RM6187 Management Consultancy Services Market Engagement 29th - - PowerPoint PPT Presentation

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RM6187 Management Consultancy Services Market Engagement 29th - - PowerPoint PPT Presentation

Aug 17, 2023 43 likes •388 views

RM6187 Management Consultancy Services Market Engagement 29th October 2019 Agenda 1. Purpose of today: Management Consultancy - Future Frameworks 2. Introductions 3. Timeline 4. MCF / MCF2 Spend analysis 5. Proposed lot structure 6.

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RM6187 Management Consultancy Services Market Engagement 29th October 2019

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Agenda

  • 1. Purpose of today: Management Consultancy - Future Frameworks
  • 2. Introductions
  • 3. Timeline
  • 4. MCF / MCF2 Spend analysis
  • 5. Proposed lot structure
  • 6. Feedback
  • 7. AOB
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Todays Objectives

In Scope

  • Present analysis of current framework usage
  • Present options for future lot structures

Out of scope

  • Evaluation criteria
  • Entry thresholds to lots
  • Number of service lines per lot for entry
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Crown Commercial Category Structure

Workforce People Services

  • Prof. Services

Health & Education BPO & Contact Centres Pillar Operations People Pillar Corporate Pillar Tech Pillar Buildings Pillar Management Consultancy Legal Audit

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Management Consultancy Team

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Gareth Clark Deputy Director New starter: Dec 2nd Senior Category Lead Emma Tranter Category Lead Claire Levens CAM Specialist Andy Caldwell CAM Specialist Emily Warren Category Lead David Pyle CAM Lead Brian Gregson CAM Manager

Key: Strategic Category Commercial Agreement Management

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Evolution of Management Consultancy (MC)

Feb ‘13

Consultancy One

(expired 2017) Sept ‘18 Sept ‘21

MC Services RM6187

(expires Sept ‘21) Sept ‘17

Audit Services (RM6188)

Sept ‘21 MCF MCF 2

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Timeline

Market Engagement Oct ‘19-Mar ‘20 Evaluation Period Jan ‘21-May ‘21 Contract Award Jun ‘21 Go Live Sep ‘21 Oct-Dec ‘20 ITT Period Apr-Sep ’20 Internal governance

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MCF and MCF2 Spend analysis

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MCF - spend profile

Finance (L2) £94.2M Health & Community (L5) £74.3M* HR (L4) £17.6M Audit (L3) £10.7M Infrastructure (L7) £9.2M ICT & Digital (L8) £6.0M Education (L6) £4.7M TOTAL £216.7M

Source: Salesforce - MCF spend FY 2018/19 and FY 2019/20 (up to 30th Sept. 2019) *At least £53.8M of spend via Lot 5 has related to EU Exit

Spend by lot (%)

2.2%

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MCF2 - spend profile

Complex & Transformation (L3) £29.0M Business (L1) £26.5M Strategic (L4) £8.4M Procurement, Supply Chain & Commercial (L2) £5.7M TOTAL £69.6M

Source: Salesforce - MCF2 spend FY 2018/19 and FY 2019/20 (up to 30th Sept. 2019)

Spend by lot (%)

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MCF / MCF2 - supplier profile

Source: Salesforce - MCF and MCF2 spend FY 2018/19 and FY 2019/20 (up to 30th Sept. 2019)

MCF MCF2 Number of suppliers

Suppliers with spend Suppliers with no spend

Highlights potential need for fewer suppliers on some lots - with benefits for:

  • Suppliers: improve bid to win rate
  • Customers: quicker route to market

(fewer bids to evaluate)

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MCF / MCF2 - spend split between large firms & SMEs

MCF MCF2

SME Large

  • Average of 11% SME

spend across MCF/MCF2

  • Consideration of shift to

greater # of lots with more specialisms designed to provide accessibility

  • Internal Communities of

Practice to promote use

  • f SMEs & share best

practice

Source: Salesforce - MCF and MCF2 spend FY 2018/19 and FY 2019/20 (up to 30th Sept. 2019)

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MCF / MCF2 - number of SMEs awarded spend per lot

4 2 2 2 7 4 15 14 10 1 8 3 15 9

Finance (L2) Audit (L3) HR (L4) Health (L5)

  • Educ. (L6)
  • Infrast. (L7)

IT (L8)

MCF

150 36 40 5 1

Business (L1) Proc., SC &

  • Comm. (L2)

Transform. (L3) Strategy (L4)

7 2

MCF2

# of SMEs without spend # of SMEs with spend

Source: Salesforce - MCF and MCF2 spend FY 2018/19 and FY 2019/20 (up to 30th Sept. 2019)

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MCF / MCF2 - usage of service lines (SLs)

Source: Salesforce - MCF and MCF2 spend FY 2018/19 and FY 2019/20 (up to 30th Sept. 2019)

Number of service lines

Spend via SL No spend via SL

MCF MCF2

  • Significant proportion of

services lines have not been used

  • Proposal:

○ Break out highly utilised SLs into specific lots e.g. project/programme mgmt. ○ Remove SLs not used to streamline process

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Lot structure options

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Lot Structure Options

1. Strategy 2. HR 3. Procurement, Supply Chain and Commercial 4. Transformation 5. Finance 6. Digital & Technology 7. Business 8. Policy & Advice 9. Risk & Compliance 10. Project/Programme Mgmt

Option B: A + New Lots Option C: A + Sector Specific

Business Consultancy 11. Health & Social Care 12. Education 13. Infrastructure & Transport

Option D: A + DPS Option A: Core Lot Structure

DPS = Dynamic Purchasing System

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Option C - Sector lots

Health & Social Care ~£15m spend* 31 service lines

  • Currently some spend in Lots 5,

6 and 7 is via non-sector specific service lines e.g. ○ Programme/project mgmt. ○ Transformation ○ Business case development

  • However, there is demand for

sector-specific expertise e.g. ○ Healthcare service & process evaluations ○ Housing, landlords & tenancy regulation ○ Waste infrastructure

Source: Salesforce - MCF spend FY 2018/19 and FY 2019/20 (up to 30th Sept. 2019) *Estimated spend based on total spend in current Health and Community Lot less EU Exit

Education ~£5m spend 30 service lines Infrastructure & Transport ~£9m spend 27 service lines

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Pros Cons

Option D - Dynamic Purchasing System

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Appendix

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Summary

  • During market engagement various questions & queries were raised around data
  • The following slides have been created in response to some of those queries including:

○ Spend by service line on lots ○ Split of SME spend (medium, small & micro) ○ Pricing model spend split

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MCF Lot 2

Top 5 Service Lines (by spend) Spend % of Lot Total Business analysis £24,839,959 26.4% Accounting advice & risk £13,709,393 14.5% Developing & assessing project proposals £10,699,630 11.4% Financial performance review & viability studies £7,575,156 8.0% Costing review & evaluation £7,366,799 7.8%

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MCF Lot 3

Top 5 Service Lines (by spend) Spend % of Lot Total Internal audit £4,637,387 43.3% External audit service £1,110,002 10.4% Forensic assessments, accounting Investigations £1,091,397 10.2% Governance £1,033,415 9.6% Special purpose reviews £709,079 6.6%

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MCF Lot 4

Top 5 Service Lines (by spend) Spend % of Lot Total Organisational training & development £6,314,686 35.8% Performance management (including pay, reward & benchmarking) £3,840,737 21.8% Human resource functions, process & design £3,578,971 20.3% Cultural transformation £1,701,141 9.6% Staffing £716,912 4.1%

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MCF Lot 5

Top 5 Service Lines (by spend) Spend % of Lot Total Programme & project management £8,207,316 11.0% Forecasting, planning & strategy £8,028,682 10.8% Business case development £7,789,322 10.5% Policy advice & review £5,608,815 7.5% Operational review & improvement £4,373,011 5.9%

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MCF Lot 6

Top 5 Service Lines (by spend) Spend % of Lot Total Transformation, change and assurance £2,226,449 47.1% Acute services reconfiguration modelling £624,999 13.2% Apprenticeships £602,120 12.7% Programme and project management £515,131 10.9% Special educational needs £353,000 7.5%

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MCF Lot 7

Top 5 Service Lines (by spend) Spend % of Lot Total Waste infrastructure £1,089,672 11.9% Procurement and supply £1,041,248 11.3% HR and organisational strategy £884,960 9.6% Planning strategies for infrastructure developments £846,518 9.2% Business case development £708,397 7.7%

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MCF Lot 8

Top 5 Service Lines (by spend) Spend % of Lot Total Transformation, change and assurance £2,070,034 34.2% Programme and project management £1,669,404 27.6% Digital services strategy £706,410 11.7% Commissioning models £661,960 10.9% Unknown £300,370 5.0%

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MCF2 Lot 1

Top 5 Service Lines (by spend) Spend % of Lot Total Capability Development £2,684,013 10.15% Business Sourcing Strategies £2,646,335 10.00% Project management £2,534,024 9.58% Development of Review of Government Policy & or Objectives £2,302,240 8.70% Change Management £2,228,766 8.43%

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MCF2 Lot 2

Top 5 Service Lines (by spend) Spend % of Lot Total Contract Management £1,390,471 24.15% Procurement Process £1,259,932 21.88% Financial Advice on Projects Bidders or Infrastructure Finance £952,821 16.55% Optional Appraisal £750,050 13.03% Opportunities for Cost Reduction & Commercial Benefits £699,394 12.15%

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MCF2 Lot 3

Top 5 Service Lines (by spend) Spend % of Lot Total Complex Programmes £8,245,040 28.38% Supplier Side Advisory Services £7,603,509 26.17% Transformation Management £4,875,916 16.78% Programme Management £3,321,397 11.43% Supplier Side Programme Delivery £3,179,520 10.94%

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MCF2 Lot 4

Top 5 Service Lines (by spend) Spend % of Lot Total Organisational Strategy £3,096,197 36.98% Crisis and Contingency Management £1,302,338 15.55% Change Management £1,206,383 14.41% Business Process Reengineering £1,013,819 12.11% Design and Innovation £494,450 5.90%

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Pricing Models: Spend Split

MCF MCF2 Fixed 61% 65% T&M 38% 35% Risk & Reward 1%

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SME Spend: MCF

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SME Spend: MCF2