improving school procurement and efficiency nasbm conference 6 october 2015 steve archer schools...
TRANSCRIPT
Improving School Procurement and Efficiency
NASBM Conference 6 October 2015
Steve Archer
Schools Commercial Team
Commercial Division
Changes in the schools landscape
• Growing numbers of academies, Multi Academy Trusts, and changes at Local Authorities with some stopping back office services
• Future pressures on schools spending include; non-pay inflation pay costs employer pension contribution
increases from September 2015 national insurance employer
contribution increases from April 2016
DfE review of efficiency in the schools system
Full report June 2013https://www.gov.uk/government/publications/review-of-efficiency-in-the-schools-system
Evidenced success factors
Deploy the workforce effectively, with a focus on developing high quality teachers
Make use of evidence to determine the right mix of teaching and education support staff
Employ or have access to a skilled school business manager (SBM) who takes on a leadership role
Make good use of financial benchmarking information to inform the school’s own spending decisions
Make use of school clusters, sharing expertise, experience and data, as well as accessing economies of scale when making shared purchases
Manage down back office and running costs
Have in place a strong governing body and leadership team that challenges the school’s spending
save money get better value for money
be accountable for what you
spend
follow the law
How can procurement help you….
When spending public money ensure:
fair and open competition
compliance with the EC Treaty
Public Contracts Regulations compliance
spending public money means you are accountable to UK Courts and European Commission
For all Schools current thresholds are:- £172,514 Goods & Services £4,322,012 Works
Regulations do not apply in full when the estimated value of the contract is below threshold
But Treaty principles do
Public Sector Procurement – what does it mean for schools
Revised directives agreed by EC June 2013 are now UK law
since February 2015
Core changes include: Most Economically Advantageous Tender (MEAT) standard
award criteria. Innovation partnerships: to allow discussion and co-
operation between public and private sector. New regulations no longer differentiate between Part A and
Part B services. UK negotiated exemption for Education and Social
Services. Enables UK including schools to use a “light touch” regime
for services under £650,000.
New EC Procurement Directives
Importance of efficiency and financial management
All schools working to makesavings to maximise resources in teaching and learning
Focus on efficiency, undertakestrategic financial management andprocurement to deliver savings to re- invest back into the school
Front line staff in schools make the biggest contribution to children’s experience and what they can achieve
Staff costs are a high percentage of schools expenditure (80-85%)
Variation in back office spending
Save money - time for a health
check?
Twenty three schools – 3 secondary and twenty primary, all within a 15 mile radius, with a total non pay spend of approximately £5m per year.
• Number of suppliers used? • % of spend with top twenty suppliers?• Number of suppliers used with a transaction value
of less than £500?• Number of suppliers used with an average
transaction value of less than £100?
Spend analysis
What does this tell you?
Analyse expenditure
Review your contracts
Identify opportunities for rationalisation
Deliver admin savings
Collaborate across key strategic spend areas
Benchmark and compare
What can you do?
Why collaborate?
Become an intelligent customer
Achieve procurement efficiencies
Meet deadlines by sharing tasks
Get better services by knowing
what works for your schools
SBM Primary Cluster Grant 2014-15
The DfE SBM PC grant funded the employment of a cluster
business manager (CBM) in 68 clusters. Initial survey headlines:
Overall projected savings £2.2million across all clusters
Positive SBM impact on wider educational attainment
Impact was particularly evident in procurement activities and
contract management.
Majority of respondents said the CBM role was likely to
continue beyond 2015.
We’ve taken the work out of finding good deals in key spend areas…
Public sector buying organisations (PSBOs) Some of the organisations we work with:
• Crown Commercial Service (CCS)
• Eastern Shires Purchasing Organisation (ESPO)
• North Eastern Purchasing Organisation (NEPO)
• Yorkshire Purchasing Organisation (YPO)
• Central Buying Consortium (CBC)
• Crescent Purchasing Consortium (CPC)
Ensuring the frameworks are fit for schools
We are reviewing the framework offer for each category of
schools’ spend, to ensure they meet schools’ needs: Understand what schools’ specific needs are for the category
Obtain school data so that we understand what schools currently buy,
who from and at what price.
Engage with the market to seek ideas and highlight challenges.
Establish school user groups to inform and shape agreements.
Ensure the agreement language is school friendly making it easier for
schools to use.
Work with agreement owner and supply chain to ensure they are
ready for schools.
Monitor and review uptake to address any issues and look at ways to
further improve the offer.
Slide 6
• Risk Protection Arrangement
• Energy efficiency
• Energy supply
• MFD’s
• ICT services
• Facilities Management
• Merchant Acquiring Services
Key spend areas…
Risk Protection Arrangement (RPA) EFA letter 14 February 2014 outlining the RPA as an
alternative to insurance
RPA is NOT insurance
Government managing risk in line with HM Treasury policy
as set out in ‘Managing Public Money’
£25 per pupil fixed until August 2016, not expected to
increase
Available for all academy trusts and multi academy trusts
to opt in as an alternative to insurance
1182 academies have opted in as of June 2015 and are
under cover
94 members who have opted in will go live later in 2015
Pros and Cons of joining RPA Pros
- cost effective (VfM)- wide cover- integrated Risk Management- professional Claims Handling service- reduced administrative burden for academies - no renewal process, just opt in - no material fact disclosure
Cons- not insurance, lease and other agreements may need to be amended- certain risks excluded (motor, engineering, fine arts, overseas travel)
Gallagher Bassett – Claims Handling Gallagher Bassett appointed as Third Party Administrator
Dedicated portal for claim notification, claims can also be
submitted via post, email or telephone
24 hour emergency helpline in the event of a catastrophic
event
Appointed loss adjusters and legal advisers ready to
assist in the event of a claim
Rehabilitation facilities
Process for managing sensitive claims
Interim payments available for catastrophic property
losses
Provision for arbitration in the event of a dispute
More information
You can find out more about the Risk Protection Arrangement,
including information about the claims management and risk
management approach on the Gov.UK website here:
https://www.gov.uk/academies-risk-protection-arrangement-rpa
The RPA Membership Rules set out the full scope of the RPA and
can be found here:
https://www.gov.uk/government/publications/risk-protection-arrangement-rpa-for-academy-trusts-membership-rules
Cover helpdesk and advice line is available
to all academy schools
Schools energy efficiency
What are the aims:
To increased energy
efficiency within schools
Reduced £500 million
annual spend across the
English schools estate
Improved learning
environment for pupils
and staff
Reduced carbon emissions
Lower maintenance costs
Reduced need for equipment upgrades
Reduced maintenance backlog
Other benefits
Working with our key delivery partners DECC, Salix Finance, Local Partnerships and the GLAs RE:FIT team:• Invested £32 million of capital through the Salix Energy Efficiency
Loans scheme• Provided over 670 schools and academies with interest free loans
for energy efficiency projects with projected lifetime savings of £63 million
• Further funding through the EFA Conditions Improvement Fund (CIF)
• Maintained funding through Salix Finance• Established a schools page on the Salix website
www.salixfinance.co.uk/schools
What have we achieved so far?
Exemplar Case Studies
Alfred Street Junior School used a £16,870 Salix loan to replace their old lighting with new T5 lamps, insulate internal pipework and improve burner management on their boilers.These projects will be repaid from the savings in 5.5 years.
Developing a work programme with Crown Commercial
Service (CCS) to support school procurement and
efficiency including:
Energy supply
Multi Function Devices
ICT services
Facilities Management
Merchant Acquiring Services
Crown Commercial Service
DfE and CCS worked collaboratively with an academy stakeholder group to understand the energy market challenges faced by the schools sector. This informed work to simplify the customer engagement process and increased awareness of the transparency and scrutiny of the current arrangements.
The aim is to help schools and academies achieve greater value for money when buying their energy and we have seen increased enquiries from schools since launching the campaign.
Energy for Schools https://www.gov.uk/government/publications/energy-for-schools
Energy facts. . .
32
1,000+ customers
Savings £110m+ p.a.
17.6TWh
11TWh
110,000+ meters
70%+ of public sector energy spend
Category Spend £2.4bn + p.a.
Data Analysis
Corona Energy Manager
By understanding a sites core business, hours, areas of use and basic demand we
can identify where there is waste and ensure this is kept to a minimum, if not cut
completely
Unlike other energy saving schemes, rather than replacing or installing
equipment, we focus on maximising efficiency
Primary School ‘A’ – December 2014
Primary School ‘B’ – December 2014
Photocopiers/Printers (“MFDs”)
6
3,130+ Customers To DateEducation All Lots
50%Average Price Savings Education Lot 1
£43.5 millionSpend To DateEducationAll Lots
“This deal delivers big savings and peace of mind – certainly best value. I’ve recommended it to other business managers
and they’re seeing great results.”
Business Manager Fitzjohn’s Primary School
“By using the new RM1599 framework the school is saving
90% on the new Xerox MFD agreement plus over 80% on
the service contract.”
Benthal Primary School By switching to our MFD framework, Jack Tizard
School are saving
39% on their colour printing,
That’s over £1,300
per year
“We’re saving £939 a year, that’s
54%”Victoria Infant & Nursery School
Technology
35
IMLS
EASSCSS
LASA
PSN G-Cloud
Digital Services
CBT TMT
Managed eMail
Technology Products
ICT Services for Education
ICT Services for Education
36
• Specifically tailored to meet schools’ ICT requirements
• 4 year Framework running until April 2019
• 21 approved suppliers that have:- knowledge and experience of delivering
educational solutions been evaluated via an EU compliant
competition process have signed up to pre-determined
contractual t’s & c’s subjected to contract and performance
management
• Suitable for Maintained schools, Local Authorities, Free Schools and Academies.
Information Management & Learning Services (IMLS) Framework
37
• Awarded in March 2012 by CCS in close collaboration with DfE
• 4 year arrangement running until March 2016
• Lot 1 – School MIS solutions (9 x approved suppliers)
• Lot 2 – Learning Services solutions (15 x approved suppliers)
• Future services access via G-Cloud
Microsoft MoU for Schools
38
• Covers full range of Microsoft Academic Software Licence programmes
• Negotiated by GPS and DfE during 2012 and launched on 1st January 2013 (for a 3 year term)
• Currently subject of re-negotiation (existing agreement expires Dec 2015) – details will follow
• Delivers savings of c. £10m per annum by way of discounts and preferential terms and conditions
• Make sure your re-seller offers the MoU discounts/concessions
• Compete your requirements with more than one supplier
Microsoft MoU for UK Schools
39
• Microsoft also offers several “free” products should you take out an enterprise subscription (OVS-ES) 5 free installations for students of either Office 365 ProPlus or
Office for Mac (can include smartphone/laptop/home computer) Office Mobile on iPhone and Android phones Check with your re-seller
• Google Apps for Education also have a comprehensive free offering
• Direction of travel is undoubtedly to the “cloud”
Cloud Software Services
40
• Major providers to schools (Google/Microsoft/Apple/Amazon/Oracle/Adobe etc) are all either “cloud”-based or heading that way fast
• Cloud offers savings opportunities but is not a cure-all
• DfE is pulling together some “best practice” guidance for schools wishing to migrate to the cloud
• DfE maintains some Cloud and Data Protection guidance where suppliers have responded - https://www.gov.uk/government/publications/cloud-software-services-and-the-data-protection-act.
Facilities Management
41
The new Facilities Management Contracting Model (FMCM) will provide an innovative and extensive contracting vehicle giving access to:
• Total facilities management• Hard FM • Soft FM services
The solution will also include the FM Dynamic Marketplace providing a quick and efficient route to market for low value contracts, allowing a large number of providers, from SMEs to multi-nationals to participate by following a basic pre-approved supplier approach.
The agreement will be the primary route for FM services to government and the wider public sector.
Merchant Acquiring Services
42
Many schools and colleges have moved to electronic “chip and pin” payments and electronic parent communication.
• Schools should benefit from the low volume related transaction fees like retailers and other corporate companies.
• Retendering CCS Merchant Acquiring Service Provider framework to include schools within scope.
• The aim is to reduce transactional costs for schools
Procurement Capability Project
DfE want to increase schools public procurement capability, reduce the risk of schools being legally challenged by suppliers and improve Vfm achieved for goods and services purchased. • The DfE are offering a train the trainer (TtT) approach to allow
SBMs and finance staff working in partnership to drive procurement capability across the sector;
• The DfE will develop resources to support bite size procurement sessions supported by webinars and video clips. We may consider the future development of applications for web anywhere learning solutions;
• Contact [email protected] if you would like more information for your next SBM meeting or would be interested in leading a local group.
Useful procurement information
https://www.gov.uk/government/collections/buying-for-schools
Buying collaboratively
For school leaders, school business managers, back office staff and governing bodies in all schools November 2014
Effective Buying foryour school
For school leaders, school business managers, back office staff and governing bodies in all schools March 2014
Buying ICT foryour school
For school leaders, school business managers, back office staff and governingbodies in all schools November 2014