PART I
(OPEN TO THE PUBLIC)
ITEM NO.
REPORT OF: The Assistant Director (Procurement)
TO: Lead Member Customer and Support Services
ON: Monday 13 June 2005
TITLE : Procurement Co-ordination Team: Proposed Structure
RECOMMENDATIONS :
That the Lead Member approve the establishment of a Procurement Co-ordination
Team in line with the proposed structure and the further actions required to allocate
staff to the team either by the assimilation of staff from the existing Central
Purchasing Team or, where necessary, by recruitment.
EXECUTIVE SUMMARY :
To support the modernisation and refocusing of procurement within Salford City
Council, it is necessary to realign the structure of the centrally based purchasing staff
to form a corporate unit capable of delivering the aims of the Procurement Strategy
and to reinforce the advisory role now required of procurement functions.
BACKGROUND DOCUMENTS :
(available for public inspection)
i. Structure Chart
ii. Table of comparative costs
iii. Job Descriptions
ASSESSMENT OF RISK :
1. There is a high risk of a negative effect on the City Council’s CPA rating if an
effective procurement strategy is not implemented.
2. There is a high risk of loss of benefits from a co-ordinated approach to
procurement.
3. There is a risk that key policies (e.g., Small to Medium Enterprise and Third
Sector Enterprise development) will suffer without an effective procurement
team to support them.
SOURCES OF FUNDING :
Customer and Support Services Revenue Budget
COMMENTS OF THE STRATEGIC DIRECTOR OF CUSTOMER AND SUPPORT
SERVICES (or his representative)
1. LEGAL IMPLICATIONS
Provided by :
Alan R. Eastwood
Deputy Director of Customer & Support
Services and City Solicitor
(0161) 793 3000)
2. FINANCIAL IMPLICATIONS
Provided by :
John Spink, Head of Finance
(0161) 793 3230
Geoff Topping, Assistant Director
(Accountancy & Exchequer)
(0161) 793 3240
PROPERTY (if applicable):
N/A
HUMAN RESOURCES (if applicable):
CONTACT OFFICERs :
Linda Bossons
Senior Personnel Officer, Outstationed Teams
(0161) 793 3968
Alan R. Eastwood
Deputy Director of Customer & Support Services and
City Solicitor
(0161) 793 3000)
Gary Amos, Assistant Director (Procurement)
(0161) 793 3878
WARD(S) TO WHICH REPORT RELATE(S) :
KEY COUNCIL POLICIES :
All
All
DETAILS
Current Situation:
A corporate procurement strategy for 2005/2006 has been drafted and is in the
process of ratification. However, a key element in the implementation of the strategy
and the modernisation and refocusing of procurement will be the Procurement Coordination Team under the management of the Assistant Director (Procurement) and
which is to be located within Law and Administration. The present central team is
based around the central purchasing concept which, although originally effective, is
inappropriate for the more modern approach advocated in the Byatt Report (2001)
and the National Procurement Strategy (2003). However, the emphasis now is for a
devolved approach to procurement, whereby Directorates are empowered to make
their own procurement decisions and conduct their own procurement exercises,
supported by a core procurement unit which would advise and guide them. This core
function will be provided by the Procurement Co-ordination Team who will adopt a
strategic role, having an overview of procurement activity across the City Council. As
well as working closely with the City Council’s partner organisations, their scope
would encompass the continued development of the procurement strategy and
procurement policies as well as administering corporate procurement exercises.
They would also be a key element in capacity building within the City Council and
with local Small to Medium Enterprises and Voluntary Sector Organisations.
Proposed Structure
A significant aspect of local government procurement today is the way it reflects the
evolutionary nature of the public sector. In order to support this new model, the
revised structure allows for career development within the team and for team
members to adopt more responsibility, essential in a consultancy role. They will also
be required to display a greater level of initiative and independent action than in a
traditional procurement organisation. The adoption of a career graded structure
recognises this and is also important at a time when good procurement staff are
becoming a sought after commodity. Retention of key staff is important to the
success of the organisation and continuity of service performance.
The aim is for mutually supporting elements within the team and there is deliberate
overlap between job descriptions to encourage this. There should be sufficient
resilience within the structure to respond to changing demands and enable the team
to play an active role in supporting the City Council’s Seven Pledges.
The new structure has been developed in consultation with the Deputy Director
Customer and Support Services and City Solicitor, the Head of Finance, the
Assistant Director (Accountancy & Exchequer) and the Senior Personnel Officer
(Outstationed Teams). For information, both structures have been illustrated (see
appendix 1).
As regards recruitment to the Procurement Co-ordination team, it is intended that:

The current Purchasing Manager (PO5) will be assimilated into the new post of
Procurement Manager (PO5).

The two new posts of Principal Procurement Officer (PO1/3) will, in the first
instance, be ringfenced to the existing Purchasing team Leader (Contract
Management) (SO2) and Team Leader (Processing) (SO2). If either or both of
these people are unsuccessful in their applications, for the posts, they will be
assimilated into Procurement Officer (SC3/SO2) posts or the F.S.G. Quality
Controller (SO2) post and the Principal Procurement Officer vacancy(ies)
advertised.

The remaining new Procurement Officer (Sc3/SO2) posts will be ringfenced to
the existing three Purchasing Officers (sc6) and four Purchasing Assistants (SC3)
There will also be one Scale 6 and two Scale 3 posts available within the e-Trading
Team which will adopt a broader role. This will involve:





Administration of the purchase card programme and supplier liaison
Requisitioner training
Catalogue management
System user support
Master document maintenance
The new post of F.S.G. Quality Controller (SO2) has been established to ensure the
accurate processing of transactions by all F.S.G. teams by the development of and
compliance with procedures, the implementation of audit recommendations and the
provision of appropriate training.
Selection Process
Initially, the vacancies in Procurement Co-ordination will be ringfenced to members
of Central Purchasing (including processing staff). The number of actual vacancies
will be increased by the addition of three posts in the e-Trading Team. However,
should any staff not be successful in securing a position in the Procurement Coordination or e-Trading teams, the conditions of the redeployment scheme will be
applied.
A meeting will be arranged to inform staff of the new staffing structure, at which
copies of the new structure chart, job descriptions and person specifications will be
circulated. The details of the new structure and the selection process will be
presented to staff by the Assistant Director (Procurement) and the Assistant Director
(Accountancy and Exchequer). Also present will be a representative from Human
Resources and the appropriate trade union representative(s).
Costs
The financial summary (Appendix 2) shows the comparative costs of the two
structures, which have been calculated at the maximum salary points as at 1 April
2005. For ease of reference, both the Procurement Co-ordination team and the eTrading team have been included.
The total additional salary cost, calculated at the maximum of each grade, is £80,364
including oncost. However, based on the anticipated spinal column points at which
staff will be appointed to the structure, the estimated additional salary cost for the
first year will be in the region of £40,623 including oncost, rising incrementally each
year as appropriate. These additional salary costs will be funded from procurement
savings achieved by the Procurement Co-ordination team
Appendix 1
Structure Charts
Central Purchasing Team
(Existing Structure)
Purchasing Manager
PO4
Purchasing Team Leader
(Contract Management)
SO2
Purchasing Officer
SC6
Team Leader (Processing)
SO2
Purchasing Officer
SC6
Purchasing Assistant
SC3
Purchasing Assistant
SC3
Purchasing Officer
SC6
Purchasing Assistant
SC3
Purchasing Assistant
SC3
Procurement Co-ordination Team
(Proposed Structure )
Assistant Director (Procurement)
Procurement Manager
PO5
Principal Procurement Officer
PO1/3
Procurement Officer
SC3/SO2
Procurement Officer
SC3/SO2
Principal Procurement Officer
PO1/3
Procurement Officer
SC3/SO2
Procurement Officer
SC3/SO2
E-Trading Team
(Proposed Structure )
e-Trading Manager
PO5
Development Officer
SO1
Purchase System
Management Officer
SC6
Admin Assistant
SC3
Development Officer
SO1
Admin Assistant
SC3
FSG Quality Controller
SO2
Admin Assistant
SC3
Appendix 2
Costs
CUSTOMER AND SUPPORT SERVICES
DIRECTORATE
PROCUREMENT TEAM
CURRENT
PROPOSED
Post Title Grade No
*
Cost
Car
Allow
Procurement (Law and Admin)
Assistant Director (Procurement)
FINANCIAL SUMMARY
Post Title
Car
Allow
Comments
46,128 Casual
No Change
1 36,402 Casual
2 63,114 Casual
4 104,628 Casual
New Post
New Posts
New Posts
Grade No
*
Cost
Procurement Coordination
Team
Band
J
1
46,128 Casual
Assistant Director (Procurement)
Band J
Procurement Manager
PO5
Principal Procurement Officer
PO1/3
Procurement Officer Sc3/SO2
1
Purchasing Team (FSG)
Purchasing Manager
Purchasing Team Leader
PO5
SO2
1
2
36,402
52,314
Purchasing Officer
Sc6
3
64,962
Purchasing Assistant
Sc3
4
61,488
E-Trading Team (FSG)
E-Trading Manager
Development Officers
Admin Assistant
) Postholders to be given
) opportunity to apply for
above
) posts that will be ringfenced to
) these in the first instance
E-Trading Team (FSG)
PO5
SO1
Sc3
1
2
1
36,402
48,000
15,372
E-Trading Manager
FSG Quality Controller
Development Officers
Purchase System Management
Admin Assistant
15 361,068
* at grade max
Increased cost at maximum of
grades
Oncost
Total increased cost at maximun
PO5
SO2
SO1
Sc6
Sc3
1
1
2
1
3
36,402
26,157
48,000
21,654
46,116
16 428,601
67,533
12,831
80,364
CUSTOMER AND SUPPORT
SERVICES DIRECTORATE
PROCUREMENT
TEAM
CURRENT
PROPOSED
Post Title Grade No
*
Cost
Car
Allow
Procurement (Law and Admin)
Assistant Director (Procurement)
FINANCIAL SUMMARY - Based on Probable
appointed grades
Post Title
Cost
Car
Allow
Comments
1
46,128
Casual
No Change
1
2
34,746
54,822
Casual
Casual
New Post
New Posts
4
81,180
Casual
New Posts
Grade No
Procurement
Coordination Team
Band
J
1
46,128
Casual
Assistant Director Band J
(Procurement)
Procurement Manager
PO5
Principal Procurement
PO1/3
Officer
Procurement Officer Sc3/SO2
Purchasing Team (FSG)
Purchasing Manager
Purchasing Team Leader
PO5
SO2
1
2
36,402
52,314
Purchasing Officer
Sc6
3
64,962
Purchasing Assistant
Sc3
4
61,488
E-Trading Team (FSG)
E-Trading Manager
Development Officers
Admin Assistant
) Postholders to be given
) opportunity to apply for
above
) posts that will be ringfenced to
) these in the first instance
E-Trading Team (FSG)
PO5
SO1
Sc3
1
2
1
36,402
48,000
15,372
E-Trading Manager
FSG Quality Controller
Development Officers
Purchase System
Management
Admin Assistant
15 361,068
* at grade max
Increased cost
Oncost
Total increased cost
PO5
SO2
SO1
Sc6
1
1
2
1
36,402
26,157
48,000
21,654
Sc3
3
46,116
16
395,205
34,137
6,486
40,623