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Government Procurement Card Jim Parkinson CEng Head of ePayments 24th September 2009


Agenda •

Introduction to Buying Solutions

ePayments Team

Background to GPC & Fuel Card Framework Agreements

Current Framework Performance

Approach to New Framework Agreements

Strategy Overview

Framework Award

Calling off New Framework Agreement

Q&A


What is Buying Solutions? -

Buying Solutions is the national procurement partner for UK public services, we enable customers to improve value for money and efficiency

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We are an Executive Agency in HM Treasury

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We enable organisations to deliver improved value for money in their commercial activities, and provide expertise and professional support to our customers


Our Category Management approach -

What is category management? A proven approach to effective purchasing which provides a structured, objective method to analysing and meeting the needs of the organisation

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What is a category? A discrete area of spend with boundaries determined by the market facing nature of the function or attributes of the goods or services being purchased.

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Buying Solutions has six categories: ICT Energy Property and Office Solutions

Professional Services Travel eCommerce


Our Category Management approach -

What is category management? A proven approach to effective purchasing which provides a structured, objective method to analysing and meeting the needs of the organisation

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What is a category? A discrete area of spend with boundaries determined by the market facing nature of the function or attributes of the goods or services being purchased.

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Buying Solutions has six categories: ICT Energy Property and Office Solutions

Professional Services Travel eCommerce


Our range of products and services -

IT – hardware, software, associated services

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Payment Cards – GPC, Fuel Cards, Pre paid Cards & associated services

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Telecoms – mobile, managed telephony, specialist solutions

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Travel

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Consultancy

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Energy and Liquid Fuels

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Resourcing – interims, specialist contractors

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Government Secure Intranet

Property Solutions including Estates and Facilities Management, Furniture Flooring and Catering

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Office Solutions including Print & Recycled Paper, MFDs & Stationery and Postal & Courier

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eProcurement services eSourcing, eAuctions, Zanzibar electronic marketplace


£732 million

“During 2008-09 our facilitated procurements reached £5.35 billion, delivering savings for the public sector purse of £732 million”


Saving time and money -

From pre-tendered, EU-compliant framework agreements to outsourcing services

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Easy access to over 600 approved suppliers

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Benchmarked products and services

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Highly-skilled and experienced support provided

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eProcurement Solutions – Zanzibar, eSourcing, payment cards


ePayments Team

Jim Parkinson – Head of ePayments

Neil Kitchen – Senior Category Specialist

Vacancy – Category Specialist

Peter Youngman – Category Specialist

Sheri Love – Category Executive

Dave Thorley – Implementation Manager

Steve Hulse – Senior Marketing Manager


Background to GPC

First Framework Agreement launched by OGC during late 1990’s, targeted at supporting Central Civil Government

Second Framework Agreement awarded by OGC during 2003 and was opened up to the wider public sector. We also introduced a separate T&S Card.

Management of Framework Agreement was passed to Buying Solutions in 2003

New Payment Cards Category Team established April 2004 in conjunction with Fuel/Fleet Card Service.

GPC II Banks include: Barclaycard Commercial, RBS, Nat West, Ulster Bank, Lloyds TSB & Co-op.

Projected spend for 2009 (Jan to Dec) approximately £1Bn


Background to Fuel Cards

First Framework Agreement launched with Arval PHH during late 1990’s, targeted to support Police with Circa £10m spend/annum

Second Framework Agreement awarded 23rd August 2004 to Arval, BP & Esso.

This procurement was conducted in collaboration with NHS PASA

All Fuel Cards were issued FOC

Rebates Offered to Large Users

On-Line Management Information

Carbon Emission Reporting

Projected Spend for 2009 (Jan to Dec) £325m


Current Framework Performance GPC II April 2008 to March 2009 Customers = 1,400 Cards = 130,943 Spend = ÂŁ957m Transactions = 6m


Current Framework Performance GPC II Spend Analysis

Au g Se p Oc t No v De c

l

2008 2007 2006 2005 2004 2003

Ju

Ja n Fe b M ar Ap r M ay Ju n

100,000,000 90,000,000 80,000,000 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0


Current Framework Performance Fuel Card April 2008 to March 2009 Customers = 2,400 Cards = 218,000 Spend = ÂŁ323m Transactions = 6.7m Litres = 285m


Current Framework Performance Fuel Card 2008~2009 Spend by Supplier £90,000,000 £80,000,000 £70,000,000 £60,000,000 £50,000,000

Arval

£40,000,000 £30,000,000

Esso

BP

£20,000,000 £10,000,000 £0 Q1

Q2

Q3

Q4


Approach to New Framework Agreement

Initial research commenced June 2007

3 Stakeholder forums held

The project followed a Category Management approach

Full project plan and prince documentation issued

Gateway review 1 & 2

Monthly highlight reports

Project board formed July 2008

OJEU published 1st July 2008


Six Stage Category Management Process

Š Crown copyright 2007


Approach to New Framework Agreement

PQQ evaluation August 2008

ITN issued October 2008

ITN evaluation – November 08 ~ April 2009

Scoring via “Award” by selection of stakeholders

Consensus scoring

Clarification meetings with all bidders

Pricing/costing modelling

Award 23rd July 2009


Strategy Overview •

Greater Competition, with solutions that would cater for wider public sector

Standardised Management Information Format

Cabinet Office Data Security Compliance

Carbon Emission Reporting

Rebates For All with Free Issue Cards

Greater Fuelling Options for Larger Vehicles

On-Line Reporting

Fuel Audit

VAT Recovery Service


Framework Award GPC LOT 1 Amex Air Plus Barclaycard Commercial Co-op JP Morgan RBS LOT 2 Amex Barclaycard Commercial Citi RBS


Framework Award Fuel Card LOT 1 Arval BP Total Shell CH Jones RBS LOT 2 CH Jones Intelligent Fleet BP


Calling Off the New Frameworks

Great deal of work has been invested in the further competition process

Bravo portal has been configured to help support eFurther competitions (where required)

ITQ facility also being developed

Customer guide tool kit under development to assist decision process

Framework Summary

Customer Service Desk Fully Briefed


Other Related Projects

New GPC Card Design

New Card Spend Database

Review of Savings

Review of GMA


New Card Design


Next Steps

Web Update

Collateral Update

Tool Kit

Completion of Contract Documents

Customer Uptake

Ongoing Collaborative Contract Management


Question Time


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