Download - Government Procurement Reform Programme
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Government Procurement Reform Programme
Update Briefing - November
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Agenda
• Cabinet report back
• Support structure
• All-of-Government Contracts
• Capacity building
• Next steps
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Cabinet Report Back
October 2009
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Key issues
• Funding
• Savings
• Ministerial intervention
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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
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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
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Resources
• 09/10 - $3.0M
• 10/11 - $5.6M
• 11/12 - $5.6M
• 12/13 - $5.7M
• Out years - $5.7M
• Headcount increase
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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
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Support structure
Delivering procurement reform
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Governance• Strategy
– Future direction, business participation
• Procurement Development– Technical support, sounding board
• Cost Savings– Contract strategy, scrutiny
• Client Groups– Service requirements, technical input
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Advisory Groups - Invited
Strategy Development SavingsPhil O’Reilly Ron Stuart Ron Stuart
Laila Harre Ted Dean John Richards
Chris Morgan Brett Rigden Craig Williams
Andrea Gregory Colin Fairweather TBA
Peter Mersi Matthew Perkins David Scampton
Nicola White Alyson Moody
Bruce Wooller Steve Bickers
Peter Fehl
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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
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All-of-Government Contracts
Collaborate to deliver efficiencies
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Contract areas
Spend Area Annual Spend
Desktop/laptop computers $58 Million + $20 MinEd
Vehicles $87 Million
Stationery $61 Million
Multi-functional Devices $20 Million
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Summary Data
IT Equipment
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Spend & Units by Sector – IT Hardware
Note: Number are rounded to $1M
Average Annual Spend
Average Annual Units
Desktops Laptops Desktops Laptops
Public Service $11M $6M 8500 3100
State Services $20M $7M 14600 3600
State Sector $10M $4M 6900 1800
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Desktops: Total Spend over 4 Years
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
80% of total spend
2.0
4.0
6.0
8.0
10.0
12.0
$M
14.0
16.0
Pareto – Significant Procurers Desktops
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Laptops: Total Spend over 4 Years
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,00080% of total spend
2.0
4.0
6.0
8.0
5.0
7.0
$M
3.0
1.0
Pareto – Significant Procurers Laptops
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Desktop suppliers:
23%
14%
11%11%
10%
7%
4%
4%
3%
2%
11%
Dell
HP
Axon
Datacom
Gen-i
Cyclone Computers
Fujitsu
Silicon Systems
Acer
IBM / Lenovo*
Other
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Laptop suppliers:
13%
13%
12%
12%6%
6%
5%3%
2%
1%
27%
Axon
HP
Gen-i
Dell
Datacom
Fujitsu
The Laptop Company
Cyclone Computers
Advantage Computers
Lenovo
Other
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Summary Data
Vehicles
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Spend & Units by Sector – Vehicles
Note: Number are rounded to $1M
24
Average Annual Spend (Millions)
Passenger Cars
4x4 Ute's Vans Total
Public Service $19 $2 $8 $3 $31
State Service $31 $3 $2 $5 $40
State Sector $5 $3 $4 $2 $14
Average Annual Units
Passenger Cars
4x4 Ute's Vans Total
Public Service 1000 100 200 100 1300
State Service 1600 100 200 200 2100
State Sector 300 100 200 100 700
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Pareto – Significant Procurers Vehicles
25
$0
$10M
$20M
$30M
$40M
$50M
$60M
$70M
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Vehicle suppliers:
26
18%
13%
11%
10%8%
6%
6%
5%
4%
4%
15%
Hyundai
GSB Supplycorp Ltd
Holden
Volkswagon
Toyota
Custom Fleet
FleetPartners
Local Car Dealers
Honda
Ford
Other
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Spend & Units by Sector – MFD
Note: Number are rounded to $1M
24
Average Annual Spend Average Annual Units
Public Service $6M 900
State Services $10M 2200
State Sector $4M 300
TOTAL $20M 3400
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MFDs: Total Spend over 4 Years
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
2.0
4.0
6.0
8.0
10.0
12.0
$M
80% of total spend
Pareto – Significant Procurers MFDs
25
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MFD suppliers:
26
TOP 10 MFD Suppliers
13%
14%
8%
4%
2% 0%1%
25%
30%
1%2%
Konica Minolta
Ricoh
Canon
Fuji Xerox
Axon
Gen-i
Sharp
Datacom
Fujitsu
GSB SupplyCorp
Other Suppliers
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Summary Data
Stationery
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Spend by Sector – Stationery
Public Service $18M
State Services $32M
State Sector $11M
Average Annual Spend by Sector$61m
53%
18%29%
Public Service
State Services
State Sector
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Current Stationery Supply
Public Service Spend
$0
$2
$4
$6
$8
$10
$12
$14
Public Service State Services State Sector
Mill
ion
s
Corporate Express
Office Max
Other Suppliers
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Pareto – Significant Stationery Procurers
Annual Average Spend on Stationery
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
80% of spend
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Breakdown of Agency Spend
SPEND AGENCIES TOTAL SPEND PERCENTAGE
0 - $100000 63 $2,380,470 4%
$100000 - $200000 31 $4,394,311 7%
$200000 - $300000 16 $3,973,490 6%
$300000 - $400000 14 $4,953,189 8%
$400000 - $500000 4 $1,820,514 3%
$500000 - $1000000 17 $12,651,614 21%
$1000000 - $1500000 5 $6,729,360 11%
$1500000 - $2000000 3 $5,333,960 9%
$2000000 - $2500000 2 $4,642,848 8%
$2500000 - $3000000 2 $5,363,474 9%
$3000000 + 2 $8,949,472 15%
159 $61,192,701 100%
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Data Set 2 - Surveys
• Desktops/Laptops 3 December
• Multi-functional devices 3 December
• Vehicles 17 December
• Stationery 17 December
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All-of-Government Contracts
Challenges
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Current challenges
• Change management
• Supplier conditioning
• Transition dates
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Engagement
• Ministerial intervention
• Chief Executive engagement
• Work groups
• Supplier engagement
• Client Groups
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Summary
• Generally strong support
• Few cases of undermining behaviour
• Testing reform resolve
• Ministerial intervention
• Savings = Investment in Procurement
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Capacity & Capability Building
Resource, training & education
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Skilled migration
• “Professional Procurement” NZIS
• Long term skills shortage register
• MCIPS qualified
• 5 Years experience
• Job offer not pre-requisite
• Prioritisation in process
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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
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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
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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%
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Conclusions
Procurement reform is happening
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Conclusions
• Reform is happening
• Significant investment
• Generally good support
• Pockets of resistance
• Ministerial personal intervention
• Increase engagement
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Government Procurement Reform Programme
Update Briefing - November