Public Sector

Project Summary

• Local authority client had identified the need for large budget cuts to be made whilst needing to maintain service levels

• After review PES Business recommended the consolidation of seven separate service areas and contracts into one new contract.

• Following the results of the full tender the delivered savings were in excess of 19% – totalling over £1.2m over the life of the contract (in excess of the budgeted savings forecast).

OUR CLIENT

A local authority that due to central government changes in funding had identified the need for large budget cuts to be made whilst trying to maintain service levels.

Based in Southern England the authority was facing large challenges with both in-house delivery as well as mounting internal costs. The decision was made to try and consolidate the services of several departments to deliver a consistent service and to evaluate the potential for outsourcing.

CLIENT REQUIREMENTS

Although the client had their own procurement team, they were keen to engage external advise and to use expertise principally due to the sensitive nature of the project it was felt to undertake a full in depth review.

The locality of the authority was pivotal in the delivery of the combined services and as such the solution needed to be inclusive of the various stakeholders, whilst also complying with any framework rules required.

THE PROJECT

After a period of review we were able to identify the consolidation of seven separate service areas and contracts into one new contract. Once this was agreed with all stakeholders it was then developed into a full internal and external tender exercise to be able to demonstrate “best value”.

As part of the review it was identified to implement a new procurement process to ensure ongoing management.

THE RESULTS

Following the results of the full tender the delivered savings were in excess of 19% – totalling over £1.2m over the life of the contract which was in excess of the budgeted savings forecast.

As agreed a new set of procurement documents for on-going use in Authority were implemented to ensure all framework agreements were adhered to and could be re-negotiated in future activities across the authority.

As part of the implementation we devised new methodology for engaging with Service areas, Officers and Council Members.