Steve Robinson

Head of Commissioning and Procurement

and
Managing Director of Atebion Solutions
EXPERIENCE

but

Todays seminar

 Cardiff
Council and
the
Commission
ing &
About the City of Cardiff
Council
 Procurement Matters

54
%
8,39 spend in
Cardiff
9 region

Suppliers

18
used

383
m
of cost m annual
reduction external
savings spend
delivered in

last 5 years
 Regional Analysis
2015/16

53.7% spend within Cardiff / Cardiff Region although does not take account of spend
through supply chain e.g. Comensura (11m) predominantly with local agents recruiting
local staff
Commissioning and Procurement
Who we are and what we do
Implementi
ng
Category
Manageme
nt
Where We Were
Our
Response
Adopting Category Management
 2015/16 Spend by
Category
SOCIAL & PEOPLE ENVIRONMENT CORPORATE
(Steve Robinson) (Chris McLellan) (Chris McLellan)

Adult Childrens Construction and Building Highways, Waste & Professional Facilities
Transport Corporate & ICT
Social Care Social Care Special Projects Maintenance Parks Services & (27.2m) Management (36.1m)
(106.5m) (34.8m) (34.4m) (46.3m) (36m) Consultancy (39.1m) (22.6m)

Buildings Construction Passenger Transport Information and

Domiciliary Care for Adults Residential Care for Children General Building Services Waste Management Professional Services Utilities and Energy
Projects Services Communication Technology
(37.5m) (10.3m) (33.1m) (19.2m) (20.1m) (9.5m)
(26.5m) (18.3m) (14m)

Civil
Mechanical & Electrical Highway Maintenance and Fleet Services Property Leases & Accom
Residential Care for Adults Fostering Services Construction Events
Services Construction Agency Works (17.8m) And Materials Service
(22.8m) (12.1m) Projects (10.1m)
(9.7m) (12.1m) (7.2m) (2.6m)
(4.1m)

Prefabricated & Temporary Parks and Ground Plant, Tools, Equipment and Catering Services and Schools Supplies &
Supported Living for Adults Family Support Building Materials Consultancy
Buildings Maintenance and Materials Services Materials Equipment
(6.6m) (7.4m) (2.9m) (1.1m)
(1.3m) (2.3m) (1.4m) (5.7m) (4.6m)

Leisure & Other Cleaning Services and Advertising, Print, Design &
Supporting People Sessional Support Marine Services Highways Materials Other Transport Services
Facilities Materials Post
(15.3m) (1.05m) (0.75m) (0.79m) (0.3m)
(0.67m) (0.95m) (4.4m)

Office Consumables,
Domestic Furniture &
Nursing Care for Adults Accommodation and Support Environment Consultancy Traffic and Telematics Equipment
Equipment
(15.5m) (1.9m) (1.8m) (1.55m) & Services
(2.1m)
(2.3m)

Day Care for Adults Adoption Services Facilities Maintenance Books and Publications
(4.9m) (0.4m) (1.7m) (0.7m)

Respite Care for

Other Adults
Children
(3.7m)
(0.46m)

Other Childrens Social

Care
(1.2m)
 Category Management
Approaches
Tactical Sourcing Strategic Transformational
Sourcing Sourcing
Extract benefits
Sustain Extend & develop
Price focused, quick
wins, rationalise Cost reduced, Change way business
spend drive value, operates, driving
innovation and efficiency
performance
Price Down
Cost Down Cost Out

Transactional Performance Improvement Collaborative

Achievem
ents
Future
Strateg
y
Context
The Council is continuing to
face a significant budget
challenge. Despite delivering
savings of 200million over the
past 10 years the Council is
facing a budget gap of 25m
during 2017/18 and a
potential shortfall of 81million
over the next three years.
EU and UK Legislative Context Welsh
Context

EU Treaty
Principles

EU Public
Sector
Procurement Wales
Directive Procurement
Public 2014
Contract Well being of Policy
Regulations Future Statement
Equality Act 2010 Generations
2015
Act
 Cardiff and Regional Context

Cardiff Capital Region

City Deal

Cardiff What Matters

Strategy

Supporting
vulnerable
Better education people
and skills for all
 Procurement Strategy
2017-2020
Delivering Commercial and Social
Value

Through Success will be People Process

innovation and dependent on
effective continuing to
Culture
management of invest in the
procurement development
activity we will of key Information Technology
deliver the enablers .
following
organisational
outcomes
We will achieve this
by Our key priorities for
2017
 Social
Responsibil
ity
 Initiative
s

Cardiff Social
Responsibility
Cardiff Charter
Council
WG Code of
Practice Ethical Community
Employment in Benefits
Supply Chain
WG Community Board
Benefits Toolkit
 Community Benefits
Agree and have
Board
oversight of the Coordinate the Address
Councils monitoring and any
Community management of resource
Benefits Community Benefits issues
programme
Maximise the across the Council Raise issues at
Community Benefits Senior
Development of Social
delivered by the Management
Responsibility Charter
Council across all Team and
and potential
service areas Cabinet as
expansion of
Ensure that the Community Benefits required
Council learns Board remit into a
from best wider Social Scrutinise
practice Responsibility Board contractors
elsewhere Make decisions over their
based on National delivery of
Guidance and the community
Oversee the benefits
promotion and available
awareness information
raising of
Community Receive progress Provide
Sign off an annual
Benefits reports and challenge where
report setting out agree actions as necessary
the Community appropriate
Benefits delivered
across the Council
 Delivery of Community
Benefits
BMF Cardi
(2013- ff
2016) Livin
g Economic Create over 9,000
Approximate Support growth training weeks for
ly 900 of the through Cardiff residents
20 apprenticesh employm locally
Apprenticeshi ip weeks ent of procured
ps over supply
Over 100 6,400 chains
work people
experience
weeks Work
Short term/ Graduate Support
placements
long term s for
and
unemploym veterans
apprentice
ent ships
Over 60 reduction of Developme
million 40 Innovativ
nt of local
contribution e
supply
to SMEs education
chains
based in initiatives
Wales
Local authority trading
company to deliver
commissioning and
procurement services to
mitigate against budget
cuts.

Proposal made on basis of .

What staff directly affected
What the Council wants want
To reduce C&P budget initially by Control over their own future given level of
uncertainty
307,000 but potentially cut back
to statutory only Opportunity to develop existing skills and
capability
At the same time it wants to retain Continue delivering value for Cardif and the
access to experienced and wider public sector
knowledgeable staf Receive recognition and reward
commensurate to efort and risk
With flexibility to meet demand
Eventual ownership of employee mutual
across a broad breadth of
knowledge
And if we dont do something soon
We have already seen good quality staff leave if staff not able to take some control
over future and see some reward there is a very real risk that our best staff will leave as
they are in-demand from major employers including National Procurement Service for
Wales and Crown Commercial Services
Proposed Option Trade through
Local Authority Trading Company
This option would see the creation of a Local Authority Trading Company specifically for trading of
procurement and commercial expertise which is wholly owned by the Council
Staf would remain employees of the Council with spare capacity purchased at full cost to cover budget
savings
Company would charge for external paid business at full cost plus mark-up
LATC
purchases
spare
Public and LATC trades Local Authority capacity at
with external cost (income City of
Private Sector organisations Trading Company to Council) Cardif Council
Clients at full cost (LATC)
plus mark-up
Profit
Staf employed by
Council
Pros Cons
Able to work with private sector Limited incentive or future opportunity for staf as potential for
clients and recharge at profit employee ownership is limited
Relatively simple and straightforward No guarantee an EBO would be approved
to establish State Aid would require EBO at full market value
No conflict of interest issues No ability to build reserves for EBO
Allows wider range of Council staf to Best staf likely to leave unless mechanism for
participate in trading activity recognising staf contribution
Profit income stream for the Council Staf lose all IPR
EBO Employee Buy
Out
Questions