LONDON BOROUGH OF HAVERING CORPORATE PROCUREMENT STRATEGY 2011/2014

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1 LONDON BOROUGH OF HAVERING CORPORATE PROCUREMENT STRATEGY 2011/2014 1

2 Contents Contacting us Our Values/Ambition Foreword Part 1 Part 2 Part 3 Introduction Procurement Policy Main procurement aims Section 1 Efficient and effective procurement Efficiency and value for money Controls, standards and risks Training and development Collaborative procurement Electronic procurement and purchasing cards Performance management Information and communication Community and customer engagement Business continuity Section 2 Socially responsible procurement Sustainability and environmental Management Equality and diversity Ethical procurement Climate Change Section 3 Managing Suppliers Partnerships Regeneration Shared Services Glossary of terms and abbreviations Appendices 2

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4 Please contact us if you have any questions or comments about the strategy. Phone: Write to: Operational Procurement Team London Borough of Havering Town Hall, Main Road Romford Essex RM1 3BD Website: 4

5 Part 1 Introduction 5

6 6

7 Foreword Cllr Roger Ramsey Welcome to our corporate procurement strategy. This strategy outlines our priorities for and shows how procurement will contribute to achieving the aims set out in the Vision for Havering the strategic outcomes and Living Ambition of Havering. We in Havering spent 131,922,390 during 2010/11 on influenceable spend (goods, works and services) provided by external organisations, and we have a duty to make sure that this spending represents value for money. This strategy brings together the recommendation of the National Procurement Strategy for Local Government; it places them in the context of local priorities. Having a strategy does not, by itself, lead to effective procurement. It is the commitment of senior management and council wide use of the strategy which are important elements in its success. As the portfolio member for resources, I recognise that procurement is at the heart of our aims and that Members and officers are committed to delivering the strategy. Councillor Roger Ramsey Portfolio Member Resources 7

8 Our Values/ Ambition OUR VALUES One Council Learning from experience Integrity You Matter Can Do Fair to All OUR AMBITION Living Ambition aiming for the highest quality of life in London We have a clear ambition for Havering. We want to provide our residents with the highest quality of life in London. Havering in 20 years time will be a new model suburb a more successful and energised gateway to London, but still flavoured and shaped by its attractive natural environment, unique history and vibrant culture. Our community will have become more prosperous, through first class education and employment opportunities for all. Havering will be a borough where new talent and innovation is welcomed and nurtured. Our re-invigorated town centres will be places of enterprise, where people enjoy their lives. Attractive and popular housing will be interlaced with high quality cultural, retail and leisure opportunities. Thriving towns, villages and neighbourhoods will be set in, and studded with, beautiful green open spaces that enhance Havering s standing as one of London s greenest boroughs. Safer and cleaner streets will help foster great public pride and public services will work in partnership with local people - empowering them to continue the improvement of Havering for future generations. 8

9 Leadership and Vision This strategy for Procurement throughout the Council represents the ongoing process of realignment and modernisation to ensure we have strategies fit for purpose in response to such things as The Varney report, The Roots Review, National Procurement Strategy and CRS07. The strategy will continue to develop as modernisation and Transformation of procurement continues, and it will incorporate changes in Procurement methods and techniques designed to meet the varying requirements of the Council. This Procurement Strategy relates to all the reports above by the targets we have set ourselves over the next 4years. We have promoted changes in public sector procurement for some time, and have been influential in developing the current local government procurement agenda, by playing our role in many of the national schemes and pan London that have shaped procurement by best practice across the public sector. We have been involved in sharing best practice and learning locally, regionally, nationally and internationally. Structure of the Strategy The procurement strategy () sets out the priorities for procurement in the Council and will play a vital part in helping us to concentrate on areas that will make Havering Best in Class. It draws together a number of elements, including: Living Ambition of the Council The targets of the National Procurement Strategy for Local Government; The Government s existing and developing agenda for public sector procurement The need to increase public sector efficiency; Electronic Government targets The Service review of Procurement Issues identified in audit reports These elements are combined to produce a strategy for the next three years. Our progress against the targets set in the Corporate Procurement strategy has been reported in the Operational Procurement Units Service Plan

10 Context of the strategy We in Havering spent 131,922,390 during 2008/09 on influenceable spend (goods, works and services) provided by external organisations, and we have a duty to make sure that this spending represents value for money. it is important that we maintain a clear strategy for selecting, receiving and managing these resources. The Roots Review of procurement arrangements in local government (February 2009) considered procurement capacity at various levels and identified procurement as one of the most important areas for efficiency gains. The Key recommendations of the Roots Review were: A national procurement champion should be put in place to give direction and co-ordination to the local government procurement agenda and lead specifically on greater collaboration There should be the development of a contracts database and a robust evidence base on the potential scope of procurement efficiency by the sector. This will encourage stronger flows of information. The national procurement champions, in association with Buying Solutions should co-ordinate and influence buying organisations and the Regional Improvement and Efficiency Partnerships (RIEP) to develop the delivery of national and regional solutions supporting the overall collaborative strategies in local government. This strategy sets out how these improvements in efficiency will be achieved in Havering. Councils have a duty to provide Value for Money. All local authorities must continuously improve the services that they provide, having regard to a combination of economy, efficiently and effectiveness. We must also consult service users and other people who have an interest in our services. The Government has published a National Procurement Strategy for Local Government with a number of targets for all councils to achieve. Havering has achieved all the targets within this Strategy. NPS This Corporate Procurement Strategy will guide departmental plans to deliver improvement in procurement practice as corporate priority. This strategy supports the achievement of our strategic priorities. 10

11 Visions and Aims for Havering Becoming Strategic is a key theme for procurement. The Council needs to act as one organisation in the planning and buying of goods and services. The view must be shared by the whole Council and cannot be located solely in the practices and processes of the Business Development Unit. These aims are for the Council as a whole to meet. NPS Our Aims Efficient and effective procurement; Socially responsible procurement; Managing suppliers The above aims will be delivered through: To be an effective partner with Capital Ambitions The Operational Procurement Team to be recognised as the strategic leader and used where it can add the most value Efficiency savings and quality clearly demonstrated by contracted services To develop effective procurement procedures, policies and systems to guide procurement To encourage a diverse and competitive market supply Procurement is better planned and managed To develop partnerships that deliver or support the Council s service aims and goals To encourage and support Small and Medium Enterprises (SME s) Provide additional advice and support for strategic procurement activities To encourage and develop Shared Services and other partnerships To achieve Value for Money through better procurement To help to develop a commissioning strategy 11

12 Part 2 PROCUREMENT POLICY We have a well-established policy on procurement which sets out our position on competition, our commitment to partnership and our expectations of best value procurement. NPS Procurement in general We are committed to maintaining high-quality standards and having an efficient procurement and monitoring procedure. This allows us to continue to provide best value. Using best-practice procurement techniques, we are committed to making sure that every pound we spend provides value for money, and that every pound we save is directed back into service priority areas. To ensure that the Council is delivering Best Value, we will judge against the targets in Part 3 of this Procurement Strategy by reporting on the progress to the Corporate Management Team. All departments must keep to and promote the following principles of best value procurement. Best value procurement will: Be open and transparent; Be driven by desired results; Create the most advantageous balance of quality and cost; Be relevant; Reduce the burden on administrative and monitoring resources; Lead to simple or routine transactions; Allow flexibility in developing alternative procurement and partnership arrangements; Encourage competition, where appropriate; Encourage better use of technology; Encourage high-quality businesses to provide quotes for work; Be supported by our corporate procurement strategy; Include our corporate policy aims; and Follow all our regulations and the law that applies in the EU and UK. All services must show that that through their procurement of goods and services they: Are committed to people who use the services; Meet our values and strategic priorities Meet the Council s vision Provide value for money Meet service aims; Are committed to continuous improvement; Are committed to quality, equality and diversity; Work efficiently; Have effective management, systems and procedures; 12

13 Have flexible working arrangements to meet users; Are committed to sustainability and climate change; and Are committed too our policy aims. 13

14 Part 3 Main Procurement Aims We have identified a number of procurement aims under the broad headings of: Efficient and effective procurement; Socially responsible procurement; Managing suppliers We have identified the current position, main issues and future targets for each aim. The targets are intended to provide a framework within which further specific targets can be developed during yearly service planning. 14

15 Part 3 Section 1 Efficient and Effective Procurement Efficient and effective procurement is essential to show that we are achieving value for money on goods, works and services. The areas of this strategy that relate directly to efficient and effective procurement are: Efficiency and value for money Controls, standards and risks Training and development Collaborative procurement Electronic procurement and purchasing cards Performance management Information and communication Community and customer engagement Business continuity 15

16 Efficiency and value for money The Government s Spending Review CRS07 statement sets local authorities a target for efficiency against of 3% a year for the next three years. At least 50% of the efficiency gains should be cashable so that they can be redirected to improve front-line services. With the new Government targets the Council will need to identify further savings to help with the savings target of 50 million over the next 4 years. Improved procurement is seen as a major influence on a Council s ability to achieve its efficiency targets. BDSP Main Aim We will use innovation and best practice, including the appropriate use of new technology and improved business processes, to achieve quality and efficiency benefits. Position Statement A new action plan Main Issues 1. It is much easier to Targets A. A robust action plan has been produced to identify efficiency needs to be put in place identify savings and savings than it is to to deliver these efficiencies actually achieve those efficiencies over the savings in real terms next three years Completed by We have produced 2. The benefits identified B. We will make further guides on need to be measured procurement efficiency evaluation of tenders and included in our savings of 10 million and the website has procurement process over the next three been updated with years and help to information 3. We need to improve the level and detail of develop savings plans and targets towards the We have been helped to deliver procurement management 50 million saving that the Council now faces procurement projects information to identify over the next 4 years. identified by the and monitor efficiency UOR 2009 Council. FSSP savings effectively 4. Levels of ability to achieve procurement efficiency savings vary across departments C. We will develop and promote guidance to departments on achieving efficiency through improved procurement 2011(by qrt 2) 16

17 Controls, standards and risk There are a number of restrictions relating to public sector procurement. Councils have a duty to their taxpayers to apply controls and consistent standards across the council to provide value for money. Main Aim To make sure that suitable controls are in place to maintain consistent high standards and make sure that risk is managed. Position Statement Main Issues Targets Completed by The following are the 1. We need to A. We will review CPR s every main controls and make sure we keep year UOR 2009 standards that relate up to date with to procurement relevant changes B. We will work with departments to make sure that European Union 2. Our clients and controls and standards are Directives and suppliers need streamlined, secure value for national regulations clear information on controls and money and do not prevent new ideas in line with shared Contract standards services Procedure Rules UOR Controls and Procurement standards must C. We will make sure that there Strategy allow a flexible is greater co-ordination of skills approach to across the council by Procurement procurement introducing corporate standard Framework documents 4. Controls and UOR 2009 National standards need to NPS Procurement be regularly FSSP Strategy for Local reviews, based on Government experience gained D. We will benchmark the procurement process The Constitution 5. The NPS Internal and external audit Risk Assessment Guide Business Continuity Plans UOR 2009 FSSP Whistle Blowing Policy UOR 2009 includes timescales E. We will review and refresh that must be met the procurement framework NPS every year 6. On major corporate procurement projects there needs to be clarity around the roles and responsibilities of everyone involved 2011(by qrt 3) 17

18 Training and development The key to effective public sector procurement is officers who are suitably trained and qualified to provide the necessary professional input. The level of expertise needed ranges from a formal procurement qualification and wide experience, to knowledge of basic procurement techniques. Main Aim To make sure there is a structured approach to education, training and development of all officers with procurement responsibilities across the council. UOR 2009 HC Position Statement A procurement training and development plan has been produced officers carrying out procurement projects are encouraged to study for a nationally recognised procurement qualification BDU provides training across the council on procurement procedures Main Issues Targets Completed by 1. One of the targets from A. We will train all the the Gershon report is that staff that are involved in councils need to show that staff are suitably qualified to do their jobs UOR 2009 HC procurement in levels 1/2/3 HC UOR 2009 BDSP FSSP 2. An improved system of recording training needs to be developed 3. The high numbers of staff involved in procurement across the council could result in high cost for providing training 4. The procurement related knowledge, skills and experience of officers with procurement responsibilities varies across the council B. We will increase the number of officers gaining procurement related qualifications HC UOR 2009 BDSP FSSP C. We will train all officers with significant procurement responsibilities, including development of e-learning as a tool to achieve this. 5. The training and develop plan needs to be kept up to date and an audit of procurement skills needs to be carried out UOR

19 e-business e-business is essentially doing business electronically, through e- Procurement, e-sourcing, e-auctions, e-tendering. This improves aspects of communication the procurement processes and reduces some of the costs associated with it. Main Aim To make the best use of information and communications technology and to improve efficiently and effectiveness. To reduce the cost of the procurement process for the council and its suppliers, and to encourage suppliers to adopt e-business methods. Position Statement Our e-business strategy has been agreed by council Procurement information on our intranet/internet is now well developed Purchasing cards are now used extensively throughout the council NPS We have moved to a Select list for approved suppliers We are using Idea-Marketplace as our e- Procurement solution NPS We have implemented e- invoicing Main Issues 1. Departmental and supplier ability to use e- Procurement technology is inconsistent 2. Meeting the personalisation agenda for Adults 3. Changes to e- procurement system with the introduction of ISS Targets A. We will introduce e-tendering, e- sourcing, e-auctions as part our business suite NPS FSSP BDSP B. We will use more electronic orders and invoices, through the e- Procurement system to reduce paperwork in the procurement process C. We will explore the use of pre-paid cards and use as appropriate to make efficiencies D. We will make e- procurement the major function for procuring goods and services Completed by 2011 (by qrt 1) 2011 (by qrt 1) 19

20 Performance Management Performance management is an important method of assuring quality and making sure we continue to improve the way we deliver services. Main Aim To promote the development and use of performance management Position Statement Reports to CMT on a regular basis FSSP National Procurement strategy targets met NPS Efficiencies recorded on the savings log Main Issues 1. Lack of management information has led to difficulties in measuring performance 2. We need to decide what performance measures we will monitor Targets A. We will agree performance standards for procurement in line with efficiencies UOR 2009 FSSP BDSP B. We will develop further methods of measuring agreed performance standards Completed by Annual service improvement planning BDSP Stakeholder satisfaction surveys FSSP 3. We need to monitor the National Procurement Strategy targets NPS c. We will analyse spending and make recommendations for further savings and improvement in performance BDSP Regular internal and external audit reviews FSSP We are now using the HP system We are now using the Experian reports for financial information on companies 20

21 Collaborative Procurement The Government has identified collaboration joint working as an important aspect of effective and efficient procurement. Collaboration may be within the public sector or it may be between ourselves and external suppliers. Main Aim To improve the efficiency and effectiveness of services by working with a range of organisation sot develop long-term relationships. Position Statement Main Issue Targets Completed by Havering has a 1. Policies and A. We will adopt partner positive track record of systems affect arrangements that will working with other each councils support the council in public sector involvement in achieving the targets set organisations, for joint working out in the efficiency example the LCSG review and involvement in 2. Risk Capital Ambitions assessment B. We will work with the projects varies between RIEPS and other NPS councils and procurement professional UOR 2009 affects the level of organisation to identify BDSP their involvement in collaborative more opportunities for joint working We are a member of procurement UOR 2009 a number of regional BDSP public and private 3. Legal and sector groups that financial issues C. We will identify savings exist to share best are approached we could make through practice and work on differently by each collaborative procurement issues of mutual council and affect and monitor these in line interest the practicalities of joint working with KPI s FSSP We take part in local arrangements UOR 2009 and national BDSP arrangements 4. Local policies We have developed good working relationships with SME s and the 3 rd Sector about regeneration and economic development affect joint working priorities including those targeting support to local SME s D. We will review the council position on using public sector supply arrangements E. We will develop further working relationships with SME s

22 Information and Communication Managing information efficiently is crucial to providing an effective and responsive service. Communication is an important part of managing information and to make sure that accurate and appropriate information is easily available between the Operational Procurement Unit and client departments. Main Aim To provide and encourage access to high quality information about procurement for client departments. Position Statement The intranet site Main Issues 1. The BDU need Targets A. We will review the has been to be involved early information developed to in procurement requirements of client include detailed projects to make departments including guidance to the sure they are as that provided on the procurement efficient as internet/intranet processes. The possible. FSSP guidelines are valued by users 2. The BDU is not B. We will review our NPS always involved in departmental The internet site strategy decision- departments is maintained by making BDU and C. We will write further information is 3. We need to articles on provided in an improve the way procurement to raise electronic format we share the profile where possible. information relating BDSP NPS to corporate contracts Articles are written on a regular basis concerning procurement 4. It is difficult to get accurate procurement management information concerning spend Completed by methods of involvement with client 2011 (by qrt 4) 22

23 Community and Customer Engagement Putting customers first is at the heart of our values. We need to make sure that customers are involved in designing; delivery and improving the services they receive. Main Aim To promote and encourage the customers to be involved in improving the services and delivering value for money. Position Statement We have a Main Issues 1. Procurement Targets A. We will work with Havering officers do not the HSP to develop Strategic often have direct links to service Partnership in contact with users place and a Local service users Area Agreement B. We will provide 2. Procurement training to suppliers There have needs to be to make sure that been many considered much we involve procurement earlier in the communities and related service review customers in our improvement to process to make services services which sure that services have made a are designed C. We will develop difference around users including ALMO s needs 3. There are difficulties in identifying representative user views in different service areas and promote guidance on involving users in the procurement process D. We will help to deliver a commissioning strategy across the Council Completed by 2011 (by qrt 4) 2011 (by qrt 3) 23

24 Business Continuity We promote, encourage and provide companies of all sizes with a wide range of commercial opportunities. We must be content that we can rely on our suppliers being able to continue to provide us with whatever service or product we buy in the event they experience an emergency situation. Main Aim We intend to encourage and make sure that we are able to continue to service the public even in the event of an emergency situation by having appropriate Business Continuity Plans in place by 2011 from all our suppliers. Position Statement We have Main Issues 1. Suppliers are Targets A. We will ensure surveyed our unaware of that all our suppliers SME s and top 20 Business have in place a suppliers on Continuity Plans business continuity whether they plan by 2010 have BC plans in 2. Staff are UOR 2009 place unaware that BC FSSP plans should be in BDSP We are place and collecting copies monitored of all our suppliers BC 3. Due to the programme to plans to get them economic climate it suppliers on how to tested is more important complete a BC plan than ever that suppliers have BC Plans We have delivered a training programme to SME s Completed by 2011 (by qrt 1) B. We will continue to deliver a training 2014 (by qrt 4) C. We will deliver a training programme to staff on contract monitoring of BC plans D. We will test suppliers BC plans to ensure they work and are kept up to date E. We will write articles on BC to further the knowledge of staff and suppliers F. Business Continuity will be part of our future approach to contracting and standard clause will be in our tender evaluation

25 Part 3 Section 2 Socially responsible procurement We recognise that our activities have an effect on the society in which we work, and that developments in society affect our ability to work successfully. We are committed to achieving environmental, social and economic aims that tackle these facts. This section of the strategy outlines the aims of procurement in relation to social responsibility agenda. It relates to the areas of sustainability, climate change and the long-term effects of our procurement practices, environmental management, equality and diversity, fair trade and ethical procurement. We also consider regeneration in the Managing Suppliers section of the strategy. 25

26 Sustainability, Climate Change and environmental management Protect and improve the environment is one of our Community Priorities. Our procurement activities, and those of our suppliers, affect the local environment and have an influence on whether we achieve our sustainable and environmental aims. NPS UOR 2009 Main Aim To reduce the negative effect on the environment of the products and services that we buy, by commissioning and procuring quality services, tailored to local needs to deliver sustainable outcomes and value for money. To identify significant environmental risks that the Council faces with the potential climate change and develop plans to counter balance this for the improvement of the environment within Havering 26

27 Position Statement Main Issues Targets Completed by Achievements 1. The pressure to A. Work with have been made provide more for suppliers and through the less may be a partners to develop success of the disincentive to buy a sustainable targets in the environmentally approach for the friendly products future strategy NPS We have been working with the private sector to produce a model for sustainability Sustainability is now part of our evaluation of tenders and included in the ITT 2. Staff awareness of sustainability and climate change very patchy 3. Staff not aware of how climate change affects the Council NPS UOR 2009 B. We will develop a training programme 2011 (by qrt 4) for staff on sustainability and whole life costing to deliver sustainable outcomes and value for money NPS UOR 2009 C. We will work with the GLA on A climate change Responsible working group is procurement to now in operation ensure sustainability delivers value for A climate change money action plan has been presented D. Use procurement to the council with to drive higher recommendations energy efficiency standards in service A climate change providers strategy agreed UOR 2009 for were E. Continue to Procurement has purchase 100% a role to play and green electricity for actions to street lighting, complete subject to requirement of best value. UOR 2009 F. We will deliver procurement issues through the Climate Change Strategy in terms of Carbon Emissions from suppliers 27

28 Equality and diversity We can influence and promote together with our partners in the community a commitment to race quality and the promoting of good relation between different ethnic groups and ensure that we have a positive approach to equality and diversity. In our procurement processes, we will try to make sure that we give our suppliers advice on equality issues and make sure that contracts promote equality and diversity. NPS Main Aim To promote procurement practices and policies which contribute to our values on equality and diversity by providing information on equality issues and making sure we treat all tenders equally. Position Statement Contract Main Issues 1. We need to make Targets A. We will contribute documents meet sure that information towards developing the the Race Relations about equality and Council s Equality (Amendment) Act diversity in Framework procurement is FSSP provided across the BDSP Standard council. questions on B. We will encourage equality are 2. New laws on equal suppliers from included in our opportunities relate to disadvantaged groups to Invitation to tender religion and beliefs, apply for our tenders and PQQ and must be through written A standard considered in the information, local contract clause is procurement process. suppliers events and included in contract working with all business terms and support agencies. conditions on NPS equality and FSSP diversity BDSP C. We will carry out fairness surveys to monitor the level of tenders from disadvantaged groups. We will work with the GLA using the toolkit to get results NPS D. We will pursue the use of Select Accredit to make it easier for suppliers to complete only one PQQ Completed by (by qrt 4) 2011 (by qrt 4) 28

29 Ethical Procurement Our procurement activity demonstrates our ethical behaviour and manages the risk of fraud to people who are involved in procurement directly or indirectly. Ethical procurement concerns the living standards of people locally, nationally and internationally who may be affected by our procurement activities in a negative way. Main Aim To raise the profile of ethical issues in the procurement process and introduce our suppliers to ethical issues in the supplier relationship. UOR 2009 Position Statement We review and monitor compliance with codes and procedures and report the findings and action taken to board members. UOR 2009 Our complaints and whistle blowing policies and arrangements have been communicated and are easily accessible to staff, the public, and contractors staff. We sent a reminder of the policies to our suppliers UOR 2009 Main Issues 1. The importance of ethical procurement is not consistent across the business community and our own departments 2. Legislation places limits on our ability to consider ethical issues in procurement Targets A. We will introduce further ethical considerations into our contracts and increase the awareness of related issues with suppliers. B. We will produce guidance to help suppliers. C. We will write and publish a policy statement and code of conduct concerning ethical procurement partners and contractors D. We will ask suppliers to show their commitment to ethical issues within their own company connected with the Council by asking them to complete a method statement in any tenders that they return to the Council Completed by (by qrt 4) 2011 (by qrt 4) 29

30 PART 3 SECTION 3 Managing Suppliers We recognise that we need to encourage a mixed range of suppliers to help encourage a varied and competitive marketplace. This includes the consideration of the role of markets and market mechanisms through the commissioning cycle, the supplier s views and the marketing of our services to the suppliers. We also need a varied and competitive supply base to help improve value for money and to develop suppliers to meet new or emerging needs. The market includes procurement from small and medium-sized firms, ethnic-minority businesses, social enterprises, and voluntary and community organisations. This helps us achieve value for money, quality, equality and diversity. 30

31 Partnerships We are committed to working with our partners, and good examples of this are the ALMO partnership contracts. Important elements include two-stage tendering and getting suppliers involved at an early stage. Main Aim To develop a partnering approach between the council and suppliers to create mutually advantageous, flexible and long-term relations based on continuous improvement. Position Statement Main Issues Targets The councils 1. We need a approach to consistent A. We will measure and partnering and approach to report on the costs and service delivery reviewing services benefits of partnering was included in and options, and contracts currently in the Procurement for partnering place Strategy opportunities 2010 B. We will increase our NPS 2. We need to involvement in make departmental efficiency improvements for reviews to identify effective contract opportunities for management to partnership achieve the aims of arrangements. partnership working C. We will produce guidance in relation to benefiting the community NPS D. We will work with partners such as ELS/Capital Ambitions/PCT/Havering College to continually improve procurement Completed by 2011 (by qrt 4)

32 Regeneration Working with small and medium-sized enterprises (SME s), social enterprises (SE s), voluntary and community-sector suppliers, local suppliers, and black and ethnic-minority suppliers in the councils procurement process will support the councils local regeneration strategy, benefit the community and contribute to economic development and Socially Responsible Procurement agenda. NPS Main Aim To support local regeneration and redevelopment by providing high-quality information and encouraging a varied supply market. Position Statement Main Issues Targets Completed by The council 1. It may be difficult A. We will work encourages a for SE, SME s, with varied and varied and Voluntary and local suppliers, and competitive supply community sector support them in market suppliers and others working with the NPS to meet council council requirements relating The council has signed up to the to procurement B We will work with the RIEPS in SME concordat 2. It can be difficult to developing the NPS make sure that joint collaboration (or working across the joint working) We hold region supports small agenda workshops and and local suppliers seminars for SME C. We will and other agencies 3. Procurements of a encourage our BDSP lower value are not suppliers to use widely advertised small firms and We are contacting local labour our suppliers on a 4. Councils are phased basis to ask limited in their ability D. We will review them to complete to favour local and council spending to the survey on their small business identify satisfaction with the opportunities for way they have supported been treated by the business NPS Council (by qrt 4) 32

33 Shared Services We are committed to reviewing whether the quality of services can be improved, and/or the cost of their performance decreased, by finding alternative ways of delivering the service. Shared Services can take a variety of forms, including sharing the provision of services with other departments or even with other organisations outside of the Council, re-structuring departments, or transfer of the provision of services to external providers. Main Aim To develop a programme of implementation of the Shared Service agenda and identify areas of the council services where shared services or externalisation can take place Position Statement Reports prepared for the Chief Executive on the routes to Shared Services Work already undertaken on identifying services for Shared Services Shared Service now complete with NNDR Main Issues 1. Resistance from staff to change 2. Other authorities and groups not willing to share a service 3. Political will to change Targets A. With the introduction of the ISS we will work to improve procurement through this route B. We will identify potential partners in which to move this agenda forward. C. We will explore the market intelligence and report on the outcome D We will obtain informal and formal authorisation to ensure maximum efficiencies are obtained through shared services. Completed by 2011 (by qrt 1) E. We will work with partners such as ELS/Capital Ambitions/PCT/Havering College to continually improve procurement and develop shared services where appropriate

34 Part 4 Glossary of terms and abbreviations NPS UOR HC FSSP BDSP Links to the requirements of the National Procurement Strategy Links to the Audit Commission Uses of Resources Links to the Audit Commission Healthy Competition Links to the Financial Services Service Plan Links to the Operational Procurement Team Plan e-procurement e-tendering EU procurement directives Financial regulations Gershon Report IDeA Electronic procurement carrying out certain parts of the procurement process electronically Electronic tendering. A system whereby tenders are sent and received electronically. Rules governing public sector contracts which local authorities must follow. Internal rules that decide, among other things, how we must act when buying something An independent review carried out by Sir Peter Gershon led to a report on public sector efficiency. The Releasing Resources to the Front Line report was published in 2004 Improvement and Development Agency. A government organisation that works with all councils to improve the performance of the best councils and help others to improve, and develop the sector as a whole Year 1 target 2011 Marketplace Electronic marketplaces allow councils to manage spending and reduce paperwork 34

35 2012 Year 2 target 2012 National The National Procurement Strategy Procurement Strategy for local government published in October The strategy sets a number of procurement-related targets for local government which are to be achieved by Year 3 target 2013 DCLG Department of Communities for Local Government. The Government office currently responsible for local Ongoing target with developments over the three years from Shared Services CIPS Clients Climate Change Shared Service. The way in which the council is looking at delivering services in the future Chartered Institute of Purchasing and Supply the professional organisation for procurement officers Council department s ALMO s ( Housing) and users of the BDU services This refers to our response to reduce the amount of carbon dioxide we produce OJEU PQQ Procurement Purchasing cards (pcards) SME government Official Journal of the European Union. The main source for tender information in relation to public works, services and supply contracts in the UK and across the European Union. Pre-qualification Questionnaire. A method of assessing the suitability of firms who want to provide quotes for work Procurement can be defined as purchasing the right quality of material, at the right time, in the right quantity, from the right source, at the right price. A payment system best suited to low value, high volume purchases, and which are similar to credit cards A small to mediumsized enterprise, which is defined as one with fewer than 250 full-time employees. 35

36 CPR Contract Procedure rules- the council s internal rules and regulation governing buying and offering contracts. Social Enterprise A business whose main aims are social or environmental Equalities and Benefits that can be Supplier In the context of this Diversity achieved through a strategy, supplier is e-auction e-sourcing positive approach to developing a multicultural society Electron auctions are set up so that sellers can get the best price for their product. In procurement reverse e-auctions are used to allow buyers to gain the lowest price Electronic sourcing for letting buyers source goods and services Efficiency Review The Government has et targets for the public sector to make savings of 3% year on year for the next three years to improve services by increasing efficiency getting more form the same resource or achieving the same results using fewer ISS RIEPS resources Internal Shared Services programme that will bring together HR/Payroll/Pensions and Procurement Regional Improvement and Efficiency Partnerships (formally Centres of Excellence) TUPE Values and strategic outcomes Works NNDR defined as any organisation that provides goods works or services. Transfer of Undertakings (Protection of Employment) Regulations 1981 (TUPE) These are our values and aims. They are shown at the beginning of this document and in appendix C Works refers to general building and also includes building roads, bridges and railways National Non- Domestic Rates 36

37 APPENDIX A Access to Information Obligations When procuring services, through should be given to documents created which may become the subject of a request under one of the following pieces of legislation: Freedom of Information Act 2000 Data Protection Act 1998 Environmental Information Regulations 2004 The above provide a gateway of access to both the public and private companies to information held by the Council. There are limited exemptions within the legislation to prevent release of such information as the law favours disclosure. Both staff and prospective tenderers/contractors should be made aware of the obligations the Council is under to provide information held on request. Further information can be found using the following link to the Council s website. Alternatively, please contact the Information Governance Team on or 37

38 APPENDIX B Our Vision To create a safe, welcoming, healthier and more prosperous place where people choose to live, work and visit Our Values Our values help us to plan and deliver all services. One Council We must always act as one Council. In the eyes of our customers we are a unified organisation and reputation is shaped by every department, team and individual across Havering. We should combine out talents and be proud to work together, taking inspiration from those around us. We must always present one face to our customers, act responsibly and ensure that every customer receives the same high standard of service, no matter who they contact. Learning from experience We must never stop evolving as an organisation. Continued success is based on continuous learning from our colleagues, from other organisations and from experience. We should meet new challenges with new thinking and always maintain a determination to do better next time. Integrity We must mean what we say. Respect from the community, or respect between colleagues is not ours by right. We will earn respect by behaving openly and honestly, keeping to our word and delivering on our promises. You matter We must always take the time to show customers and colleagues that the matter to us. We do this by listening, by developing a better understanding of who our customers and colleagues are and by asking and answering the right questions. Treating people as individuals, and with respect, will help build better relationships with customers, partners, colleagues and communities. These relationships are the foundation of our work. 38

39 Can do We must be a positive organisation. We cannot find solutions to problems if we are collectively, or individually afraid to suggest new ideas, take risks and share moments of inspiration. To accept that something cannot be done is to stifle ingenuity and invention and put a halt to progress. Instead, we must be optimistic about our future and positive about the route we take to get there. Fair to all We must value difference and combat discrimination wherever we find it and, in doing so, provide an example to the borough. Our role is to champion and empower our community through the work that we do. We cannot fulfil that role without making our services accessible to all and providing equality of opportunity to all our staff and customers. Our six Community Priorities Better health and welfare Increase community participation A more prosperous community Protect and improve the environment A safer community Improved lifelong learning To achieve these priorities, we need to change the way we work, so we must make sure that: Our staff perform well and are constantly learning, an there is effective leadership at all levels; and Our customers receive excellent services which are efficient and effective, and meet their needs. 39

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