New Is Not Always Innovative

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PRESENTATION OUTLINE

JUST BECAUSE IT'S NEW DOESN'T MEAN IT'S INNOVATIVE

IMPROVEMENTS IN GOVERNMENT PROCUREMENT
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SCOPE

  • The government procurement landscape
  • Current issues in selling to government
  • Common mistakes in tender responses
  • Innovation in procurement
The scope of this presentation
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THE VIEW FROM HERE

THE COMMONWEALTH PROCUREMENT LANDSCAPE
Things often look different from Canberra. We provide information and encourage feedback on our blog - an innovation in itself:

http://www.finance.gov.au/category/procurement-coordinator/
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Annual Averages

  • $50 billion
  • 60,000+ contracts
  • 60% #, 30% $ to SMEs
  • 30% #, 10% $ to small bus.
  • 21% #, 6% $ in panels
  • ~1000 contracts >$5m; 80% $,
  • ~70%
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Everyone has rules

  • Value for Money
  • Devolved
  • Tenders: open, prequalified, limited
  • Support for innovation (10.3c)
  • $80k threshold for Division 2
  • Exemptions: disabled enterprises, indigenous SMEs, etc.
• Devolved procurement framework meaning entities are responsible for their own procurement processes and decisions.
• The CPRs set out the rules when officials undertake procurement – the core rule is achieving value for money.
• The CPRs include three procurement methods: open tender, prequalified tender and limited tender. These are flexible enough to enable innovative and value-enhancing approaches to be considered (for example two stage process).
• There are also a number of circumstances when a limited tender (or direct sourcing) is appropriate removing the need for an entity to undertake an open tender process.
• In addition, in terms of innovation, if a supplier approaches an entity with an innovative proposal and the entity wishes to procure the goods/services, the CPRs allow this. A limited tender can be undertaken using Paragraph 10.3c (unsolicited innovative proposal).
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And many people have issues ...

  • complexity
  • time
  • cost
  • understanding
  • requirements definitions
  • panel membership
Not all these issues are reflected in evidence available to us.

Few complaints are made to the Procurement Coordinator.

We encourage people to enquire.
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Belcher: Fighting Red Tape

  • Simplify agency instructions
  • Review remaining PCPs
  • Templates >$200k
  • AusTender thresholds and compliance
  • Review ICT coordinated procurement and panels
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Common Tender Mistakes

They really aren't the droids you're looking for
Gathered from our extensive experience in whole of government procurement - literally thousands of tender responses
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The List

  • Mandatory means mandatory
  • Don't assume - write it down
  • Address criteria, demonstrate ability
  • Don't be vague
  • Substantiate claims
  • Cutting & pasting requires checking
  • Best offers: 2nd chance?
  • Ask questions, don't guess
• Not understanding the mandatory requirements and terms and conditions.
• Assuming the tender evaluation team knows about the organisation and its capabilities - this is particularly relevant to incumbent suppliers. Tender teams can only evaluate what is submitted in written responses and obtained through verification activities.
• Not responding against the evaluation criteria or not addressing all elements of each criterion.
• Not demonstrating the organisation’s ability to provide the required services - provide factual and focused responses using examples.
• Providing insufficient detail on any assumptions.
• Submitting broad, vague or repetitious statements, or irrelevant marketing information.
• Failing to quantify and qualify responses, e.g.:
o 'up to 24 hours' - this could actually be only five minutes.
o 'we will save you 50%' - of what, when and how?
o 'we are the only one' - based on what?
• Cutting and pasting information from previous tender responses without checking if the information is relevant to the current tender.
• Assuming there will be a second opportunity to provide pricing - submit the best offer the first time.
• Not asking questions - if unsure of the meaning of something, ask the tender team for clarification instead of guessing.
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Innovation in Procurement

  • Commonwealth Contracting Suite
  • Panel templates (refreshable)
  • Dynamic sourcing (DS4P)
  • BuyRight
Commonwealth Contracting Suite
• suite of documents that have been adapted to smart forms, to simplify the process of creating procurement documentation (ATM, Contract).
• Simplifying the government/supplier relationship as designed to make process simpler, faster and cheaper.
• Utilises new technology and products to achieve results (Intelledox).
• Completely online service – accessible anywhere.
• Adaptable to changing requirements of ATM and Contract – easily updatable.
• Mandated for use by entities from 1 Jan 16.

Panel templates
• Building on the CCS we are developing a suite of documents that can be used when establishing a panel arrangement.
• The templates will importantly allow for refreshable panels meaning new suppliers would be allowed to be added periodically, increasing opportunities for suppliers while preserving the benefits of panels to government.

Dynamic Sourcing for Procurement (DS4P)
• DS4P builds on existing AusTender functionality for panel owners to create and manage panels, add approved supplier details and capability, and communicate more effectively with both suppliers and participant entities over the life of the arrangement. 
• Entity buyers can search for panels and supplier capabilities that match their procurement requirements, create short lists, issue Requests for Quotation and accept quotations online. 
• Ultimately, DS4P will also provide an automatic feed of updates to panels for integration with the internal Procure to Pay systems of participant entities.
• Aside from process and panel management efficiencies, DS4P once fully implemented, will provide greater insight to the extent and type of panel procurements across Commonwealth entities, particularly for those that are shared arrangements.

BuyRight
• BuyRight is a tool designed to simplify the internal Finance procurement process, replacing a range of departmental procurement related information.
• It was introduced to the department in early November, making it relatively new. Though it is new, the tool is also innovative.
• The new tools reflect a simple and streamlined approach to purchasing.
• With the tool, Procuring goods and services under $200,000 has been de-mystified. Finance has taken the approach that you should not require expertise outside your immediate work area to make purchasing decisions in this space.
• The ‘BuyRight’ tool is a significant step forward in making the process of buying for government as straightforward as it can be.
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Innovation in Action

  • Cloud Services Panel
  • govCMS
Cloud Services Panel
• We recently established a whole of government panel arrangement for cloud services. Importantly, the panel has been established as a refreshable one which allows the option to add new suppliers as required but envisaged every 12-18 months depending on demand.
• The panel was established in January 2015 and we will look to do a refresh (if needed) in the first half of next year.
• There are currently 114 suppliers on the Cloud Services Panel (60% of these are SMEs). Entities have access to 474 services via the Cloud Service Catalogue on ICT Procurement Portal.
• The Cloud Services Panel aims to provide entities scalable and flexible cloud services via industry offerings and entities will be able to procure Cloud Services across IAAS, PAAS, SAAS and Cloud Specialist services.

govCMS - explained at www.govcms.gov.au
- Open Source Drupal - >3000 distro downloads
- public cloud Amazon
- 49 sites, more in development
- 1.3m pages views in Oct, up 4%
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Questions?

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