Bid number (for EG use) | |
Lead bidder | Fife College Of Further & Higher Education
Sandy Stevenson
01592 207752
sandys@fife.ac.uk |
Brief description of the aims of the project | To provide a collaborative procurement approach and purchasing regime across the FE Sector, which: - builds on existing initiatives already demonstrating savings;
- is affordable to colleges;
- will be extendable to other small public sector bodies educational or non-educational.
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Clear description of what the EGF money would be used to buy | Initial Feasibility Study Readiness Audit System Parameter Setting Staff Training System Implementation System Evaluation All activities listed above plus Interface with College financial systems - Leasing/Purchase of system software
- Readiness Audit may identify requirement for physical alterations to accommodate system including any hardware requirements.
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Partners to the project likely to commit resources | The project has been discussed at a number of colleges across the sector. The initial colleges likely to commit resources to the 'stage 2 development funding' include: |
Names of other organisations with whom the project has been discussed (to assist the introductions process) | Preliminary discussions have taken place with other colleges. Some of these colleges who potentially could commit resources include: - Falkirk College
- Edinburgh's Telford College
- Glenrothes Colleges
- Plus expressions of interest from the 5 Colleges who participated in the WEB Auctions Project - please see below
Discussion with the remaining colleges across the sector will take place as part of the initial phases of the project with the intent that all Scottish colleges will have the opportunity to participate and a substantial number will. |
Evidence that suggested approach has been deployed successfully elsewhere | The project will build on two Scottish Funding Council projects which demonstrated successful deployment of technologies to achieve collaborative benefits in the purchasing and procurement area: - Prosper Project - showing process efficiency through more effective purchasing processes
- Web Auctions - demonstrating price savings through a number of web auctions held over several months.
Other examples where technologies used by these projects have been used in a collaborative procurement and purchasing approach can be provided in more detail. |
Are there any restrictions to potential for enlargement of the project (i.e. technology, number of partners etc.) | No explicit restrictions. The vision for the project is that is designed so that is can be scaled to the whole of the FE sector without any constraints on number of colleges as partners. The project would also be designed such that it can harness 'best of breed' technologies rather than be restricted to one particular technology/supplier. |
Benefits projected from the project | - Implementation of effective business processes to release front line resources to concentrate on the businesses of education
- Cost reduction in procurement processes through a collaborative approach
- Price Savings through competitions and use of technologies such as Web Auctions
- More effective sourcing of suppliers
- Better management and control of spending
- After the early years of the project, a high-level forecast is that is will become self funding by year 3. This reflects the initial period which will be used to on-board participating colleges.
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Estimated financial projections | Total* | 2005/6 | 2006/7 | 2007/8 | 2008/9 |
Overall project cost | £5.1m | £1.5m | £1.2m | £1.2m | £1.2m |
Estimated projected benefits | £9.0m | £0.9m | £1.8m | £2.7m | £3.6m |
| - Note: Recurring benefits will continue to increase in subsequent years while projects costs are anticipated to stay the same in real terms. It is anticipated that it will be possible to apply some of the benefits from the project to the ongoing costs of the project. Therefore to assist SE in forecasting funding the broad assumption should be made that full cost for the first year would be incurred and that in subsequent years the benefits of the project could be applied to cover the full costs of the project. This assumption would lead to a funding requirement of £1.5 million in 2005/6, Nil in 2006/7, 2007/8 and 2008/9. This is more reflective of the costs of the "change" process rather than the services provided via the changed process.
Further detailed projections would follow in stage 2 application. |
Is a pilot required - see guidance notes | No pilot project is intended at this time as the technologies that the proposed project would likely use are already in use. In the detailed application for stage 2 any 'go-no go decision' will be highlighted such that the EG team can apply funding in phased manner if necessary. |
Additionally: why is EG funding required | EG funding is required because the nature of the project is that initial investment is required in setting up the project infrastructure in the early year(s). This initial investment is necessary to allow recurring benefits to be realised in later years. Individual colleges would not be able to fund this initial investment nor release enough front line resources to deliver it from existing College individual resource. The EG funding would allow the project to be initiated and after which it is projected to become self funding and continue to realise recurring benefits, thus releasing front line resources. |
Does this project complementary in anyway to other EG work | This project is complementary to and part of the objectives of eProcurement Scotland to provide both public sector organisations and their suppliers benefits through efficiency. It is envisaged that the project would liaise with the Scottish Executive and be part of a unified eProcurement Scotland initiative using which ever tools and technologies are appropriate for specific organisations or sectors. One obvious common area is where common commodities are sought. As described above the project will not be restricted by the choice of technologies deployed. |
Is "stage 2 development funding" requested? | Yes - To further develop the proposal - In particular, the financial model
- To conduct "readiness" audits in participating Colleges
- To evaluate the most effective management structure
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