Spring 2017
CorporateUpdate ESPO handles its biggest procurement process to date By Sheena Kocherhans, Category Manager, ESPO With consultancy services available in just about every sector possible, many organisations often have difficulty in finding a good supplier in such a diluted market. As a result they tend to stay with the same supplier they have always used as a way to minimise the risk of appointing a new supplier and to avoid a lengthy procurement process. This can often mean that contracts are not as economically advantageous to the customer as they could be. To help simplify the process and reduce the complexity of the consultancy services market, ESPO has undertaken its biggest procurement process to date, to deliver its Consultancy Services framework (664). The framework includes 10 lots, covering 27 services from over 130 suppliers. We received over 240 bids from tenderers wishing to join the framework. To handle this volume, we brought together an inhouse team of 12 procurement experts, with specialised service knowledge from across the organisation. Working in collaboration with YPO to evaluate the bids, the framework was evaluated in a record one-month time scale. Our organisation’s scale, skill and expertise meant that we were able to manage the tenders efficiently and along
with YPO, we are one of the only Public Sector Professional Buying Organisations with the resources available to do so. The new framework spans a large number of sectors and covers a vast range of consultancy services from audit services, general finance, procurement, health and social care, business services and strategic high value projects, through to highways, transport and logistics, waste and recycling, operational and strategic IT, and property and environment. As part of the ongoing funding cuts that have resulted in a reduction of skilled in-house procurement teams, the framework has been created to ensure that anyone from primary schools to large NHS Trusts or local authority organisations can access these consultancy services easily. Suppliers on the framework include business consultants such as Ernst & Young, Deloitte and PwC, through to specialist consultancies such as design, engineering and project management company Atkins, infrastructure company Aecom, and property consultants Bruton Knowles. And as part of our commitment to the Small Business Charter, a number of SMEs and local suppliers have been awarded a place onto this framework. The objective of the framework is to provide a wide range of excellent consultants across a large number of sectors – making it a customer’s ‘go to’
ESPO’s Consultancy Services framework (664) is due to run until 2019 with the option to extend until 2021.
route in procuring consultancy services. As part of the bid process, suppliers provide sector specific examples of where they’ve successfully delivered the service in that specialism in the past. This approach ensured that only the most experienced and highest quality suppliers were appointed to the framework. At ESPO, we encourage our customers to use a specialist consultant for each project, not only to guarantee expertise, but also to ensure they are obtaining value for money at a time when spending by any publicly funded organisation is under scrutiny. We have built on our previous Consultancy Services framework with the addition of new lots such as Strategic Projects, IT and Procurement to reflect the needs of the public sector. As well as consultancy services, customers can also procure Audit Services. Most of the lots on the framework are direct award, so can provide a quick route to market for customers, who can be safe in the knowledge that any time consuming due diligence has already been undertaken. Sheena Kocherhans (Category Manager) Chloe Muir (Assistant Procurement Officer) e: resources@espo.org
Gas prices are secured below the current market price until March 2018 for ESPO customers Despite a substantial rise in wholesale energy commodity prices and a fall in the value of Sterling following the result of the EU referendum, ESPO’s traders have managed to secure our customer gas requirements at the same commodity price as last year. As part of our ongoing strategy to protect public sector budgets, our Trading team have made a number of purchases already, in time for the final year of the contract. By doing this so far in advance, we were able take advantage of a period in 2016 when prices were at historical low levels and before exchange rates were impacted as a result of the EU referendum, therefore ensuring that ESPO’s current commodity price has been maintained at levels well below the current market price. The commodity represents around 50% of final invoiced rates, so obtaining good prices early secures good value for our customers and protects their budgets in what is often a volatile market.
What is the role of our Trading team? At ESPO, we understand that energy can be a complex market to navigate; therefore we have an expert team who works behind the scenes to do the hard work for our customers. In order for us to lock in value for our framework users and ensure they benefit from the best possible prices over long periods, our Trading team at ESPO have to monitor and analyse gas and electricity markets daily. The process is specialist and can often be complicated, with the team having to simultaneously monitor coal, oil and carbon markets as well as keeping a close eye on exchange rates. The team also produce a variety of regular reports, support organisations with budgeting and forecasting, and are involved in validating prices prior to them being released to customers. For further information on our Energy frameworks, please visit espo.org or contact energy@espo.org.
Are you on top of the implications of IR35 regulations and the apprenticeship levy? We recognise the difficulties in understanding new regulations surrounding recruitment, therefore we have been working closely with our suppliers to help support our customers through any changes. As of 6 April 2017 the responsibility for determining a worker’s IR35 status, when providing services in to the public sector, lies with the end hirer, rather than with the worker themselves. At ESPO, we understand that there are some key challenges facing our customers with these changes. As a public authority you will be required to tell agencies of the IR35 status of a role. A lack of understanding, a strain on resources and having to implement large scale movements of worker rates are just some of the issues that public sector customers are trying to navigate. ESPO recently held a workshop, led by MSTAR² supplier Reed, to support customers through the changes, the online tool, possible options for customers, and how their service provider can help. The Apprenticeship Levy, introduced in the Finance Act 2016, came into force on 6 April 2017, with the first levy payment taken in May’s payroll. The levy is intended to increase funding to boost the number of apprenticeships in the UK, and applies an annual 0.5% charge on an employer’s total payroll (that is the total employee earnings subject to class 1 secondary NICs) once this payroll is in excess of £3m. In turn, each employer paying the levy will receive a flat annual allowance of £15,000 to offset against their levy payment with the ability to access further subsidised funding for apprenticeships through a new Government apprenticeship service voucher account. If you are looking for a route to apprenticeship training, our 383 Managed Training Services may be suitable for your requirements. For further information please contact the Resources team on 0116 294 4072 or resources@espo.org.
Vehicle charging framework can support the increase of plug-in vehicles Electric vehicles are becoming a more popular choice for the public, with industry figures reporting that electric car sales were up 56% last year on 2015 figures and almost one in three drivers stating they are considering switching to an electric vehicle in the future.
Meet the team Find out about our new Customer Relationship Manager, Rachel Neve.
Having worked for Hopwells Frozen Foods for seventeen years, I have gained extensive knowledge of the education market working alongside many local authorities, various Professional Buying Organisations, the Soil Association and LACA. At ESPO, I am specifically looking after our food and catering framework customers.
With the introduction of new vehicle tax rules and electric car models demonstrating improvements in driving ranges, public perception of the technology has begun to change.
able to take advantage of specific Government funding as well as frameworks that are designed to help them procure their infrastructure in a compliant manner.
With the number of registered plug-in vehicles increasing year on year there has been a correlative rise in demand for robust charging infrastructure.
At ESPO, we recognise that public sector organisations may require support in offering charging solutions for low emission plug-in vehicles, therefore we are launching a Vehicle Charging Infrastructure framework (636) this summer that will cover all standard charger types and allow customers access to a wide range of suppliers and up to date technology.
Currently there are around 12,700 charging points in the UK, which would need to increase in order to successfully meet higher demand. The public sector has understandably taken an interest in supporting greener vehicle initiatives, with a growing number of local authorities installing charging points for use by the general public. To support the shift to electric vehicles, public sector bodies are
If you would like to find out more about this new framework, please visit espo.org or contact place@espo.org
What does the role of Customer Relationship Manager for the People and Communities team include? My main focus is building strong relationships with customers to understand their food and catering requirements and ensure that they are utilising frameworks to their full potential. I promote the benefits that using frameworks can bring, not only by eliminating the complex tendering process, but by offering a vast range of compliant, easy to access frameworks and cost savings.
Where can we expect to see yourself and the team in 2017? The food team will be at LACA from the 5-7 July - come along and see us - we’ve always got time to catch up on what our customers are up to and what we can do to help. To read the full article visit espo.org
Get involved We are delighted to be exhibiting at the Public Sector Show this June!
We will be exhibiting at the LACA Main Event 2017 from the 5-7 July.
Our knowledgeable Corporate Accounts team specialises in helping organisations just like yours, so whether you are there from central/local government, the health sector or are a representative from the wider public sector in the UK, we’d love to talk to you and see how we can help meet your procurement needs.
The LACA Main Event brings together education catering personnel from local authorities, schools with an in-house catering provision and contract caterers plus suppliers to the industry within the Education Catering Exhibition.
Register for your free pass at psshow.co.uk and visit us on the day at stand 630.
Our team will be on hand to discuss your catering requirements at stand M84.
New frameworks since last edition
For further information on any of the articles in this newsletter, or to discuss your procurement needs, please contact the relevant Account Manager to your area:
• Vehicle Charging Infrastructure (636)
UK South Steve Exley, Business Development Manager e: s.exley@espo.org t: 07827 881 641
• Vehicle Telematics and Associated Products and Services (545) • Supply of Beers, Wines and Spirits and Bar Services (6) • Vehicle Glass Replacement and Repair (275)
UK Midlands, North and Wales Sandra Sewell, Corporate Account Manager e: s.sewell@espo.org t: 07824 824 643
• Consultancy Services (664)
UK South West James Nunn, Corporate Account Manager e: j.nunn@espo.org t: 07900 748 436
• Outdoor Playground, Fitness and Sports Facilities (115)
To make changes to your contact details: e: marketing@espo.org t: 0116 265 7927
• Outdoor Furniture (615) • Plant Hire (536) • Toxicology Services (3057) If you prefer to receive an electronic copy of this newsletter in the future, email: info@espo.org
© ESPO 2017 • espo.org ESPO Barnsdale Way, Grove Park, Enderby, Leicester LE19 1ES This publication is printed on paper made from a mix of wood sourced from sustainable forests and recycled pulp.