![ANNUALPROCUREMENTVALUE FOR MONEYREPORT2009<br />Information contained in this report has been compiled by<br />The Procurement Team<br />Contents<br /> TOC quot;
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1.0 Management Summary PAGEREF _Toc241397977 3<br />2.0 Customer & Supplier Satisfaction Surveys PAGEREF _Toc241397978 3<br />2.1 Supplier Satisfaction Survey PAGEREF _Toc241397979 3<br />2.3 Equality PAGEREF _Toc241397980 4<br />3.0 Review of Activity PAGEREF _Toc241397981 5<br />3.1 Tenders Awarded PAGEREF _Toc241397982 5<br />3.2 Calls for Further Competition. PAGEREF _Toc241397983 6<br />3.3 Savings PAGEREF _Toc241397984 7<br />3.5 Statistics PAGEREF _Toc241397985 8<br />3.6 Purchase Order Analysis PAGEREF _Toc241397986 9<br />3.7 Purchasing Cards PAGEREF _Toc241397987 10<br />3.8 E-Procurement PAGEREF _Toc241397988 11<br />3.9 Engagement with Small and Medium Size Enterprises (SMEs) PAGEREF _Toc241397989 12<br />3.10 SME Event PAGEREF _Toc241397990 13<br />4.0 Sustainability PAGEREF _Toc241397991 13<br />4.1 Training / Continuing Professional Development (CPD) PAGEREF _Toc241397992 14<br />4.2 Procurement support to Further Education (FE) institutions PAGEREF _Toc241397993 14<br />5.0 National Overview PAGEREF _Toc241397994 15<br />6.0 Influenceable Spend PAGEREF _Toc241397995 16<br />7.0 Freedom of Information (FOI) PAGEREF _Toc241397996 17<br />8.0 Staffing PAGEREF _Toc241397997 17<br />9.0 Review of risk areas identified for 2008/2009 PAGEREF _Toc241397998 17<br />10.0 Review of new initiatives identified for 2008/9 PAGEREF _Toc241397999 17<br />11.0 The Year Ahead PAGEREF _Toc241398000 17<br />11.1 New risk areas identified for 2009/2010 PAGEREF _Toc241398001 17<br />11.2 New Initiatives for 2009/2010 PAGEREF _Toc241398002 17<br />11.3 Review of 2008/9 Key Performance Indicators PAGEREF _Toc241398003 18<br />12.0 Tender Plan PAGEREF _Toc241398004 18<br />13.0 Conclusion PAGEREF _Toc241398005 18<br />14.0 Recommendations PAGEREF _Toc241398006 18<br />Appendix A: EMM Efficiency Measurement Report PAGEREF _Toc241398007 19<br />Appendix B: Purchasing 5 Year Tender Plan PAGEREF _Toc241398008 21<br />Appendix C: Expenditure Analysis – Top 100 suppliers PAGEREF _Toc241398009 24<br />Annual Report to the Director of Finance and Corporation Secretary<br />By the Head of Procurement<br />1.0 Management Summary<br />The purpose of this report is to outline the activities undertaken by the procurement team from 1st August 2008 to 31st July 2009 and to look forward to the challenges facing the team over the next financial year. The report includes a review of areas of risk and the 2009/10 five year purchasing plan.<br />The report also reviews savings made through value for money procurement over the year. It is not possible to quantify all savings as procurement contributes towards improved quality of product, improved terms and conditions and value for money generally. The paper also reviews the results of our customer and supplier satisfaction surveys.<br />2.0 Customer & Supplier Satisfaction Surveys<br />2.1 Supplier Satisfaction Survey<br />A supplier feedback questionnaire is now sent to all suppliers who go through the tender process. The purpose of the questionnaire is to evaluate the purchasing process. The results can then assist us in improving the ‘supplier experience’. The chart below shows the feedback received during 2008/9.<br />The figures are shown as a mean average of scores out of five.<br />This shows that generally suppliers have a positive tendering experience with UWE, although usually they would all like more time to return tender documents.<br />2.2 Customer Tender Satisfaction Questionnaires<br />A questionnaire is sent to internal customers on completion of the tender exercise in order for them to have the opportunity to provide feedback on all aspects of the tender process. Feedback from the questionnaires has already allowed the team to improve some of its processes.<br />The data is shown as a mean average of scores out of five.<br />2.3 Finance User Group<br />We have continued to support the Finance user group which meets 3 times a year with Faculty and Service representatives. This group is a very useful communication forum and also facilitates staff who carry out a similar range of tasks being able to network with one another.<br />2.3 Equality<br />The Equality & Diversity questions which are embedded within the suite of tender documents have been updated to take account of legislation dates. E&D also is a standing item on all contract review agendas. Further action will be required in these areas to take account of additional responsibilities arising from the Single Equalities Bill. Also additional E&D monitoring will take place with key suppliers to take account of the University’s E&D objectives. Further support in this area has been requested from HR. The Head of Procurement is a member of the Equalities Management Group (EMG)<br />3.0 Review of Activity <br /> <br />3.1 Tenders Awarded<br />Significant Tenders include:Value<br />Telecoms – Voice Solutions Further Competition£42k p.a.<br />Data Cabling£640k<br />EPOS£300k<br />Waste ManagementVarious<br />Student Belongings Insurance£50k<br />Fundraising Consultants£15k<br />Project Managers – HP Project>£1m<br />Loading System£50k<br />PGT Research<£601<br />Fume Cupboards£52k<br />SOLS AV Equipment£75k<br />Recruitment Consultants£50k<br />Senior Managers Pay Review£40k<br />Associate Consultants – Business School Various<br />Removal Services£280k<br />Undergraduate Prospectus 2010£70k<br />RFID Library£171k<br />Cost Advisors for Master Plan£40k<br />Communications Services£60k<br />R Block Enabling Works£270k<br />Postgraduate Prospectus 2010£25k<br />IT Network Review£31k<br />Childcare Vouchers£9k p.a.<br />R Block Phase II£4.6m<br />Student Union Clothing£80k p.a.<br />Hospitality Service Counters£92k<br />St Matthias Sale – appointment of Agents£80k<br />Law refurbishment -Furniture£50k<br />SOLS Ultracentrifuge£47k<br />Glendinning Lecture Theatre AV Equipment£116k<br />Wallscourt House and Farmhouse Building 2£50k<br />Access Cards£22k p.a.<br /> <br />3.2 Calls for Further Competition.<br />The following further competition exercises were completed during the year. These were done using framework agreements currently in place and enable the University to select a supplier from a framework agreement, removing the need to go through a full tender process.<br />Lecture Theatre Furniture (SUPC Framework)£100k<br />R Block Further Competition – Architects (Consultants Framework)£270k<br />Lecture Theatre AV Equipment (SUPC Framework)£300k<br />PSTN lines and call costs (OGC Framework)£42k p.a.<br />Server Infrastructure (SUPC Framework)£135k<br />Construction Frameworks<br />Estates held a contractors conference in September 2008 in order to formally meet our new framework contractors and to launch a new tender evaluation matrix and new safety procedures for contractors, including the performance notice scheme. <br />All tender are now evaluated using the tender evaluation matrix which provides the Estates Department with an objective means of evaluating tender submission against a range of criteria. Contracts are awarded to the contractor who can demonstrate best value. Safety is one of those criteria and enables the Department to verify which contractor is best able to provide adequate safety management resources for the contract (a ‘stage 2’ competence assessment as defined by CDM 2007).<br />In May and June 2009, Estates completed an annual audit of the Framework Contractors and Consultants (requesting latest accident data, insurance certificates etc.). The key finding was that consultants had variable levels of knowledge and commitment regarding their role in reducing site waste and maximising reuse and recycling of materials. We will be organising a free training event to ensure that consultants can meet UWE standards as we are now a signatory to the WRAP (a Government department) Halving Waste to Landfill initiative.<br />Construction – Bid Rigging<br />We checked the Office of Fair Trading report on bid rigging (summary of infringement findings) and of those contractors receiving fines 3 are on our Contractors framework. Although, one contractor who has received a fine is currently working on the Frenchay site, none of the infringement cases are within our area<br />3.3 Payment Terms <br />Clearly this is a critical area during the recession, our normal payment terms are 30 days from the date on invoice, with the flexibility to vary as necessary. (However approx 7 days are absorbed by the BACS payment process from activating the payment to - the money being available in the supplier’s bank accounts.) We have now started to monitor payment days on a quarterly basis.<br />This analysis shows:<br />35% of invoices are paid within 30 days<br />65% of invoices are paid within 35 days<br />76% of invoices are paid within 40 days<br />96% of invoices are paid within 90 days<br />The mean average payment is 40 days.<br /> <br />The key reason for this is that faculties & services continue to obtain goods prior to raising the official order and by the time invoices are certified for payment they are then unable to be processed and paid within 30 days of the date of invoice. However Finance continues to work with faculties and services to ensure that invoices are processed as timely as is possible.<br />Additionally we have started to introduce a “Fair Payment Charter” with our significant suppliers – mainly construction related. This is to get their commitment to pay their suppliers within 30 days. This is signed by suppliers to the University and will be included as part of the Tender process.<br />UWE Fair Payment Charter<br />Fair and transparent payment practices are essential to achieving successful integrated working on all contracts. UWE, working with its suppliers in good faith and in a spirit of mutual trust and respect, is committed to meeting the principles of fair payment.<br />As a supplier to UWE, we agree that we will strive to meet the Fair Payment commitments set out below. We will additionally seek to embed the principles throughout our supply chain*.<br />,[object Object]](https://image.slidesharecdn.com/annual-report-to-the-director-of-finance-by-the-purchasing-manager1381/85/Annual-Report-to-The-Director-of-Finance-by-the-Purchasing-Manager-1-320.jpg)
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Annual Report to The Director of Finance by the Purchasing Manager
- 2. ‘Fair Payment’ will apply equally between the client and lead contractor and throughout the supply chain.
- 3. The process will be transparent and members of the supply chain will have certainty of how much and when they will be paid.
- 4. Companies will consider, where appropriate, operating relevant contracts on an open book basis.
- 5. The correct payment will represent the work properly carried out, or the products supplied, in accordance with the contract. Any withholding of payment due to defects or non-delivery will be proportionate and demonstrably justified in line with arrangements made at the time of the contract.
- 6. To ensure effective and equitable cash flow for all those involved, all contracts will provide for regular payments and have payment periods not exceeding 30 days, from receipt of invoice.
- 7. In order to avoid payment delays, the client and all supply chain members will agree payment procedures at the outset of their contracts. Payment will be through electronic BACS transfer and will apply throughout the supply chain.
- 8. The contractor agrees to provide payment date when requested (for monitoring purposes).