9 August 2011
Chris Marriott takes an inside look at
procurement…
Local authorities are really embracing
“procurement e-portals” as a way of getting what they need aren’t
they? I read somewhere that they provide a simple, secure and
efficient means for managing tendering activities, reducing the
time and effort required for both buyers and suppliers.
The idea is that a local authority uses an
online portal to advertise an opportunity to the market. For
example, in my line of work, it could be that they are looking to
undertake a feasibility study for building something major like a
new leisure centre, or they need some advice on how best to manage
one. As potential suppliers, having signed up to the portal, we
express an interest in the opportunity and read through the
procurement brief to find out more about it.
Excellent concept, but how do they work in
practice? Well, technically speaking they are fairly intuitive and
easy to use. In almost every other respect, however, they work very
badly indeed.
The problem lies in the fact that they tend to
be used not as a portal at all. My dictionary defines a portal as
an entrance or doorway leading into something, which would
suggest that we can pass through it. Unfortunately, in the case of
far too many local authority portals, despite having a welcome
banner over the doorway, the door is usually firmly closed – locked
and bolted by an agoraphobic procurement officer gatekeeper, who
peers suspiciously through the spy-hole at anyone outside ringing
the bell: “Just leave it on the doorstep.”
When considering to bid through one of these
portals, if we don’t already know the client we ask ourselves the
same question - will they speak to us before we submit a
proposal?
If the answer is no, we tend not to bid for
it. Simple as that. We would guess that our counterparts in other
competing organisations would do the same; the serious players, the
ones who are best at what they do, are typically busy and tend to
not to be in a position where they have to bid for long
shots.
The problem for the council is that this leads
to a situation where they are likely to have very few good quality
suppliers to choose from and their prospects of achieving best
value are reduced.
As suppliers we have to speak to
right person of course, the owner of the project
– the actual human being within the local authority who will be
taking responsibility for the project over the coming months, to
whom we as leisure consultants will be reporting. It can’t all be
contained in the project brief – there will be crucial pieces of
information and parts of the story that can only be prised out
through having a proper debate. Some of these missing pieces are
important to help us create an appropriate proposition.
An early dialogue with external specialists
can save a lot of time and (taxpayers’) money. Some councils seem
to think that once they have written the brief and advertised the
opportunity to the market it’s too late to change it. It’s not. You
can always change direction if it becomes clear that it’s the right
thing to do.
As a potential supplier to councils (typically
of leisure-related advice) perhaps the single most frustrating
thing about responding to a council’s brief is the uncertainty
around how much time and support the client actually needs. This
informs how we price it. Councils rarely, if ever, tell suppliers
how much support they are likely to need and they certainly never
give away any indication whatsoever of what their budget is.
As an example, when you’re looking to buy a
new car you would not put out an advertisement to all local dealers
saying “Car required. Dealers should deliver one car to my
house…and then I’ll make up my mind which one I want.” By
providing further information you’d give some clue as to
what your budget is without revealing what you have set aside. If
you didn’t tell the dealers that you actually wanted new estate car
you shouldn’t be disappointed when a Porsche, a Volvo Estate and a
fairground dodgem arrives on the drive. You may well have a choice
of three there but there’s only one that can you could seriously
consider, i.e. you have limited your options. This sort of thing
happens all the time in public procurement and it is one of its
most serious failings, particularly in the leisure advisory
market.
And portals will do little to help correct
this or the other failings of public procurement – if anything they
provide an opportunity for procurement officers to make it
worse.
Please open your doors and let us in. You can
always ask us to leave.
Chris Marriott (chris.marriott@capita.co.uk)
is an Associate Director at Capita Symonds and a specialist in
leisure management procurement.