CPOs on the Rise
From “CPO” to Chief Executive
Northrop Grumman has appointed former British Ministry of Defence (“MoD”) executive in charge of operations and procurement, Andrew Tyler, as Chief Executive of the company’s UK and European operations effective July 1. In this new position, he will play a leading role in supporting the company’s current programs, developing strategies for growth, and identifying new business opportunities for the company’s activities in the U.K. and Europe, including NATO countries. It is the first time that Northrop Grumman has had a Chief Executive to oversee its UK and European operations. A spokesman for Northrop Grumman said Tyler’s initial focus would be on the UK operation. Although Tyler is currently the CEO at a Siemens’ company, he was previously the Chief Operating Officer at the MOD’s procurement arm, Defence Equipment & Support (“DE&S”) – more on this group below.
From CPO to State Commissioner
Last week, Indiana Governor, Mike Pence announced the appointment of Jessica Robertson to Commissioner of the Department of Administration. Robertson moves into the role after serving as the Chief Procurement Officer for the Tennessee Department of General Services for almost two years. While in that role, she centralized the procurement function throughout the state of Tennessee, negotiated multi-million dollar contracts and established procurement policy for the solicitation process, contract administration and contract management. “Jessica Robertson demonstrates true leadership and is uniquely qualified to serve as the Commissioner of the Department of Administration,” said Governor Pence. “She exemplifies what it means to work hard with respect and integrity. She will serve the people of Indiana well, and we are pleased to welcome her home.”
UK’s Ministry of Defense (“MoD”) Continues to Review Its Procurement Plans
The UK Treasury has given its approval for the Ministry of Defence (“moD”) to consider partially privatizing the Defence Equipment and Support (DE&S), (Andrew Tyler’s old employer – see above) the body within the UK Ministry of Defence in charge of procuring everything from tanks to temp labor to teapots. The DE&S has an annual budget of £15bn and a 15,000 person staff but has faced criticism in recent years for allowing cost overruns on several large, high-profile projects. Nonetheless, the privatization initiative has faced criticism from a broad swath of critics including unions, think tanks, and other stakeholders and politicians within government. As such, officials say they are simply pursuing a plan to receive bids from private companies to take over DE&S’ day-to-day management. Once received and assessed, these bids will be compared to a counter-proposal from the DE&S which will offer a new and improved plan of operation.
New Zealand streamlines procurement rules
Two weeks ago, New Zealand announced broad-sweeping changes to its government procurement process (roughly $30 billion/year) that are designed to provide better value for money for taxpayers, make it easier for all New Zealand companies, and small ones in particular to tender for Government contracts, and help New Zealand suppliers become more competitive in international markets.
The new rules replace 44 different pieces of legislation, Cabinet directives, and miscellaneous guidance released by a multitude of Government agencies over many years and are the culmination of a major reform initiative launched in 2009 that was designed to introduce a more user-friendly procurement policy. The emphasis will shift from which supplier can deliver the lowest upfront costs to which supplier can deliver the best value for money and other direct financial benefits over the life of a contract.
“We have consulted widely with the business community, and the message they have been giving us is they want a framework that makes it easier for them to do business with the Government,” Economic Development Minister, Steven Joyce says. “Government procurement accounts for and comprises a significant portion of our economy. This new framework is user-friendly for companies, transparent, and is in-line with our international trade obligations. Introducing greater efficiency and transparency into Government procurement will help us deliver on our priority of building a stronger economy and delivering better public services within tight fiscal constraints.”
The new procurement rules start on October 1, 2013 and will apply to all Public Service departments, the New Zealand Police and the Defense Force. Other State Sector agencies and the broader Public Service will also be encouraged to adopt them.
The new procurement rules are available at: www.business.govt.nz/procurement/news/newrules
