Housing Association adopts new OJEU energy procurement process to find £53k savings benefit

Our Client

Bournemouth Churches Housing Association (BCHA) provide a broad range of homes and services for the most disadvantaged people in society, to help them turn their lives around.

The organisation has been established for 45 years and they currently manage over 2,000 housing units in the South West.

The estate is diverse and includes The New Leaf Company, RECOOP, Salisbury Trust for the Homeless, Keystone and Support for Me within their family.

Due to the nature of their business their procurement process adheres to the Public Contract Regulations 2015 which requires them to buy energy contracts via adverts in the Official Journal of the European Union (OJEU).

Our Challenge

Beond first met with BCHA in March 2016 after being referred by Capita Procurement Solutions.

Following a fact-finding meeting, BCHA instructed Beond to carry out an energy tender. This involved the use of Beond’s unique online reverse auction process that was designed specifically to create efficiency gains and savings.

Aside from data cleansing the main challenge was to mobilise the entire portfolio within 10 weeks, which included completing a fully managed OJEU tender process on the client’s behalf.

Due to changes to the Public Contract Regulations in February 2015 these timeframes could be met by using Beond’s live online e-auction service, which enabled the end users to adopt an accelerated OJEU process.

Our Objectives

  • Understand the billing, metering and profile classification requirements of the business.
  • To attract as many major suppliers to compete in the OJEU tender despite the relatively small volumes on offer.
  • To illustrate to BCHA the benefits of using a transparent live energy auction compared to traditional methods.
  • Prove that additional savings were available by using Beond’s fully managed OJEU methodology.
  • To offer full management on change of tenancies.
  • To advise on best practices for managing the account.
  • Forming co-terminus contracts for new site additions.

The Results

By using bespoke “pass/fail” OJEU tender documents designed by Beond, BCHA were able to simplify the tender process to encourage more suppliers to compete for their contracts.

The tender attracted on average 3 suppliers for each commodity who bid on 24 month offers.
Bids were assessed on a site-specific basis for 262 meters to reveal £26,584 per/year savings (7.4%) improvement against current rates.

By locking away a 24-month fixed contract BCHA were able to create £53k budget savings over the next 2 years.

Testimonial

“Capita Procurement Solutions recommendation to use Beond’s fully managed OJEU process helped us reduce our energy costs and the amount of time and resource we spend procuring utilitiy contracts. We are now working with Beond to add new sites to the group contract and we are very happy with Beond providing us with an efficient contract management service.”

Richard Burden, Assistant Director of Finance and IT, Bournemouth Churches Housing Association

For further information about any of our services please call Beond on 0208 899 7385 or email info@beondgroup.com

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