Collaboration in ICT – A presentation to the West Midlands 24 th January 2014

1. Collaboration in ICT – A presentation to the West Midlands24th January 2014 Will Laing, Senior Relationship Manager – Local Government

2. Why collaborate at all? • Information • £187bn public sector spend on good s and services – over 200,000 suppliers • £40bn in CG: over 50% supplied by the Top 39 suppliers • The £500m LG software market is dominated by 3 suppliers (70% share) • A public sector organisation should be able to access knowledge on commercial engagements with suppliers from across the public sector – we need to end self-defeating “commercial confidentiality” • Capability • Leverage • Specialist skills • Shared services • Improved supplier management and performance • Driving innovation – internally and through supply chains • Efficiency • Lower costs of procurement • Faster and more agile • Better outcomes on price and quality

3. Objectives • Crown Commercial Service to be operational • Revised Governance arrangements and senior management team • Driving Service, Savings, and Reach (e.g. Managed Service rather than “just frameworks”) • Covering both Central Government and Wider Public Sector • Increase “true” Spend Under Management from approximately £1Bn towards the longer term goal of £10Bn+ (SUM stated today to be £11Bn) • Advisory as well as a Direct Commercial service (Procurement and Contract Management) • Building Capability • Moving from approximately 600 staff today (450 GPS and 150 Efficiency Cluster) towards c1,000 by 2016/17 • Formal programme to develop the senior leadership to be a High Performing Team • Formal recruitment hub established and showing results; significant recruitment activity • Improved technology plan to be established and implemented • Common goods and services to be transferred • By end 2014/15, substantial spend will have been transferred • Four trailblazer departments leading the way with spend and people transferred into CCS

4. “We are creating a world leading organisation, providing fully managed end-to-end direct commercial and advisory service” Crown Commercial Service - reforming the commercial landscape Strengthening functional leadership and improving commercial capability Extending our involvement in complex commercial activities e.g BPO Influence and service Transferring operations to CCS - 4 trailblazer depts circa £5bn of spend Developing managed services and building world class commercial capability Commercial Reform

5. Managed Commercial Services delivered centrally - once on behalf of Government £ The new DNA for commercial activities Procurement Process Contract and supplier management High Before going to market Time spent on value added activity Improving contract and supplier management capability through application of new standards Developing requirements that shape markets and the supply base to Government Simplifying process and reducing turnaround times & supplier bid costs Published pipelines Cross Government contract review Low Av’ge turnaround times for EU procurements now less than 100 days (200 days in 2011) Circa 20% of spend is now with SMEs (baseline 6% - direct spend only) Before Goal Business need identification Contract management Supplier identification Finalisation of contract Sourcing strategy Supplier relationship management and negotiation Execution of sourcing strategy Market analysis UNCLASSIFIED

6. What CCS will expect from suppliers To embrace competition To be innovative through proposals for how we can improve services To deliver savings for taxpayers To provide opportunities to SMEs in the supply chain To deliver what we are asking for as an intelligent client To deal effectively with CCS as one customer - the Crown To make a reasonable but not excessive profit To demonstrate high levels of corporate responsibility To be transparent through open book accounting Commercial Reform

7. Early examples of CCS in action Energy Facilities management • Managed service provides access to a pool of 175 agile digital services suppliers (84% are SMEs and 38% are new suppliers to government). • £2bn worth of energy procured and delivered across the public sector in 2012/13 with savings to the public purse in excess of £109m. • New contracting model being procured. Estimated savings over current model in the region of 10% to 15% (up to £350M) over the life of the vehicle (4 years). G- Cloud • 4th Generation contracting vehicle in place providing access to 1000 suppliers (84% are SMES). £64m of spend transacted through G-Cloud since inception in April 2012 via circa 4000 procurements. • 63% of business by value has been won by SMEs. Digital services Framework Commercial Reform

8. ICT Category Management Governance Structure Society of London Treasurers London Procurement Strategy Board • London Connects ICT Cat Mgt Project Board GPS Delivery Team Camden (Terry Brewer) Enfield (Tim Kidd) Camden (PMO) Newham (Geoff Connell) Haringey (David Airey) Wireless Datacentres Apps SRM eAuctions

9. The National Strategy • LGA National Procurement Strategy for Local Government • ICT one of three priority categories (construction and energy are the others) • National category lead is Terry Brewer, Divisional Director, LB Harrow • ICT leadership provided through SOCITM and the Local CIO Council • A first iteration of the category strategy for ICT is with the LGA’s National Advisory Group for Procurement (NAG4LGP) • Key Themes • Local ownership and local leadership – each region can address its own priorities • Technology opportunities – desktop alliance, data centre rationalisation, digital innovation in service delivery and citizen access • Savings – our own target is 20% of the £2.1bn spend over three-years • Operational Delivery • Major national agreements developed in partnership between CCS, GDS and the Pro5 • CCS has a significantly expanded regional Customer Service function • Drive as much input and influence as possible from customers • Have defined roles for LG staff that want to get involved

10. LG Software Applications - Now Commercial Reform £500m + spend per year in Local Government Councils report common issues around value, technology capability and service support Multiple, independent budget-driven solutions – often extending failing agreements A complex pattern of bespoke deployments and licensing model creates lock-in A complete lack of transparency and control Huge waste and lost opportunity

11. LG Software Applications – A Major Opportunity for 2013/14 Commercial Reform A common procurement platform which enables access toALL major systems All commodity unit costs explicit Flexible access through direct award and further competition A range of technology models: hosted, licensed, SAAS A master standard SLA to enable agile deployment Developed, owned and used by Local Government TCO reduction? …could be up to 50%

12. Proposed Procurement Vehicles & Lot Structure Transactional IT Procurement System (TIPS) Commodity Software Solution Services IT Products, Associated Services and Solutions Transactional portal for COTS IT Hardware and Software Products IT Products & Value Add Services ERP Finance / Accounting 1 Contract Packaged Software & Value Add Services HR CRM Information Assurance (Product and Services) Document Management End User Computing Devices Data Management 6 Lots 4 Lots

13. IT PASS – Framework Agreement structure IT Products, Associated Services and Solutions (IT PASS) IT Product and Value Added Services Packaged Software Value Added Services Information Assurance IT End User Computing Devices • Value Added Resellers • Large Account Resellers • End User Devices providers Targeted Audience • Large Account Resellers 7 – 12 Suppliers AnticipatedSuppliers 10 – 15 Suppliers 10 – 15 Suppliers 3 – 7 Suppliers YES YES • Accredited vendor neutral IT Product providers • Secure destruction & disposal • HMG compliant facility (List X ) • Desktop computer bundle • Laptops, • Tablets, • Thin client, • Hybrid device Service Requirement • Wider range vendor neutral products • Close to the box IT hardware related services • IT consumables and accessories. • Value-add associated services • Wide range vendor neutral products • Enterprise Software licenses • Implementation and configuration services • Value added associated services Framework Access • P2P • Further competition • Further competitions • Further competitions • Regular eAuction • Further competition Commercial Reform

14. Contact DetailsWill Laingwill.laing@ccs.gsi.gov.uk07775 561287