Procurement Strategy by wuyunyi


									   Procurement Strategy 

Reviewed August 2009


1. Introduction
1.2 E government and the interaction with the NPS
1.3 Comprehensive Performance Assessment and Best Value
1.4 Legislation
1.5 Best Practice and Centres of Excellence

2. Corporate values
2.1 The Strategic Framework for Procurement
2.2 Procurement Objectives

3. Current Arrangements for Procurement
3.1 Strategic Procurement
3.2 Operational Procurement

4. Procurement of goods and services
4.1 Strategic Procurement
4.2 Operational Procurement

5. Role of Service Reviews In Procurement
5.1 Special Considerations

6. Implementation of Preferred Option
6.1 The Procurement Team

7. Monitoring Performance
7.1 Service Delivery
7.2 Re-tendering

8. Corporate Support

Annexe A - Breakdown of major expenditure 2008/9

Annexe B – Action Plan for Ongoing procurement development

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1. Introduction
Procurement and the commissioning of goods and services plays a fundamental role
in delivering value for money in the provision of services.

Following the Byatt report in 2001 “Delivering Better Services to Citizens” which was
commissioned by the Government, Tandridge, recognising the importance that
procurement has in overall efficiency, implemented an interim strategy. At the time
less than a quarter of District Councils had any type of strategy. The Gershon report
in 2004 further identified efficiencies that are expected from Local Government
covering all aspects of work and promoting keenly partnerships and joint working
exploration. The publication of the National Procurement Strategy (NPS) in October
2003, gave the Government’s guidance as to how local authorities were expected to
respond to the challenge of implementing modern and efficient procurement

The national procurement strategy has five key themes, these are;

   •   Cultural shift
   •   Providing leadership and building capacity
   •   Partnering and collaboration
   •   Doing business electronically
   •   Stimulating markets and achieving community benefits

The themes have been incorporated in to the strategy and the annually updated
action plans. The Government in 2007 published a new set of indicators around
sustainability in procurement, recognising the good work that Local Governmnet had
undertaken on procurement and making the next challenge. Sustainability is a
global issue that affects all areas of local government and sourcing goods and
services is no exception.

All procurement must be undertaken in accordance with the Council’s Standing
Orders contained within the Councils Constitution. The strategy will provide
corporate guidelines within which these Standing Orders can be applied. The
general principles included in this strategy should therefore be followed in all the
Council's relevant undertakings.

1.2 E government

The Implementing electronic government (IEG) initiative has provided an excellent
platform for change at Tandridge. The initiative impacts on procurement as reducing
paperwork and enabling e transfers for invoicing and payment are key to the
objectives of both projects. Implementation of a separate e-procurement Strategy is
underway to maximise the use of the different functions available. In time the
strategy addresses areas including E-markets and E-tendering.

1.3 Comprehensive Performance Assessment (CPA) and Best Value

CPA has acknowledged the pivotal role that procurement has to the performance of
a Local Authority. The service reviews of each section, the annual improvement plan

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and the action plan following the CPA inspection all include areas which are integral
to effective procurement.

1.4 Legislation

Procurement is regulated to ensure that equality and transparency is seen in larger
contracts. Therefore the European Union (EU) has requirements that must be
followed to ensure that competition is at the heart of procurement. The regulation
also ensures that timescales are adhered to and therefore can assist in the
speediness of contracts being awarded. A thorough yet succinct process is
necessary to reduce the cost of procurement. EU legislation changes from time to
time, this must be monitored and the effects on the policy reflected. This means that
this strategy is a living document which will be reviewed regularly and updated to
ensure that it remains in step with legal requirements.

1.5 Best Practice and Centres of Excellence

There is no formula to apply to all organisations to ensure that procurement works
well and to the best effect, however there is a great deal of guidance available from
professional organisations such as the Society of Procurement Officers in Local
Government (SOPO), the Chartered Institute of Purchasing and Supply (CIPS) and
the Improvement and Development Agency (I&DeA). There are regional forums and
Tandridge participates in the Surrey procurement officers network which aims to
share experience and ideas, additionally the group is there to consider the links and
opportunities Surrey wide which could result in advantageous cost to the Councils
based on the opportunity to gain from larger contracts, where it is feasible to join the
contracts together. .

The regional centres of excellence are also available for councils to tap in to, in order
to gain experience or advice. Improvement and Efficiency South East operate
administratively from Tandridge District Council Offices. The links and usage of the
service have been encouraged and IESE funding for surrey wide procurement
development through a shared contracts register and more recently a capacity
analysis has been achieved. IESE are continuing to take a lead on procurement as
they have agreed to fund a portal for e-tendering installation at Tandridge and
neighbouring Reigate and Banstead Council for a pilot study.

2. Corporate values

The procurement strategy holds at its heart the Council’s Corporate Strategy and
objectives. The method(s) by which goods and services are provided implicitly
impinge on the advancement and delivery of these objectives. The following
principles should therefore apply in each procurement transaction:

   •   A commitment to delivering economic, efficient and effective services
   •   A commitment to better quality services at optimal cost
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   •	 Encouragement to small and medium sized local businesses to have a real
      opportunity to bid and win council contracts.
   •	 A commitment to partnership working with public, private and voluntary sector
      providers to identify optimal solutions.
   •	 Encouraging sustainability with regards economic and environmental issues
   •	 Compliance and recognition of the Councils medium term financial plan
   •	 A commitment to be recognised as a prompt payer and as such a signatory to
      the Prompt Payer Code.

2.1 Tandridge’s Strategic Framework for Procurement

                               Community Strategy
                           Corporate Plan and Strategies
                                  Service Plans

                            Meeting Community Need 

                               Procurement Strategy
                               E government strategy
                        Procurement Policies and Procedures

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2.2 Procurement Key Objectives

The Strategy has six key objectives which must be met in order for procurement to
become a focal point of each department and manager engaging in the process.
Success against these six objectives will result in Tandridge DC developing an
efficient procurement process.

Developing a Corporate Procurement Culture:The procurement culture of the
organisation will be changed through ownership of the strategy by both members
and the corporate management team. The strategy must be known and used
throughout the organisation. This must be evidenced in each area of the Council and
for all procurement transactions. The culture will be changed through awareness of
the corporate goal of procurement and leading from that the use of the procedures in
a uniform manner to ensure compliance with the local procedures and national

Continuous improvement of Procurement processes: Encouraging feedback and
amendment to the processes used is necessary to seek continuous improvement of
the management information available. This will be assisted by the type of
information available nationally and locally on procurement (for example through
benchmarking with other councils and businesses to integrate best practice) and
staying abreast of developments.

Developing Electronic Procurement Capabilities: E – procurement is carrying out
the process of tendering, buying and paying for goods electronically. The Strategy
requires end to end capability to be available and in use. The introduction of this is to
meet targets but also to ensure efficiency in the administrative financial process.
Removing the paper chase ultimately results in efficiency in administration.

Achieving Value for Money: this is the main purpose of the strategy. The Council
purchases goods and services in order to carry out services to the community. The
goods and services should be provided at value for money to ensure that the Council
is able to demonstrate best use of public money and provide the services to the
quality expected.

Controls, Standards and Management of Risk: Standard tools to be used during
the process will give added value as the corporate approach to procurement will
become adopted by all involved in the process. Public Sector procurement is heavily
regulated. There is a duty to the public that the Council as the guardian of the public
purse will minimise risk and have robust financial regulations in place, including
safeguarding against money laundering through the Council. There are also
European Union procurement directives which must be adhered to.               Controls,
Standards and Risk Management are all necessary to withstand probity from the
external scrutineers.

Inclusion of Equality, Sustainability and Regeneration Issues in all
procurement processes: Local plans and projects will impact on procurement. The

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wish is to support and encourage local small and medium sized businesses through
Council policy which in turn will affect the procurement process.

Steps to move towards full compliance with these six principles are included
in the action plan at Appendix B.

3. Current Arrangements for Procurement

During 2008/9 the Council’s gross expenditure was approximately £50.7 million.
Of this approximately £13million related to ‘works, goods and services’, the
remainder being Administration (including salaries), Council Tax, term contracts (the
periods covered being greater than 3 years) etc. appendix A shows the breakdown
of the major expenditure within the year.

To reflect both the requirements of Standing Orders and the importance of these
term contracts within this Strategy procurement practices are classified as being
either Strategic or Operational.

3.1 Strategic procurement relates to the delivery of goods and services which link
directly to the corporate objectives and values of the Authority. That is they are
directly related to the Authority’s strategic direction. For ease of reference these will
be identified by the financial value of the transaction which will be compatible with
the EU threshold.
Specific examples of strategic procurement will include:
    •	 Single contracts for goods or services in excess of the EU threshold
    •	 Term contracts for periods of three or more years in excess of the EU

3.1.1 It should be noted that there are established arrangements for procuring some 

services, such as standing arrangements for historic buildings and agricultural advice 

for planning applications; and for obtaining the services of counsel for legal advice or

advocacy. No proposals are made for changing these established arrangements but 

as and when opportunities arise, the application of procurement principles will be 

taken in to account as appropriate.

3.2 Operational procurement relates to the day to day functional transactions of the


Specific examples of operational procurement will include:

• Single non-strategic contracts in excess of £15,000 

• Ad hoc purchases of goods ‘of a similar nature’ totalling more than £15,000 per 


• All remaining items 

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4. Procurement of goods and services

It should be remembered at all times that the procurement of all goods and services
must be undertaken in accordance with both Standing Orders and European
Directives. Contracts advice should always be considered by the legal section prior
to being entered in to. Procurement of IT goods (software or hardware) should only
be carried out by the IT department. Procurement procedures are encouraged to
ensure that the whole life cost of goods and services is considered during the
tendering and procurement process. A disposal of assets policy has also been
implemented to ensure that assets are disposed of in the most economic and
efficient manner, this should always be factored in to the original procurement

4.1 Strategic procurement
For all strategic procurement decisions a feasibility report will be prepared to assess
the likely benefits available. The procurement option(s) identified during a feasibility
review will be fully evaluated.

4.1.1 The feasibility review should focus on:
• research / understanding of the appropriate market
• consultation with customers/users
• discussion with staff & potential providers.

4.1.2 The evaluation should:
• define, where a Service Review has concluded appropriate, what elements of the
service should be exposed (based on maximising savings and reducing process
• define the contractual relationship (i.e. arms length or partnership)
• identify risks and decide how they should be shared
     • identify the possible implications for the Council as a whole.
Whether a service is to be provided wholly “in-house” in partnership or “bought in”
will be based on an appraisal of the quality and cost outcomes for each option.
It may be suitable in different cases to:
• buy in selective elements 

• contract the entire service out (with or without an in-house bid) 

• form a joint venture or partnership (following competition for an external provider)

• dispose of or sell off competitively the service and its assets to another provider.

4.1.3 Preferred option 

The preferred option will be the one that overall: 

• promotes best value for money for the Council Taxpayers

• offers the best balance between savings and quality improvements at the lowest 

cost of achieving this 

• Takes in to account the policies of the procurement and community strategies. 

4.2 Operational procurement
The option appraisal for ‘significant’ items shall generally follow that of Strategic
Procurement, but will be commensurate with the value of the item or service being

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A formal record should be kept of the assessments made in order to demonstrate the 

transparency of the process. 

All other procurement will follow the general principles of this strategy with adequate 

records being kept. 

4.3 Small and Medium Sized Enterprises (SME)
There is recognition that SME’s play an important role in effective procurement and
that It is in the interest of the local economy for the Council to encourage the growth
of the local business. The Council is signed up to the national Concordat with Small
Businesses confirming our commitment to encourage small businesses in the
Tandridge area.

The definition most widely used for a SME is from the Federation of Small
The company size definition differentiates between a small, medium and large
enterprise. It uses the number of employees in the company to define size and
where this information is not available then the company turnover comes into
play. Company size is determined as set out below.

                               Between 50 and 249
Less than 50 employees,        employees, regardless of       Greater than or equal to 250
regardless of turnover. Or, if turnover. Or, if the number    employees, regardless of
the number of employees is of employees is unknown,           turnover. Or, if the number of
unknown, then turnover of then turnover of greater than       employees is unknown, then
less than £5.6m will be        or equal to £5.6m and less     turnover of greater than or
taken to indicate a small      than £22.8m will be taken to   equal to £22.8m will be taken
enterprise.                    indicate a medium              to indicate a large enterprise

5. Role of Service Reviews and Partnerships in Procurement

5.0.1 Partnerships will be embraced wherever better value can be achieved in the
procurement of goods and services, and also in the delivery of services. Tandridge
DC is part of a four way partnership in East Surrey (with Epsom and Ewell BC, Mole
Valley DC and Reigate and Banstead BC). this has resulted in a variety of joint
procurement opportunities with advantages to each Council.

5.0.2 The Surrey Procurement network have continued to work together and
successfully received funding for projects to the authorities in Surrey. The group
continues to identify areas of potential collaboration which could bring further
efficiencies through procurement. The Group npw reports to a strategic forum to
help guide the overall direction of Surrey LA’s in procurement matters.

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5.1 Considerations
5.1.1 The Council recognises that when considering procurement or commissioning
issues surrounding the delivery of services comparison with other authorities and
alternative providers must be a factor, to ensure that best practice and efficiency are
integral to the service.

5.1.2 Reviews will establish standards that should be challenging, reflect the views
and needs of stake-holders, reflect appropriate benchmarks. Standards established
for each service will be subject to continuous review.

5.1.3 As part of each service review the current method of delivery and possible
alternatives (including partnerships in whole or in part) will be considered where
significant improvements to align the service with expectation are determined

6. Implementation of Preferred Option
It is important that procurement decisions, whether arising from a strategic feasibility
study or a Service Review should be followed through. It will usually be necessary to
establish a team to oversee the implementation.

6.1 The Procurement Team
The preferred option, if it involves an element of ‘bought-in’ services, will be
implemented by a procurement team led by the responsible department. The
procurement team will, commensurate with the scale of the service:
• ensure compliance with this strategy and Standing Orders
• develop a specification based on c onsultation with customers/users, potential
  providers and staff
• select appropriate EU procedures (i.e. open, restricted or negotiated)
• decide appropriate timescales and schedule main tasks
• advertise, select and invite tenderers
• evaluate bids
• monitor and manage the contract and ensure that performance standards are met.

7. Monitoring Performance Corporately

7.1 Service Delivery
An assessment of the standard of service delivered for both Strategic and Significant
Operational contracts should be completed and reported to the Corporate
Management Team.

7.2 Re-tendering
Ahead of any re-tendering exercise the Service Department will:
• review the annual service delivery assessments
• review the whole service ('client' and 'contractor' functions)

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• re-appraise the re-structure or 'buy in' options (in accordance with the current
procurement practices of the Council)
• revise specification in line with new requirements

8. Corporate Support

Management Team will endorse and support the provision of the following to
promote this strategy and good procurement practice:
• appropriate training for staff
• support for staff in implementing changes
• a review of strategic and significant operational contracts.

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                                                         Appendix A

Breakdown of Expenditure areas of procurement for Tandridge
District Council 2008/2009.

Area of Work / Description              Amount per annum (£)
Revenue                                                        1,452,318
Refuse collection                                              1,224,835
Repairs to dwellings                                           1,035,271
Green box recycling                                              579,795
IT services (software)                                           530,597
Amenities (power/ water)                                         404,802
Insurance                                                        392,263
Repairs (void works)                                             300,852
Concessionary fares                                              305,015
Repairs Heating                                                  268,188
Planned repairs (external)                                       248,109
Ground maintenance (planned)                                     186,520
Petrol/Diesel                                                    186,184
Sports and Recreation Areas contract                             127,871
Audit Fees                                                       121,072
Sports and Recreation Areas cleansing                            115,151
Planned Repairs / Cleaning                                       107,332
IT Services (Telephones)                                       1,984,366
Works to housing stock                                         1,406,969
Works to void properties                                         517,814
Adaptation for disabled                                          319,570
IT Investment                                                    247,901
Council offices                                                  194,401
Conversion of Shared Services                                    189,609
Vehicles                                                         151,739
Leisure Pool                                                     144,244
Garden Waste Bins                                                142,940
Other expenditure (items below                                   164,396
100,000 each)
Total expenditure                                         13,050,124

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                                                                                                                          Appendix B 

1 Development of Corporate Procurement Culture 

Changing the procurement culture of the organisation will only happen with complete ownership by both members and the corporate
management team. The strategy must be known and used throughout the organisation.
Key Objective 

To ensure that procurement resources are deployed effectively and that systems are in place to deliver procurement priorities identified
through the strategy and that strategy is embedded into all Directorate service plans and the overall culture of the organisation.

Current Position Statement
  • There is a commitment at Member and Corporate Management Team (CMT) level to pursue effective procurement practice
  • Procurement Review Team set up in August 2004 from officers across the organisation and including a Member procurement
  • Procurement Strategy has been in evidence since 2001
  • Procurement expertise and awareness amongst officers was enhanced with the roll out of
               •     the South East Centre of Excellence (now IESE) e-portal and contracts register June 2007.
               •    Issuing a TDC guide to procurement January 2008
               •    Being active members of the Surrey Procurement Network and the collaborative opportunities that arise
               •    Contracting with Reigate and Banstead Council for Procurement assistance and expertise on a “buy in” basis.

           Key issues                            Key Actions                           Responsibility             Progress /Deadline

1 A consistent approach to Identifying and share best practice with           Procurement group/ SPN and        ongoing - latest
procurement is essential   other organisations to learn and adapt             CMT                               shared good practice is
                           policies in to our own                                                               in sustainability.

                                   Seeking effective partnership working to CMT / Procurement Group             SPN identifies work
                                   secure efficiencies on small and large                                       plan each year for joint

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                                    contracts                                                          opportunities / reviews

2 Achieving Best Value is only Annually review the Procurement             Procurement Group and CMT   Next review SO Jan
possible    through      good Strategy and Standing Orders                                             2010
procurement practice which in                                                                          Strategy Summer 2010
turn will lead to real
improvements to service cost
and quality

3 Contracts are entered in to by    Production of formal contract          Procurement Group / CMT /   Complete 2008
all directorates, formal contract   procedures                             Head of HR/OD
procedures are necessary to
assist consistency and achieve
best value

4 Profile of procurement needs      All Service plans should reflect the   CMT / Heads of Service      Complete 2007 -
to be raised on organisational      procurement strategy.                                              Review and reminder
basis, in order to achieve the                                                                         round Summer 2010
culture change

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2 Continuous Improvement of Procurement Processes 

It is necessary to seek continuous improvement of the management information available to develop and feed in to the procurement
process. This will be assisted by the type of information available on procurement and how the organisation chooses to use it.

Key Objective 

To ensure that the information available upon which changes and decisions concerning procurement are made, are as complete as
possible. Accuracy and availability of the information being paramount

Current Position Statement
  •	 The Agresso financial package implemented in 2002 is compatible with procurement targeted software.
  •	 The Agresso Purchase Order Processing system is being rolled out across the council.
  •	 Management information from the Agresso system is good and many comparisons can be drawn for investigation in to greater
  •	 The Agresso system allows better management & control of procurement & gives the ability to examine the system to identify
      savings & improved efficiencies.
  •	 Subscription to the Spikes Cavell observatory have produced significant savings from reducing duplication.
  •	 E government identifies the need to move towards electronic invoicing and payment facilities. The Procurement group is well
      in to considering the type of package necessary to meet NPS and IEG targets.

          Key Issues                      Key Actions                          Responsibility                  Deadline/Progress

1 E purchase ordering and e Action plan for complete roll         Exchequer Services Manager                Continuing    to       be
payment to be rolled to all out is part of the e-procurement                                                rolled out to          all
services                    policy                                                                          departments .

2 Contract Management            Develop a corporate database     Procurement Group                         complete IESE

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                                of contracts, to ensure                                                    register has been in
                                corporate awareness of                                                     place for some years
                                longevity and value

3 Benchmarking                  Comparing our practices and        Procurement group / contract managers   Ongoing through
                                costs against other councils and                                           Spikes Cavell
                                businesses will help to develop                                            membership and SPN
                                and adopt best practice from
                                other areas

4 Ensuring payments on time to Considering the terms within
existing contractors           contracts to ensure that SME’s      Procurement Group                       The Governments
                               have the best opportunities in                                              “Prompt Payment
                               contracting with the Council,                                               Plan” signed up to
                               especially during the recession                                             August 2009. ensuring
                                                                                                           payment in accordance
                                                                                                           with terms
                                                                                                           Current analysis shows
                                                                                                           96% of invoices are
                                                                                                           paid within 30 days
                                                                                                           with 38% within 10.

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3 Developing Electronic Procurement Capabilities 

E – procurement is carrying out the process of tendering, buying and paying for goods electronically. Through efficiency it reduces
the cost of the paper procurement process.

Key Objective 

To use ICT to reduce the cost of procurement, improving effectiveness, efficiency and accessibility in all aspects of the process 

Current Position Statement
  •	 Agresso system has modules in place for e-requisition (punch-out, pull-back), e-authorisation and funds checking and e-
      invoicing and e-payment facilities..
  •	 Website information concerning procurement is reasonable including guidance for suppliers.
  •	 BACS for paying suppliers is the most common form of payment for large items and contracts (over 70% of invoices are
      settled this way)
  •	 E tendering / e-purchasing funding from IESE for implementation and pilot has been achieved due for roll out by April 2010.
  •	 The E-Tendering, E-Auctions, E-Purchasing software facility currently available not considered to cost effective at the present
      time, but the Procurement Group will continue to keep a ‘watching brief’ on developments in this area.

            Key Issues                               Key Actions                         Responsibility           Progress /Deadline

1 E package with e purchase           Introduce through the Agresso modules       Exchequer Services            Currently being rolled
ordering / payments                                                               Manager                       out.

2 e- tendering and marketplace        Roll out the system in partnership with     Procurement Group             Submitted for April
capabilities to be introduced         IESE                                        (Exchequer Services           2010 implementation
                                                                                  Manager and Chair of
                                                                                  Procurement Working

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3 Continuing to work with SME to       Promote electronic working and the         Procurement group / CMT   Attendance at fares
encourage electronic working, for      awareness to this at liaison meetings                                and fetes to promote
ease in administration                                                                                      and encourage

4 explore e-auction efficencies that   Consider e-auction functionality offered   Procurement Group         E Auctions not to be
could be realised                      by RSM Bentleyjennison (auditors)                                    pursued at this time
                                                                                                            due to small potential
                                                                                                            use. Should a
                                                                                                            opportunity occur to
                                                                                                            be re-examined.

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4 Achieving Value for Money 

Procurement allows the Council to purchase goods and services in order to carry out services to the community. The goods and
services should be value for money to ensure that the Council is able to demonstrate best use of public money and provide the services
to the quality expected.

Key Objective 

To ensure that the best price is achieved in goods and services, whilst maintaining agreed standards. This is supported by developing
relationships and promoting partnerships and co operation between; the Council, the Public, Business Community and Private and
Voluntary Organisations and by maximising the effectiveness of procurement techniques.
Current Position Statement
    •	 The Council has a successful history of entering in to partnership arrangements with neighbouring district councils for the
        provision of both goods and services.
    •	 The strong CPA review (assessment overall “Good”) and established best value processes have assisted in the Council
        reviewing its procedures and securing real savings year after year.
    •	 Use of Resources grade 3 for procurement, Internal Audit Satisfactory submission of procurement processes.
    •	 The Council has a history of investing in technology and exploring new ways of working in order to pursue effective and
        efficient service delivery.

            Key issues                            Key Actions                        Responsibility              Progress/ Deadline

1 Not all VFM improvements will       Setting realistic targets for savings          CMT                         Year on year target
show instant savings. Efficiency      and appreciating the success rates of                                            setting
may be shown and savings may          projects may not always be
occur in time                         measured in monetary value

2 The systems may identify the        Rationalisation of a supplier base      Procurement group /Chief        Continued use of the
savings made through analysis         Improving and negotiating current       Finance Officer ‘ Heads of      Spikes         Cavell
                                      contractual arrangements                Service                         observatory  on    a

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                                                                                                          contract   by    contract

3 Tender evaluation may not always Develop Best practice tender               CMT / procurement group /   Ongoing and through
favour the cheapest quote where    evaluation processes to determine          Heads of Service            procurement procedures
quality is a factor                the best fit product to the                                            introduced 2007

4 Reducing supplier base where         Develop tender processes based on      CMT / Procurement Group     Continuing dialogue and
possible yet encouraging local         quality                                                            liaison with local
businesses to tender in order to       Assist local businesses through                                    suppliers to encourage
demonstrate their competitive          advice and local networks to find                                  them to bid for contracts
advantage                              ways to viably tender for council                                  and ensure that
                                       work.                                                              sustainability issues are
                                                                                                          addresses locally.

5 Ensuring that whole life costs are   Imbed the whole life cost approach                                 Introduced in procedures
considered in the tendering process    to procurement procedures and                                      in 2008. To be further
affecting economical and               processes.                                                         developed in the
environmental costs.                   Reflect in sustainability statements                               sustainability policy

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5 Controls, Standards and Management of Risk 

Public Sector procurement is heavily regulated. There is a duty to the public that the Council as the guardian of the public purse will
minimise risk and have robust financial regulations in place. There are also European Union procurement directives which must be
adhered to. Controls, Standards and Risk Management are all necessary to withstand probity from the external scrutineers.
Key objective 

To ensure that all procurement activity remains within the law and that any risk is identified and appropriately managed. 

Current Position Statement
  • Standing Orders are reviewed regularly by the legal section (and amended by committee) to ensure they remain up to date.
  • A risk management exercise reviewed each year to ensure that all issues are identified and addressed.
  • Best value reviews (ESIP) include procurement as part of the deliberation of the service.

          Key Issues                            Key Actions                            Responsibility               Progress/ Deadline

1 Risk is present in Ensure risk management register kept                     Chief Finance Officer /             Complete 31/03/05,
procurement and it needs to under review and all controls are known          Procurement Group                    now ongoing review
be identified and managed   and practiced.

2 Lack of understanding of       Ensure that procedures for being alert to   Chief finance officer / CMT          Complete 01/10/05 –
Procurement restrictions and     and reporting suspicions of money                                                review and offer
EU requirements amongst non      laundering are included in the risk                                              updates 2010
procurement involved staff.      registers and known by all appropriate

                                 Incorporate clear guidance in to            Procurement Group                    Procedures introduced
                                 procedures to ensure staff are advised                                           2007
                                 and know where to seek further

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6 Inclusion of Equality, sustainability and Regeneration Issues in all Procurement processes 

These issues have become more important in recent years, with Local and Central Government policies focusing more on global
matters, such as free and fair trade. Also through local community plans there is a drive to support local businesses.
Key objective 

To ensure that procurement policies take account of Council policies incorporating equality, sustainability and regeneration 

Current Position Statement
  •	 Current procurement guidance considers sustainability of a company during the tendering process.
  •	 The Council is keen to support local business (especially due to our proximity to London) and to encourage especially the
      Small and Medium-sized Enterprises (SME) to trade with the Council
  •	 OGC toolkit and PQQ templateis promoted in services for vetting of suppliers
  •	 Sustainability policy adopted January 2009 by CMT

           Key Issues                            Key Actions                        Responsibility            Progress /Deadline

1 Government legislation has        Monitor and adjust strategies in relation Procurement Group / Chief    Procedures introduced
given greater freedom for the       to equal opportunities, race relations and Finance Officer             in 2007 include
inclusion of workforce and equal    sustainability in the entire, external                                 guidance
opportunities and for community     procurement process.
benefits that can be achieved
through effective procurement

2 Knowledge of SME’s and            Continue to develop dialogue on           CMT / Heads of Service       Ongoing
policies on sustainability and      procurement issues with representatives
equal opportunities compared        of local business and community
with larger companies               sectors.

Reviewed August 2009
3 Difficulty in establishing Develop tendering procedures to include         CMT   Adopted January 2009.
sustainability and equality during sustainability evaluation and equal             remaining under
tender evaluation                  opportunities statements in order to            review, further work
                                   determine assurance of compatibility of         needed for promoting
                                   Councils policies.                              local businesses and
                                                                                   best practice through

Reviewed August 2009

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