DORSET PROCUREMENT JOINT PROCUREMENT SERVICE SUSTAINABLE PROCUREMENT STRATEGY

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1 DORSET PROCUREMENT JOINT PROCUREMENT SERVICE SUSTAINABLE PROCUREMENT STRATEGY

2 1. DORSET PROCUREMENT WHAT IS IT AND HOW DOES IT WORK? Dorset Procurement is a Joint Procurement Service between the local authorities in Dorset that became operable on 1 April Dorset County Council will host Dorset Procurement on behalf of the following councils: Christchurch Borough Council East Dorset District Council North Dorset District Council Purbeck District Council West Dorset District Council Weymouth & Portland Borough Council Procurement is part of a wider Dorset Councils Working Together programme which aims to be innovative in transforming the way in which services are organised and delivered to improve the customers experience. The agreed aims and objectives Dorset Councils Working Together are: To take a customer-orientated approach to the design and delivery of shared services To maintain existing service quality (and where possible improve it) while maximising the opportunity for on-going efficiency savings To build a sustainable approach through an agreed proportion of any savings accruing to the individual partners being ring-fenced to fund the programme. 1

3 2. What is Procurement? Procurement has been defined as:.the process of acquiring goods, works and services, covering both acquisition from third parties and in-house providers. The process spans the whole life cycle from identification of needs, through to the end of a services contract or the useful life of the asset including its disposal. It involves options appraisal and the critical make or buy decisions which may result in the provision of services in-house in appropriate circumstances (Source: National Procurement Strategy for Local Government October 2003) Guidance on best procurement practice, including Office of the Deputy Prime Minister (ODPM) Circular 02/2003 published on the 13 March 2003, (which made reference to the Byatt report on Best Value Procurement and the Government Best Value Review), called for innovative approaches to commissioning, procuring and providing services. The circular makes clear that successful procurement strategies are likely to be based on whole life cost considerations that include subsequent revenue implications and not simply the lowest initial tender price. Consideration of whole life costs allows factors such as fuel efficiency, asset disposal and replacement cycles to be taken into account as well as social factors, including, environmental sustainability, benefits to local people, good work force management, community safety, diversity and fairness as well as initial tender price. In its Comprehensive Spending Review of 2007, the government further strengthened the role of procurement stating that smarter procurement would be the most significant tool, especially through collaboration and shared services, in the delivery of efficiencies,. In addition, a report of HM Treasury s Operational Efficiency Programme of April 2009 recommends as one if its key strands that 50% of spend not currently in procurement contracts be procured collaboratively by 2010/11. A report by The National Audit Office in May 2010 on A Review of Collaborative Procurement across the Public Sector identified that all public bodies should adopt a more strategic approach to procurement. It reports further that collaborative procurement has long been seen as a way to save money. Standardising specifications allows for the aggregation of demand and allows for comparison of unit costs. Lower prices should result either from economies of scale or from using price information to challenge suppliers. Collaboration should result in fewer tendering exercises leading to lower administration costs and allow public bodies to concentrate on more specialised purchases that are unique to them. For further information on the National Procurement Strategy click on the following web link: 2

4 gov_ hcsp For further information about the Governments Efficiency Agenda click on the following web link: gov_ hcsp 3. Dorset Procurement Objectives This strategy will set out how Dorset Procurement will adopt a strategic approach to sustainable procurement in order to meet its stated objectives, which are: To build capacity and capability within procurement across Dorset To release efficiencies for reinvestment To streamline business processes and modernise systems To develop the market, by increasing competition, innovation and choice, and by maximising supplier relationships To support and develop the local economy To provide procurement excellence in the region and beyond. To ensure compliance with European and English legislation The harmonisation of relevant procurement policies and strategies across all seven Authorities. This Sustainable Procurement Strategy, whilst meeting the last objective above, is not intended to be a procurement manual although reference will be made to both the Dorset Procurement Handbook and the Dorset Procurement Toolkit throughout this strategy document. In addition to its stated objectives, the justification and business drivers for a joint procurement service are the need to: Support the government s requirement..to pursue new working arrangements to achieve the same level of improvement and efficiency gains as we expect the new unitaries will be achieving Provide additional capacity and betters skills in order to identify and deliver cashable savings for reinvestment To improve service quality by ensuring that goods and services purchased better meet our customers needs. To improve and standardise business processes to identify and deliver additional process savings To deliver a positive and consistent experience for organisations wishing to trade with the seven Dorset Councils, by adopting common approaches, policies, and documentation. To ensure governance and compliance with European Union (EU) and English legislation. To help with the business continuity planning to help secure essential services in the event of emergencies or pandemics (e.g. Swine Flu Pandemic). 3

5 This strategy will also set out how Dorset Procurement will actively develop more formalised collaborative arrangement with the two Unitary Boroughs of Bournemouth and Poole, local Parish & Town Councils as well as other local and regional public sector organisations. 4. Dorset Procurement & Category Management As part of its Fit for the Future programme, Dorset County Council in 2008 formally centralised its strategic procurement function, building on the success of the former Procurement & Contracts Management Unit and created Dorset Procurement. Dorset Procurement has successfully embedded the principles of Category Management in delivering the necessary efficiencies to support one of the Council s aims of being a well managed council as well as contributing to its other aims through the strategic procurement approach in the delivery of all its services. The introduction of Category Management completely changed the way in which Dorset Procurement operated. Category Management has been widely used in the private sector but only adopted by a handful of public sector organisations. Category Management has been defined by the London Borough of Camden as a tool that: provides a single point of responsibility for the procurement of goods and services across the council which : share similar inherent characteristics and as such are classified together within a common category; are required across the council s functional and geographic boundaries; map on to a distinct market sector or industry Under the Category Management approach, Dorset Procurement has clustered similar expenditure groups into categories, with a Senior Category Manager heading each category of spend. The categories are: Adult Services Commissioning Children Services Commissioning Construction Facilities Management (FM) 4

6 ICT Professional Services Transport & Waste Services These categories have sub-categories which are assigned to individual Category Managers who then develop a strategic sourcing process. The sourcing process flows from very close stakeholder engagement to supplier relationship management. To support the Category Management process, a Dorset Procurement Toolkit has been developed that sets out the procedures and stages that officers have to follow in order to successfully deliver a procurement project. The process of Category Management has an inbuilt milestone review process which examines a programme or project at critical stages in its lifecycle. Each milestone of the four stages of the process has to be signed off by the Procurement Manager in order to progress through to project conclusion. The four sections are: Business Needs Sourcing Plan Tendering Supplier Management Category Management will deliver best value in the procurement of goods, works and services by procuring delivery partners on the basis of whole life costs and benefits to meet customer needs. The success of the County Council s Dorset Procurement unit was identified as a key factor in the acceptance of a Dorset Councils Working Together Business Case to develop a Joint Procurement Service, led by Dorset County Council, which came into effect on 1 April The Joint Procurement Service received further recognition when, in the autumn of 2010, the service was judged on the original business case, to be a finalist in the Society of Procurement Officers (SOPO) Awards for Procurement Excellence. Dorset Procurement is not a central processing unit. It is a resource which leads on letting corporate contracts and supporting significant projects, whilst allowing departmental purchasing staff organise their own small contracts and to place orders themselves against corporate contracts within a clear 5

7 corporate framework. Dorset Procurement provides support wherever required and assist stakeholders to monitor procurement activity across all borough and district councils. Dorset Procurement comprises of a team of highly skilled and experienced staff and its activity, together with those similar staff in other local councils, is measured on maximising benefits for all Dorset councils as well as specific targets for particular projects. Dorset Procurement will undertake its procurement activities in an open and fair manner without discrimination. 5. Staff Development The development and training needs of all staff will be assessed through the use of a competency framework, building on from Dorset Procurement s successful investment of a unique Development Needs Analysis (DNA) tool. Where identified capabilities are lacking, training will be provided to close any skills gaps, subject to satisfactory budget provision. Refresher training will continue to be a core element of ensuring that all staff engaged in the procurement process maintain and improve their skills and remain motivated in delivering the ever changing requirements of a successful procurement organisation. A structure chart of Dorset Procurement is shown below. 6

8 Procurement Manager Senior Category Manager - Construction Senior Category Manager Facilities Management Senior Category Manager - ICT Senior Category Manager Professional Services Senior Category Manager Waste/ Environment /Transport Category Manager Facilities Management Category Manager - ICT Category Manager Professional Services Category Manager Waste/ Environment/ Transport Category Liaison Manager X 2 6 Dorset district & borough councils procurement staff Children s Services Commissioning Adult Services Commissioning 7

9 6. Vision The Sustainable Procurement Strategy will support each of the Dorset Council s corporate aims and objectives. It will deliver best value in the procurement of goods, works and services by procuring delivery partners on the basis of whole life costs and benefits to meet customer requests. The Sustainable Procurement Strategy will contribute to the Dorset Procurement aim of continuing to be recognised as providing procurement excellence in the region and beyond. In particular, the Strategy will support each council s aim to deliver more efficient and effective public services that represent value for money. 7. Aims of the Strategy In delivering an effective and efficient procurement service across all Dorset Councils Working Together, Dorset Procurement will have a responsibility to ensure that all procurement activity is undertaken in a socially responsible manner. The impact of risk, diversity and sustainability will need to be identified, measured and managed throughout the procurement process. Dorset Procurement will also have responsibility through the leverage of its significant spend to ensure that the marketplace in all its totality is made aware of its obligations to understand and deliver on these important areas of activity. As part of the Category Management process, opportunities for local, regional and national collaboration will be given prime consideration and, as appropriate, implemented. Such collaboration will include continuing membership of the Central Buying Consortium (CBC) and the wider Pro 5 as well as our involvement with the South West RIEP. The aims of the Strategy are: Incorporate current best practice government initiatives such as Best Value, the Byatt report, Local Government Construction Task Force, Constructing Excellence in the Built Environment, the work of the Strategic Partnering Task Force, South West Councils, Business Link Organisations, IDeA, the Localism Bill, and the corporate objectives of each of the Dorset Councils Working Together. 8

10 Assess the competitiveness of services and especially how performance compares with those provided by other public bodies and the private and third sectors. Deliver significantly better quality public services for all local citizens through strategic partnerships forged with a range of public, private and voluntary and community services and social enterprise sector suppliers. Procure service delivery partners using Best Value criteria and added value over current arrangements or existing resources. Consider the relevance and impact of diversity issues on service users, suppliers and employees in the management of all procurement activity, including the promotion of equal opportunities and the possible diversity impacts. Such issues will be managed within the requirements of the Equalities Act Implement where appropriate, the Best Value Code of Practice on Workforce Matters in Local Authority Service Contracts and seek evidence from potential suppliers to support the requirements of the Code. Use best practice examples from the best providers, whether public, private or voluntary so as to offer diverse methods of service provision. Achieve continuous improvement in the quality and costeffectiveness of service provision by the adoption of a flexible approach to procurement of goods, works and services within the legislative requirements and each council s Contract Procedure Rules. Provide procurement leadership in the Dorset area in consultation with other local councils and public sector providers. Retain membership and contribute to the activities, of the Central Buying Consortium (CBC) to take advantage of collaborative approaches to the procurement of goods and services. 9

11 Use fair and open competition to explore the full range of practical alternatives as a means of obtaining efficient and effective goods, works and services without favouritism toward the private sector, inhouse provision or the sector. Replace lowest price only tendering with, where appropriate, the Most Economically Advantageous Tender (MEAT) or with longer term alliances which provide services to be delivered on a continuing cost-effective basis using a non-adversarial approach Encourage organisations by the leverage of public sector buying power to develop new products and methods of production and/or service delivery. Analyse the structure of supply markets and identify whether items and services are high/low/value/risk, and the select appropriate procurement tools (e.g. partnering, tendering, joint arrangements, e- procurement, e-auctions and procurement cards, taking account of e-government initiatives) to obtain Best Value, depending on the goods, works and services required. Establish arrangements to scrutinise and review continuous improvement through various means including post contract reviews, and where appropriate, by using internal expertise not directly involved in the project, for example Internal Audit. Promote the social, environmental and economic strategies and objectives of the Dorset Councils Working Together through effective procurement initiatives, including consideration of local and regional issues and in collaboration with government, other public bodies and the private and third sectors for the benefit of the community. Ensure critical goods and services are always available through effective management of suppliers and business continuity planning. Encourage local food producers and suppliers to bid for future food and catering opportunities. A new sustainable Food Policy and 10

12 Strategy document will be developed over the coming months to support this aim. Use the power of procurement creatively to help drive innovation in the design of urban spaces, buildings and products to create markets for recycled materials and to incorporate the principles of sustainability into service delivery and construction. Continuation of the implementation of effective e-procurement, including e-tendering, e-auctions and where appropriate, e-marketplaces. 8. Local Strategic Context: The Sustainable Procurement Strategy supports Shaping our future the Community Strategy for Dorset The strategy has been influenced by substantial changes which have taken place since the first community strategy was launched in These include opportunities like the 2012 Olympic Games and challenges such as climate change. The revised strategy builds on our shared vision of "a living thriving Dorset where everyone has a part to play in creating a better quality of life" and tackles major challenges now facing the county: Affordable, sustainable and appropriate housing Developing Dorset's economy Improved access to services, employment and leisure Safeguarding Dorset's environment, now and for the future An ageing population with a falling proportion of young people. Many organisations including the County, Borough and District Councils, other statutory bodies, business and sector organisations have worked together on this revision. The Community Strategy provides direction for the strategic plans of all partner organisations and the County Council has the overall responsibility for ensuring that organisations work together more effectively to achieve these common goals. The Shaping our future strategic vision acts as the focus for all Dorset councils activities including procurement. It is vital therefore that procurement in its widest context can be seen as a significant contributor to this vision. The 11

13 illustration below shows the arrangements in place in order to secure this objective. 12

14 SHAPING OUR FUTURE COMMUNITY STRATEGY DORSET COUNCILS WORKING TOGETHER CORPORATE POLICIES, PLANS, STRATEGIES SERVICE PLANNING WORKING TOGETHER FOR DORSET DORSET PROCUREMENT SUSTAINABLE PROCUREMENT STRATEGY EQUALITY STANDARDS FOR PROCUREMENT 3 RD SECTOR COMMISSIONING & PROCUREMENT FRAMEWORK CONCORDAT FOR SMEs CONTRACT PROCEDURE RULES DORSET PROCUREMENT HANDBOOK DORSET PROCUREMENT TOOLKIT 13

15 9. A Framework for Procurement Procurement activity will operate within a strategic framework consisting of the following: Sustainable Procurement Strategy Contract Procedure Rules Dorset Procurement Toolkit Dorset Procurement Handbook Equality Standards for Procurement 3 rd Sector Commissioning & Procurement Framework Concordat for SME s. Strategic Procurement activity will be planned over a 24/36 month period. It will be undertaken in a performance management environment and will prioritise areas of activity that will generate significant savings or improved quality and/or contribute to strategic priorities and service improvements. The use of the Dorset Procurement Toolkit and the principles of Category Management will allow areas of spend across all Dorset Councils Working Together to be aggregated in order to obtain economies of scale and secure value for money. Contract Procedure Rules set the standard and framework within which contracts and/or collaborative service delivery partnerships may be entered into by or on behalf of the Dorset Councils Working Together. The current Constitution of all the councils include regulations which clearly set out the rules by which Best Value approaches to procurement must be managed. Dorset Procurement will help ensure that each council s Contract Procedure Rules are regularly reviewed and complied with and will promote the importance of these procedures to all staff across all Dorset Councils Working Together. The Dorset Procurement Toolkit has been produced to assist Category Managers in Dorset Procurement; Commissioners in Adult and Children s Services and colleagues in other public sector organisations procure works, goods and services from external providers using category management techniques. It breaks down the procurement process into the following four stages, each with its own milestone that has to be signed off by the Principal Category Manager, in order for projects to progress: Business needs Sourcing Plan Tendering 14

16 Supplier Management The Dorset Procurement Handbook will provide on-line guidance and support for all staff and will be accessible to external stakeholders and interested parties through the Dorset for You web site. The handbook contains details of the procedures that have to be considered when undertaking a procurement project including details of European and English legislation, tender models and documentation incorporating evaluation processes and contract award notices. It also makes reference to the issues of risk, business continuity, diversity and sustainability that need to be considered from the outset and throughout the procurement process. Equality Standard for Procurement has been developed to support officers, contractors and organisations to understand the importance of equality and diversity issues in the procurement process and to provide guidance about the evidence required to show how equality and diversity issues are being met and managed. For further details of the Equality Standard for Procurement see p below. The 3 rd Sector Commissioning & Procurement Framework sets out how the Dorset Councils Working together will support the voluntary and community sector and social enterprises to develop its role in service planning, and to increase its share of service delivery in Dorset. The Dorset Councils Working Together is committed to working in partnership with the voluntary and community sector and social enterprises in Dorset. Dorset Councils Working Together uses a number of funding mechanisms, particularly contracts and grants. The Framework applies primarily to the commissioning and contracting processes, but may also provides useful guidance to officers with grant budgets. There is clearly potential for the sector in Dorset to develop its role as a service provider to the advantage of the Dorset Councils Working Together, the voluntary and community sector and social enterprises and, most importantly, service users, but progress will depend on removing barriers in the commissioning, tendering and procurement processes, and in building the capacity of the voluntary and community sector organisations and social enterprises locally. Commissioning the voluntary and community sector and social enterprises to deliver services not only harnesses these advantages to produce potentially more effective and far-reaching, customer-focussed services, but also provides opportunities to achieve wider local social and economic objectives such as higher levels of volunteering, increasing local employment and improved local skills, and a greater sense of community ownership of local issues. 15

17 The framework is therefore designed to provide an accessible and equitable process through which the voluntary and community and social enterprises sector, in particular those locally based, can demonstrate their potential to provide high quality, value for money services to the people of Dorset. In addition to the Framework, Dorset Procurement will meet on a regular basis with the voluntary and community and social enterprises sector infrastructure groups to ensure that opportunities for such organisations to access public sector contracts are maximised. The Concordat for SME s sets out the actions that the Dorset Councils Working Together will take to make their contracts more accessible to SMEs. Although the principles should relate to all SMEs, the concordat is particularly focused on small businesses of less than 50 employees. The important contribution that small businesses can make to the delivery of public services and the vital role these businesses play in the national and local economy is well recognised by the Dorset Councils Working Together and, within the European and English legislative frameworks are committed to making the most of the benefits offered by such organisations. Dorset Procurement will continue to meet with the Federation of Small Businesses (FSB), Dorset Business (Chambers of Commerce) and Business Link on a regular basis to help ensure that local businesses and SME s are aware of opportunities and understand how to compete for public sector contracts. 10. Collaborative Procurement In addition to the Dorset Councils Working Together Joint Procurement arrangements detailed above, the following is a brief outline of other areas where Dorset Procurement is working collaboratively with other local authorities and public bodies: 11. The Central Buying Consortium (CBC) One of Dorset Procurement s major collaborative procurement developments is our membership of CBC. CBC is now part of a group of procurement consortia that covers the majority of England called Pro 5. Pro 5 have a combined spend of over 2billion per annum and a greater range of collaborative framework contracts that can be accessed by Dorset Procurement. In addition to the CBC, Pro 5 comprises the following organisations: Eastern Shires Purchasing Organisation (ESPO) North Eastern Purchasing Organisation (NEPO) West Mercia Supplies (WMS) Yorkshire Purchasing Organisation (YPO) 16

18 Dorset Procurement currently participates in many CBC contracts including: ICT Equipment Furniture Office Equipment Educational furniture Vehicles For further details about CBC click on the following web link: Dorset Procurement is also involved in other local and regional collaborative procurement, including: 12. Dorset Procurement Partnership We plan to reintroduce the Dorset Procurement Partnership, a forum which represents the interests of other local public funded organisations in Dorset and endeavour to meet on a regular basis to discuss areas of interest and to explore opportunities for collaborative procurement. The members of the Partnership have traditionally worked closely together and will continue to assist each other in delivering the National Procurement Strategy and to address the Government s Efficiency Agenda. The Dorset Procurement Partnership comprises the following Local Authorities and other organisations: Dorset Procurement (including Dorset Councils Working Together) Borough of Poole Bournemouth Borough Council Dorset Fire & Rescue Service Dorset Police Authority Primary Care Trust Dorset Procurement also works in close liaison with the South West Regional Improvement & Efficiency Partnership (SWRIEP). 17

19 13. South West Regional Improvement & Efficiency Partnership (SWRIEP) The SWRIEP is an organisation that has been set up by the Government as one of a network of nine regional centres established to provide advice and support for councils and other public sector bodies. SWRIEP has been tasked to investigate opportunities for collaborative working and assist councils and other public bodies to improve efficiency in the delivery of public services across the South West. SWRIEP supports the following local authorities and other public bodies Police Authorities Devon and Cornwall Police Authority Dorset Police Authority Avon and Somerset Police Authority Wiltshire Police Authority Gloucestershire Constabulary Fire and Rescue Services Devon Fire and Rescue Service Cornwall County Fire Brigade * Gloucestershire Fire and Rescue Service * Somerset Fire and Rescue Service * Dorset Fire and Rescue Service Wiltshire Fire Brigade Avon Fire Brigade County Council areas Cornwall County Council and Cornwall district councils (The Isles of Scilly) Devon County Council and Devon district councils Dorset Councils Working Together Gloucestershire County Council and Gloucestershire district councils Somerset County Council and Somerset district councils Unitary Authorities 1. Bristol 2. South Gloucestershire 3. Bath & N.E. Somerset 4. North Somerset 5. Plymouth 6. Torbay 7. Poole 8. Bournemouth 9. Swindon Wiltshire Council and Wiltshire district councils 18

20 14. Office of Government Commerce (OGC) Dorset Procurement may also where justifiable, lawful and on the grounds of Best Value, access framework contracts in circumstances whereby OGC have managed the procurement of such contracts. Approval to access OGC contracts will require the authorisation of the Head of Dorset Procurement. 15. PROCUREMENT PROCEDURES Before commencing a procurement process it is essential that the officer leading the procurement process has identified the need and fully assessed the options for meeting those needs. Consideration shall be given to the Sustainable Procurement Strategy and further guidance provided in the Corporate Procurement Handbook, as appropriate. Before undertaking the procurement, the lead officer shall: consider all other means of satisfying the need (including recycling and re-use where appropriate) consult DP to ascertain whether there is an appropriate framework agreement, collaborative or partnership arrangement that should be used, including any existing or planned contract with the Central Buying Consortium (CBC), Pro5 or others. consider with advice from DP how the procurement should be categorised in accordance with the principles of Category Management and whether a longer-term collaborative service delivery partner should be procured or an existing one used consider whether the Sector might realistically be involved and design commissioning and procurement arrangements in a way that allows the Sector to access opportunities to deliver services (see the DP 3 rd Sector Commissioning & Procurement Framework) consider whether Small & Medium Enterprises might realistically be involved and design commissioning and procurement arrangements in a way that allows Small & Medium Enterprises to access opportunities to supply goods, deliver services or carry out works (see the Concordat for Small Medium Sized Enterprises) establish an appropriate business case for the procurement carry out an assessment of risks including procurement 19

21 risks and business continuity associated with the project (see the Risk Management Strategy and Dorset Procurement Handbook, for guidance on conducting risk assessments) carry out an impact assessment associated with the each council s policies and strategies in respect of equality and diversity and sustainability (see Corporate Procurement Handbook) 16. Equality Standard for Procurement Diversity is not about treating everyone in the same way, but about recognising and valuing difference, as well as recognising and addressing inequalities and disadvantage. The Equality Framework for Local Government has laid out specific equality in procurement criteria to be included in contracts and achieved through the procurement process. This standard carries an assessment process that is an important measure of how well public sector services deliver equality and diversity in all areas of service provision and employment. Prior to the commencement of any procurement project, consideration must be given by stakeholders to the impact that diversity and equality may have and identify whether it is a core requirement of a particular contract. The role of Dorset Councils Working Together as community leaders is important to us and we are committed to the promotion of equality of opportunity and accounting for diversity in delivering our services. We welcome the opportunity to promote fairness as we continue to improve our public services and achieving the aims set out in our comprehensive Equality and Diversity Scheme. An important part of this commitment is encouraging, and where possible, requiring all organisations which bid for our business to demonstrate equalities in recruitment and retention as well as service delivery. Dorset councils spending sustain and generate thousands of jobs in and around the geographical area of Dorset. The Councils have a statutory duty to ensure that public money is spent in a way that ensures Best Value and does not lead to unfair discrimination and social exclusion. Dorset Procurement has developed the Equality Standard for Procurement which provides a benchmark against which service providers compliance with our statutory requirements and other legal obligations can be measured. Answers to the approved questions, will be used to determine if a potential service provider satisfies the pre-contract requirements of the standard. This document has been developed to support council officers, contractors and organisations to understand the importance of equality and diversity 20

22 issues in the procurement process and to provide guidance about the evidence required to show how equality and diversity issues are being met and managed. It provides information and advice about how the Dorset Procurement will promote equality when procuring goods, services and works from external organisations including contractors, suppliers and consultants from the public, private and third sectors. Questions relating to whether the equality and diversity requirements are met will be included in all tenders for council business. All organisations who wish to undertake business with the Councils will need to ensure that they conform to these requirements. We may ask for evidence that equality and diversity requirements are being met. Failure to demonstrate this may be grounds for termination of the contract. This Equality Standard for Procurement will be subject to regular revision and will incorporate the requirements of the Equality Act Dorset Procurement will continue to play a significant role to help Dorset council s work towards Achieving and/or Excellence under the new Equality Framework for Local Government. 17. Sustainable Procurement Dorset Procurement will play a significant role in supporting a number of pan- Dorset policies and strategies that are aimed at mitigating the impact of climate change including energy and water. We have set the following objectives for purchasing works, goods and services, across all our operations but with due regard to the legislative requirements of European and English law:- Minimise environmental impacts, including Minimise waste, pollution, energy and water use and the impacts from transport, Maximise re-use and recycling and the use of efficient & clean technologies Protect and enhance the natural and built environment Maximise benefits to the local economy, including Maximise the use of local goods, skills, materials and services Encourage supply chains to adopt good environmental practices Maximise benefits to local and global communities, including Improve accessibility to services and green products for all Maximise opportunities for learning and training and promotion of sustainable development Maximise opportunities to support healthy lifestyles 21

23 Encourage equality, fair and ethical trade and address poverty Explore opportunities for the application of renewable energy technologies Take a long term view, - account for the impacts and benefits of products and services through their whole life consider the implications of long term issues such as Climate Change consider the needs of future generations To ensure the achievement of the above we will: Implement such policies and action plans as actively as we can, consistent with the effective management of each Council s resources Ensure all procurement staff are aware of their roles in implementing such policies Ensure our suppliers comply with statutory environmental requirements Where appropriate, encourage tenderers to provide comparative whole life costs for environmentally sustainable alternatives. Ensure that the evaluation criteria where appropriate, recognises suppliers that can demonstrate the ability to supply works, goods and services that have a clear environmental advantage where it satisfies the value for money requirement Share our successes and encourage others to do the same In the last few years, the Dorset Councils Working Together with the unitary authorities of Bournemouth & Poole, other public sector organisations and the business and sectors have developed two components as part of the Climate Change Mitigation Framework; the Bournemouth, Dorset & Poole Renewable Energy Strategy and the Bournemouth, Dorset and Poole Energy Efficiency Strategy. With a growing awareness of the threat of climate change and the need to reduce emissions of greenhouse gases, a range of national and regional targets for reducing carbon emissions have been set. Dorset councils are committed to ensuring that full consideration of the impact that the procurement of goods, works and services will have on the environment and, in particular, on the Dorset community. As well as the consideration of the full life cycle costs in any procurement of works, goods and services, Dorset Procurement will continue to work closely with local organisations in so far as it is lawful to do so to ensure that opportunities for competing for public sector contracts are as accessible as possible. 22

24 In addition to providing better access to such opportunities, Dorset Procurement will help organisations improve the quality of their own businesses by using the leverage of public sector spending to influence organisations to manage sustainability and reduce their own carbon footprint which will contribute to the overall reduction to help meet local and national targets. Dorset Procurement already meet regularly with local representatives of both small and medium sized enterprises and third sector organisations to share and promote sustainable issues in the pursuance of successful bidding for public sector contracts. In 2010, a series of Meet the Buyer events was hosted by Dorset Procurement working in partnership with Business Link to reach out to local organisations to help create a better understanding of the needs and opportunities for all concerned. The good work that Dorset Procurement is doing to support local organisations through improving its Pre Qualification Questionnaire (PQQ) and tender documentation was recognised in 2009 in being awarded the FSB Local Authority Small Business Friendly Award for the Best Small Business Friendly Procurement Policy 18. How will Dorset Procurement deliver on this agenda? As stated above, Dorset Procurement will undertake a number of initiatives to ensure that sustainability in its wider sense is considered as a significant element of the procurement process. The Dorset Procurement Toolkit provides the framework against which all procurement will be undertaken. Based upon a gateway process, progress through the four stages can only be achieved through the sign-off at each milestone stage by the Principal Category Manager. Dorset Procurement will engage with the marketplace when considering solutions to meet the business needs of the organisation for specific categories of works, goods and/or services. Building on successful collaborations with infrastructure groups including Dorset Community Action (DCA) in respect of third sector organisations, the Federation of Small Businesses (FSB), Dorset Business, representing the Chambers of Commerce and Business Link, Dorset Procurement will continue to consult and work with such groups to promote opportunities for local organisations to compete for public sector business but without favour. Where appropriate, soft market test meetings will be held with interested parties to help inform Dorset Procurement of preferred or innovative solutions to help meet the needs of the organisations represented by Dorset Procurement. All tendering opportunities can be accessed via the Dorset for You website. This website also provides helpful information and guidance to all interested 23

25 parties of the processes and procedures to be considered when competing for public sector contracts. As well as promoting all our tendering opportunities on Dorset for You, Dorset Procurement will also advertise on the Supply2Gov website (and its replacement medium) and, where applicable, in appropriate local, national and international newspapers or specialist journals. Contracts in respect of Weymouth & Portland Borough Council will, in addition to the above, be advertised on their own website, weymouth.gov.uk All contract opportunities which exceed the threshold will also be published in the Official Journal of the European Union (OJEU) and the website, Dorset for You. As part of the procurement process, including both the tender documentation and evaluation criteria, Dorset Procurement will promote the use of local organisations and the creation of local jobs as well as other benefits to the local community so far as it is lawful to do so.. Such community benefits may include recruitment and training, equal opportunities, training for existing workforces, supply chain initiatives, community consultation and, under the government s Promoting Skills through Public Procurement, the recruitment of modern apprentices and the long term unemployed, as long as such requirements comply with the requirements of EU and English legislation. Dorset Procurement will continue to work with the relevant agencies, including Job Centre Plus, Business Link to help pursue these benefits. Our progress will also be monitored against the Sustainable Procurement National Action Plan Procuring the Future The National Action Plan requires public sector organisations to: Lead by example Set Clear Priorities Raise the Bar Build Capacity Remove Barriers Capture Opportunities. A Flexible Framework has been produced which provides a consistent approach to this agenda and sets out a number of targets that will enable priorities to be effectively managed. The Flexible Framework has set national targets that required all public bodies to be at least to Level 1 (Foundation) by April 2007 and by December 2009, to have reached Level 3 (Practice) and at least one area of Level 5 (Leadership). With the adoption of this Sustainable Procurement Strategy, Dorset Procurement will have achieved these targets 24

26 in a number of key areas and will continue to progress through the Flexible Framework over the course of the next two years. A copy of the Flexible Framework is attached to this document. 19. E-Procurement A number of e-solutions have been developed to help streamline the procurement process to the benefit of both the buying organisation and potential providers of our works, goods and services. The use of technology also contributes to the sustainability agenda in reducing the dependence on paper based solutions from the tender documentation through to the procure to pay system thereby eliminating the need for invoices, statements, delivery notes and cheques. 20. Electronic Tendering (e-tendering) Dorset Procurement has recently adopted the use of an e-tendering system. By the end of 2011, we aim to conduct all our procurement activity through the electronic system. The system is an electronic tendering solution that facilitates the complete tendering process from the advertising of the requirement through to the placing of the contract. This includes the exchange of all relevant documents in electronic format. Suppliers can register their interest in being considered to be invited to tender for business by self-registering their details and identifying their category/categories of products, services or works they wish to be considered to provide. 21. e-procurement Dorset Enterprise Solution (DES) Dorset County Council, the host of Dorset Procurement, like many other large public and private sector organisations, is keen to obtain the benefits of trading electronically with its suppliers. Since December 2009, the council has adopted its own electronic procurement system as part of the Dorset Enterprise Solution (DES). As well as enabling staff to manage its Human Resources (HR) and Accountancy functions electronically, DES provides a fully electronic procure-to-pay process from initial requisitioning and ordering through to invoicing and payment. In any organisation procurement can be expensive and the need to audit and control this activity can be time-consuming and bureaucratic. DES automates and simplifies this process which reduces costs. 25

27 At present, other Dorset councils that make up Dorset Procurement have different procure to Pay systems. Opportunities to harmonise the systems into one will form part of the wider Dorset Councils Working Together Project programme. Work will continue over the coming year to explore opportunities for a greater use of P-Cards where the circumstances make it in the best interest of the appropriate council to do so. 22. Benefits for Suppliers e-procurement helps suppliers just as much as buyers, as it removes the majority of the paper-based activities relating to processing an order and getting paid, releasing valuable time for sales and other activities. Without pieces of paper to get lost in the post or mislaid, supplier invoices are turned around and settled quickly. Other benefits include: Improved technology capability giving competitive advantage and a wider exposure to new markets Improved transaction speed and accuracy Reduced manual intervention Lower processing and administration costs Reduced paper usage Improved customer relationships and satisfaction 23. How e-procurement works When a Council buyer wants to purchase something from a supplier, they will either log in over an internet connection, look at a web based catalogue, click on the desired products/services and send the order electronically or select from an electronic catalogue held on the system. The supplier will receive the order via . The supplier enters the information into their accounting package or they can use software to integrate the information saving time rekeying. The invoice can be ed back into the Council s financial system. The buyer receives goods/services. 26

28 The financial system automatically matches the invoice to the order and generates payment by BACS. No paper, no errors, no delays, no chasing for payment. 24. Contact Details: Please contact us if you have any questions or comments regarding this strategy. Telephone: Write to: Dorset Procurement Corporate Resources Directorate Dorset County Council Colliton Park County Hall Dorchester Dorset DT1 1XJ Website: Dorset for You This document can be made available in large print, Braille, audio and other languages. Please contact Dorset Procurement above for help. 27

29 28

30 Strategy/Policy Document Dorset Equality Scheme Detail Target Target Date Evidence 2.5 Equality and diversity requirements will be fully embedded in the processes for the commissioning and procurement of goods, services and works. a) Through the implementation of the Sustainable Procurement Strategy and the procurement process we will ensure that goods, services and works that are procured comply with the equality legal requirements and each council s equality policy. b) We will ensure that organisations who deliver services or contracts on behalf of Dorset councils have appropriate equality policies and practices in place for both the recruitment and retention of their employees and for the delivery of their services. March 2011 March 2011 Produce new Sustainable Procurement Strategy incorporating needs of all Dorset councils and through consultation, meet the needs of all stakeholders. Regular development of skills through Category Management Network. c) Contracts for public services will be monitored to ensure that equality requirements and standards are being met. March 2011 Compliance with the Category Manager Toolkit by all category managers. All contract documentation contains relevant clauses and evaluated in accordance with the contract requirements. Process for managing contracts 29

31 Strategy/Policy Document Detail Target Target Date Evidence incorporated as part of the requirement of Category Manager Toolkit 4.2 All public meetings held by Dorset Councils are held in accessible venues, taking into account transport needs. a) We will establish a database of accessible public buildings through the Dorset Procurement process. March 2011 Contract being processed for the hiring of facilities for council organised meetings that will contain 'menu' for accessibility requirements Single procurement strategy and single procurement service across seven authorities will provide a quality consistent approach which: Builds equality assessments into all procurements: Ensures compliance with equality legislation Enables proactive targeting of opportunities to minority groups, e.g. Federation of Small Dorset Procurement operating to full capacity in accordance with harmonised procurement related policies and strategies. All Dorset Councils Working Together to adopt the Dorset Procurement Sustainable Procurement Strategy December 2010 March 2011 As above Meet The Buyer event organised promoting the needs of public sector organisations in managing its diversity & 30

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