DPSS provide high quality training courses. Accredited by World CC, CIPS, CIPFA, CPD, BSI. Specialists in Commercial & Contract Management, Procurement, SRM
Precious Resource?
At a recent Parliamentary Committee meeting the Chairman of Thames Water was asked what was the organisations most precious resource? His reply was not Water (as they expected to hear) but the Thames Water Management Team. Given the state of its finances and the Water System it manages, that does sound rather like an oxymoron…
When a public sector utility is put up for privation there are two key factors that affect the decision of large investors to take up the shares. First is the potential profits and dividends and second are the powers of the regulator to negatively impact upon the first. In this case it seems the first is high and the second is low.
The National Audit Office report sheds light on the contract costs associated with accommodating Asylum Seekers, revealing intriguing insights. Recent media coverage highlighting 'migrant hotel kings' profiting significantly from asylum seekers has sparked discussions. The top executives of three companies have reportedly garnered £380m in profit through providing refugee accommodation. However, the Asylum Accommodation and Support Contracts (AASC) indicates that supplier profit margins, as self-reported by suppliers, have averaged around 7%.
Despite public perceptions, the supplier profit margins fall within the lower range of the Home Office's initial estimates, ranging from 5% to 13%. Interestingly, each supplier's reported profit margin slightly surpasses the operating profit documented in their financial accounts, ranging from 3% to 7%. Notably, data from suppliers hint that hotels might be a more lucrative option compared to other forms of accommodation.
These revelations prompt a closer examination of the apparent disparity between reported profits and public perceptions.
The Drinking Water Inspectorate for England and Wales has faced questions regarding the limited number of prosecutions against water companies despite numerous instances of water being deemed unfit for human consumption since 2021. While 362 cases were reported, only three prosecutions have been initiated against Southern Water, South West Water, and Wessex Water by the DWI.
Water companies hold a legal responsibility to ensure the safety of drinking water provided to consumers. The DWI can enforce legal measures mandating companies to implement corrective actions, yet successful prosecutions have been scarce. The disparity raises concerns about the effectiveness of regulatory tools in holding water companies accountable.
The underlying issue prompts speculation about whether the challenge stems from resource constraints following past austerity measures reducing staff levels or from inadequacies in the regulator's enforcement mechanisms. The balance between regulatory capacity and industry compliance remains a focal point amidst the ongoing scrutiny.
An interesting case related to contractual obligations has arisen in the case of Equinor ASA energy group against the United States after work was ordered to stop on a £1.8bn offshore, wind farm project which is 30% complete. The US Interior Secretary said on April 16 that the Biden administration had failed to conduct enough environmental analysis before approving the development
Anders Opedal, CEO, said they will seek to engage directly with the US Secretary to clarify the matter and are considering their legal options. They believe that this is a question of the rights and obligations granted under legally issued permits, and security of investments based on valid approvals. It will be interesting to see the Trump Administration reaction.
BBC reports that four people have been found guilty regarding £6m corruption and bribery involving Scottish NHS health boards between 2010 and 2017.
Contracts were awarded to Oricom Ltd, set up by Adam Sharoudi and Gavin Brown, to provide NHS with telecoms and video conferencing equipment. These tenders breached rules during the tendering process.
An investigation found the company was given "commercially sensitive information" by former NHS employees Alan Hush and Gavin Cox, who received a combined £88,000 in cash and gifts in return.
The court heard Sahroudi, 41, and Brown, 48, did "acquire, use and possess" a total of £5,719,244 of "criminal property" paid by NHS Lothian, NHS Grampian, NHS Lanarkshire, NHS Greater Glasgow and Clyde as well as NHS Ayrshire and Arran.
How could this have taken place over a period of Seven years without anyone picking this up? What about Procurement Audit, did no one check the process of contract award.
£6m could have paid for care for some of those on the NHS waiting list. Lets hope the sentences fit the crime.
English local councils have come under scrutiny for a concerning revelation: a recent investigation by The Guardian uncovered a staggering £2 billion of taxpayers' money being allocated to under-regulated landlords and hotels for emergency housing. Shockingly, many of these accommodations have been reported by tenants to be unsanitary, pest-infested, and hazardous.
The report highlights a troubling trend where local authorities in England are overpaying significantly, with a 60% premium above market rates for substandard rooms, and 50% of councils spending double the usual local prices. This raises the question: how did this situation come to pass?
Despite the presence of professional procurement staff and contract managers within local governments, the lack of effective due diligence measures has allowed these unscrupulous operators to secure contracts. Implementing robust tools and models, such as the 10 C supplier selection model mentioned in the input, could have potentially averted the selection of such rogue operators from the outset.
It is imperative for local authorities to re evaluate their procurement processes and strengthen their due diligence protocols to ensure that taxpayer funds are allocated responsibly and ethically, prioritizing the well-being and safety of those in need of emergency housing.
BBC Reveals that the Post Office has paid more than £600m of public money to continue using the faulty Horizon IT system despite deciding to ditch it more than a decade ago
The terms and conditions of the original contract with Fujitsu mean the Post Office has been burden with the system and not able to build a replacement, even after it contributed to one of the UK's biggest miscarriages of justice.
Under the terms of the original £548m deal, struck under pressure from the government, the Post Office did not own the computer code for the core part of the Horizon system. Given that the Post Office did not own the code, they were also unable to inspect the part of the software that processed transactions and had to rely on assurances from Fujitsu that it was functioning correctly. Despite all this – Fujitsu continues to win government contracts.
The US president is pushing for a deal to end the Ukraine war.
because hopes to set up one sided a raw materials agreement with Kiev. Giving the United States access to Ukraine's rare earths deposits which are crucial for high-tech industries and defence but are currently almost totally controlled by China. The supply chain risk is not just access to these rare minerals, its also the lack of processing capacity outside of China.
I am pleased to announce that the "impressive" participant I mentioned in my previous post has passed the exam and is now Contract and Commercial Practitioner - CCMP
If anyone would like to see her CV, please contact me and I will put you in touch. Please…https://t.co/BzRVkdHuvt
#humanrights Act
I am interested in all things ironic and also #legal matters. So, I was amused to read two interesting cases involving both. The use of the Human Rights Act by organisations that actively campaign against it?
The Daily Mail (blocking o…https://t.co/2vhdTKcc7l
Employee Wellbeing Strategy
We have recently acquired access to Japanese Therapy Massage Chairs (JTMC) for use by our staff.
Research shows that every year, 44% of work-related ill health cases and 54% of all working days lost are…https://t.co/vuZ3oVC2nL https://t.co/TjHwNoB973
I recently delivered a series of courses for large #transport company entitled "Developing Effective Scopes of #work and Specifications"
The World Commerce and Contracting Association #research indicates that 40% of the problems that #projects face is…https://t.co/wUz8ruRnge
I recently underwent a second cataract operation, conducted by Sami Habal, MD, MRCSEd Ophth, FRCOphth
Consultant Ophthalmologist & Vitreoretinal Surgeon.
The surgery was a complete success and again Dr Habal demonstrated his superb skill and expertise. Dr…https://t.co/cJdA6k3S7q
I recently ran a course delivering WorldCC Practitioner course. I was impressed by one the participants. She is looking for a contract #management#engineering role that provides the #opportunity to utilize her business acumen and commercial development.…https://t.co/lmAYBJlP2p
I have had an article published in the WorldCC Contracting Journal Excellence, entitled "Are your Negotiations Strategic? Complex? Coaching may be the Answer"
Here is an extract from the article.
For more than 30 years, DPSS has mentored and supported sen…https://t.co/549Q3TQzkQ
We recently delivered the CCMP course for large Housing Association in Scotland. Excellent group of participants, fully engaged and high level of participation. The Asset Manager said
"We had an excellent week of training carried out by Ray, such a knowl…https://t.co/z2uDg7gi3j
CIPS Purchasing Managers Index
As a index panel member, I am sent the results of the various surveys. This is the current forecast for the service sector.
Service sector returns to #growth in February as business activity expands at fastest pace since J…https://t.co/Pf2OXmv7r2