The City of Cardiff Council is the leading commercial centre of Wales and the country’s most popular visitor destination. The council provides services for a population of around 350,000. With the reality of significantly reduced budgets, the council proactively looked at new methods for delivering services. In this article, we look specifically at how they introduced a Dynamic Purchasing System (DPS) to manage the £28m spent annually on Passenger Transport.
Passenger Transport contracts were traditionally allocated via the use of a standard l Framework Agreement with 31 external providers operating 500 daily routes. Once the Framework had been let, new suppliers were locked out for the four-year contract period. The Council wanted to change this approach and looked to introduce a Passenger Transport Dynamic Purchasing System (DPS) to make savings over how it sourced provision for home-to-school routes, while providing greater opportunities for new suppliers and to further improve the quality and reliability of the service.
The council chose PROACTIS as its primary sourcing and contract solution. Electronic auctions were used to perform the role of sourcing for the opportunities/routes included within the Passenger Transport DPS. The process included the submission of an initial bid from the supplier prior to the running of a one-hour electronic reverse auction where suppliers could bid for routes and compete with other suppliers.
The City of Cardiff Council has achieved £588,000 in annualised savings to date, as well as benefitting from greater efficiency, visibility and fairness in how contracts are sourced and awarded.
Read the full case study: Council Set for £588,000 Annualised Savings after Procurement Transformation