1. Procurement
Procurement Newsletter
Summer 2010
Content
• Introduction
• Case studies
• Announcements
• Training
• Top tips and quick wins
• Contacts

2. Introduction
Welcome to the Summer 2010 edition of the AoC
Procurement Newsletter which offers you the opportunity to
learn about the excellent procurement work that is going on
in Colleges across England.
Austerity, recession, reducing budgets, doing more with less,
are all expressions that have become very familiar across
the public sector in recent weeks. Effective procurement
will not solve all economic ills but ensuring we maximise
opportunities for increasing value for money by good
procurement has never been more important.
This newsletter is designed to signpost good practice which
may be adopted across the FE sector - please take the time to
read and contact us if you would like to discuss procurement
issues in greater detail.

3. Case studies
Intranet helps promote procurement
Warwickshire College has been busy using
their intranet to promote the benefits of smarter
procurement. A desktop guide to procurement has
been made available, plus the introduction of a
page dedicated to procurement on the staff intranet.
The College is spread across two counties, six sites,
and has over 2000 staff – so it’s important this
information is widely available.
Nigel Gould, Finance and Administration Manager,
explains; “Purchasing in our College is devolved to
budget holders, apart from in some specialist areas,
so the development of this resource has proved really
helpful for people.”
“The intranet page provides information about the
College’s procurement policy, lead buyers’ contact
details, and links to useful websites like Buying
Solutions...for full article visit our website
FE Sussex leads the way in cutting cost
of exam fees
For two years, FE Sussex – the consortium company
of the 12 post-16 colleges in Sussex – has pursued
a highly proactive strategy of reducing the costs of
examinations and assessments. As a consortium, their
annual spend on assessment services is in excess of
£5 million – a considerable sum. Their cost reduction
strategy has already cut this by more than £250,000
and they’re ahead of their target for a 10 per cent
reduction by the end of 2011.
Cost reduction manifests itself in two forms – cash
discounts/rebates and increases in service levels. At
first sight, the former appear to be most attractive,
but in practice the latter are equally important;
these have reduced College administration time,
removed frustrations and provided opportunities
for continuing professional development and
sponsorship....for full article visit our website

4. Case studies
Grimsby Institute has a tender touch for
local business
The Grimsby Institute is currently in the process of
tendering for approved electrical contractors through
the AoC in-tend portal. Whilst their main priority is
to get best value for the College, they have also been
mindful of the need to support local businesses.
Jason Kay, Purchasing Manager at the College
explains; “We have split the tender into three
geographical lots to assist response times and to
support local businesses. We’ll appoint a main
contractor for each lot, along with maybe one or two
sole traders, or small and medium enterprises of up
to five employees.”
The College believes that they can help small firms
to survive the downturn and help them grow in the
future. In this particular tender the smaller firms will
be given specialist jobs of up to the value of £200 and
the rest of the work will be split between the three...
for full article visit our website
A water survey could save you bucket
loads
On average every person in the UK uses 147 litres
per day. This is wasteful and unsustainable. You
can now combat this problem by commissioning a
water course survey to be carried out at your College
to verify your bills are correct, look at reducing
consumption to increase efficiency and consider
developing a long-term strategy for using water
more responsibly.
Karen Stanwell at Bourneville College recently had
a surface water drainage survey carried out after
she was contacted by a water consultancy firm.
She recalls; “The company offered a ‘no win no fee’
service, and the process was pretty pain free – all
I had to do was provide 12 months invoices.” The
College are awaiting their final report from the
company, but initial feedback is that the results look
promising...for full article visit our website

5. Announcements
Energy purchasing in the FE sector
The OGC Energy Team help the public sector • Risk Managed: With specialist knowledge
improve its energy procurement by accessing and experience, plus a robust statistical analysis
the most effective procurement solutions for its of the market, a risk management strategy can
energy requirements and by promoting energy be developed to know when the best time to
efficiency across government. The OGC Energy buy energy is.
Team recommends that best practice for energy
procurement is: • Aggregated: : By joining public sector
organisations together to purchase their energy,
• Flexibility: Flexible purchasing allows supplier margins can be reduced by between
the purchaser to spread the risk of going out three to five per cent, compared to those that
to market over a number of smaller purchases, can be achieved by a single organisation.
mitigating against when the market is high,
and benefits can be gained from accessing at For further information, please see the Energy
lower times. This can help provide budget Buying guidance documents on FELP website or
certainty. contact AoC Procurement Development Team or
Cassie Clifford-Wareham at the OGC.
The multi-million pound business of procurement
A recent report has revealed that the average The research also revealed that over £2.5 million
College spends more than £8.75 million each worth of savings have been realised one year on.
year on non-pay products and services. FE Sussex has saved their 12 Colleges £250,000
on exam fees, while Wigan and Leigh College
The report looked at 59 Colleges and showed have saved £95,000 through purchasing their
that collectively they spent almost £516 million energy via Yorkshire Purchasing Organisation,
annually, with £109 million of that going on and saved £40,000 by purchasing insurance
capital build projects with exam fees, staff through Crescent Purchasing Consortium.
training and recruitment also being high-spend
areas. It goes to show that a lot of savings can be made
when you implement the right tactics.
As well as analysing how much Colleges spend
each year the research also identified ways in If you’re interested in using the spend analysis
which they could make savings. Examination tool and receiving your own efficiency
fees, energy, IT hardware and insurance are all report please contact the AoC Procurement
costly categories where it’s possible for colleges Development Team.
to make savings if they implement a few
simple ideas like collaborating, buying through
consortia and maximising their use of GPCs.

6. Announcements
Crescent Purchasing Consortium: FE ownership and beyond
Crescent Purchasing Consortium: FE ownership • Jason Kay – Grimsby Institute (Yorkshire and
and beyond Humberside)
The Crescent Purchasing Consortium (CPC) was • Richard Hudson – Hull College (Yorkshire
purchased from the University of Salford by and Humberside)
the FE sector on 1 November 2009 and has now
created a new Board. The Board has started to • Carolyn Wilkinson – Gateshead College
review every aspect of the CPC operation. (North East)
The first major task of the CPC Board has been to • Pat Condon – Blackpool and The Flyde
offer shared ownership of Crescent Purchasing (North West)
Ltd (the company owning CPC) to the FE
Colleges. The response has been magnificent • Shaun Anders – St Helens (North West)
with 116 Colleges accepting the offer.
• Cheryl Brown – Welsh Further Education
The Board were also mindful of the need to Purchasing Consortium
obtain advice on the purchasing operation of
the CPC from the FE purchasing community. The elected Chair of the Group, Pat Condon
A Purchasing Advisory Group (PAG) has been from Blackpool and the Fylde College, also sits
formed comprising two professionally qualified on the CPC Board. This Group is beginning to
purchasing staff from each of the nine regions show all the signs of being a major force for
of England, plus one officer from Wales. The purchasing in the FE sector.
representatives are:
Peter Brewer, the Managing Director of the CPC
• Noel Cassidy – Cambridge (East of England has been delighted with the first six months
of FE ownership. “The change in attitude by
• Barbara Grange – Peterborough (East of College staff towards the CPC since the buy out
England) has been very noticeable, with so many more
willing to help and support the work we’re
• Carla Honeybun – Wiltshire (South West) doing. It’s certainly helped to ease the worry of
transition of ownership for the CPC staff, and
• Mike Pearce – Exeter (South west) given great hope that in working together we
can realise the true potential of purchasing in the
• Lorraine Lindsay – College of North West FE sector.”
London
If you’d like to apply to have part ownership
• Peter Danckwardt – Croydon College of CPC, please use the forms already circulated
or contact Peter Brewer at the CPC for further
• John Frowd – Burton College (West information by email or telephone 0161 295 5784.
Midlands)
• Pat Eagle – Stafford College (West Midlands)
• Angie Pilgrim – West Nottinghamshire
College (East Midlands)
• Karen Barber – Derby College (East
Midlands)

7. CPC Empower 2010 conference success
The CPC Empower conference recently regulations and promoting procurement within
took place in Birmingham with 115 member colleges. There were also lots of opportunities
institutions in attendance. This was the third for valuable networking between Colleges,
conference facilitated by CPC for purchasing suppliers and representatives from across the
in the FE sector, with the aim of encouraging sector.
engagement and empowerment for colleagues
across the sector to help purchasing performance Once again the conference has been a big
and practice. success. You can download the presentation
slides and photos from both days via the CPC
The two day event covered a number of topics website.
including e-procurement, spend analysis, EU
New Managed Procurement Services Framework
A new Managed Procurement Services These services can be called off by holding mini-
Framework is available to assist Colleges who competitions using the template and buyers’
need additional support for procurement guidance which are on FELP website. For more
activities, the lots include: information please email the AoC Procurement
Development Team.
• Discrete ad-hoc procurement services
• Complete managed procurement service
• Review and audit
• Change agent for collaboration
European Union Procurement Statistics Data Collection
The Department for Business, Innovation and For many Colleges particularly those that use
Skills have, via SFA, requested AoC help in Consortia frameworks extensively there will be
gathering Procurement statistics on behalf of the few procurements to record. It is not necessary
OGC and EU. to list purchases made against framework
agreements. Only record those where the
We have agreed to assist, in spite of the College is the main contracting authority.
late request leading to a short timescale for
completion as provision of such statistics is Nil returns are required. Returns are requested
a legal obligation under the procurement by 16th July.
regulations.
If you haven’t seen the e-mail or require further
For the calendar year 2009 Colleges are required information send an e-mail to AoC Procurement
to advise details of above EU threshold contracts Development Team.
awarded. A spreadsheet for completion has been
sent to Finance Directors.

8. Training and Procurement Efficiency Forums
The AoC FE Procurement Team offers a number Further information can be found on the AoC
of training opportunities including: website or by referring to FELP.
• funding for NVQ training and MCIPS The AoC FE Procurement Team holds regional
Exam Route procurement efficiency forums every quarter
• procurement workshops for the FE sector - dates of these can also be found on the AoC
• Efficiency Measurement Model training. website or by referring to FELP.
Shared Services Awareness Events
AoC have commissioned Shared Service It will draw upon the latest research into shared
Architecture Limited to run 3 half day (morning) services, combined with the powerful lessons
awareness seminars in the North, Midlands learnt from the recent growth in shared service
and the South in July 2010. We feel this would activity across local government.
be beneficial to Principals, Board Members and
their SMTs. The seminar is designed to fast- To book a place on one of these seminars, please
track strategic awareness around the emerging visit AoC Management Services Events website.
opportunities for shared services in the FE sector.
Exam fees - improving value for money
Due to growing interest, the AoC FE 1pm with lunch to follow.
Procurement Team are holding a workshop
which will cover the procurement of awarding To see the agenda please view: Exam fees
body services to ensure best value for your workshop agenda
College.
If you would like to attend please confirm by
The session, led by Dr. Tim Strickland, will offer emailing the AoC Procurement Devepolment
practical guidance based on his experience with Team to register your interest.
FE Sussex where he has implemented a number
of strategies resulting in significant benefits for The workshop will be of interest to all College
member Colleges. staff involved in the selection and management
of Awarding Bodies and is funded by AoC
The event will be held at 9.30am on the 15 July as part of the FE Procurement Efficiency
2010 at Manchester University. It will finish at Programme.
Webinars – insight into the latest procurement policy and legislation
Webinars – You can now get an insight into the Contract Management
latest procurement policy and legislation, live Part 1 – Getting out of a Contract
from the comfort of your PC. Jack Salter from the 12th July – 12.30 – 13.30pm
Commercial Strategy Team at the Department 16th July – 12.30 – 13.30pm
for Education now holds regular hourly
Part 2 – Re-negotiating a Contract
‘Webinars’, which allow you to see a topical
19th July – 12.30-13.30pm
presentation and engage with the presenter. The
20th July – 12.30-13.30pm
next dates for this are:
Please email the AoC Procurement Development
Team to register your interest.

9. Top Tips and Quick Wins
Telephony savings Low cost IT disposal by Remploy
Hull College has restricted the number of Remploy e-cycle helps organisations to recycle
handsets that can make international calls and computers and electronic waste, meeting all
calls to 0845 numbers. They’re also barring their IT and communications (ICT) equipment
access to directory enquiries, instead directing recycling needs. There are a variety of low cost
staff to use Yell.com. Estimated savings are £12k. services that can recycle your equipment both
ethically and sustainably. For more information
The College has also completed a review of visit the Remploy website.
redundant lines which has saved almost £10k.
Cheap deals available for food
Hard back to CD Grimsby Institute is in the process of evaluating
Kidderminster College has made a very their food suppliers against SNUPI deals.
impressive saving by scrapping the traditional The initial comparison on coffee beans and
student handbook in favour of CDs. The overall equipment is showing to be 50 per cent cheaper,
cost for the production of the CDs is just one and groceries and frozen food at least 20 per cent
quarter of the cost for the old hard back copies – cheaper. Visit www.snupi.org.uk.
a bargain some might say.
Benchmarking pays
GPC framework – rebates available on Benchmarking templates are available at www.
Barclaycard framework felp.co.uk and are a good tool in helping to
The Buying Solutions Government Procurement understand exactly what the market can offer
Card (GPC) framework can be accessed at the you. For more help benchmarking contact Carl
Buying Solutions website. The Barclaycard deal Johnson.
offers a number of advantages including a rebate
for spend above £300k, and now that some exam
boards are looking towards GPC payments it’s
very attainable. For more information contact
Carl Johnson.
Contacts
Association of Colleges Pippa Dooley
Procurement FE Procurement Manager
2 - 5 Stedham Place pippa-dooley@aoc.co.uk
London
WC1A 1HU Lesley Templeman
Programme Support Officer
Ray Poxon lesley_templeman@aoc.co.uk
Senior FE Procurement Manager
ray_poxon@aoc.co.uk General queries: procurement_team@aoc.co.uk
EMM queries email: emmfe@aoc.co.uk
Carl Johnson AoC Website: www.aoc.co.uk
FE Procurement Manager FELP website: www.felp.ac.uk
carl_johnson@aoc.co.uk