REPORT TO
DATE OF MEETING
SCRUTINY COMMITTEE
CABINET
23 JUNE 2009
15 JULY 2009
REPORT TEMPLATE REVISED JULY 2004
SUBJECT
PORTFOLIO
AUTHOR
PROCUREMENT POLICY AND STRATEGY
LEADER
JANET M
HINDS
ITEM
SUMMARY AND LINK TO CORPORATE PRIORITIES
This report provides performance monitoring information (Appendix 1) against the priorities and
targets contained within the existing Procurement Strategy, which was approved at Cabinet in July
2008, prior to the commencement of the new Finance and Assurance Shared Services Partnership
with Chorley Borough Council.
In order to take maximum advantage of the efficiencies and best practice that the new shared
procurement service would bring progress on achieving some of the targets contained within the
existing Strategy were delayed until the new service was implemented.
Moving forward under the new Shared Services arrangement, this report also presents a new draft
Joint South Ribble / Chorley Council Procurement Strategy (Appendix 2) based on the priorities
contained within the current South Ribble Strategy and a new Draft Sustainable Procurement
policy (Appendix 3). The draft Sustainable Procurement policy is based on the North West
Improvement and Efficiency Partnership template policy and is already in place at Chorley Council.
This report has particular links to the following corporate priorities:
Efficient, effective and exceptional council.
Strong South Ribble in the heart of a prosperous Central Lancashire
Clean, Green and Safe.
RECOMMENDATIONS
That:1. members consider the Performance Monitoring report and make appropriate comments;
.
2. the Scrutiny Committee considers the attached draft Joint Procurement Strategy and draft
Sustainable Procurement Policy and makes appropriate comments;
3. Cabinet agrees the draft Joint Procurement Strategy and a draft Sustainable Procurement
Policy, in the light of Scrutiny’s comments;
4. the Corporate Director (Policy and Neighbourhoods) be authorised to finalise the Joint
Procurement Strategy and Sustainable Procurement Policy, in consultation with the Leader,
and in conjunction with Chorley BC.
1
DETAILS AND REASONING
Attached for members’ consideration at Appendix 1 is a Performance Monitoring report on the
existing Procurement Strategy. The monitoring report sets out performance against the 2008/2011
Procurement Strategy approved at Cabinet in July 2008, prior to the commencement of the new
Financial and Assurance Shared Services Partnership with Chorley Borough Council. The new
Shared Services Partnership commenced 1st January 2009 and includes a new joint procurement
service.
It should be noted that some of the e-procurement targets contained within the Strategy were
dependant on the acquisition of a new financial system. This will not now be implemented until
2010 and this has been noted accordingly in the monitoring report.
It was recognised early on in the life of the strategy that a number of the priorities and key actions
contained within it are shared with Chorley Council. A decision was therefore taken to delay the
delivery of some items until the launch of the new Shared Service in order to take advantage of the
knowledge, experience and best practice this will bring, together with the added efficiency of joint
working and joint delivery. This has proven to be a successful approach with significant progress
made within the first five months of the joint procurement service. This includes spend analysis,
benchmarking and market research, leading to the introduction of a number of frameworks and
collaborative procurement arrangements in the initial months of the shared services arrangement,
providing the following procurement savings for this Council:
Product/ Service
Stationery
Copier paper, recycled
Copier paper, recycled
Primary on line Legal
Reference Material
Anti virus software
licensing
Chrystal Consulting
Service
Cash in Transit
Application of Herbicide
Description of Action
Existing supplier retained but moved to
Merseyside Framework rates
Existing supplier retained but moved to
Merseyside Framework rates
Credit note negotiated for previous payments
SRBC moved from hard copy to on-line
service and new CBC/SRBC joint agreement
negotiated with the provider
New collaborative arrangement negotiated
through the Lancashire Procurement Hub
bringing all participating authorities contract
periods in line to 28.2.12 expiry
Negotiated reduction in cost from £1000 to
£500 p.a. for 3 yr contract term
Retained existing supplier but moved to
Burnley Framework achieving 41% reduction
in cost with effect from 1.7.09
Collaborative procurement exercise with
Chorley for 2 applications in 09/10
Total
Saving
£4290 p.a.
£650 p.a.
£300 – one off
£8315 p.a.
£6270 over
balance of
agreement
£500 p.a.
£2290 p.a.
£2,200
£24,815
Additionally new guidance documentation has been introduced around integrating equality into the
procurement process which was very positively received by the IDeA assessment team in the
recent level 3 equality assessment. A new, simple and easy to follow “Pocket Guide to
Procurement” has also been introduced which shows the procurement process in flowcharts and
prompts the procuring officer to consider key issues. Additionally, training and skills analysis has
also been arranged for early July covering the key procurement considerations and Standing Order
requirements.
As both Councils have similar procurement challenges, priorities and aspirations, and in the spirit
of the shared services partnership, it is considered appropriate that the Council now considers a
2
new Joint Procurement Strategy which incorporates all of the values and priorities contained within
the current Strategy. A draft Joint Procurement Strategy has therefore been prepared and is
submitted at Appendix 2 for members’ consideration.
One of the Council’s key priorities is to ensure procurement that is inclusive, sustainable and
socially responsible. To cement commitment to sustainable procurement it is recommended that
the Council approve and adopt the NWIEP (North West Improvement and Efficiency Partnership)
Standard Sustainable Procurement Policy, which has already been adopted and is in place at
Chorley and some other North West Councils. This policy is attached at Appendix 3 for members’
comments. Adoption of a sustainable procurement policy is an element of the Flexible Framework
for Sustainable Procurement published by the Sustainable Procurement Task Force in their 2006
National Action Plan report “Procuring the Future”.
As the new draft Strategy is also being considered by Chorley BC, it is proposed that the Corporate
Director (Policy and Neighbourhoods), in consultation with the Leader, be authorised to finalise the
draft Joint Procurement Strategy and Sustainable Procurement Policy.
WIDER IMPLICATIONS
In the preparation of this report, consideration has been given to the impact of its proposals in all
the areas shown below. The table shows the implications in respect of each of these.
FINANCIAL
An annual saving for this Council of approximately £25k has already been
found since the introduction of the Shared Service Partnership with
Chorley Borough Council. Officers are confident that the annual saving
target in this year’s budget of £50k can be achieved.
LEGAL
None arising directly from this report.
RISK
The risk in not considering a joint Procurement Strategy is the misalignment of priorities and targets and therefore efficiencies from joint
working between Chorley and South Ribble Councils under the new
shared procurement service. The risk in not adopting a sustainable
procurement policy is failure to clarify, demonstrate and promote the
Council’s high level commitment to sustainable procurement principles
and meet the targets contained within the Flexible Framework for
Sustainable Procurement
OTHER (see below)
The draft strategy addresses all relevant issues from the list below.
Asset Management
Corporate Plans and
Policies
Freedom of
Information Act 2000
Staffing
Fair Access
Implementing
Electronic Government
Crime and Disorder
Act 1998 – Section 17
Health and Safety
Sustainability
Data Protection
Human Rights Act
1998
Training and
Development
BACKGROUND DOCUMENTS
2008-2011 Procurement Strategy
Flexible framework contained within the Sustainable Procurement task Force Report “Procuring the
Future”
3