GOVERNMENT PROCUREMENT SERVICE
What is Government Procurement Service’s role?
We are an executive agency of the Cabinet Office. Operating at the heart of government, we deliver procurement savings for the whole of the public sector and play a vital role helping to protect front line services by driving increased spend and savings through our aggregated commercial procurement arrangements.
Our value for money, commercial procurement solutions are fully EU compliant and cover energy, travel, fleet, office solutions, professional services, ICT, eCommerce, communication services and property & facilities management, saving customers time and money.
Who can use Government Procurement Service?
Any UK public sector contracting authority, as defined by the Public Contracts Regulations 2006, or any service provider acting on its behalf, can use our framework agreements. This includes central government, health, local government, devolved administration, education, not for profit and other wider public sector organisations.
Centrally negotiated contracts and catalogues are available to those named in the original OJEU notice.
How is Government Procurement Service funded?
We are a trading fund, using a supplier commission model to positively and transparently fund our operational costs. The supplier commission, which varies by category, currently averages 0.38%.
Do customers have to pay to use Government Procurement Service arrangements?
We do not charge customers to use our framework agreements. Our operating costs are funded by a supplier commission model. However, our managed services arrangements are subject to fees which vary by arrangement.
How has Government Procurement Service improved customer service?
We have streamlined and restructured with a team dedicated to customer delivery to meet the specific needs of customers. Relationship Managers for each department and key sector provide a single point of contact. Our category teams continue to be responsible for supplier and customer relationships at category level, with support from other functions across the organisation.
We work very closely with commercial leads to collectively realise the benefits of Centralised Procurement, customer service agreements have been agreed with each department and spend is being transitioned across to centralised arrangements.
I cannot see a framework for the product or service I need. How do I find out what procurements you are developing?
Our procurement pipeline provides an overview of the procurements we are planning or are currently in progress. To find out more about the scope of any procurement shown on the pipline please call our customer service desk on 0345 410 2222 or email info[at]gps.gsi.gov[dot]uk.
How does Government Procurement Service manage suppliers?
Supplier management focuses on three main areas to ensure value for money and delivery of savings:
- Supplier relationship management ensures suppliers are aligned to our strategic goals.
- Contract management ensures frameworks are effectively performance managed and value for money is being clearly demonstrated.
- Vendor rating is a system where all suppliers are scored and measured against a number of simple performance metrics. This is currently being piloted and we will publish the results on our website shortly.
Supplier management information is available at framework level and is included in the monthly dashboard data that departments receive.
What do I do if I am unhappy with the service?
Please telephone our customer service desk on 0345 410 2222 or email info[at]gps.gsi.gov[dot]uk. We will advise the relevant category team(s), who will contact you within two working days. We always strive to resolve concerns in an efficient and timely manner.
What is Centralised Procurement?
The Government has centralised spend on common goods and services in order to better manage spend in key commodity areas.
Savings are being delivered through aggregation of volumes, standardisation of specifications, rationalisation of core product lists and demand management.
The centralised categories are communication services, energy, fleet, ICT, office solutions, print, professional services (consultancy and contingent labour) and travel.
A strategy is also being developed for property/facilities management. Other categories may be added in due course.
Specialist areas of procurement do not fall within the remit of Centralised Procurement.
What is the background to Centralised Procurement?
In April 2011 the ‘Delivering Centralised Procurement: Government Procurement Service and the role of a transformed Buying Solutions’ report was approved by the Minister for the Cabinet Office, Francis Maude and the PEX Committee..
The report identified the opportunity for significant savings (25% reduction from £13bn baseline by March 2013) on common goods and services through standardising specifications, aggregating demand to achieve lower prices and using accurate data to control spend and measure performance.
The paper recommended that departments channel spend on common goods and services through Government Procurement Service in order to increase the level of spend “under management”, increase Government leverage to negotiate on price and deliver significant savings.
The PEX Committee accepted the recommendations in full and the report was also endorsed by the Procurement Executive Board and extended Procurement Executive Board.
The report mandates central government departments to:
- Channel all spend on common goods and services in the targeted categories through existing and new Government Procurement Service commercial arrangements.
- Empower Commercial Directors with the authority to channel all in-scope spend of their Arm’s Length Bodies, Non Departmental Public Bodies and Agencies through Government Procurement Service.
Why has Centralised Procurement been introduced?
As well as better managing spend on common goods and services to deliver savings and increase Government leverage to negotiate prices, Centralised Procurement is reforming procurement and funding improvements in technology, processes and Government wide resources. Centralised Procurement also supports department spending review cost reduction targets.
Who does Centralised Procurement apply to?
All central government departments, their arm’s length bodies, non-departmental public bodies and agencies must commit volume and move spend on common goods and services to centrally arranged deals in order to ensure maximum leverage of Government buying power.
Who is leading centralised procurement?
Francis Maude, Minister for the Cabinet Office is responsible for ensuring the Efficiency and Reform Group, of which Government Procurement Service is part, is driving efficiency across Government.
Government Procurement has been tasked with delivering sustainable cost savings, streamlining processes and investing in procurement staff. Government Procurement is headed up by the Chief Procurement Officer, Bill Crothers. He is responsible for delivering the Government’s goal of centralising procurement and is working closely with the senior commercial community to transform and improve procurement across Government.
Can we influence the development of the centralised categories?
We have category boards in order to share information and determine the sourcing strategy for each category. Interested departments can join the category boards if they wish. Where the volume of interest in a particular category means membership of the board has to be restricted, your Relationship Manager will ensure your views are represented if you are not selected to be part of the board.
Why should we transition spend through Government Procurement Service?
By transitioning your spend on common goods and services you will fulfil your obligations to Government Procurement, make cost savings and free up your resource to focus on the specialist or high value procurements that will help you meet your strategic objectives.
Our organisation works very differently to our parent Department so are we exempt from Centralised Procurement?
We understand that the way you operate and the nature of the services you provide may be different, but there is a great deal of commonality in what you buy, for example stationery, energy, computers and telephones.
For this reason all arm’s length bodies, non departmental public bodies and agencies are mandated to participate in Centralised Procurement.
By aggregating your spend on common goods and services with other public bodies we will drive down price and improve quality for all, freeing up your limited time and resource to focus on the strategic, more complex procurements you need to deliver to meet your organisation’s specific objectives.
Why are some agreements being transferred to Government Procurement Service? What will happen to transferred agreements?
Some agreements are being transferred in order to ensure they are managed centrally and are available to all departments. Novated agreements that do not currently attract a levy will remain on this basis until they expire. However, all new or replacement agreements will be subject to a supplier commission levy in order to support operations.
If you have any further questions please contact your Relationship Manager directly, or contact our customer service desk on 0345 410 2222 or email info[at]gps.gsi.gov[dot]uk