award procurement as an enabler of innovation annual conference - wendy...procurement as an enabler...

QinetiQ Commerce Decisions © QinetiQ Commerce Decisions Ltd 2013 © Commerce Decisions Limited 2014 © Commerce Decisions Limited 2014

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Your Name

Procurement as an enabler of innovation

Wendy Wates Managing Director

®

AWARD

Commerce Decisions Ltd

© Commerce Decisions Limited 2014 © Commerce Decisions Limited 2014

About QinetiQ

• QinetiQ comprises teams of dedicated people; experts in defence, aerospace, security and related markets.

• We draw on our extensive technical knowledge and intellectual property to provide the know-how and support to solve some of the world’s most challenging problems.

• We provide high-end technical expertise and advice underpinned by world class knowledge, research and innovation and our clients trust us to work alongside them.

• Specifically we do research, advice, test & evaluation, engineering solutions and assurance.



About Commerce Decisions

Mission: Making a difference by helping people around the world

benefit from the right procurement decisions being made on important projects



Know your stakeholders

Getting procurement right delivers benefit to a whole range of stakeholders:

Who are my stakeholders today? Please stand up if you are responsible for making procurement decisions. Please stay standing if you are confident that you buy exactly what you need every time with capabilities and services delivered to time, cost and quality requirements.

Buyer / Client

Evaluators End User

Successful Bidder

Supply Chain

Commercial Teams

Programme Managers

SMEs Losing

Bidders



Procurement/Project Challenges

Addressing your Project risk

Achieving greater value

Transparency Defensible Confidence

Cost savings Corporate

Compliance Best Practice

Managing complexity Efficiency Flexibility



Getting it right is an aspiration..

… as is keeping you and your teams off the front page!



Government Government Commercial

Customers

Defence Commercial

http://www.google.co.uk/url?sa=i&rct=j&q=sodexo+logo&source=images&cd=&cad=rja&docid=N3s0_sF3eSm62M&tbnid=Nk6ahJOVBjA4bM:&ved=0CAUQjRw&url=https://www.sodexoeducation.com/segment_0200/district_5519/ENM/Entry5/&ei=WYRdUZyFNKKV0AX06oD4Cw&bvm=bv.44770516,d.d2k&psig=AFQjCNHKPjzvanjYReT1wTflOjaAmCiRFA&ust=1365169621560538

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http://www.google.co.uk/url?sa=i&rct=j&q=bae+systems+logo&source=images&cd=&cad=rja&docid=LBgYHE0PDNh00M&tbnid=N-kGBDQ6E2UXsM:&ved=0CAUQjRw&url=http://marjeenah.blogspot.com/2012/05/top-10-weapons-manufacturers.html&ei=pEFdUbCRLcPQ0QXI2ICwCw&bvm=bv.44770516,d.d2k&psig=AFQjCNFc3sj66TkZkAsK57jmheGnvEF-QA&ust=1365152545070240

http://www.google.co.uk/url?sa=i&rct=j&q=compass+group+logo&source=images&cd=&cad=rja&docid=yByz5A1HtoTBOM&tbnid=UHVWliQos4iQQM:&ved=0CAUQjRw&url=http://www.hurley-group.com/us/hm/inside.php?id=131&ei=5E9dUcrvGuKc0wWWkYGYCg&bvm=bv.44770516,d.d2k&psig=AFQjCNFW7KjhtxIULPLE4m8G4AYYBqpjlQ&ust=1365156168367299

http://www.google.co.uk/url?sa=i&rct=j&q=Qinetiq&source=images&cd=&cad=rja&docid=nUsVRfgeGlJrQM&tbnid=b5Sl6zRtVciq2M:&ved=0CAUQjRw&url=http://www.bbc.co.uk/news/uk-england-wiltshire-12527526&ei=m5JdUaCVFqbX0QXHkIHgBA&bvm=bv.44770516,d.d2k&psig=AFQjCNGDqB2JIQf4hGPF-8av-h9_hiymng&ust=1365173254223340

http://www.google.co.uk/url?sa=i&rct=j&q=Serco+logo&source=images&cd=&cad=rja&docid=E_frtk1NjMc4yM&tbnid=4uZs0DUPIHmaQM:&ved=0CAUQjRw&url=http://www.accountancyage.com/aa/news/1866192/serco-apologises-fd-s-supplier-rebate-demand&ei=voJdUdfRN4nK0QX-loEQ&bvm=bv.44770516,d.d2k&psig=AFQjCNGbKmL_P0YpTBadWrTkziCdBRtVPg&ust=1365169200583668

http://www.google.co.uk/url?sa=i&rct=j&q=hp+logo&source=images&cd=&cad=rja&docid=RX9C--TUPQ7fXM&tbnid=Aq9oKgD1Uao62M:&ved=0CAUQjRw&url=http://www.flickr.com/photos/audiovisualjunkie/8023285506/&ei=pW9dUbGdB8On0AW95YDoBw&bvm=bv.44770516,d.d2k&psig=AFQjCNHPdV6ugUddjw3qhMdQY0fM0QifwQ&ust=1365164321494748

http://www.google.co.uk/url?sa=i&rct=j&q=education+funding+agency&source=images&cd=&cad=rja&docid=n8TF04A0gTZaFM&tbnid=AHkexKZP2ElhuM:&ved=0CAUQjRw&url=http://www.bfeuk.com/&ei=f6leUaGTGei90QWi24CIBg&bvm=bv.44770516,d.d2k&psig=AFQjCNHbZqZPty8i1OVqzBjJoWyvcyJeTw&ust=1365244670008108

http://www.google.co.uk/url?sa=i&rct=j&q=%22Department+for+Transport%22&source=images&cd=&cad=rja&docid=E5yWPq0EJakMDM&tbnid=tan8VBP0-H2jdM:&ved=0CAUQjRw&url=http://www.dft.gov.uk/privacy/&ei=BY1eUeOgLMfRObaqgOAB&bvm=bv.44770516,d.ZWU&psig=AFQjCNGHPDwEX2jQOAI2CcxK_NFPzWiGug&ust=1365237378753456

http://www.google.co.uk/url?sa=i&rct=j&q=BBC+logo&source=images&cd=&cad=rja&docid=m_kYyBl6KvaxvM&tbnid=E4YFLdf0CJ_IwM:&ved=0CAUQjRw&url=http://www.bitterwallet.com/bbc-hoping-to-sell-downloads-of-archive-shows/54739/bbc-logo&ei=C5ZdUYbaBqrK0QWmqICADg&bvm=bv.44770516,d.d2k&psig=AFQjCNF7zs_25JrGQ5ucECPyD37vk9ybfQ&ust=1365174124053724

http://www.google.co.uk/url?sa=i&rct=j&q=crossrail+logo&source=images&cd=&cad=rja&docid=iWcbOAm1md8DNM&tbnid=1C0eJGGKCtGgUM:&ved=0CAUQjRw&url=http://www.justengineers.net/blueprint/tag/crossrail/&ei=aeBiUbjSII6Y0AWHnoGgBw&bvm=bv.44770516,d.d2k&psig=AFQjCNEeCDw9NZlfvmdx4z6CSTZc70Cj5g&ust=1365520854489580

http://www.google.co.uk/url?sa=i&rct=j&q=%22Nuclear+Decommissioning+Authority%22&source=images&cd=&cad=rja&docid=IIt0q6V3rXZdIM&tbnid=l-C9jTSReqxlUM:&ved=0CAUQjRw&url=http://webarchive.nationalarchives.gov.uk/20100105045320/nda.gov.uk/ukinventory/&ei=UpReUemYM8qxPMLggYgO&bvm=bv.44770516,d.ZWU&psig=AFQjCNGJAQmZytVd2J-ZCz-cxbQaAzuT9A&ust=1365239248584555

http://www.google.co.uk/url?sa=i&rct=j&q=DWP&source=images&cd=&cad=rja&docid=8Ct7sUjvRJ6G6M&tbnid=arsp8PmrX1DksM:&ved=0CAUQjRw&url=http://ilegal.org.uk/thread/7207/leaked-letter-dwp-saying&ei=lY9eUc7GJ4a1O9_UgPgJ&bvm=bv.44770516,d.ZWU&psig=AFQjCNEQW3zVEdX1mo4ROiWTJGKnu5SbNg&ust=1365238033275912

http://www.google.co.uk/url?sa=i&rct=j&q=%22Transport+For+London%22&source=images&cd=&cad=rja&docid=MWMwk4Gw1bJU8M&tbnid=xeYZjraUo-fIGM:&ved=0CAUQjRw&url=http://www.creativebrief.com/blog/2012/07/30/market-leader-interview-chris-macleod-marketing-director-of-transport-for-london-tfl/&ei=i6heUaSQFu3v0gXl64HwBg&bvm=bv.44770516,d.d2k&psig=AFQjCNGcf5KEXTBiCt_IRXHHQYCMKyXi9g&ust=1365244417057631

http://www.google.co.uk/url?sa=i&source=images&cd=&cad=rja&docid=Uor94laTpIJceM&tbnid=uEDtIWwdKAYQeM:&ved=0CAgQjRwwAA&url=http://www.iteaint.com/clients.php&ei=mateUZD3HabB0gWKu4HABw&psig=AFQjCNHsa0LXMtcbTNTsQFrHT-TARZ_pZA&ust=1365245209543741

http://www.nato.int/cps/en/natolive/index.htm



AWARD

77,524

®

ENTERPRISE ACCOUNTS PROJECTS

CLIENTS INTERNATIONALLY

DOCUMENTS LOADED

EVALUATED SUPPLIERS

ANSWERED QUESTIONS

EVALUATING USERS

757,524 88,453 3,111,618 46K+

25 200+ 6320



What do they buy from us?



Services - Expertise



Structured Criteria Development

1. High-level project objectives often forgotten in the detail of technical requirements

Example: what’s most important when building an Olympic Stadium?

2. Understanding what you are buying

Example: buyers focus on the tangible deliverables of a project ignoring the intangible work that has to be done by the supplier

Example: are we buying the building, or the services of a builder?

3. Being clear about what is delivered as part of a bid and what is delivered later, and how to deal with it.

Example: we want to buy a “fully integrated system”:

Will it be integrated at the time by place the order or later on, during contract

4. Addressing the risk associated with the supplier delivering

Many buyers select their suppliers based on the suppliers’ claimed compliance with the requirements, they often do not test the ability of the bidders to do what they have claimed they will do



SCD: Example

Goal:

• Olympic venues to be ready by 2011, sustainable and in time to be commissioned for the Olympic Games.

Criteria might include:

• Sufficient resources: skilled staff available, robust resourcing plan, supplier relationships.

• Robust plan: robust programme plan in place, critical path well-understood and de-risked…

• Supply chain: supply chain for materials and

waste removal already in place.



Identifying criteria

Analyse Discover

The purpose of the project in terms

of improved capability, savings and/or

indirect improvements

The factors that will ensure the goals and benefits

are realised. Project risks and key enabling

supplier capabilities will be identified here.

The issues that need to be explored to obtain

assurance that the dependencies will be

effectively addressed

Dependencies CriteriaGoals /

Benefits

Design

Background

Evidence

Required

Scoring

Scheme

Aims

Assessor

Guidance

Dependencies CriteriaGoals /

Benefits

Structured

Criteria

Development

Background

Aims

Scoring

Scheme

Evidence

Required

Assessor

Guidance

Weight



To build confidence...

“Traditional” approach

• Evaluate against a large number of requirements

• Evaluation of compliance

• Decision made on compliance and price – i.e. cheapest compliant

• Smaller number of high-level criteria

• Criteria examine things that ensure the requirements will be met

• Decision made on confidence that the bidder will be able to deliver the requirements, balanced against price

Requirements and criteria are completely different!

Structured Criteria Development



Ensuring value for money

• Commonly used schemes often have unanticipated effects

• Buyers all-too-often fail to do the maths to understand what effect their evaluation methodology actually has



In summary…

Begin with the end in mind:

• Focusing on the key procurement criteria lowers the risk of an evaluation

• Highlighting the key criteria aids the Buyer, their stakeholders AND their Suppliers

• Early Stakeholder engagement enables stakeholder buy-in throughout the project

• Efficient process - consolidation of criteria and concentration on specific areas

• Concise well thought through SCD allows you to be confident in your results

• Good SCD will effectively contribute to the Negotiation and Review stages of project

• Transparency and openness of process is less likely to be challenged

Focussing on outputs allows suppliers to innovate!



Further reading

• Successful procurements focus on criteria rather than requirements

• Successful competitions use Relative Value for Money or robustly test the effect their scoring method will have

• Successful procurers recognise they are choosing their supplier at the outset

• Successful teams design the evaluation machine up front and with confidence

Visit QinetiQ’s Stand for more detail…!



Philip Lear | International Business Development Manager

Tel: +44 (0) 1235 431100 | Email: [email protected] Mobile: +44 (0)7788 190080 Commerce Decisions Ltd, 101 Park Drive, Milton Park, Oxfordshire, OX14 4RY

Website: www.cd.QinetiQ.com | Twitter: @CDL_AWARD | Blog: www.cd.QinetiQ.com/blog/

Wendy Wates | Managing Director

Tel: +44 (0) 1235 431100 | Email: [email protected] Commerce Decisions Ltd, 101 Park Drive, Milton Park, Oxfordshire, OX14 4RY

Thanks!

Aaron Davis | AWARD® Lead: QinetiQ Australia

Tel: +61 (0) 2 6200 2645 | Email: [email protected] Mobile: +61 (0) 421 241 215 QinetiQ Consulting Services, Unit 5 (Level 1), 8 Brindabella Circuit, CANBERRA AIRPORT ACT 2609

Website: www.QinetiQ.com.au

award procurement as an enabler of innovation annual conference - wendy...procurement as an enabler...

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