RM6187 Management Consultancy Services Market …...management £515,131 10.9% Special educational...
Transcript of RM6187 Management Consultancy Services Market …...management £515,131 10.9% Special educational...
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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
WorkforcePeople
ServicesProf. Services
Health &
Education
BPO & Contact
Centres
Pillar
Operations
People Pillar Corporate PillarTech Pillar Buildings Pillar
Management
Consultancy
Legal
Audit
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Management Consultancy Team
5
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 ‘21Oct-Dec ‘20
ITT Period
Apr-Sep ’20
Internal
governance
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MCF and MCF2
Spend analysis
8
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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
Nu
mb
er
of su
pp
liers
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
of 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
0
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)
Nu
mb
er
of se
rvic
e lin
es
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
15
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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
19
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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