Appendix 5 (b)
PROGRESS AGAINST THE PROCUREMENT IMPROVEMENT PLAN
KEY:
R (Red) = Action needed to achieve target
A (Amber) = On target - progress being made
G (Green) = Successfully implemented and/or ongoing
Objective 1
Establish and deploy a corporate procurement framework, which will ensure that the procurement function:


develops from sound foundations i.e. strong leadership (political and executive), sound ‘workable’ procurement procedures and
systems and, a planned implementation.
is enabled to drive best practice throughout the council to minimise procurement cost and risk, maximise savings and ensure
that procurement is carried out in line with legislation and Contract Procedure Rules.
Priority Activities
Establish and develop member ownership establish reporting lines with Scrutiny
Committee, Executive, Procurement Champion
and Leadership Team.
Implement a top level Procurement Strategy and
Corporate Procurement Business Plan establish the strategic context and reflect council
objectives in procurement decisions
Establish the procurement links within the
Community Plan and other strategic policies
which affect procurement and drive community
benefit
COMMENT / UPDATE
Reports submitted to Executive on key issues (Strategy, Improvement Plan,
Modernised Contract Rules and Financial Regulations etc)
Reporting lines with CELG, Overview and Scrutiny Committee established
NB* Procurement Champion (elected member) needs to be re-established
Strategy in place and being implemented, underpinned by an improvement plan
with targets incorporated into the council’s performance management system
and business planning process
Reporting links with Local Strategic Partnership established
Engaged with Public sector partners ( PCT, NWRCE, LSP) to explore potential
community benefit from collaborative procurement.
Corporate Plans incorporated into procurement business plan (work plan).
1
STATUS
Green
Green
Amber
Review and update existing ‘procurement
specific’ policy.
Also, review existing Policy and Corporate plans
and establish new procurement related policy
Implement the National Procurement Strategy
Existing policy reviewed – Further work needed
At present there is little in place for procurement. New policy needed (e.g.
Environmental Procurement, Local Purchasing, Sustainability, Equality)
National Strategy for 2005 – 2008 (reported to Executive - April 2004). Fully
implemented
Amber
Green
Ensure procurement is embedded in the
efficiency agenda and service review
programme.
Delivering the ‘Gershon’ Efficiency Review and managing service review forms a
key element of the strategic agenda for the Procurement Board. Procurement
involved in major reviews
Green
Improve CPA ratings
CPA use of resource module improved 3 star rating 2006/7
Green
Establish a Procurement Board as the main
body for shaping corporate procurement,
providing ‘strategic’ direction and driving the
adoption of procurement best practice within the
council:
Business Support Group (CELG) established as the Procurement Board (crossdepartmental representation).
High Profile group to ensure ‘strategic role’.
Green
2
Objective 2
Implement the systems and processes which enable the Council to demonstrate that it:



adopts procurement best practice;
has effective, overall control and management of council wide procurement activity and, as a consequence;
is equipped to match-up to new forms of inspection and external challenge, such as CPA.
Priority Activities
Establish a resource strategy for procurement
Identify ‘major / strategic’ projects (PFI, PPP)
and ensure they are procurement focussed based on a sound business case, project
managed incorporating ‘Gateway Reviews’
Undertake service specific reviews of significant
procurement functions and ensure best practice
is adopted
Establish the role of corporate procurement in
Service Reviews
Review and update ‘existing’ procurement
procedures (and controls) and disseminate:
COMMENT / UPDATE
Resource plan in place and approved by Executive. Development funded from
within existing budget and savings.
4 qualified (CIPS) staff appointed to Corporate Team plus one part qualified.
Service departments now appointing people with procurement skills and
qualifications.
Procurement team now member on all major procurements (e.g. Refuse
Contract, Street Lighting PFI, Masterplan, BCH Housing Modernisation
programme and all Construction Partnerships).
Work to develop Project Management arrangements is in hand
Savings & efficiencies achieved. Social Services - Care Contracts established for
learning Disabilities and Adult care. Procurement plan for commissioning social
care packages in place. Construction partnering applied to BCH (ALMO)
Managing service review forms a key element of the strategic agenda for the
Procurement Board. Procurement now established to play active role in service
review process (e.g. the ‘make or buy’ decision, options appraisal and risk
analysis) to assess suitability of alternative service delivery options.
Contract Rules have been modernised. Scheme of Delegation / Financial
Regulations updated - Regular review process in place. New procurement
procedures and controls have been established e.g. Partnering, Engaging
Consultants, Construction partnerships. Work in hand i.e. tendering manual,
project & risk management in procurement.
3
STATUS
Green
Green
Green
Green
Amber
Introduce and implement contract management
systems which enable control and management
of all council wide procurement e.g.
Introduce ‘best practice’ procurement processes
across all services - Review and challenge
current procurement practice within directorates.
(medium / long term requirement)
Develop a program of change and implement
‘Best Practice’ processes and systems (longerterm objective)
All expenditure with external sources has been analysed to identify opportunities
for corporate contracts to optimise spending power and to develop a ‘forward
plan’ for significant procurements.
Corporate ‘Register of Contracts’ established which includes system for
managing contracts (renewals/ review meetings / terminations) has been
established
Work is needed to ensure it is fully populated
Initial areas examined - Social Services, Supporting people, Children’s, Care and
Repair, OSD Stores, Leisure and Culture
Further work now in hand for OSD Highways and Building Services.
Applying codes of practice and ensuring procurements involvement in all
tendering exercises, is helping establish a uniform approach to tendering,
analysis and contract award. ‘Whole life’ cost and community benefit now
included in process.
Improved procurement management information is being made available as eprocurement system is implemented (e.g. financial / creditors information)
Existing supplier base is being reduced as single supply contracts are
established.
Work is in hand with NWRCE to establish and implement a range of
Performance Indicators for procurement and introduce uniform records and
reports, which could be used for future reporting.
4
Amber
Amber
Amber
Objective 3
Integrate the Procurement function into the overall procurement activity carried out across the council and establish the corporate
team as the centre (shared resource) of procurement, professional expertise - effectively co-ordinating and maximising the councils
procurement potential to achieve value for money and improved service delivery:
Priority Activities
Market the procurement function to ensure
involvement in all significant procurements and
implement a communication strategy;
Map the ‘authority wide’ resources currently
committed to procurement - identify staff (and
support systems) involved in purchasing or
procurement.
Map staff skills and competancies
Iidentify priorities to establish contracts where
the authority may be at risk form existing
arrangements or is failing to achieve value for
money.
Establish corporate contracts for relatively low
risk, but high value (economies of scale) items.
COMMENT / UPDATE
A communications network has been established for dissemination of best
practice guidance / procurement information to promote a consistent approach to
procurement and the effective operation of its processes and policies.
A ‘Procurement’ Intranet site to host procedural guidance and information has
been created and a News-Sheet introduced to advise on corporate procedures
and to keep divisional staff informed of the range of strategic procurement
support and advice available
Training courses held (e.g. Middle Managers programme / Risk Assessment) to
explain how corporate procurement will interface with activity at directorate /
divisional level and explain the strategy
Implementation of electronic ordering (current) and developing the
communications network now in place goes some way to achieving this.
Existing works ticketing / ordering systems will be interfaced with e-procurement
to provide single source of management information linked to Finance system
STATUS
Amber
Amber
More work is needed to Identify staff competencies and skills.
The portfolio of contracts in increasing and includes Stationery, Diesel, Cleaning,
Food, Energy, Copiers, Furniture, Business travel, Agency staff etc. - (Single
supply arrangements result in savings and improved procurement)
A significant proportion of the council s service contracts have been updated and
re-tendered and Contracts established for a wide range of services not correctly
documented
5
Green
Create savings - Release funds to improve
services and develop procurement resource
Take action where procurement can make an
immediate impact or bring clear benefits;
Review existing commitment to E-procurement
and compliance with Government IEG targets
and make use of technology to improve
procurement process and reduce costs
Establish a co-ordinated contract award
processes with Legal Services and agree a
procedure for procurement involvement
Explore opportunities for collaboration,
networking / joint provision across the all sectors
- Government, LGA, SOPO, CIPS and Buying
Consortia etc.
Establish and develop strategic alliances to
mutual benefit e.g. Health and other
Government Departments (review existing
alliances).
Reduced costs of appx..£1.7 M have been achieved to date
Target – additional £200K p.a. from improved supply contracts and retendered contracts.
Green
E-procurement Strategy in place and being implemented (07/08) across all
service departments i.e. e-ordering, e-payment, e-tendering, This will deliver
significant transaction and process savings
Amber
Contract award processes reviewed - Corporate Procurement leads on all
contracts and agreements for bought-in goods and services with joint role for
construction work and partnerships.
System in place to ensure that all procurements are subject to enforceable
contractual terms. A uniform approach to contracting is taken generally (i.e.
guidance and code of practice, creation of a suite of model legal agreements.
The council has active involvement in wider procurement / external community
activities and initiatives.: Council is now active at a number of levels e.g. :
Regional Centre of Excellence (Board Member and regional lead on a number of
work-streams)
Participation in AGMA Procurement and collaborative services consortium,
Local Strategic Partnership being developed with PCT.
6
Green
Amber
Develop a Supplier Strategy and introduce a
‘customer first’ approach to commercial trading
partners – one stop contact point / register of
suppliers.
A ‘selling to the council’ web-site/ portal has been established
Corporate Procurement is the prime conduit for contact with the private sector
trade organisations and ensure that the council responds efficiently to
approaches from suppliers, SME’s etc
The web site includes guides on how to trade with the Council.
Participation in ‘meet the buyer' events (relationships with Lancashire Chamber
of Commerce)
Develop appropriate staff training to build
procurement capacity and release the
knowledge of people who are involved in
procurement (medium-term objective):
Some training has been carried out (Middle manager training programme, Risk
management, Contracts Procedure Rules).
More is planned for 2008
Introduce procedures and systems which allow
equal access to tendering and business
opportunities to all sectors, including SME’s and
SE’s
Taking a lead role with the North West Centre of Excellence, a supplier portal
has been developed which provides access to 47 NW Council’s contract and
tendering opportunities and provides a single point of entry. This will link to the
council’s (and NW authorities) e-tendering system now being implemented
7
Amber
Amber
Green