Government Procurement Card

Jim Parkinson CEngHead 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

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

- We are an Executive Agency in HM Treasury

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

What is Buying Solutions?

- 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

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

- Buying Solutions has six categories:

ICT Professional ServicesEnergy TravelProperty and Office Solutions 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

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

- Buying Solutions has six categories:

ICT Professional ServicesEnergy TravelProperty and Office Solutions eCommerce

Our Category Management approach

- IT – hardware, software, associated services

- Telecoms – mobile, managedtelephony, specialist solutions

- Consultancy

- Resourcing – interims, specialist contractors

- Government Secure Intranet

- eProcurement services - eSourcing, eAuctions,Zanzibar electronicmarketplace

Our range of products and services

- Payment Cards – GPC, FuelCards, Pre paid Cards & associatedservices

- Travel

- Energy and Liquid Fuels

- Property Solutions including Estatesand Facilities Management, FurnitureFlooring and Catering

- Office Solutions includingPrint & Recycled Paper,MFDs & Stationery andPostal & Courier

£732 million

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

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

- Easy access to over 600 approved suppliers

- Benchmarked products and services

- Highly-skilled and experienced support provided

- eProcurement Solutions – Zanzibar, eSourcing, payment cards

Saving time and money

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 PerformanceGPC II

April 2008 to March 2009

Customers = 1,400

Cards = 130,943

Spend = £957m

Transactions = 6m

Current Framework PerformanceGPC II

Spend Analysis

010,000,00020,000,00030,000,00040,000,00050,000,00060,000,00070,000,00080,000,00090,000,000

100,000,000

200820072006200520042003

Current Framework PerformanceFuel Card

April 2008 to March 2009

Customers = 2,400

Cards = 218,000

Spend = £323m

Transactions = 6.7m

Litres = 285m

Current Framework PerformanceFuel Card

2008~2009 Spend by Supplier

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

Q1 Q2 Q3 Q4

Arval

BP

Esso

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

© 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 AwardGPC

LOT 1AmexAir PlusBarclaycard CommercialCo-opJP MorganRBS

LOT 2AmexBarclaycard CommercialCitiRBS

Framework AwardFuel Card

LOT 1ArvalBPTotalShellCH JonesRBS

LOT 2CH JonesIntelligent FleetBP

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