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									          Corporate Procurement Strategy

                                             2006 / 2009
       Introduction                                                                          2
       Aims                                                                                  2
       Objectives                                                                            3
       Strategy framework                                                                    3
       Spend profile                                                                         4
       Organisation - roles and responsibilities                                             4
       Key actions                                                                           6
       Key policies                                                                          7

       A Revised procurement improvement action plan                                         15

       Supporting Documents available from
       Contract Regulations
       (for Financial Regulations, Members Code of Conduct and Employees Code of Conduct)
       Local E-government strategy
       Small Business Friendly Concordat

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  1. “Procurement” is the process of acquiring goods, works and services and
     relates to all expenditure, with the exception of directly employed staff costs and
     ‘non contract’ expenditure e.g. grants, rates, debt and interest payments.
     Procurement covers everything from basic purchasing through to strategic
     reviews of service provision (the “make or buy” decision) and encompasses
     every aspect of the purchasing process from identifying the need, the buying
     process, through to the end of service delivery.

  2. Quality procurement contributes towards the achievement of the council’s
     strategic objectives. It is important for the council to develop a clear strategy to
     address how externally provided resources are selected, acquired and managed
     and also to consider delivery options when undertaking a service review.

  3. The council’s Corporate Plan specifies our priority actions and there are a
     number of key initiatives, including a range of procurement and partnering
     opportunities, that will continue to be developed to contribute towards achieving
     efficiencies in future years.


  4. The strategy aims to promote effective procurement across the whole council
     and to set out a flexible framework within which further procurement reform can
     evolve. Flexibility will be needed to respond to the rapidly changing environment
     around public sector procurement and to allow learning from our own
     experiences and from the experience of others. The pace of technological
     change currently associated with e-procurement demonstrates the need to build
     flexibility into this strategy.

  5. The authority’s annual expenditure on bought-in goods, works and services is
     measured in millions of pounds. The council needs to have a clear strategy to
     ensure that:-

               •    Procurement planning reflects the council's core values and corporate
                    aims and objectives;

               •    There is commitment to effective procurement from councillors and
                    officers at all levels throughout the organisation;

               •    There is a corporate focus to develop a consistent approach and
                    signpost best practice for procurement; and

               •    Value for Money is given due consideration in all procurement
                    activities in line with our legal duty to continuously improve the
                    services we provide having regard to economy, efficiency and

  6. Procurement needs are rapidly changing and therefore the action plan
     introduced in 2005 has been reviewed and the steps that will need to be
     implemented in the medium term have been identified in a revised action plan
     (Annex A).

  7. The key themes of the National Procurement Strategy (NPS) are

             • Providing leadership and building capacity
             • Partnering and collaboration

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          • Doing business electronically
          • Stimulating markets and achieving community benefits
          • Vision
       The council’s procurement objectives have been chosen to enable the
       council to improve its procurement practice in line with the NPS.

  8. This strategy was first adopted in September 2005 and reviewed in September
     2006. It will now be reviewed every three years with the next review due in

Objectives for Procurement

  9.      The council’s objectives for procurement are: -

               (1) To develop a positive framework for procurement which promotes the
                   council’s vision, core values and strategic objectives;

               (2) To obtain value for money from the council’s procurement spend;

               (3) To develop and implement appropriate eProcurement systems;

               (4) To achieve the National Procurement Strategy milestones within and
                   appropriate timeframe;

               (5) To develop and maintain effective relationships with the regional Centre of

Strategy Framework

10.       The Corporate Plan defines the council’s vision, values, priorities and strategic
          objectives. These are complemented by objectives for each of the council’s services
          that are set out in service strategies and plans.

11.       The council’s vision is “to be a modern, flexible and forward–looking council
          championing local aspirations and with a proven reputation for excellence in a world
          class environment”.

12.       The council’s mission is “to ensure the provision of good value services which
          enhance the quality of life for all sections of the community now and for the future”.

13.       The council’s strategic objectives for the period 2005 to 2009 are:-

               •   Achieving a balanced housing market
               •   Protecting and enhancing the environment
               •   Increased prosperity
               •   Improving the safety of communities
               •   Promoting recreation and community fulfillment
               •   Promoting healthier communities
               •   Championing local transport needs
               •   Ensuring we are a well-managed council.

       This strategy contributes to each of these objectives and in particular will help to ensure
       that we are a well-managed council.

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14. The council’s core values for the period 2005 to 2009 are:-

               •    Fairness
               •    Openness
               •    Customer and community focused
               •    Underlying value
               •    Sustainable
               •    Ethical
               •    Developing staff

15. This strategy is aligned with the council’s vision, values, priorities and objectives and
    forms part of the council’s strategic framework.

16. The council recognises that procurement has a major role to play in the delivery of its
    priorities and in the delivery of the council’s change programme.

Spend Profile

17. Each year West Dorset District Council spends approximately £10 million on the
    procurement of goods, works and services. This breaks down as follows:-
              Supplies                                            £ 2.5 million
              Works                                               £ 3 million
              Services                                            £ 4.5 million

18. An indication of the procurement planned is available on the council’s website.

Organisation – Roles and Responsibilities for Implementation of the
Procurement Strategy

19.    The Executive Committee’s role contributes to achieving procurement objective 1

               •    Considering and recommending the Corporate Procurement Strategy to
                    Council and monitoring its implementation to ensure that it supports the
                    achievement of the council’s aim and priorities
               •    Overseeing corporate arrangements for procurement and contract
                    management to ensure they are operating effectively
               •    Ensuring that systems are in place to facilitate the engagement of councillors
                    in making key decisions in the procurement cycle for major projects (including
                    agreeing the outline business case and awarding contracts) and promoting the
                    need for the completion of scrutiny reviews on high value/ high risk projects
               •    Making key decisions in the procurement cycle for major projects (e.g.
                    business case and contract award)
               •    Ensuring that key policies and strategies are being considered during the
                    procurement process
               •    Leading value for money reviews of procurement and contract management

20.    The role of the Member Champion for procurement contributes to achieving
       procurement objectives 1 and 5. The role, in consultation with the leader, is to:-

               •    Champion the Corporate Procurement Strategy
               •    Promote councillors’ understanding of strategic procurement management
                    and promote their skills’ development
               •    Motivate councillors and gain their commitment to procurement change
               •    Promote value for money and risk management in relation to procurement

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               •    Promote the consideration of equality, diversity and sustainability issues at an
                    early stage of the procurement process
               •    Act as an advocate for procurement in the council, its committees and informal
                    meetings and maintain a contact with Overview and Scrutiny Committees on
                    matters relating to procurement
               •    Liaise with the Procurement Officer on matters relating to procurement
               •    Attend external meetings where member representation is required

21.       The Overview and Scrutiny Councillors’ role contributes to procurement
          objectives 1 and 2 by:-

               •    Challenging progress on major procurement projects
               •    Scrutinising strategic procurement contracts and reviewing their impact upon
                    the community and staff
               •    Identifying, as part of the scrutiny process, lessons that are learnt and
                    improvements to be made to the procurement strategy and Contract
               •    Ensuring that during scrutiny review exercises the option appraisal for
                    procurement is robust and challenging and takes into account all models of
                    service delivery

22.       The Director of Corporate Resources is the procurement champion on the
          Corporate Management Team. His responsibilities contribute to achieving all the
          procurement objectives by:-

               •    Ensuring systems are in place for procurement and contract management and
                    that they are operating effectively
               •    Promoting the procurement vision with members, the Corporate Management
                    Team and officers

23.       The Corporate Management Team’s (CMT) role contributes to achieving
          procurement objectives 1 and 2 by :-

               •    Building capacity to ensure that arrangements are in place to deliver
                    procurement generally, and the procurement Action Plan specifically
               •    Making sure that the councillors and officers involved with procurement have
                    the right skills in place to be able to deliver it effectively
               •    Ensuring that option appraisal is robust and challenging
               •    Maintaining an overview of corporate arrangements for procurement and
                    ensuring that they are operating economically, efficiently and effectively

24.       Service Managers contribute to achieving procurement objectives 1 and 2 and
          their role is to:-

               •    Take responsibility for procurement in their services, and ensure that
                    procurement is undertaken in accordance with the Corporate Procurement
                    Strategy and Key Policies, Contract Regulations and Codes of Practice
               •    Ensure that the relevant staff in their area have the right level of skills to
                    deliver effective procurement
               •    Monitor all procurement activity in their services
               •    Manage projects and make sure an appropriate project plan is in place and
               •    Identify and notify the Procurement Officer of procurement decisions planned
                    for each financial year

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25.       Budget Holders and staff involved directly with the buying of goods, works and
          services contribute to achieving procurement objective 2 and they are responsible

               •    Following the Corporate Procurement Strategy and Key Policies, Contract
                    Regulations and Codes of Practice relevant to the level of risk associated to
                    the goods, works and services being purchased
               •    Ensuring that where procurement targets are not being met they are reported
                    as soon as possible in order for remedial action to be planned and decided
                    upon as soon as possible
               •    Conducting relationships with suppliers and partners appropriately to promote
                    the council in a positive manner

26.       Responsibility for promoting best procurement practice is delegated to the Finance
          and Review Manager who, with the Procurement Officer, will:-

               • Ensure that the corporate procurement strategy is aligned with corporate
                 objectives, and the performance plan, and monitor its implementation
             • Ensure that procurement practice is in line with the council’s procurement
                 strategy and contract regulations
             • Investigate and introduce new methods of procuring and managing the
                 procurement process across the council
             • Develop and implement appropriate e-procurement systems
             • Ensure that senior managers and officers have a commitment to strategic
                 procurement management
             • Oversee corporate arrangements for procurement and contract management
             • Advocate that the equality and sustainability key policies are considered at an
                 early stage of the procurement process
             • Capture lessons learnt from major projects, partnerships and other key
                 contracts and recommend improvements to be made to the procurement
                 strategy and contract regulations as a result
             • Develop and monitor a range of performance indicators relating to
             • Whilst the procurement function is de-centralised, ensure that procurement
                 training needs are identified for staff engaged in making procurement
                 decisions and implement an action plan to address those needs
             • Timetable strategic contracts and monitor their performance against targets
                 set for them
             • Introduce, maintain and publish on the council’s website a register of
                 contracts and a procurement plan setting out details of contract opportunities
          The roles of the Finance Manager and Procurement Officer will contribute to
          achieving all of the procurement objectives.

Key Actions

      27. Key actions have been identified as being necessary to give effect to the council’s
          strategic objectives for procurement and to put into effect the key policies.

      28. The key actions have been developed on the basis of an analysis of spend and the
          council’s procurement portfolio.

      29. The key actions for 2006/07 are set out in Annex D in the form of a Revised
          Procurement Improvement Action Plan.

      30. The Procurement Officer is responsible for keeping the key actions under review and
          for identifying any further actions that may become necessary.

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Key Policies

31.       The following policies have been put in place to enable the council’s objectives and
          core values to be realised in a procurement context. The policies will contribute to
          achieving the procurement objectives (see paragraph 8) as indicated. Officers must
          take into account each of the key policies when deciding relevant evaluation criteria
          and their appropriate weighting.

KP1: Value for Money (Core value: Underlying Value) (Procurement Objective: 2)

KP1.a. The council is fully committed to improving the economy, efficiency and effectiveness
       of all its procurement activity. All procurement of goods, works and services is to be
       based on value for money, having due regard to propriety, regularity and the council’s
       legal obligations.

KP1.b. Value for money as a contract award criterion is defined for the purposes of the
       Contract Regulations as “the optimum combination of whole life costs and benefits to
       meet the customer’s requirement”. This equates to “the most economically
       advantageous tender (MEAT)” or offer under the EU procurement rules.

          Some examples of costs contributing to the whole life costs are:-
             • Initial price
             • Delivery and installation
             • Operative resources
             • In-house management resources
             • Consumables
             • Spare parts
             • Taxes
             • Maintenance
             • Energy consumption
             • Depreciation / residual value
             • Disposal / exits costs

KP2: Customer Focus (Core value: Customer and Community Focused) (Procurement
Objective :1)

KP2.a “Customers” includes internal and external customers and the council will take full
      account of the needs of customers, both in the community and within the authority,
      when purchasing goods, works and services.

KP2.b Tenderers will be encouraged to submit optional, priced proposals for the
      delivery of community benefits where they are relevant to the contract and to
      the Corporate Plan.

KP3: Competition (Core value: Underlying Value) (Procurement Objective: 2)

KP3.a Competitive procurement promotes economy, efficiency and effectiveness in council
      expenditure and also contributes to the competitiveness of suppliers, contractors and
      service providers.

KP3.b All goods, works and services must therefore be acquired by competition except in
      the circumstances set out in Contract Regulations.

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KP4: Transparency (Core values: Openness and Fairness) (Procurement Objective: 1)

KP4.a The council has introduced a contracts register and a procurement plan setting out
      details of contracts that are expected to be awarded during the current financial year.
      The register and procurement plan will be regularly updated and published on the
      council’s website. In addition to placing adverts in appropriate publications the council
      will publish copies of tender adverts and EU notices on its website.

KP5: Continuous Improvement (Core values: Customer & Community Focused and
      Underlying Value) (Procurement Objective: 1)

KP5.a This strategy forms part of the arrangements the council has made under Part 1 of the
      Local Government Act 1999 (as amended) to secure continuous improvements in
      service delivery in terms of economy, efficiency and effectiveness.

KP5.b By including appropriate standards, targets and monitoring methods in contracts, the
      procurement process will be used to encourage contractors, service providers and
      suppliers to reduce costs, promote sustainability equality and diversity, and
      continuously improve performance.

KP6: Ethics and Fraud Prevention (Core value: Ethical) (Procurement Objective: 1)

KP6.a The council will insist on ethical standards from our suppliers and in turn members
      and officers of the council must preserve the highest standards of honesty, integrity,
      impartiality and objectivity.

KP6.b Purchasing officers shall comply with the council’s constitution, contract and financial
      regulations and any relevant code of conduct or good practice.

KP7: Standards (Core value: Developing Staff) (Procurement Objective: 1)

KP7.a The council shall establish standards of competency in procurement, contract
      management and change management and shall take steps to ensure that officers
      and councillors receive the training and development they need to operate to the
      relevant standard.

KP8: Collaboration (Core value: Underlying Value) (Procurement Objective: 4 and 5)

KP8.a The council believes that efficiency savings can be achieved through joint working,
      partnerships and consortia and will always seek to exploit the opportunities available
      for collaboration with other local authorities and public sector bodies (including joint
      procurement and establishing shared services) and private organisations.

KP8.b        The Council is able to access Central Buying Consortium contracts through an
             arrangement with Dorset County Council and will continue to work with the regional
             Centre of Excellence and Dorset Procurement Partnership to explore ways of
             achieving value for money by consolidating the procurement needs of a number of
             authorities, reducing product diversity and administrative overheads.

KP9: Framework Agreements and Corporate Contracts (Core value: Underlying Value)
      (Procurement Objective: 1, 2 and 5)

KP9.a        Where the council has put in place framework agreements or corporate contracts,
             goods, works and services must be ordered under those arrangements.

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             Exceptions to this rule must be justified in accordance with the Contract

KP10: eProcurement (Core values: Underlying Value and Sustainable) (Procurement
      Objective 3)

KP10.a The council will develop, embrace and implement an e-procurement       strategy
       based on its purchasing requirements. E-Procurement describes the use of
       electronic systems to acquire goods, works and services and payments to third
       parties (including electronic marketplace, tendering, auctions and procurement

KP10.b The council is committed to a modular approach to the introduction of electronic
       commerce, including optimising use of electronic payments, and appropriate use of
       procurement cards and electronic tendering.

KP10.c The council will identify appropriate e-procurement solutions to be deployed within
       the timeframes established by the National Procurement Strategy.

KP10.d The council will work with other Dorset authorities to establish an appropriate e-
       marketplace solution and to develop a sub-regional e-procurement strategy, whilst
       being mindful of the potential impact on small and medium enterprises (SMEs).

KP11: Mixed Economy (Core values: Customer & Community Focused and Underlying
      Value) (Procurement Objective: 2)

KP11.a The council is committed to the promotion of a mixed economy of service provision
       because this is most likely to deliver value for money for the citizens of West Dorset.

KP11.b The basis for commissioning service providers in the public, private, voluntary and
       community sectors is value for money to the customer.

KP12: Supplier Diversity (Core value: Fairness; Sustainable and Customer & Community
      Focused) (Procurement Objective: 1, 2 and 4)

KP12.a The council is committed to promoting a strong local economy and, where
        practicable and consistent with European legislation and value for money, the
        council will take opportunities to support local small and medium-sized enterprises
        through its purchasing decisions. Small businesses make an important
        contribution to the delivery of public services and the Council recognises
        the role these businesses play in the national and local economy.

KP12.b By providing information and advice on the council’s website the council will assist
       businesses (and SMEs in particular), voluntary and community organisations, social
       enterprises and ethnic minority businesses to build their capacity to win and retain
       public contracts.

KP12.c The council recognises that its purchasing activity can directly impact on the
       development of the local economy and will produce guidance for purchasing officers
       to raise awareness of the potential barriers faced by SMEs when doing business
       with the council.

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KP12.d The council is committed to encouraging effective trade between it and small
       businesses and has demonstrated this commitment by entering into the National
       Procurement Concordat for Small and Medium-sized Enterprises.

KP12.e The council will ensure that its approach to individual contracts, including
       large contracts and framework agreements etc, is supported by a sound
       business case and options appraisal.

KP12.f Where the council decides that the best value option is to aggregate
       supply or let a longer term contract or framework agreement we will invite
       bidders to demonstrate their track record in achieving value for
       money through effective use of their supply chain.

KP12.g The council will consider the role of SME specialist suppliers in delivering
        elements in larger contracts and framework agreements where appropriate.

KP12.e The council monitors and will seek to increase the proportion of spending
       with local SMEs either directly or indirectly within the applicable legal
       constraints and where consistent with value for money.

KP13: Option Appraisal and the Business Case (Core values: All) (Procurement
Objective: 2)

KP13.a When undertaking a scrutiny review of a service, the council will wish to form a
       rounded, evidence-based view of the performance of that service in terms of
       comparison, consultation, competitiveness and challenge (the 4Cs).

KP13.b The council recognises that the competitiveness of its services is a key dimension to
        be addressed in reviews and will, so far as is practicable, consider competitiveness
        in terms of cost, quality, customer satisfaction, added value and efficiency savings.

KP13.c The principal options (service delivery models) to be considered are:-

               •    In-house
               •    Public sector consortium (including a joint committee or joint board where
               •    Non-profit distributing organisation (“trust”)
               •    Tactical contracts (multiple)
               •    Local authority company
               •    Joint venture company
               •    Partnering contract
               •    PFI/PPP contract (design, build, finance and operate)
               •    Framework agreement
               •    Concession/franchise
               •    Closure/disposal
               •    Community and Voluntary Organisations
               •    Do nothing
               •    Mixture of the above

KP13.d The council will examine the scope for collaborative procurement with other local
       authorities and government organisations.

KP13.e In major construction projects the options to be considered will include, but are not
       limited to:-

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               •    Design; build (two contracts eg. architect and builder)
               •    Design and build (one contract)
               •    Design, build and maintain
               •    Design, build, finance and operate (PFI/PPP)

KP13.f       The council is committed to achieving excellence in construction and will develop a
             strategic approach to partnering in construction as required by the National
             Procurement Strategy (Annex G NPS milestone 3). The primary consideration in the
             choice of procurement route is the need to obtain overall value for money in the
             whole life of the service or facility. This includes maintenance and therefore design,
             construction and maintenance should not be considered in isolation from one

KP13.g Partnering (single project or multi-project (“strategic”) partnering) will always be
       considered for high risk/high value schemes (also see KP14 below).

KP13.h The option recommended to the Executive Committee in the business case will
       include an evaluation of the impact on the council’s ability to meet its core values
       and will be the one that scores highest against the following criteria:-

               •  Strategic fit: how well does the proposed way of meeting the requirement
                  support the authority’s objectives and current policies? Does the scope need
                  to change? Does it meet the requirements of funding partners ?
              • Options: has a wide range been explored, including innovation and/or
                  collaboration with others? How do they compare in terms of benefits, costs,
                  risk and commercial viability?
              • Value for money: (benefits, costs, risks, efficiency savings): can this be
                  obtained from proposed sources of supply such as current suppliers? Does
                  the project need to be made attractive to a wider market?
              • Affordability: is the budget available to deliver what is required? If not, can
                  the scope be reduced or delivery extended over a longer period of time; or
                  funding sought from other sources?
              • Achievability: can this project be achieved with the authority’s current
                  capability and capacity (such as other projects with a high priority that must be
                  delivered at the same time)?
             The senior manager responsible for the project, in conjunction with the Finance and
             Review Manager, will weight these criteria appropriately.

KP14: Partnering (Core values: Underlying Value) (Procurement Objective : 2)

KP14.a Partnering is the council’s preferred procurement approach for high value/high risk

KP14.b Partnering involves the creation of a mutually advantageous, flexible, long-term
       relationship between the council and its partner based on the sharing of risks and
       rewards and continuous improvement. The partner may be in the public, private,
       community or voluntary sector.

KP15: Project Management and Scrutiny Reviews (Core values: Ethical) (Procurement
      Objective: 1)

KP15.a All major procurement projects will be managed according to a structured project
       management method and incorporating standard scrutiny reviews and best practice
       in risk management.

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KP15.b Reviews for all other projects will be carried out under the direction of the
       Procurement Officer.

KP16: Workforce Issues and Staff Involvement (Core values: Developing Staff)
      (Procurement Objective:1)

KP16.a The council is committed to being a good employer and to recruiting and retaining a
       quality, well-motivated workforce fully enabled to deliver effective services to the

KP16.b Staff will be consulted at all appropriate stages of a procurement project and
       especially in situations likely to involve a transfer of staff or the formulation of a

KP16.c In situations which result in a transfer of staff The Transfer of Undertakings
       (Protection of Employment) Regulations (TUPE) will apply and the council will use
       its best endeavours to secure a broadly comparable pension for transferring staff or
       alternatively, if possible, the admission of the service provider or contractor to the
       local government pension scheme. In transfer situations the council will implement
       Government guidance on the treatment of new starters, including the inclusion of
       the relevant code of practice in contracts.

KP17: Sustainable Procurement (Core value: Sustainable) (Procurement Objective: 1 and

KP17.a The council is committed to the continual improvement of its environmental
       performance and encourages the assessment of the social, economic and
       environmental impact of the goods, works and services it purchases.

KP17.b Where it fits with our requirements for value for money, the council will favour the
       award of contracts to suppliers who can demonstrate an ability to supply goods,
       works and services that have a clear environmental advantage.

KP17.c The council will encourage its suppliers and contractors to minimise negative
       environmental and social impacts by ensuring that environmental issues form
       part of the decision-making process in procurement.

KP17.d Where practicable the council will ask partners and suppliers of goods, works and
       services to provide comparative whole life costs for environmentally sustainable
       alternatives and then decide whether any additional costs are justified for the
       community benefits which may be gained. Consideration of whole life costs (not
       just the capital costs) means that all phases of a product’s lifecycle should be
       considered when assessing the sustainability impact. Examples of whole life
       costs are given in KP1.

KP17.e Environmentally responsible practices and materials will be adopted for building
       and civil engineering design and measures to increase the use of sustainable
       materials, energy and water efficiency, and healthy buildings together with
       measures to minimise construction waste shall be specified in all contracts.

KP17.f       The council will require its suppliers, contractors and partners to comply with
             relevant environmental statutory requirements.

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KP18: Diversity and Equalities (Core value: Fairness) (Procurement Objective: 1 and 4)

KP18.a The council is committed to promoting equality of opportunity and to combating
       discrimination both in the way we deliver services to the public and through our
       actions as an employer.

KP18.b The council aims to achieve a consistent approach to equality throughout the
       community and in the delivery of all services.

KP18.c The council expects all organisations and people working on its behalf (including
       partners and contractors) to practice equal opportunities and they must be clear
       about the council’s position on equality; be aware of the requirements placed upon
       them to adhere to the council’s Comprehensive Equality Policy; and be able to
       demonstrate that all reasonably practicable steps are taken to allow equal access
       and equal treatment in employment and service delivery.

KP18.d The council will ensure that its procurement policies and practices support its
       Comprehensive Equality Policy by: -

               •    Insisting that our appointed contractors, sub-contractors and partners share
                    and help to deliver our equal opportunities goals,

               •    Making sure our tendering opportunities are advertised appropriately. The
                    council will take positive steps to ensure that voluntary organisations and
                    equality groups and businesses have an opportunity to compete,

               •    Ensuring our selection and tendering processes positively address and
                    include appropriate equality considerations,

               •    Rigorously monitoring our contracts for compliance,

               •    Including appropriate terms and conditions to ensure good practice as regards
                    disability, age, race, gender, sexual orientation, faith / religion, ethnicity or
                    nationality and, in particular, to ensure that the council fulfils its statutory
                    duties, and,

               •    Training staff in equalities issues for procurement.


The implementation of the strategy and action plan will be measured by local
performance indicators LE 1 and LE 2 and further performance indicators will be
developed in conjunction with the Dorset Procurement Partnership over time. The
National Procurement Strategy milestones will be monitored by local performance
indicator LE 29.

         Performance Indicator                                             % at June    % at 31
                                                                           2005         March 2006
LE29     Percentage of number of milestone activities completed in the     3.57 %       39.28 %
         National Procurement Strategy for Local Government

LE1      Percentage of clients satisfied with procurement support

LE2      Percentage of compliance with finance division workload
         Percentage of the value of contracts awarded that commence

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         in the financial year in accordance with contract regulations
         aligned with the Corporate Procurement Strategy and
         procurement best practice (to be developed in partnership
         with the Dorset Procurement Partnership)

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                                                  Revised Procurement Improvement Action Plan                                                                                 Annex A
         Procurement                       NPS                                                                                          Implementation            Led    Support
          Objective                     Milestones                                    Tasks                                 2005   2006     2007    2008   Post   by
                                                          a) Appoint a Member Procurement and Efficiency Champion           * C                                   Exec
1. Develop a positive framework        1,2,3, 4, 5, 6,    b) Develop & recommend a new procurement strategy (1 year)        * C                                   FM     PO
for procurement which promotes         7, 8, 9, 10,       c) Develop & recommend a 3 year procurement strategy                                                    PO     FM
the council’s vision, core values      19, 20, 22,        d) Strategy developed & owned by Chief Executive, members                                               FM
and strategic objectives               23, 26             &senior officers
                                                          e) Implementation of strategy regularly measured                                                        CF
                                                          f) Resource the procurement function                              * C                                   FM
                                                          g) Review procurement function resource                                                                 FM
                                                          g) Identify officers with key role in procurement                 * C                                   PO     SM
                                                          h) Assess capacity of key officers to support procurement                                               PO     Ex
                                                          i) Identify external agencies able to assist in developing        * C                                   PO     Ex
                                                          procurement practices
                                                          j) Develop & recommend new contract regulations                            C                            FM     PO
                                                          k) Develop & recommend guidance for contract regulations to        *                                    PO     FM
                                                          support the strategy
                                                          l) Agree appropriate legal documentation & procedures to           *                                    PO     LS
                                                          support a wide range of procurement types
                                                          m) Carry out training in procurement & contract regulations               *                             PO     Per

                                                          a) Review current purchasing methods for categories of spend      * C                                   PO
2. Obtain value for money from         13, 14, 21,        b) Create summary purchasing spend analysis                         C                                   CF
the council’s procurement spend        24, 25, 28         c) Detailed analysis of 2004/05 spend (repeat annually)           * C                                   PO     FM , CF
                                                          d) Publish procurement plan (repeat annually)                              C                            PO
                                                          e) Publish tender adverts & contract notices on website                    C                            PO
                                                          g) Agree & implement programme for review of each spend                                                 PO     FM
                                                          f) Monitor use of key policies to assess value for money of                                             CF
                                                          procurement spend
                                                          g) Creation of task groups to review each spend area &                             *                    PO     SM, Pur
                                                          identify improvements in procurement
                                                          h) Review approved lists                                                                                PO     SM
                                                          i) Encourage maximisation of potential savings by using                                                 PO     SM, Pur
                                                          appropriate framework agreements and collaboration
                                                          j) Work with service divisions to identify procurement options      C                                   PO     Pur
                                                          which will improve service delivery and manage costs
                                                          k) Develop & recommend system for capturing efficiency                                                  FM     PO
                                                          savings from procurement spending
                                                            l) Identify &realise opportunities for procurement efficiency                                         SM     Pur, PO

        Y/finance/procurement/strategy/0609/Circulation Draft 2
           Procurement                      NPS                                      Tasks                                    2005      2006   2007    2008     Post       Led By   Support
             Objective                   milestones                                                                                                             2008
                                                              a) Using data from spend analysis identify and evaluate          * C                                         PO
3. Develop and implement                16,17,18, 29          range of e-Procurement options
appropriate eProcurement                                      b) Select appropriate options and appoint relevant                   *                                       FM       PO
systems                                                       supplier(s)
                                                              c) Implement solution(s) with purchasing teams                       *                                       PO       Pur
                                                              d) IEG RO9 target                                                     C                                      PO       IMS
                                                              e) Pilot use of government procurement card / equivalent              C                                      PO       Pur
                                                              for low value purchases
                                                              f) Measure progress of (e)                                                                                   PO       Pur
                                                              g) Develop use of government procurement card/                                                               PO       Pur
                                                              equivalent for low value purchases as appropriate
                                                              h) Implement electronic purchase to pay as part of new                                                       PO       FM, IMS
                                                              financial system
                                                              i) Access an appropriate eMarketplace                                                                        PO       IMS, Pur
                                                              j) Measure progress of (g), (h) and (i)                                                                      PO       CF
                                                              k) Explore the use of other eProcurement systems as                                                          PO

                                                              a) Develop and recommend an action plan to implement                        C                                PO
4. Achieve the National                 All                   the National Procurement Strategy milestones
Procurement Strategy milestones                               b) Assess progress made between July 2005 to 31.03.06                       C                                PO
within an appropriate time frame                              c) Implement phase 1 of the action plan (50%)                                                                PO
                                                              d) Implement phase 2 of the action plan (60%)                                                                PO
                                                              e) Implement phase 3 of the action plan (70%)                                                          •     PO

                                                              a) attend relevant workshops and meetings arranged by            C          C                                PO
5. Develop and maintain effective       12, 15                the regional South West Centre of Excellence (repeat
relationships with the regional                               annually)
centre of excellence                                          b) Circulate and encourage participation in collaborative                   C                                PO
                                                              initiatives facilitated by the SWCoE (repeat annually)

       •     Note: Progress beyond 2007 will depend on future resourcing of the procurement function (temporary Procurement Officer post expires July 2007)

Key :
CF - Head of Corporate Finance                      LS - Legal Services                                                   C = complete
Exec- Executive committee                           Per – Personnel                                                        * = carried forward from original action plan
Ex - External Agencies                              PO - Procurement Officer
FM - Finance Manager                                Pur - Purchasing Officers
IMS - IMS Team                                      SM - Service Managers

Y/finance/procurement/strategy/0609/Circulation Draft 2
Y/finance/procurement/strategy/0609/Circulation Draft 2

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