PROCUREMENT PROCEDURE

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1 PROCUREMENT PROCEDURE TITLE: Diversity in Procurement ISSUE: 1.0 REFERENCE: BTP/Procurement/Procedure/20 DATE: 11 July 2011 AUTHOR: Freddie Josland/Miranda Smith/ Laraine Jackett APPROVED BY: Tony Foster 1. PURPOSE 1.1 The purpose of this procedure is to help the British Transport Police (BTP) in supporting equality, diversity and human rights through its procurement activity. It will demonstrate how legal requirements across the eight recognised protected characteristics of diversity (Age, Disability, Race, Gender, Religion and Belief, Sexual Orientation and Transgender) are put into practice through the procurement process. This will assist BTP in promoting an inclusive organisational culture at corporate, departmental, supplier and individual level. The application of the relevant tender equality evaluation criteria is important not just in terms of best value but fitness for purpose and the appropriateness of goods and services. 1.2 BTP is committed to providing an excellent service in everything we do. We believe there is positive value in reflecting diversity in our suppliers. We will utilise our position to build cohesion, provide re-assurance and tackle criminality. We also aim to ensure that not only we, but our partners, affiliates and suppliers serve as a positive force in our communities. 1.3 BTP considers it necessary for our partners and suppliers of goods, works and services to have a strong commitment to our equality and diversity principles. It is necessary for them to demonstrate that steps have been taken to ensure quality and to provide equality of opportunity within their organization. 1.4 BTP aims to: Eliminate unlawful discrimination and promote good relations between people of differing backgrounds, both internally and externally. Outline expected standards of behaviour and demonstrate BTP s zero tolerance attitudes towards all forms of bullying, harassment and unlawful discrimination. Outline the governance and monitoring arrangements in place within BTP, which exist to drive organisational change and track progress in securing lasting improvements for all employees, including those from under-represented groups. Where monitoring indicates disproportionalities affecting different groups of employees, appropriate action, including Positive Action, will be taken to reduce disproportionality. Clarify the roles and responsibilities of those individuals, groups and bodies, including support groups and British Transport Police Authority (BTPA) who contribute towards delivering the diversity agenda for BTP. Page 1 of 16

2 2. OVERVIEW 2.1 With an annual expenditure of around 175 billion every year on goods and services (about 13% of GDP), the public sector has an opportunity and obligation to use its purchasing power to promote equality where possible (http://www.equalities.gov.uk/pdf/newgeo_fairerfuture_may09_acc.pdf ) 2.2 The Police Service spends in the region of 2 billion each year on the procurement of goods and services. Although each force is responsible for managing their own contracts, an increase in collaboration between forces has led to regional and national contractual arrangements. The British Transport Police, as a public sector contracting authority, spends in the region of 65 million GBP each year. 2.3 The Race Relations Act 1976, Race Relations (Amendment) Act 2000 (RR(A)A), Sex Discrimination Act 1975, Disability Discrimination Act 2005, Employment Equality Sexual Orientation Regulations 2003, Employment Equality Religion or Belief Regulations 2003 have positioned procurement as an activity that is subject to ethical considerations, sustainability and diversity considerations. Equality and diversity are also specifically named as elements of the Police s Social Sustainability Agenda. 2.4 Public authorities also have an additional duty to promote equality for which guidance has been published by the Equality and Human Rights commission to support public authorities and suppliers within the context of procurement. 2.5 In line with the Equality Act 2010, BTP is required to tackle discrimination and promote equality through its purchasing function. BTP recognises that the development of this procedure will assist in identifying its aims and aspirations for equality and diversity and the means by which this will be achieved within procurement. 2.6 This procedure supports the delivery of the Equality and Diversity Policy Statement and will be enforced by BTP s Equality, Diversity and Human Rights Scheme (refer to Section 7). 3. SCOPE AND DEFINITIONS 3.1 Scope This procedure affects BTP officers and staff undertaking tenders over the EU threshold. BTP also expects organisations who supply staff, goods and services to fully embrace the spirit of what we want to achieve, even if they have their own equality and diversity policies and practices. This procedure applies to BTP contracts over the European Union Procurement Threshold ((> 156,442 GBP from 1 January 2010 to 31 December 2011 for supplies and services) advertised by BTP and where required via existing Framework Agreements advertised by others. 3.2 Definitions Supplier Contract Refers to any person or organization that supplies goods or services to British Transport Police Where: - BTP standard terms and conditions have been used - supplier s terms and conditions have been used - a hybrid of BTP and supplier s terms and conditions have been used Page 2 of 16

3 Procurement Small-Medium Enterprises (SME s) - framework agreement terms and conditions have been used Refers to those employed or operating within the Procurement department at British Transport Police Force Headquarters. Any supplier with less than 250 full time employees. 4. DIVERSITY AND PROCUREMENT WITHIN BTP As a purchaser of goods and services BTP will: Increasingly only purchase goods and services from those organisations and groups that share our commitment to valuing diversity and providing equality of opportunity. Publish this procedure on BTP s internet and intranet so that potential business partners are aware of BTP s diversity mission and values. Review our procurement processes to ensure these are compliant with relevant equalities legislation (See Related Policies and Information). Conduct a full Tender process, including PQQ for larger purchases, as outlined by European Union Procurement Threshold rules (> 156,442 GBP from 1 January 2010 to 31 December 2011 for supplies and services). 4.1 Roles and Responsibilities The Head of Procurement will be directly responsible for the operation and enactment of this procedure supported by the Diversity Team If any supplier employees have a grievance that in some way relates to BTP, they should raise the matter with their statutory employer. As a responsible client, BTP will do all that it can to assist in the resolution of the problem, subject to any contractual matters governing the relationship between BTP and the supplier. 4.2 Training Procurement staff will be trained in general aspects of equality and diversity. The training and development of staff with responsibilities for procurement is essential for effective and appropriate practice. Such training is a statutory requirement of the RR(A)A Procurement staff undertaking the responsibility of evaluating a prequalification and/or tenders must be specifically trained for the purpose of performing their duties as outlined in this policy. 4.3 Engaging with a Wider Range of Suppliers The breadth of suppliers is and should be a product of good specifications. The focus on Small and Medium Enterprises (SMEs) is not about statistical targets or positive discrimination in their favour, it is to ensure that the procurement process is accessible, fair and not exclusionary As part of the tender process, suppliers should be aware that police forces can include a requirement for positive action if there is evidence of under representation of particular groups within the supplier s workforce. Any such conditions would be advertised in the tender evaluation criteria Forces are required to consider local procurement options wherever possible; however there is also an increasing expectation for collaborative working, particularly with other police forces, to drive financial benefits that lean towards contracts with big national companies. Although some collaborative arrangements may inhibit exploration of such local options, these factors should be considered within the tender process. Page 3 of 16

4 4.4 Procurement Process for BTP tenders over the EU Procurement Threshold and existing Framework Agreements (where required) Equality and diversity requirements should be outlined in all contract terms and conditions and any OJEU advertisement for a contract, especially in industries where controls are sometimes reputationally questionable e.g. uniform/clothing manufacture, electronics and assembly. Where doubt exists on the supplier practices, guidance should be sought through professional governing bodies When relevant and proportionate Pre-Qualification Questionnaires (PQQ s) should ask questions about a company s equalities performance, thus building relevant equality and diversity requirements into the tender itself. See Appendix 1 for questionnaire to be used for the prequalification of a supplier when appropriate (Diversity Prequalification Questionnaire (PQQ) for Suppliers) For contracts over the EU threshold the Diversity Unit and Procurement staff will work together as part of the procurement process Information provided as part of a PQQ will not allow any individual s diversity information to be identified, whether by name or through a process of elimination. BTP requests that measures to ensure the highest level of confidentiality are in place. 4.5 Contract Monitoring within BTP In accordance with the Commission for Racial Equality (CRE) guidance, non-compliance should be documented and reviewed during the course of the contract by budget holders and contract managers. Refer to Appendix 2 - Guidance for Budget Holders for further information Suppliers may be required to supply performance reports which include data for monitoring where relevant. Refer to Appendix 3 - Guidance on Supplier Reports for further information If there are high levels of non-compliance prior to the contract review and renewal, these will be addressed through an internal audit process with the support of the Diversity Section. This will be in the form of dip sampling of applicable contracts annually The notion of a procurement cycle is that it is a continuous process. The review of the effective promotion of equality is therefore integral to the cycle in order that it can inform future practice and contracts. 4.6 Transparency and Data Protection Where a PQQ is required (for BTP tenders over the EU Procurement Threshold) or an ITQ for existing Framework Agreements (where required), the administration, including record management will be undertaken by FHQ Procurement Department or the BTP Area Buyer. It is their responsibility to ensure that information is captured, managed and preserved in an organized system that maintains its integrity, security and authenticity in compliance with the BTP Data Protection Manual and BTP Protective Marking Scheme. 4.7 Audit and Compliance This procedure will be monitored during implementation by the Procurement Department and will be subject to annual review by the Procurement Department and the Diversity Unit to take into account the relevant equalities legislation and good practice. 5. DIVERSITY AND PROCUREMENT OUTSIDE BTP 5.1 Vetting Suppliers Suppliers should recognise that it wins the trust and confidence of BTP when it provides a service appropriate to the needs of diverse communities we serve. Potential suppliers Page 4 of 16

5 can access BTP s equality evaluation criteria and BTP Equality, Diversity and Human Rights Scheme which are available to the public: Much of the current equality legislation applies to all organisations. However, it is recognised that small businesses may not have the advanced policies that larger organisations do. It is also acknowledged that statutory bodies may have additional responsibilities placed upon them. Nevertheless BTP expects potential suppliers of goods, works and services to demonstrate some level of commitment to equality and diversity. 5.2 Expectations of all Suppliers Suppliers should: Provide goods, works and services and deliver all contracts in a way that is non discriminatory, and promotes equality of opportunity for partners, staff and members of the public across all protected characteristics. Make reasonable adjustments to ensure access for all employees and service users. Ensure there is no difference in the satisfaction levels of employees and monitor this through quality of service commitments and Equality, Diversity and Human Rights Scheme. Promote a working environment in which bullying, harassment and unfair/unlawful discrimination is not tolerated. Keep up to date with relevant policies and procedures which will assist them in dealing with any diversity issues or incidents. Ensure that commitment to equality is reflected in responses to the outcomes of prequalifications or reviews. Maintain a high awareness of the purpose and operation of a grievance resolution procedure. Consult with stakeholders to assess their differing needs and expectations and those of the organisations they supply. Monitor against the statutory protected characteristics of age, religion or belief, sexual orientation and transgender (alongside disability, gender and race) Where suppliers are employed on police premises, then BTP also requires that the supplier complies with BTP s own equality policies and practice. The supplier could demonstrate through their own policies that they provide comparable equality protection Varying expectations of small-medium and large suppliers of differing numbers of full time employees are outlined in Appendix 1 Diversity Pre-Qualification Questionnaire (PQQ) for Suppliers. 6. REFERENCES AND LEGISLATION 6.1 This procedure will be subject to regular review and BTP reserves the right to amend the procedure from time to time in accordance with any requirements of law or good procurement/diversity practice. 6.2 A summary of the appropriate legislation can be obtained from the Engagement & Diversity Section, HR Performance and Strategy, FHQ or the Procurement Department, FHQ. Page 5 of 16

6 7. FURTHER INFORMATION 7.1 Related Policies and Information HMIC Inspection - Race Equality Compliance and Impact - Duty Calls: Procurement BTP Equality Scheme BTPA Corporate Governance Manual Procurement Framework and Regulations: Procurement Policy Procurement Procedure Issue, receipt, evaluation of tenders and award. BTP Equality and Diversity Policy Statement Why are we doing this? People who use Britain's railways come from every community and represent every kind of person. We believe that there is a positive value in reflecting this diversity in our own workforce. This ambition is part of our goal to build a completely integrated community where we can all achieve our potential, free from prejudice. What does British Transport Police (BTP) want to achieve? We strive to promote equal opportunities by: Treating everyone fairly, with respect and dignity. Eliminating all forms of harassment, bullying and victimisation. Providing an inclusive, supportive working environment, taking positive action where necessary, so that staff of all backgrounds can achieve their best. BTP will value diversity by: Valuing differences between people and communities, and respecting diverse lifestyles. Reaching out to, communicating and consulting with, communities so we can better understand and meet their needs. Winning the trust and co-operation of those we serve, so they can help us achieve our objectives. Developing a workforce that reflects the diverse communities we serve. Who does this policy affect? Everyone - all officers and staff. BTP will also expects organisations who supply staff, goods and services to fully embrace the spirit of what we want to achieve, even if they have their own equality and diversity policies and practices. Making it happen BTP will make sure that all of our policies and procedures are written in plain language and are inclusive of all people across the widest range of communities. Our officers and managers can act as inspirational leaders in valuing diversity and recognising and realising the talents of every individual. We will find practical ways to encourage and focus our support groups in the valuable diversity and equality work they are already doing. We will set a range of equality and diversity targets, and measure our progress. Where to go for help or advice If you have any questions about this policy and how it affects you, talk to the BTP Engagement and Diversity Section or your Human Resources Department. The relevant support group can also help; you can contact them through the Intranet. East Midlands Police Force s Equality Duty Guidance for Contractors and Suppliers The Human Rights Act 1998 Race Relations Act 1976, as amended by the Race Relations (Amendment) Act 2000 (RRA), The Local Government Act 1988 (LGA) Page 6 of 16

7 The Disability Discrimination Act 1995, as amended by the Disability Discrimination Act 2005 (DDA), Sex Discrimination Act 1975 The Equal Pay Act 1970 (EPA), The Sex Discrimination (Gender Reassignment) Regulations 1999 Equality Employment Regulations (Age, Sexual Orientation, Religion and Belief) and The Equalities Act Guidance and Advice Suppliers with any questions about this procedure should contact BTP Procurement Department on and title their Diversity In Procurement For queries within BTP the Diversity Unit can also help; you can contact them through the Intranet on FHQ-BTP-Diversity-Team. 7.3 Useful Contacts and Organisations Other organisations that can offer guidance or supplementary information to this Procedure: Equality and Human Rights Commission Transport for London 8. REVIEW 8.1 This Procedure shall be reviewed by the Head of Procurement annually. BTP reserves the right to amend the procedure from time to time in accordance with any requirements of law or good procurement/diversity practice. Page 7 of 16

8 Appendix 1 Diversity Pre-Qualification Questionnaire (PQQ) for Suppliers Issue: 1.0 Please answer the following questions providing all requested documents. Further information may be requested as part of the process. ALL suppliers must provide details for question Equal Opportunities / Diversity Policy a) Does your company have an equal opportunities/diversity policy/statement/strategy? Yes No If yes please attach a copy of each policy, statement or strategy. If no, are you looking to implement an equal opportunities/diversity policy in the near future, and if so when? b) How often is this (are these) document(s) reviewed and when was the last review. 2 Bullying and Harassment Policy a) Does your organisation have a policy/procedure designed to handle issues relating to bullying and/or harassment? Yes No If yes please attach a copy. b) If no, are you looking to produce a policy/procedure in relation to handling issues relating to bullying and/or harassment, and if so when? Suppliers with 50+ employees must provide details for question Equality and Diversity Training a) Do you provide equality and diversity training to your employees? Yes, and its mandatory Yes, and its optional No If yes please provide a description of the content, the grade/level of participants and the percentage of your workforce who have completed the training. If no, are you looking to deliver equality and diversity training in the future, and if so when? Page 8 of 16

9 4 Equality and Diversity Monitoring a) Do you undertake any equality and diversity monitoring of your workforce? Yes No If yes please provide details of the protected characteristics you monitor (e.g. race), the stages of employment that you monitor (e.g. recruitment) and how you publish/use the findings of your monitoring activity. If no, are you looking to start any monitoring activity, and if so what will this include and when will it commence? 5 Positive Action a) Has your organisation undertaken any activities designed to improve the representation of your workforce so that it better reflects the community? Yes No If yes please provide details of the activity you have undertaken. If no, do you currently have any issues with workforce representation? Suppliers with 250+ employees must provide details for questions Formal Investigations a) In the last three years have you had an employment tribunal hearing against your organisation that included a complaint on the basis of age, disability, race, gender, gender reassignment, religion/belief and/or sexual orientation)? i) Yes, the complaint was up held, and we have taken action to resolve the issues identified but we have no plans to take further action to resolve the issues ii) Yes and it is currently ongoing/pending iii) Yes but the complaint was not upheld iv) No b) In the last three years has your organisation been: - the subject of a formal investigation by the Disability Rights Commission, Equal Opportunities Commission, Commission for Racial Equality or the Equality and Human Rights Commission on grounds of alleged unlawful discrimination? OR Page 9 of 16

10 - the subject of formal investigations of alleged unlawful discrimination i.e. age, disability, race and ethnicity, gender and gender reassignment, religion and belief and sexual orientation? i) Yes, the allegations were up held, and we have taken action to resolve the issues identified but we have no plans to take further action to resolve the issues ii) Yes and it is currently ongoing/pending iii) Yes but the allegations were not upheld iv) No 7 Does your organisation actively observe the Codes of Practice and Acts of Parliament in relation to the Disability Rights Commission, Equal Opportunities Commission, Commission for Racial Equality and the Equality and Human Rights Commission? i) Yes, ii) No Page 10 of 16

11 Certification and Declaration I/We hereby certify that the information supplied in this questionnaire and supporting documents is accurate to the best of my/our knowledge and I/we accept the conditions and undertakings requested in the application. I/we understand that false information could result in my/our exclusion from the BTP s approved list of firms to be invited to tender. Signed: Date: Name (block capitals): For, and on behalf of: Position in Organisation: Telephone No: Fax No: address : Full Address : BEFORE RETURNING THIS QUESTIONNAIRE, PLEASE ENSURE THAT YOU HAVE: - answered all questions appropriate to your application - attached relevant documents, ensuring that all enclosures are clearly marked with the name of your organisation, and the number of the question to which they refer - signed the above undertaking. Page 11 of 16

12 IF YOUR TENDER IS SUCCESSFUL, THIS APPLICATION WILL BE INCORPORATED IN THE CONTRACT AWARDED TO YOU. British Transport Police s Gold Standard for diversity provides a zero tolerance approach to any form of prejudicial behaviour, unfair/unlawful discrimination, bullying or harassment. BTP seek to have a working environment where employees have the confidence to disclose if such issues should arise. Employees should have the confidence that the organisation will deal with their concerns appropriately and fairly. Furthermore, if we receive any complaints about any aspect of diversity or how you are carrying out our duties under the legislation, we will pass them on to the relevant department or contact. It is required that the individual or department will deal with the complaint promptly and efficiently. Page 12 of 16

13 Appendix 2 Guidance for Budget Holders Issue: 1.0 BTP considers it necessary for suppliers of goods, works and services to have a strong commitment to our equality and diversity principles. It is necessary for them to demonstrate that steps have been taken to ensure quality and to provide equality of opportunity within their organization. All budget holders and contract managers will need to make Procurement Department aware of any suppliers who do not comply with legal requirements according to Diversity legislation across Age, Disability, Gender, Race, Religion and belief, Sexual orientation and Transgender. Key points to consider when monitoring your suppliers: 1) Does the supplier have an equal opportunities and diversity policy or statement? 2) Does the supplier carry out any diversity monitoring (at recruitment and/or promotion)? 3) In the last three years, have any findings of unlawful discrimination i.e age, disability, race and ethnicity, gender and gender reassignment, religion and belief and sexual orientation been made against the supplier? If so please seek further details as this may open BTP to levels of risk. If Diversity Team and Procurement Department receive any complaints about how supplier companies are carrying out their duties under legislation, we will pass them on to the relevant budget holder within BTP. It is required that the individual or department will cooperate with Diversity Team and Procurement Department in resolving the complaint promptly and efficiently Page 13 of 16

14 Appendix 3 Guidance on Supplier Reports Issue: 1.0 BTP considers it necessary for suppliers of goods, works and services to have a strong commitment to our equality and diversity principles. It is necessary for them to demonstrate that steps have been taken to ensure quality and to provide equality of opportunity within their organization. All budget holders and contract managers will need to make Procurement Department aware of any suppliers who do not comply with legal requirements according to Diversity legislation across Age, Disability, Gender, Race, Religion and belief, Sexual orientation and Transgender. Information you may gather when monitoring ALL suppliers: The equal opportunities and diversity policy or statement of your supplier company Information you may gather when monitoring suppliers with between 0 and 250 employees: Evidence of how the supplier company advertises and promotes their equal opportunities and diversity policy. Details of how the supplier s equal opportunities and diversity policy is implemented, monitored and reviewed. Details of the guidance or training suppliers provide to managers and supervisors on equal opportunities and diversity in recruitment, selection, training, promotion, discipline and dismissal of staff. Details of any staff diversity monitoring suppliers perform (at recruitment, selections, promotion etc). Further details or reports may be required. See Contract Monitoring within BTP 4.5.2, Diversity in Procurement Procedure. Details of any positive positioning or advertising in specific diversity-related publications. Information you may gather when monitoring suppliers with 250 or more employees: If in the last three years, the supplier has had any findings of unlawful discrimination i.e age, disability, race and ethnicity, gender and gender reassignment, religion and belief and sexual orientation made against them, they will need to provide further details or attach appropriate documentation. Decision outcomes and updates may be required. Page 14 of 16

15 If in the last three years, the supplier has been the subject of formal investigations by the Disability Rights Commission, Equal Opportunities Commission, Commission for Racial Equality or the Equality and Human Rights Commission on grounds of alleged unlawful discrimination, they will need to provide further details or attach appropriate documentation. Decision outcomes and updates may be required. If the supplier organization is a statutory body they will need to provide extensive information about how the authority is progressing and monitoring their public equalities duties. If the supplier is not currently subject to UK legislation, please obtain details of how they comply with legislation which is designed to eliminate discrimination and promote equality in their country. Under the Race Relations Act 1976, as amended by the Race Relations Amendment Act 2000, the Disability Discrimination Act 2005 and the Equalities Act 2006 the Authority has specific duties to have due regard to the following: Eliminate unlawful discrimination and harassment Promote equality of opportunity between all members of staff, partners and affiliates. Promote good relations within and across diverse groups Take steps to make reasonable adjustments for disabled staff Please obtain details of how the company would seek to support the Authority in these duties? Is the organization compliant or indeed best practice with regard to the 2009 New Equality Bill aligning equality across age, religion and belief, sexual orientation and transgender status? Page 15 of 16

16 British Transport Police s Gold Standard for diversity provides a zero tolerance approach to any form of prejudicial behaviour, unfair/unlawful discrimination, bullying or harassment. BTP seek to have a working environment where employees have the confidence to disclose if such issues should arise. Employees should have the confidence that the organisation will deal with their concerns appropriately and fairly. Furthermore, if we receive any complaints about any aspect of diversity or how they are carrying out their duties under the legislation, Diversity or Procurement will pass them on to the relevant department or contact. It is required that the individual or department will deal with the complaint promptly and efficiently. Page 16 of 16

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