed and contracts agreed and signed on time with full stakeholder involvement.

One key to success is the development of a robust and realistic business case that clearly states the benefits the project is expected to deliver, over what time scale, how we can demonstrate they have been realised, and who is resposible for realising them. Often the full benefits may not be realised for several months or years after go-live, by which time the project team has disbanded. Consequently it is important to place responsibility for realising benefits with more enduring roles outside of the project team.

A well-developed business case provides the stakeholders with a clear set of objectives they can support, and a solid basis for running the procurement.

Example 1: bid for funding and OJEU procurements

We were engaged by a London borough council to bid for ODPM funds to improve the service performance in Revenues and Benefits. This required the development of a robust business case for the deputy Chief Executive and Executive Member, clearly setting out the costs and benefits of various options. Once this was approved we were able to bid for funding, and we were successful.

After securing the funding we were engaged to conduct the OJEU procurement in order to find a suitable IT system and service provider. The procurement followed the Restricted process, and we pulled an evaluation team together involving all our key stakeholders. Together we devised a set of requirements and evaluation criteria, and were able to reach quick agreement on a shortlist of potential suppliers to invite to tender.

The tendering process involved visits to other Councils where the systems were being used, but we wanted a wider audience to have the opportunity to see the systems in action so we set up supplier demonstrations for all tthe affected staff and management team. The evaluation panel recommended a supplier to the Cabinet which was approved, and Coraledge was engaged to finalise the contract. We were subsequently asked to deliver the project.

Time scales for the project: We started the business case in October, got funding in December, completed the procurement in June, and had 200+ staff live in September.

As a result of our success we have delivered a further two major procurements for a replacement Housing system, and a council-wide information management system.

Example 2: concurrent procurements for multiple organisations

Another London borough engaged us to run two concurrent strategic procurements, one for a council-wide IT system, and another for bulk scanning and off-site storage of paper records to support their office consolidation programme. The Council was keen to share the system and services with its partner organisations, so the stakeholder map was complex with conflicting needs. As a result we had to consult widely to fully understand requirements and gain commitment from all stakeholders.

During the evaluation process we promoted and ran a series of very well-attended lunchtime demonstrations from all of the suppliers. This gave several hundred staff from different organisations a sense of involvement and the chance to air their concerns. Their input was invaluable and helped shape the eventual solutions, plus we increased the level of staff awareness making implementation and acceptance easier to achieve.

Following the successful procurements, we were asked to build a team and manage the project delivery (which included the two excellent winning suppliers, Hedra and TNT).

Time scales for the project: We started the business cases in June, got Cabinet approval for the OJEU procurements in December, announced preferred suppliers in June, started the project in September and had moved around 3km of paper offsite, and got 400 staff trained and live in a new office by December.

This record-breaking project is used in senior management training as an example of best practice, and the Council's project methodology has been updated to use some of the techniques we employed.