Procurement at Ofgem
Ofgem has a small team that is responsible for procuring a wide range of goods and services as well as contract management activities.
The team can be contacted at procurement@ofgem.gov.uk.
How we buy
As with other public authorities, Ofgem is subject to the EU Procurement Directives. The EU Procurement Directives were introduced to open up the public procurement market in the EU to ensure free movement of goods, services and works. More information on these directives can be found by visiting the website of the Office of Government Commerce (OGC) - link opens in a new browser window.
We have set up a number of EU compliant framework agreements that we use to procure a large amount of what we require. Framework Agreements provide an efficient route to market, ensure suppliers are pre-vetted and remove the need to negotiate on terms and conditions of each purchase. All of our framework agreements are advertised in the Official Journal of the European Union.
If our own frameworks can’t meet our need then we look at other routes to market. These include pan-government framework agreements, such as those set up by Buying Solutions - link opens in a new browser window, or advertising our requirements on Contracts Finder - link opens in a new browser window.
Sustainable Procurement
We recognise our responsibility to the environment and where possible seek to demonstrate this through our purchasing activities. In August 2010 we achieved the Gold Level standard of the Mayor of London’s Green Procurement Code - link opens in a new browser window and we continually search for ways in which we can buy sustainably.
CIPS Certification
Ofgem achieved CIPS Certification and the Standard of Excellence, i.e. the recognised global accreditation for achieving procurement excellence through an organisation's procurement and supply chain policies, procedures and strategies, in March 2010.
Ofgem were the first UK Regulatory Body to achieve CIPS Certification and it independently benchmarks us against “best in class” and meets ISO 9001:2000 purchasing requirements. We now have peer group recognition from our stakeholders and this Standard will set the foundation stone for further and continuous improvement.
The benefits we are realising include:
- Encourages us to embrace continual improvement and motivates unqualified staff to seek CIPS standard for themselves thus increasing our technical knowledge and professional expertise
- Stimulates us to maintain and improve upon our high quality, high impact purchasing and supply management policies, procedures and processes
- Provides a sound warranty to our stakeholders (DECC, suppliers, auditors, energy sector and ultimately the energy consumers) that we know what we are doing in terms of procurement and are striving for VFM
For suppliers to Ofgem this should provide comfort and reassurance that we maintain high ethical standards and deploy robust, fair and transparent procurement processes.