Welcome to this week’s edition of the Keystone Column containing business stories and public procurement opportunities that drive the commercial strategy of ambitious companies. This week, we look at the opportunities arising from joining framework agreements – we discuss two such opportunities: the Irish housing plan and the United Nations procurement activities.
Business stories
Construction procurement, consortiums and framework agreements
A housing plan for Ireland was launched this week promising expenditure in excess of €5bn on housing over the next four to five years. There are a number of things suppliers need to understand about the plan and how it is expected to operate. This includes the development of a centre of procurement excellence in the National Housing Agency (which will have an input in how housing is commissioned (e.g. through framework agreements, PPPs etc.). Centres of procurement excellence can work where a balance is struck between the value for money criteria and localknowledge/deliveryy capability. If it follows the OGP’s early experiments, there is a risk of gold plated requirements (from suppliers like turnover requirements which do not relate to the contract requirements) resulting in contracts being awarded to very large contractors who then subcontract work (pushing up prices – repeating mistakes of the past). Suppliers would be wise to start investigating consortium / cluster options now so they are well equipped to position themselves for these contracts when they arise.
United Nations procurement and framework agreements
Last year, Irish companies earned over €25m supplying goods and services to programmes operated by (and funded by) the United Nations. Some of these are once off, some are framework agreements for a schedule of services over a period of time. Our consulting colleagues in Consulting Ireland have spent time over the past few years trying to encourage increased participation in these programmes (similar programmes are IMF, EU and/or World Bank funded – they all source in a similar manner).
The United Nations spends over €17bn per annum on goods and services each year. This is between 10% and 20% more than the Irish state typically spends in a given year. These programmes can present significant opportunities for Irish businesses. The report can be found here.
Interesting trends – developing procurement capability
We came across this useful model by Optimum Procurement, a UK based consultancy, for assessing the capability and capacity of procurement teams to develop and improve their operations. It is a useful and comprehensive diagnostic framework that asks interesting questions that business owners and leaders can learn from. It has applications beyond procurement (although it was designed with procurement in mind). It can be applied to most scenarios we can think of – we’re also big fans of the old Venn diagram as a diagnostic tool.
Innovation – why bad innovation …. is good
This article by Prof. Andrew Hargadon of UCAL is a welcome antidote to the dreaded obsession with unicorns and perfect ideas. Perhaps it could only be written by somebody working close to silicon valley. In it, Prof. Hargadon outlines four key considerations for businesses when it comes to innovation:
- Innovation can be a placeholder that stops people leaving you (e.g. Apple watch stopped customers leaving their platform);
- Innovation can be a proving ground like the short movies Pixar made before Toy Story;
- Innovation as trust building – waiting for perfection is insantity and yet organisations want to give birth to a seventeen year old. Trust and team work is needed to deliver breakthrough ideas.
- Innovation as a long game – new ideas can take time to catch on. Toyota was patient with hybrid engines and sold them at a loss initially in the US. While the US warmed up to the idea of the Prius, it sold millions of hybrid engines in the rest of the world..
Note: we are in the sourcing & procurement business. We highlight things we like or that are novel or innovative. Innovators should be encouraged.
New public procurement tenders and framework agreements this week
Visit the Keystone website to view our take on the 500+ active public procurement opportunities and framework agreements with more than five days until their deadliis There are a vast range of services, supplies and construction related to public procurement opportunities in the following sectors (there are many more sectors than the sample list below):
- Construction and related trades,
- Professional & Advisory Services,
- PR, Media, Advertising and related,
- ICT supplies and services,
- Training,
- Property & facilities management,
- Vehicle & automotive,
- Catering and related services,
- Cleaning and related services,
- Waste Management,
- Maintenance and related services,
- Horticultural supplies & services,
- Research & environmental monitoring,
- Printing, office supplies and related services,
- Trades,
- Medical and scientific research, supplies and services,
- A vast range of other services and supplies.
Businesses interested in any of these public procurement opportunities or framework agreements that are unsure of how they can follow-up on these tenders can contact Keystone at any stage. We would be happy to discuss your needs and where they may fit with your business growth plans. Framework agreements are sources of business growth and innovation for companies across the country.
Keystone E-Tenders Report Open YTD as at 2107 (by date of publication)
Keystone E-Tenders Report Open YTD as at 2107 (by sector)
Please note, e-tenders often has public procurement opportunities incorrectly categorised so people relying on e-tender alerts could miss out on framework agreements if they are dependent on it. E-tenders is only as reliable as the people inputting tenders and mistakes are made.
