UNIVERSITY OF ULSTER Procurement Strategy Group (PSG) UNCONFIRMED Unreserved minutes of the meeting of Procurement Strategy Group (PSG) held on Friday, 12 September 2014 at 10 am in room X050, Coleraine and 08H09, Jordanstown. PRESENT Ms Alison Rankin (Chair), Mr Norman Blair, Mrs Clare Egan, Professor Ruth Fee, Miss Rhonda Gibson, Mr Frank Liddle, Mrs Bernie McKevitt, Mr Max Morrow, Mr Eamon Mullan, Mr Ronan Rafferty. IN ATTENDANCE Ms Debbie Montgomery. 1.0 Introductions The Chair thanked all members for attending, and introductions were carried out. The Chair gave an insight into the background of the Group and advised all as to why they had been selected as members of PSG. 2.0 Terms of Reference (Paper No. PSG14/01) The Chair referred to the primary role of PSG and the Terms of Reference, and then invited members to consider the Terms of Reference. EM voiced concern with regard to reporting formally to Resources Committee. It was NOTED that a report on procurement was produced on a quarterly basis as well as the annual report. Both would be presented at PSG before going to Resources Committee. The Chair made assurances that it is not a formal link to Resources Committee and solely for the purposes of presenting the reports. 3.0 Procurement Strategy and Action Plan 2014 – 2017 (Paper No. PSG14/02) This paper outlines the procurement strategy and associated action plan from 2014 – 2017. The Chair, CE and RR spoke to this paper and made reference to the Diamond Review which was published in 2011. Two key initiatives from this review were:  The roll-out of the Procurement Maturity Assessment (PMA), and The Establishment of Higher Education Procurement Academy (HEPA) In terms of the new strategy, CE went on to highlight the 9 key attributes within the action plan. 1 RR referred to the maturity curve and explained that, as a result of the PMA, Ulster was deemed as “tactical” and in line with the sector average. The Chair advised that the Strategy had been written with a view to moving Ulster along from within Tactical to Planned and Superior. RF informed the Group of her involvement with the Procurement & Logistics Service and the Central Procurement Directorate, and her role as Module CoOrdinator for EU Procurement Law within the University. RF referred to attributes 7, 8 and 9, and commended the procurement team for achieving such a high level of outcome in this year. The Chair went on to comment on the table of objectives and each of the individual attribute, noting that the RAG column will be populated as the strategy progresses. CE advised that the main key attribute for this Group relates to Governance, ensuring that senior managers are aware of the strategy in order to communicate to the rest of the University. CE further advised that there are 4 other key attributes that need more focus:    Corporate and Social Responsibilities Collaboration Supplier Strategy and Policy Category Management A discussion ensured in relation to the new corporate communications channel. It was AGREED that procurement would liaise with Sarah Gallagher, who is responsible for internal communication in order to ascertain if there could be a feature relating to procurement at the launch of the new corporate communications channel. Action: CE and RR. EM made reference to what would be seen as peripheral to the procurement exercise ie. Legal costs, quality proofing, human rights proofing, and felt consideration should be given as to how this should be supported. It was AGREED that in terms of our governance going forward, this would be built into the action plan. Action: CE. The Chair made reference to the following:    attribute 3 and advised that there is a plan in place to restructure procurement which is stalled pending the latest round of efficiency cuts. attribute 4 – in respect of the HEPA competency framework, which Ulster is deploying throughout the procurement section to see where we benchmark against the sector. attribute 5 - in recent contracts we have endeavoured to introduce social responsibility clauses where possible. attribute 7 - noting how we are constantly developing information systems which in turn improve processes enabling a better audit trail and accountability. 2  attribute 8 - contracts recently developed by Ulster have set KPIs on which performance of suppliers is monitored against. From an ISD/IT perspective, NB emphasised the need for senior staff within faculties and departments to receive contract management training as we consider cloud and hosted services. CE advised that templates are available and that training will be developed in order to allow faculty staff to look at key areas in terms of supplier performance. CE proposed, as part of the action plan going forward, to look at the 80/20 analysis for the top 20 suppliers. Action: It was AGREED to train devolved users in contract management and to develop and roll-out the HEPA modules applicable to devolved users. CE to arrange.  attribute 9 – it was NOTED that there are opportunities to further embed a type of category management approach to procurement, and to ensure that there is a rotation of duties, thus reducing the risk of single point of failure. In addition, to establish or implement a category for project sourcing strategies on the key areas of spend. FL asked RR about how he hoped the action plan would move more towards a strategic role as opposed to an operational role. RR advised that the outputs of the new procurement strategy would see procurement more as a strategic resource whereby procurement would work closely with key clients such as PRD, ISD in order to deliver legally compliant contracts that are predicated on the achievement of best Value for Money (VFM). Additionally CE noted that procurement would continue to work with clients to ensure that all relevant procurement exercises were managed in adherence to the guidelines set by funding bodies where applicable. MM thanked CE and RR for their help with funding bodies’ procedures. MM made reference to an outside group which is currently being set up, and which he felt PSG could feed into, involving Queens University, government bodies and FE colleges in order to discuss procedures with funders 4.0 Draft Annual Report – Resources Committee (Paper No. PSG14/03) The Chair outlined the structure and objectives of this paper. CE spoke to this paper and discussed in detail the breakdown of non-payroll spend for 2013/14 of £66.7m. CE drew members’ attention to the Efficiency Savings secured throughout 2013/14 of £4.2m, 5.7% ahead of the Gershon target of 3%. CE further noted the UUK and ENP KPIs, and highlighted the table showing procurement best practice indicators, explaining that we are exceeding or are on target against those measurements. 3 The Chair again invited comments and NB felt that the strategy is to be commended. EM felt that flexibility needs to be built into the strategy and that value for money can be found outside of the approved suppliers that we have on board. 5.0 Any Other Business There were no further matters to discuss. 6.0 Date of Next Meeting It was agreed that the next meeting would be held in February 2015. Action: DM to arrange. 4 UNIVERSITY OF ULSTER PSG Friday, 12 September 2014 Action Table Minute Action 3.0 Procurement Strategy and Action Plan 2014 – 2017 3.0 Procurement Strategy and Action Plan 2014 – 2017 3.0 Procurement Strategy and Action Plan 2014 – 2017 6.0 Date of Next Meeting 5 Corporate Communications Channel - liaise with Sarah Gallagher, to ascertain if there could be a feature relating to procurement at the launch of the new corporate communications channel Legal costs, quality proofing, human rights proofing, should be given consideration as to how this should be supported. In terms of our governance going forward, this would be built into the action plan. Attribute 8 - train devolved users in contract management and to develop and roll-out the HEPA modules applicable to devolved users. To be arranged for February 2015 By CE RR CE CE DM &