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Annual Procurement Report for 2008-2009

1     Introduction
         This report covers the procurement activities for the University of
         Gloucestershire for the period 1st August 2008 to 31st July 2009.

         This report reflects the low level of procurement activity during the year due
         to the University’s financial constraints.

2     Procurement Policy
        The policy has been updated to include:
        •      Procurement Managers support for small projects if required (Section
        •      All staff involved in procurement should attend the “Procurement –
               What you need to know” training course (Section 7.1).

         See Appendix 1 for the revised policy.

3     Tendering Activities

3.1      Utilities
         A review was undertaken into how the University purchases its utilities and
         whether we should use a purchasing consortium such as The Energy
         Consortium (TEC) or continue to undertake direct procurement with the help
         of an energy consultant. The result of this review was to purchase gas through
         TEC on a flexible contract and the University decided to purchase electricity
         directly, as it required 100% “green” electricity which cannot be purchased on
         a flexible contract.

         The price of gas has fallen significantly since the summer of 2008, when we
         agreed a 70% fixed 30% floating contract with Corona. The University “fixed”
         the 30% portion at the end of February resulting in a reimbursement of
         £20,557 for the period August 2008 to February 2009 and a further saving of
         £5,167 to August 09.

         The flexible contract through TEC has been awarded from 1st October 2009. A
         flexible contract is one whereby gas is purchased in variable time periods
         depending upon the market price. An overall budget figure is agreed at the
         beginning of the year, which is the maximum price that will be paid. A “stop
         loss” position is agreed below the budget figure, whereby if this point is
         crossed all outstanding monthly volumes will be purchased. A series of
         “purchase” triggers are set against monthly targets (below the “stop loss”
         point) which become active twelve months prior to the month of delivery.
         When prices are falling, purchases will be held off to get the maximum
         benefit. When a trigger is crossed in a downward direction, 25% of the
         monthly volume will be purchased. However once a trigger is crossed in an

      upward direction, all outstanding volume will be purchased. TEC constantly
      review the trigger points and if the market continues to fall, the trigger points
      will be revised downward. Savings will be evaluated during the year.

      As the University wanted to continue to purchase 100 percent “green”
      electricity (which was proving difficult through TEC) it was decided to issue a
      notice in the Official Journal of the European Union (OJEU), for the supply of
      electricity using the open procedure. We requested prices based upon 12 and
      24 month contracts. It was decided to place a 24 month contract to ensure
      price certainty. The University received three quotations for both the 12 and
      24 months. The 24month prices ranged from £390,915 (British Energy) to
      £394,924 (Npower) per annum for the half hourly sites. A contract was signed
      with British Energy for the supply of “green” electricity from small hydro and
      wind power.

      The saving in electricity compared with 2008/09 will be £190,583 per annum.

      A further exercise was then undertaken for the smaller electricity sites (such as
      Cornerways and Hardwick) to obtain prices so that all contracts will have a
      common renewal date of September 2011. New contracts were agreed with
      British Energy for these sites, resulting in further savings. For the small
      domestic sites, a contract has been awarded to Ecotricity until September

3.2   Internal Audit
      A tender was issued in November 2008 for Internal Audit Services for the
      University. The University had been with its previous Internal Auditors for
      seven years and it was decided to tender the service to ensure value for money.
      7 companies were invited to tender, 5 replied and 4 were interviewed.

      PricewaterhouseCooper have been awarded a three year contract, with the
      option of two, one year extensions, at a similar cost to the previous contract.

3.3   Print framework tender
      An OJEU notice was issued on 15th May 2009 for printing services. The
      following is a summary tenders:
      • Expressions of Interest 57
      • Tenders issued            28
      • Tenders received          28
      • Interviews                September 2009
      • Contract award            October 2009

3.4   Held tenders
      A number of tenders have either been undertaken and not awarded, or not
      started during the year due to financial restrictions. These include a number of
      Estates contracts for the repair and maintenance of the farmery buildings,
      Estates survey, clothing and expenses management system.

4     Other Activities

4.1     Agresso Updates
        During the year there have been two Agresso upgrades, which have resolved
        the majority of outstanding procurement problems. The Procurement &
        Contracts Manager continues to run ‘user’ training sessions.

4.2     Procurement Training
        The following procurement training has been run during the year:

                                     Number of Sessions       Number of Attendees
        Procurement – “What                   3                        21
        you need to know”
        Sustainable Procurement                1                           5

4.3     Procurement Group
        The Group has met regularly throughout the year and continues to be a
        proactive vehicle for communicating and reviewing procurement activities
        across the University.

4.4     Update of actions identified from the Good Practice Matrix
        There has been no significant change during the year. With the introduction of
        the Best Practice Indicators (BPI’s) see section 4.6 further benchmarking and
        ongoing measurement has been undertaken, the benefits will be assessed
        during 2009/10. See Appendix 2.

4.5     Non-Pay Expenditure Analysis : Recurrent and Capital
        The following chart shows the percentage split of non pay expenditure
        (including capital expenditure but excluding; depreciation, financing costs,
        payments to schools, landlords, staff and students), “on” and “off” contract
        where they exist, where no contract exists and where there is no purchasing
        decision regarding the expenditure (uninfluencable) e.g. payments to Local
        Authorities or water. The percentage of expenditure “on” contract has fallen
        during 2008/09 due to reduced purchasing of goods and services, such as high
        value, IT and Estates purchases (the majority of which are purchased through
        University or HE sector agreements).

               Pe rce ntage of Non Pay (Supplie rs) Expe nditure -

               Uninf luencable

                  Of f Contract

                       No Contract

        As a comparator, percentage of purchases on contract was:
        • 2005-06 56%
        • 2006-07 63%
        • 2007-08 56%

        Influencable non pay expenditure by product group, spent on contract 2007/09
        The following chart shows by product category the percentage of goods and
        service which have been purchased against contract, by value, for the past two
        years. Where the expenditure is less than 100% “on” contract, the balance
        consists of expenditure where there is no contract or purchases are “off”
                                        Percentage Influencable Spend 2007/09

             n o tra t
           %o c n c



                                                                   l S ht











                                                                na reig




















                                                            ss l /


                                                          se ai

                                                        ro M



                                                         2007-08     2008-09

4.6     Best Practice Indicators (BPI’s)
        The UUK Strategic Procurement Group has published a set of Best Practice
        Indicators (BPI’s) to measure the efficiency and effectiveness of procurement
        within an Institution. There are three efficiency and three effectiveness
        indicators, as shown in the following BPI chart:

               BPI Efficiency                                   BPI Effectiveness
1     Total cost of Procurement  1.08% 4                 Percentage of influencable                86.42%
      as a percentage of                                 spend actively influenced
      influencable spend (i.e.                           by the procurement
      proportionate costs of 3                           function
      staff dedicated to
2     Percentage of             18.32% 5                 Annual procurement                          1.68%
      influencable spend                                 savings as percentage of
      channelled through                                 influencable spend
      collaborative procurement
3     Percentage of orders      86.00% 6                 Percentage of                                     33%
      placed electronically and                          professionally qualified
      via purchase cards                                 procurement staff (as
                                                         calculated BPI 1)

         Additional to these BPI’s a seventh indicator for sustainability has been
         promoted. It is the use of the Sustainable Procurement Flexible Framework to
         monitor an Institutions sustainable procurement. No targets have been set as to
         the levels to be achieved or by when. The University has been measuring itself
         against this framework since 2006/07. Currently the University is Level 5 (top
         level) in People and Policy, Strategy and Communication and Level 3 in
         Procurement, Engaging Suppliers and Measurement. See Appendix 3.

4.7      London Campus fit-out
         The majority of the procurement activity for the fit-out of the new building at
         the London Campus was undertaken during 2007/8. However the installation
         and commissioning of the equipment did not take place until January 2009, in
         time for the opening in February. The Procurement and Contracts Manager
         was actively involved in ensuring that deliveries and installation teams had
         access to the relevant areas as required to meet the schedule.

4.8      Supplier Management
         Due to the financial constraints on the University during the year and the delay
         in paying supplier invoices, maintaining a good working relationship with our
         suppliers has been time consuming for all procurement staff.

4.9      Buses
         A review of transport provision was undertaken to determine if the dedicated
         bus service between campuses and access to the Stagecoach buses services
         was appropriate. Following the review it was agreed that all journeys both
         between sites and on the wider bus network will be subject to a 70p charge
         from 1/9/09, thus the University reducing costs of just over £150,000 per year.

4.10     Post Graduate Prospectus
         It was decided that the Post Graduate prospectus would not be printed in
         2008/09 and it would only be available on the web. This resulted in costs
         reduction of £14,500.

5      Liaison with third Parties

5.1      Southern Universities Purchasing Consortium (SUPC)
         • The University is a member of SUPC and paid an annual subscription in
            2008/09 of £8,750 plus VAT. Access to regional and national framework
            agreements, which are awarded under the EU Procurement Directives
         • Free or subsidised procurement training
         • A network of contracts and the sharing of knowledge through commodity

         The University purchased goods through SUPC contracts to the value of
         £1,393,378 (interim not finalised) including VAT in 2008/09 and the savings
         associated with these contracts are approximately £106,000.

         Gloucestershire College are an affiliated member of SUPC through the
         University, benefiting the University with an income of £1500 per year.

      SUPC has continued to grow during the year and the membership numbers 51
      higher education institutions, 55 further education institutions plus the Quality
      Assurance Agency and UCAS making a total of 108 institutions.

      SUPC Council is undertaking a strategy review of SUPC activities which will
      be completed during 2009/10.

      Towards the end of the year HEFCE agreed to fund the establishment of a
      Procurement Shared Service, which followed the SUMS/University of Exeter
      feasibility study and business plan. SUPC has begun work on re-assessing the
      demand for such a service and if there is sufficient demand then an operating
      blue print will then be developed. The SUPC Council, SUPC Management
      Board and SUMS Management Committee would then have to agree the
      establishment of this service prior to its implementation.

      David Allen from University, University of Exeter has stood down as
      Chairman of the SUPC Board and is replaced with Philip Waters, Registrar
      and Secretary, University of Hertfordshire from September 2009.

5.2   English National Procurement Consortium (ENPC)
      The ENPC which is a collaboration of the four English HE purchasing
      consortia has continued to meet during the year and continues to practice and
      promote collaboration between the four consortia and other related
      procurement bodies.

      An ENPC strategy paper has been agreed by the members of all the ENPC
      constituent consortia as well as by the UUK Strategic Procurement Group.
      This strategy paper formed the backdrop to an ENPC bid to the HEFCE
      Leadership Governance and Management Fund (LGMF). The main aim of
      this project is to enhance the workings of sector contracting groups,
      particularly National Working Parties by providing administrative resources to
      foster closer collaboration and more efficient and effective working. One
      administrative officer will be located in SUPC and the other in North West
      Universities Purchasing Consortium (NWUPC).

      ENPC undertook a review of the tendering processes and documentation used
      by the four consortia and these have been revised so that all parties are now
      using the same documentation.

      With the full support and encouragement of the ENPC, the NEUPC submitted
      a bid to the HEFCE LGMF for a sustainable procurement centre of excellence.
      This was approved and in autumn 2009 two members of staff will start
      working in this new centre. Sustainability and Corporate Social Responsibility
      are high on the government agenda and the work of this new centre is fully
      welcomed by SUPC and in particular our sustainability advisory group will
      support and compliment the centre’s work.

      John Ritchie the Director of London Purchasing Consortium (LUPC) retired
      during the year and has been replaced by Andy Davies.

6      Ongoing Activities

6.1       e-procurement
          e-procurement or electronic procurement is the overarching term for all
          aspects of procurement using electronic means of transferring information
          through the procurement cycle. The key activities are: e-tendering; e-auctions,
          e-marketplace which expands the procurement to pay cycle (P2P). The use of
          purchase cards is another element.

          The University has engaged in aspects of e-procurement since 2000 when it
          introduced an electronic procurement system whereby orders were raised,
          authorised and received and invoices processed and paid electronically. Since
          then the process has been expanded to include the e-mailing of purchase
          orders and remittance advices. Prospective suppliers can download tender
          documents or pre-qualification questionnaires from rather
          than requesting them and the documents being posted to them from the

          A sub-group of the Procurement Group met to discuss the potential for
          expanding e-procurement within the University. The main area which would
          benefit the end users would be the use of an e-marketplace provided it was
          easy to use. A portal based e-marketplace for the purchase of standard items
          allows the user to “punch out” to the suppliers’ web site, download all the
          correct details (part number, description and price) of the item to be
          purchased, directly into the requisition. This would then be authorised through
          Agresso and the purchase order sent to the supplier via the portal. The order
          would then be uploaded into the suppliers system and on despatch the invoice
          is generated and sent to us electronically via the portal. Electronic invoicing
          would be the second phase but would reduce purchase ledger processing and
          the need to scan invoices. The use of an e-marketplace would significantly
          reduce the number of mismatches between purchase orders and invoices as all
          the data is coming from the same source. This will reduce the invoice
          processing time per invoice.

          SUPC awarded an e-market place portal contract with E Government
          Solutions (EGS) Ltd called Parabilis in 2006. Parabilis is becoming the e-
          procurement interface between the HE sector and its’ suppliers. A number of
          SUPC members have, or are currently, implementing this marketplace,
          integrated with Agresso Financials. EGS are also responsible the Local
          Authority e-marketplace. SUPC have a member of staff who is working on the
          supplier interfaces.

6.2.      Security Review
          The contract for security provision has been extended by one year at a reduced
          level in order for a full review to be undertaken during 2009/10. This review
          will be undertaken once the Estates service provision has been re-aligned.

7      Sustainable Procurement
         Sustainable procurement continues for form an integral part of all University
         tenders in relation to both the goods and services supplied and the culture of
         the suppliers selected. For example the continued use of 100% “green”

        electricity, the purchase of furniture from Forestry Stewardship Council (FSC)
        certified suppliers and the furniture is fully welded for longevity. A key
        element in the print framework is suppliers who embrace the sustainable ethos
        and will work with us to promote it.

        The Procurement and Contracts Manager continues to Chair the SUPC
        “Sustainable Advisory Group”. During the year this has continued to include
        it’s members video conferencing facility as part of the meeting.

7.1     SHARE (Search Here and Recycle Equipment) web page
        The SHARE web page was set up during the year so that staff could advertise
        surplus equipment or request items which may be available around the
        University rather than purchasing new items.

8     Market Influences

8.1     Price movements
        The global recession has influenced the procurement market during the year
        and whereas we were expecting price increases a year ago due to oil and utility
        prices, these have generally been negated by the collapse of the global
        economy. However with the devaluation of the pound against both the Euro
        and the US Dollar some commodities have been subject to price increases.
        These include computer consumables and laboratory supplies, especially

8.2     Company Failures
        Despite the recession no major supplier to the University failed during the
        year. The majority of these suppliers have significant contracts with the wider
        public sector and this has shielded many from the effects of the recession.
        However in the future, as public spending shrinks, they will not be so well

9     Value for money Aspects
        Appendix 4 details the savings obtained through procurement activity during
        the year. This report is generated from the HE Efficiency Model.

        The monetary (cashable) interim savings for 2008/09 was £153,836 compared
        with £354,939 for 2007/08. This represents 0.75% of non-pay spend and
        compares with 1.35% in 2007/08. The savings figure has not been finalised for
        2008/09 as SUPC have not completed the savings report. The reduced level of
        saving reflects the reduced level of expenditure through the contracts during
        the year.

        The Procurement & Contracts Manager has worked with Academic and
        Professional staff within the University to ensure Value for Money through:
        • tendering for contracts
        • negotiating with suppliers
        • use of national and regional contracts
        • contract management

10 Key Activities for 2009-2010
     Print framework
     Undergraduate Prospectus printing

       Tenders subject to EU
       Legal Service
       Mechanical & Electrical Maintenance

       Further Competitions against EU frameworks
       Personnel Computers

       University Tenders
       Consultants for Mechanical & Electrical Maintenance
       Grounds Maintenance

11 Recommendations
     •    to note the achievements of the year
     •    to note the value for money aspects of the report
     •    to note the update of the good practice check list
     •    to note the update of the Flexible Framework
     •    to note the key activities for 2009/10

Sarah Wightman
Procurement & Contracts Manager

                                                                           Appendix 1

University of Gloucestershire

Financial Regulations

Section 4.2.1     Procurement Policy        Issue 2 Draft         October 2008

Amendment History

Issue 1
          16/10/08     Incorporated into the Financial Regulations, replacing Section
                       1.1 of the Procurement Manual

          10/09        Section 3.2 added that the Procurement Manager will support
                       on smaller tenders if required
                       Section 7.1 Title changed to Director of Finance and Planning.
                       Procurement training should be undertaken by all staff involved
                       in procurement.
                       Section 9.1 Reference to Senior Management Group removed

University of Gloucestershire.

Financial Regulations

Section 4.2.1    Procurement Policy           Issue 2 Draft          October 2009

1.     Introduction

       1.1.     This strategy is to support the University’s overall Strategic Plan by
                ensuring that it obtains value for money including sustainable criteria
                in purchasing activities.
       1.2.     The aim of the Procurement function is to make a recognised and
                measurable contribution to the success of the University particularly
                through this strategic aim. Procurement personnel will work to become
                recognised experts in supply management.
2.     Objectives
       2.1.     To simplify the procurement process and eliminate non-value added
                activities within the process and identify areas for further
                rationalisation and savings.
       2.2.     To ensure that all staff responsible for procurement are fully trained
                and working to the published procurement procedures, satisfy the
                standards required by their internal customers, meet regularly with
                their main suppliers and customers to identify problems, place
                corrective actions to prevent re-occurrence of problems and overall
                create a philosophy of continuous improvement.
       2.3.     To work with internal customers so that they can provide the
                information and necessary authorisations to enable a “right first time”
                service to be provided by procurement personnel.
       2.4.     To develop through partnership “a pool” of first class suppliers to
                ensure that the University receives high class quality of goods,
                delivery, service, responsiveness, contribution to innovation and value
                for money.
       2.5.     To analyse regularly the non-pay purchasing activities using
                benchmarking methodology / key performance indicators to monitor
                effectiveness of the Procurement function.
       2.6.     To ensure that the Value for Money and sustainability strategies are
                incorporated into procurement activities throughout the University. See
                Section 4.2.2. of the Financial Regulations.
       2.7.     To identify and utilise best procurement practice.
       2.8.     To ensure that the University through its suppliers and potential
                suppliers promotes equality of opportunity for all.
       2.9.     To investigate and develop an e-procurement policy.

     2.10. To ensure transparency of procurement activities to meet the needs of
           the Freedom of Information Act and other legislation.
     2.11. Share procurement / sustainable procurement good practices with local
           enterprises and public sector bodies as appropriate.
3.   Major Purchases
     3.1.   The Procurement and Contracts Manager will maintain a register of all
            tenders over £10,000 and will support all projects above the tendering
            thresholds detailed in the European Union Procurement Directives and
            ensure compliance with the directives in relation to long term
     3.2.   The Procurement and Contracts Manager will act in an advisory
            capacity on smaller projects, especially in respect of the contractual
            terms of the tender and support as required.

4.   Tendering and quotation Guidelines
     4.1.   A formal tendering process will be used, for values greater than those
            specified in the Section 4.3.1 of the Financial Regulation.
     4.2.   The Procurement and Contracts Manager will maintain an Approved
            Suppliers list for tendering and ordering purposes.

5.   Authorisation for the acquisition of goods or services
     5.1.   All purchases of goods and services must be correctly and
            appropriately authorised.

6.   Procurement of general goods and services
     6.1.   To obtain best value for money aggregation will be used wherever
            appropriate to maximise purchasing power. National, Inter-Regional
            and SUPC agreements will be used to avoid duplication of effort and
            dilution of benefits.
     6.2.   Contracts should only be awarded to approved suppliers. Where these
            suppliers are found not to provide best value for money, the
            Procurement and Contracts Manager should be informed.
     6.3.   The Procurement and Contracts Manager will disseminate purchasing
            information to all staff throughout the University.
     6.4.   Procurement will be undertaken by the relevant personnel in Schools
            or Departments, working to the procedures detailed in the Financial

7.    Training
      7.1.    The Procurement and Contracts Manager will determine with the
              Director of Finance and Planning the appropriate level of purchasing
              skills required and will in conjunction with line managers, arrange /
              monitor training and purchasing skills development for all staff
              involved in a significant level of spend on behalf of the University. All
              staff involved on procurement should attend the “Procurement – What
              you need to know” course.

8.    Procurement procedures manual
      8.1.    The Procurement and Contracts Manager will review and maintain a
              Procurement Manual (Section 4.3 of the Financial Regulations). It will
              contain a series of detailed procedures documenting both mandatory
              and advisory guidance on the procurement process. Procedures will be
              reviewed annually and form part of the University’s quality procedures
              and subject to audit.

9.    Internal Reporting and Monitoring
      9.1.    The Procurement and Contracts Manager will produce an annual report
              in compliance with the Quality Procedures of the University, which
              will be presented to Audit and General Purposes Committees, and
              University Council.
      9.2.    The Procurement and Contracts Manager will identify and implement
              key performance purchasing indicators, the results of which will be an
              integral part of the annual report.

10.   Register of Interests
      10.1.   The Procurement and Contracts Manager will maintain a Register of
              Interests to cover the Senior Management Group and all other
              University personnel involved in authorising major areas of University
              expenditure (Section 4.8 of the Financial Regulations).

11.   Ethical Code
      11.1.   The code of ethics of the Chartered Institute of Purchasing and Supply
              will be observed by all staff and representatives engaged in the
              institution’s procurement activities.

                                                                                                                                          Appendix 2

Procurement attributes and performance assessment – 2008/09

     Attributes                                                                         Assessed status
     Governance role                     No involvement              Adequate                   Proactive               High-priority focus
                                                                     Meets minimum                                      One of top-level
     Organisational structure
                                         Poor                        standards                   Seen as key function   organisations
     Resources and skills                Inadequate                  Meet minimum standards      Valued                 Seen as investment
                                                                                                 Pursuing advanced      Achieving advanced
     Practices and processes
                                         Weak                        Meet minimum standards      procurement            procurement
     Information systems                 Inadequate                  Supportive                  Adding good value      Fully capable
     Involvement in collaboration        None                        Intent                      Developing             Established
     Corporate and social
     responsibilities                    No recognition              Intent                      Pursuit                Inclusion
                                                                                                                        Comprehensive and basis
     Reporting/ KPIs
                                         Inadequate                  Minimum                     Adding value           for action
                                                                                                                        Practice routine and basis
                                         None                        Intent                      Some                   for action
     EU guidelines                       Not met                     Meet minimum                Developed              Advantageous
     Supplier policy and strategy        None                        Basic                       Developed              An asset
     Overall value of results            Weak                        Just adequate               Better value           Best value
     Overall procurement status for
     the organisation                    Nonconformance              Conformance                 Improved performance   Superior performance

    Action points to address weaknesses in Nonconformance and Conformance Columns
    o Further develop bench marks / KPIs to compare levels of non-pay expenditure against key criteria
    o Improve procurement information reporting

           Appendix 3 -Flexible Framework                                                                                                                                 October 2009

                   Foundation              Embed                              Practice                         Enhance                                      Lead
                                                                    Actions                          Actions                           Actions                                        Actions
                   Level 1                 Level 2                            Level 3                          Level 4                                      Level 5
                   - Sustainable           - All procurement                  - Targeted refresher             Sustainable                                  - Achievements are
People             procurement             staff have received                training on latest               procurement included                         publicised and used to
                   champion                basic training in                  sustainable                      in competencies and                          attract procurement
                   identified.             sustainable                        procurement                      selection criteria.                          professionals.
                                           procurement                        principles.

                   - Key procurement       - Key staff have                   - Performance                    - Sustainable           Enhance the          - Internal and external   Sustainable procurement
                   staff have received     received advanced                  objectives and                   procurement is          induction            awards for                included in Green Gown
                   basic training in       training on                        appraisal include                included as part of     programme to         achievements are          continuous improvement
                   sustainable             sustainable                        sustainable                      employee induction      include further      received.                 award
                   procurement             procurement                        procurement factors.             programme               examples.
                   principles.             principles.

                   - Sustainable                                              - Simple incentive                                                            - Focus is on benefits    Report benefits in the
                   procurement is                                             programme in place.                                                           achieved.                 annual procurement and
                   included as part of a                                                                                                                                              sustainability report
                   key employee
                                                                                                                                                            - Good practice shared    Developing contacts with
                                                                                                                                                            with other                public and private sector
                                                                                                                                                            organisations.            bodies to share good

Policy, Strategy   - Agree overarching     - Review and                       - Augment the                    - Review and            Identify new         - Strategy is: reviewed   Include in the Entropy
&                  sustainability          enhance sustainable                sustainable                      enhance the             technologies and     regularly, externally     system to monitor. This
Communication      objectives.             procurement policy,                procurement policy               sustainable             work with the        scrutinised and           will then be formally
                                           in particular consider             into a strategy                  procurement strategy,   relevant depts to    directly linked to        reviewed by British
                                           supplier engagement.               covering risk,                   in particular           pursue benefits if   organisations’ EMS.       Standards as part of
                                                                              process integration,             recognising the         applicable                                     ISO14401.
                                                                              marketing, supplier              potential of new
                                                                              engagement,                      technologies.
                                                                              measurement and a
                                                                              review process.

              - Simple sustainable    - Ensure it is part of a   - Strategy endorsed                             - Try to link strategy   Sustainable          - Sustainable              Communicated through
              procurement policy      wider Sustainable          by CEO.                                         to EMS and include       procurement          Procurement strategy       annual procurement and
              in place endorsed by    Development                                                                in overall corporate     policy linked into   recognised by political    environmental reports to
              CEO.                    strategy.                                                                  strategy.                EMS and              leaders and is             University Council.
                                                                                                                                          ISO14001             communicated widely.       Available on the University
                                                                                                                                          programme                                       web site

              -Communicate to         - Communicate to                                                                                                         - Detailed review          Include in the work of the
              staff and key           staff, suppliers and                                                                                                     undertaken to              University Sustainability
              suppliers.              key stakeholders.                                                                                                        determine future           Institute & incorporate into
                                                                                                                                                               priorities and new         EMS
                                                                                                                                                               strategy produced
                                                                                                                                                               beyond this
Procurement   - Expenditure           - Detailed                 - All contracts are                             - Detailed               Using the risk       - Life-cycle analysis
Process       analysis undertaken     expenditure analysis       assessed for general                            sustainability risks     profile include in   has been undertaken
              and key                 undertaken, key            sustainability risks                            assessed for high        Entropy              for key commodity
              sustainability          sustainability risks       and management                                  impact contracts.                             areas.
              impacts identified.     assessed and used for      actions identified.
              - Key contracts start   - Sustainability is        - Risks managed                                 - Project /contract                           - Sustainability Key
              to include general      considered at an early     throughout all                                  sustainability                                Performance
              sustainability          stage in the               stages of the                                   governance is in                              Indicators agreed with
              criteria.               procurement process        procurement                                     place.                                        key suppliers.
                                      of most contracts.         process.

              - Contracts awarded     - Whole-life-cost          - Targets to improve    For SUPC                - A life-cycle           Identify where       - Progress is rewarded
              on the basis of         analysis adopted.          sustainability agreed   framework               approach to              applicable and       or penalised based on
              value-for-money,                                   with key suppliers.     agreements this is      cost/impact              incorporate into     performance.
              not lowest price.                                                          carried out by SUPC     assessment is            tender evaluation
                                                                                                                 applied.                 procedures
              - Procurers adopt                                                                                                                                - Barriers to
              ‘quick wins’.                                                                                                                                    sustainable
                                                                                                                                                               procurement have
                                                                                                                                                               been removed.
                                                                                                                                                               - Best practice shared
                                                                                                                                                               with other

Engaging      - Key supplier          - Detailed supplier        - Targeted supplier     From the risks          - Key suppliers          Short list key       - Suppliers recognised
Suppliers     spend analysis          spend analysis             engagement              analysis identify the   targeted for intensive   suppliers for        as essential to delivery
              undertaken and high     undertaken.                programme in place,     suppliers to monitor    development.             development.         of organisations’
              sustainability                                     promoting continual     continual                                        Possibly in          sustainable
              impact suppliers                                   sustainability          improvement.                                     conjunction with     procurement strategy.
              identified.                                        improvement.            Ongoing                                          SUPC

                                                                                 - Two-way              Included as part of                             - CEO engages with
                                                                                 communication          the contract review                             suppliers.
                                                                                 between procurer       process. (No
                                                                                 and supplier - with    incentives exist)
                                                                                 incentives - exists.

                 Key suppliers -        - General programme                      - Supply chains for    Work with identified   -Sustainability audits   - Best practice shared
                 targeted for           of supplier                              key spend areas        suppliers on mapping   and supply chain         with other/peer
                 engagement and         engagement initiated,                    have been mapped.      the supply chain       improvement              organisations.
                 views on               with senior manager                                                                    programmes in place.
                 procurement policy     involvement.

                                                                                                                               -Achievements are
                                                                                                                               formally recorded.

                                                                                                                               - CEO involved in        - Suppliers recognise
                                                                                                                               the supplier             they must continually
                                                                                                                               engagement               improve their
                                                                                                                               programme.               sustainability profile
                                                                                                                                                        to keep the business.

Measurements &   - Key sustainability   - Detailed appraisal    Use Entropy to   - Sustainability       Define key users       - Measures are           - Measures used to
Results          impacts of             of the sustainability   record impacts   measures refined       Work with them to      integrated into a        drive organisational
                 procurement            impacts of the                           from general           identify objectives    balanced score card      sustainable
                 activity have been     procurement activity                     departmental                                  approach reflecting      development strategy
                 identified.            has been undertaken.                     measures to include                           both input and           direction.
                                                                                 individual procurers                          output.
                                                                                 and are linked to
                                        - Measures                                                                             - Comparison is          - Progress formally
                                        implemented to                                                                         made with peer           benchmarked with
                                        manage the identified                                                                  organisations.           peer organisations.
                                        high risk impact
                                                                                                                               - Benefit statements     - Benefits from
                                                                                                                               have been produced.      sustainable
                                                                                                                                                        procurement are
                                                                                                                                                        clearly evidenced.

                                                                                                                                                        - Independent audit
                                                                                                                                                        reports available in the
                                                                                                                                                        public domain.

                                                                                  Appendix 4

                            University of Gloucestershire
      Efficiency Measurement Report - High Level Savings Summary

 Financial Year:          2008-2009       Cashable:                153,836
 Total Spend:                             Uncashable:                    0
 Non-pay                 20,544,000       As % of Non-Pay Spend       0.75 %
 Influenceable Spend:     8,207,167       As % of Influenceable       1.68 %
 Total Efficiencies:        153,836       External Efficiencies:         0

Project Ref                       Project Title                      Total By
Gas 0809         30% gas cost – floating                                 25,724
EP011            ULF Fit out                                              9,878
ICT 0708         General ICT savings 2007/08                               2061
Tractor          Tractor lease renewal                                      190
Software         Adobe discounts                                          9,472
SUPC             SUPC savings (2008/09 interim)                         106,000
London Campus    Franking Machine                                           511


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