The Authority's Procurement Strategy 2008/9-2010/11

Transcription

1 Report title The Authority's Procurement Strategy 2008/9-200/ Agenda item 2 Meeting Finance, Procurement & Property Committee Authority Date 7 November November 2008 Report by Document Number Director of Resources FEP 275 Summary The Authority s three year Procurement Strategy Buying into Excellence (FPP 24 /FEP73) came to an end in July Approval is sought on the Authority s new draft strategy for 2008/9 200/ Improvement and Efficiency through Procurement (attached). This revised strategy is being presented in tandem with the draft National procurement strategy which is also on today s agenda (FEP 276). Recommendations That -. The Authority s draft 3 Year Procurement Strategy and Action Plan for 2008/9 200/ be approved; 2. Progress on implementation of the Strategy be reported to the Finance, Procurement and Property Committee on an annual basis. of 6

2 Introduction/Background The Authority s three year Procurement Strategy Buying into Excellence (FPP 24 /FEP73 came to an end in July Complementing both the National Procurement Strategy for the Fire and Rescue Service and the National Procurement Strategy for Local Government, it consolidated work from our previous Strategy Buying into a Better Future rather than introduce new themes. 2 Details of our progress in the last three years are referred to in our next three year Strategy document attached to this report (Appendix A to the Strategy document). In summary, it is worthwhile noting that the remit of social responsibility has broadened considerably since publication of the last Strategy in 2005 and looks beyond environmental issues and supplier diversity. Our continuing commitment to the GLA Responsible Procurement (RP) Policy since 2006 has resulted in addressing all seven themes of the RP agenda which includes promoting fair employment practices, welfare and addressing strategic labour needs. This has been recognised and is demonstrable through the number of procurement awards the authority has received in this field. We have also appointed (January 2008) a new Head of Sustainable Development within Procurement Department (following the Fundamental Review on 26 April 2007 (FEP 00)). The role of the post holder is to develop strategic direction of the Brigade s work on sustainable development including Climate Change (also on today s agenda FEP 278) and Responsible Procurement. 3 We have undertaken a number of major procurement projects which have delivered efficiencies and/or savings (for example, the Occupational Health contract; the Scientific Services contract and the award winning contract for disposal of HQ furniture) and have also been working on collaborative procurement through the GLA Group Delivering More Together programme and through sourcing from other best value arrangements e.g. through the OGC or emergency service and local government partnerships. We will continue to work closely and with the GLA and other functional bodies in terms of meeting the Mayor s agenda on shared services. 2 of 6

3 4 Two incomplete areas of work from the last three years have been rolled over into the new Plan. Under E Procurement - although we have succeeded in ensuring that businesses are able to access information on procurement opportunities and processes electronically, further research and consideration is required on electronic tendering software which continues to develop. The second area relates to Benchmarking against other organisations which we have achieved through Delivering More Together and the Responsible Procurement Work streams. However, further work is required in this area to ensure we continue to achieve value for money through the Procurement Function across the entire organisation. FOCUS OF NEW STRATEGY 5 Our new Strategy will focus on increased efficiency and Best Value whilst ensuring continuous improvement of practices and performance. This will be achieved through more detailed scrutiny of procurement activity across the Brigade. 6 The key strategy areas for the next three years are set out below and are broadly similar to our previous strategy but have been reviewed and updated. They are Efficiency and Value for money E procurement Collaborative Procurement and partnerships Responsible procurement Business Continuity Performance Management Training and Development Information and Communication Stakeholder Engagement KEY PRIORITIES 7 Efficiencies and Improvement through better procurement will be identified through a range of work over the next three years 3 of 6

4 8 Consideration will be given to where Procurement Department could add possible further value through continuous investigation of areas of major spend across the organisation and considering opportunities to secure better value on our contracts. 9 There will be a review of the Purchase Order Management System and the management information available from it. We will be considering automating processes through e-procurement (invoicing and tender evaluation), resulting in increased information, and efficiency in terms of spend, time and delivery. This will include consideration of joint working opportunities with other functional bodies and be subject to funding availability. 0 The Contracts Management Group of Procurement Department has developed best practice contract relationship management practices and techniques as a result of leading on a project on behalf of the LCE. The roll out of this best practice will continue to other sections within Procurement Department, as well as across the Brigade. Our emphasis during the last three years has been on collaboration whether through the GLA Delivering More Together Group or in our use of frameworks and partnerships. Our aim is to optimise this work over the next three years as well as extending our partnership with a wide range of agencies and stakeholders. 2 In continuing to drive through the RP agenda, the new Sustainable Development team will be working closely with departments to deliver the RP Policy and to develop an understanding of the overlaps in relation to the Climate Change agenda. 3 As part of our Strategy, the Head of Procurement will continuously review the procurement function within the Department including all supply chain arrangements for the delivery of goods to ensure maximum efficiency as implementation of the Strategy evolves. 4 Members are asked to approve the attached draft Strategy. 4 of 6

5 THE EFFECTS OF NATIONAL STRATEGIES 5 The Department for Communities and Local Government (CLG) have produced a consultation document on the National Procurement Strategy for the Fire and Rescue Service which is the subject of a separate report at today s meeting FEP 276. The new draft National Procurement Strategy complements our next Strategy in respect of strategic areas to be included and outcomes to be achieved, including use of Firebuy framework contracts where this provides value for money. 6 The London Centre of Excellence (LCE) which has followed the principles of the Local Government strategy has now been superseded by Capital Ambition as a result of the Regional improvement and Efficiency partnerships initiative (RIEPS). Key values of the initiative are improvement and efficiency. Our new Strategy will complement the Capital Ambition Programme which focuses heavily on procurement issues. We will seek to procure funding support from Capital Ambition where possible.. Authority s Strategic Objectives 7 The Strategy supports the following strategic aims Managing risk by using our resources flexibly, efficiently and effectively, continuously improving the way we use public money Working together to deliver the highest quality of services within a safe and positive environment for everyone in the organisation Operating in accordance with our values, and ensuring that safety, sustainability, partnership and diversity run through all our activities Head of Legal and Democratic Services comments 8 There are no comments from the Head of Legal and Democratic Services Head of Finance Comments 8 There are no comments from the Head of Finance 5 of 6

6 Environmental Implications 9 The Environmental issues are addressed within the Strategy and are specifically referred to in the Action Plan under the section of Responsible Procurement. Equalities Implications 20 Equalities issues are addressed within the Strategy and are specifically referred to in the Action Plan under the section of Responsible Procurement. List of Appendices to this report: 3 Year Procurement Strategy 2008/9 200/ LOCAL GOVERNMENT (ACCESS TO INFORMATION) ACT 985 List of background documents. 3 Year Procurement Strategy Buying into a Better Future FEP Year Procurement Strategy Buying into Excellence FEP CLG National Procurement Strategy for Local Government Final Report Proper officer Contact officer Telephone Nicol Thornton, Head of Procurement Kush Saini x360 Kush.saini@london-fire.gov.uk 6 of 6

7 Appendix A Improvement and Efficiency Through Procurement

8 BACKGROUND Procurement is a major activity within the London Fire Brigade. We have an important role to ensure the safety of everyone living, working or visiting London; and to achieve value for money for our local taxpayers through the way in which we buy our goods, works and services. We signed up to the GLA Group Responsible Procurement (RP) Policy in 2006, and means we actively encourage a diverse range of suppliers and contractors to do business with us. It also means making sure that fair employment practices and environmental improvements are implemented through our procurement activities. We are supportive of the Mayor s agenda on RP which will look at all seven strands of the Programme and in particular at supplier diversity. We have also been working on Collaborative Procurement through the GLA Group Delivering More Together programme and in terms of the Mayor s agenda on shared services we will continue to work closely with and play our part as far as possible in collaborating with the GLA and other functional bodies. PREVIOUS STRATEGIES Our first Strategy (2002-5) was produced in response to a number of drivers including the statutory requirement to carry out a Best Value Review of the procurement function; the recommendations of Sir Ian Byatt s report Delivering Better Services for Citizens, A Review of Local Government Procurement in England and the Audit Commission s report on fire service procurement, A Uniform Approach. Our second Strategy Buying into Excellence (2005-8) consolidated work from the first strategy and included the development of knowledge management, corporate social responsibility, continuous improvement, contingency planning and support to National and London-wide procurement. In addition, our strategy is complemented by the National Procurement Strategy for the Fire and Rescue Service and the National Procurement strategy for Local Government focusing on areas including - sharing resources through collaboration, thus improving purchasing power in the market place and so securing better products, improved services and savings; avoiding duplication of effort in the equipment needed to meet operational requirements; larger contracts, giving the service more leverage with suppliers and the potential to encourage the market to be more responsive to our requirements. PROCUREMENT STRATEGY Mission Our aim is to make London a safer city by providing a cost effective and efficient procurement service supporting operational readiness and resilience. Procurement is a strategic function supporting where applicable the Authority s overall aims and corporate risks (Appendix B) which will help the organisation to take a strategic overview of our capacity to deliver on commitments, projects and change. Our new strategy will be twofold it will continue to focus on improving our procurement practices and performance over the next three years; but will also importantly set out priorities and approaches for achieving increased efficiency and best value through our procurement activity across the Brigade. 2

9 STRATEGIC AREAS AND OUTCOMES Our 3 Year Strategy will therefore comprise the following areas with the outcomes we want to achieve - Efficiency and value for money To reduce the cost of the procurement process and obtain value for money on all procured goods, services and works. E-procurement To optimise use of technology to reduce cost and improve the efficiency and effectiveness of all aspects of the procurement process. Collaborative procurement To collaborate, engage in partnerships, share good practice in order to achieve better value for money. Responsible Procurement To improve the way in which we buy our goods, works and services in a socially and environmentally responsible way. Business continuity To improve the way we manage risk in the procurement of goods and services. Performance Management To develop on-going measurement and review of the procurement process and activities to optimise better knowledge and decision making. Training and Development To develop the knowledge and skills of all those involved in the procurement process in order to attain the highest level of procurement best practice. Information and Communication To provide and communicate high quality information to allow efficient and effective procurement decisions to be made. Stakeholder involvement To develop both internal and external engagement as appropriate to ensure that stakeholders needs are met. Our high level Action Plan at Appendix C demonstrates how we intend to implement the work which we will report progress to the Authority on an annual basis. In summary we will - continue to investigate and keep abreast of market developments to ensure that future contracts and where possible through collaborative procurement deliver best value for money; develop and implement a process for the capturing of savings across the Authority through a range of proposals and through working with other departments; undertake a review of our Purchase Order Management System (POMS) and the management information available from it enabling departments to manage spend better. We will also develop an e-procurement system to include e-invoicing, e-evaluation and standard documentation; Undertake a review of the logistics arrangements for the delivery of goods and equipment to ensure the most optimal use of resources and to minimise the environmental impact of delivery; 3

10 continue to implement the Responsible Procurement Policy and commit to the Mayor s agenda in relation to the Policy and its focus on supplier diversity. We will continue to be leaders of best practice particularly with regards to environmental sustainability and will also map out actions to mitigate and adapt to Climate Change through our procurement activities; review opportunities to deliver greater efficiencies through closer joint working with local, central, national and other bodies. We will also develop partnership working for our suppliers to supply to other Emergency Services (e.g. British Transport Police (BTP), Metropolitan Police Service (MPS) and London Ambulance Service (LAS)); improve the process of our vehicle and equipment implementation projects to ensure a more effective and efficient delivery of products that fulfil end user requirements; roll out best practice contract relationship management practices and techniques such as the You and Your Contractor manual to other areas of procurement within the Department and the Brigade thereby raising the standard of contract relationship management ; continue to work with our PFI partners to further enhance the capabilities and effectiveness of front line operations through the development and provision of new vehicles and equipment such as Bulk Foam Units, Hose Layer and Retrieval Units, Enhanced Digital Network Communications at Incidents, etc; seek added value through reviewing the programme of equipment replacements (e.g. PEG); improve the RPE support function across the Authority to accommodate the new BA charging requirement and further develop the strategy to deal effectively with Major and potentially Catastrophic (terrorist) incidents; ensure that Procurement Department integrates with a wide range of stakeholders (internal and external) to ensure a more effective and efficient delivery of products; and ensure that quality assurance is embedded within our Research and Development work particularly to ensure that we procure goods and services which are fit for purpose; 4

11 APPENDIX A Detail of Key successes for the last three years Collaboration - Collaborative procurement took place on six projects through GLA Group Delivering More Together programme achieving savings across the GLA Group from pan GLA or joint functional body procurements of approximately m in 2007/08. Partnerships - We led two projects on behalf of the London Centre of Excellence, namely the Contracts Relationship Management (CRMGT) project and the Strategic Supplier Intelligence (SSI) project. The CRMGT project has resulted in the publication of You and Your Contractor a manual of best practice for contract relationship management in Local Government. The SSI project was a pathfinder exercise and has successfully completed its first phase by proving the concept of supplier relationship development across London local authorities. This included developing models and techniques which are now being utilised in the next phase. Both the CRMGT and the SSI projects have now merged into the Supplier Relationship Development Project (SRD). Deliverables for SRD over the next two years include working with London s major local authority suppliers to achieve efficiencies and improvements on a pan London basis, the development of a supplier relationship IT application and knowledge depository, and the roll out of the Contract Support Service model to ten London Borough contracts. Major procurement Projects Projects carried out by a range of departments have included furniture and catering for our new premises at Union Street; disposal of furniture from the former Headquarters complex which resulted in 82.8% reuse, 2.5% recycled, 3.7% waste to energy and % landfill; printing arrangements at our new premises at Union street which have resulted in reduced numbers of printers and photocopiers and the introduction of energy efficient multi functional devices (MFDs); salary sacrifice schemes (child care vouchers and bikes); new Occupational health contract awarded; a variety of specialist Personal Protective Equipment (PPE) clothing to enable USAR personnel to carry out their roles; Single contractor for Waste Management from all Brigade premises incorporating recycling of a variety of waste products; re-tendered contract for the Administration of the Firefighters Pension scheme; delivery of 90 new vehicles; We have also awarded contracts on Drugs and Alcohol testing; external Warehouse and Logistics support; and more recently for New Generation Personal Protective equipment. A new contract was also let for the renewal of the provision of Scientific Services support. The new contract included a stronger focus on environmental considerations. The contractor s response included environmental efficiencies and the ability to supply on request specialists in occupational noise, air quality and water quality including specialists on water pollution and microscopy. Crossdocking Under these arrangements, rather than maintaining stocks, orders are placed with suppliers for former stock items which are picked, packed and addressed to individual locations but delivered by the suppliers to the Brigade Distribution Centre. These are then delivered to individual locations by the internal van service together with mail and operational equipment such as cylinders and breathing apparatus. The additional benefit arising from crossdocking was the reduction of warehousing space required to operate this process and improved response times. Following the relocation from the former Headquarters this reduced the warehousing space requirement by approximately 4000 sq ft allowing for the optimal warehouse location to be identified, with the accompanying reduction in rental and maintenance costs. Responsible Procurement - As part of our commitment to Responsible Procurement, we were winners in 2007 of the Corporation of London Sustainable Procurement Award and the overall winner for the prestigious overall Sustainable City Award. We were also highly commended for the Mayor s Green Procurement Code Going the Extra Mile Award in October 2007 and in March 08 for the Sustainable Development UK 08 for the sustainable furniture disposal project. As part of our supplier relationship management programme, two of our high spend contractors have been certified ISO 400 which is an Environmental Management System used to develop and implement its environmental policy and manage its environmental policy and manage its environmental aspects. We 5

12 are working with the rest of the GLA in delivering the responsible procurement agenda. As part of our work on supplier diversity, we now know we have some 000 SMEs. We are also encouraging our contractors, and their sub contractors to implement Responsible Procurement. We appointed a new Head of Sustainable Development within Procurement Department (January 2008) whose role it is to develop strategic direction of the Brigade s work on sustainable development including climate change and responsible procurement. Private Finance Initiative (PFI) We have worked closely with our PFI partner, AssetCo, and with our internal stakeholders to implement a wide and varied portfolio of new vehicles and equipment. This programme is a major part of the London Resilience programme and has significantly improved London Fire Brigade s response in the event of terrorist attacks and natural disasters. The portfolio includes renewing our pumping appliance fleet with enhanced pump and foam capabilities, improved health and safety and improved vehicle emissions. All our LGV fleet are compliant with the Low Emission Zone (LEZ). We have also introduced 8 new aerial ladder platforms and 4 new turntable ladder vehicle. Other new vehicles include 8 new Command Support Units, 2 new Scientific Support Units (mobile laboratories), Heavy Transport Units, Skid Car and Frame, Dog Van, Photographers Van, 3 new Emergency Fire Appliance Driving (EFAD) Pumps, a Multi Terrain Vehicle (All Wheel Drive), Forced Entry Equipment, 6 Operational Support Units, 6 additional Fire Rescue Units (FRU), enhanced the stowage capabilities of all the FRU s such as additional water rescue, 0 Urban Search and Rescue vehicles, 6 Bulk Water Carriers, 6 Fire Investigation Vehicles, 0 Delivery Vans, Commercial Training Unit Vehicle, Water Backs, Skid Frame and Pump, Mobile Health Unit, First Aid Kits and Defibrillators. Firebuy -Using the Firebuy framework, we are running a mini competition on the replacement of Breathing Apparatus equipment (BA sets and cylinders) which has been in line with the National Procurement strategy. We continue to work with Firebuy, procuring through their frameworks as appropriate Research and Development (R&D) R&D work closely with Operational Planning and AssetCo to develop and improve current systems of work that will deliver safer performance potential to operational crews and improve our efficiency to deliver the Organisation s Strategic objectives. Protective Equipment Group (PEG) PEG are increasingly working with manufacturers to develop schemes whereby cost benefits and strategic resilience can be obtained when working with the other Emergency service agencies in the GLA. Investors in people - Following reassessment in June 2008, Procurement Department continues to be recognised in the Investors in People Standard. Enhanced operational response - We have implemented Bodyguard (an improved means of monitoring Breathing Apparatus Teams air consumption). Following the 7/7 incident, PEG has established a Respiratory Protective Equipment Liaison Officer role (RPELO) which has improved RPE resilience when attending major or catastrophic incidents. 6

13 APPENDIX B AUTHORITY S STRATEGIC AIMS AND OBJECTIVES AIMS Prevention : Engaging with London s communities to inform and educate people in how to reduce the risk of fires and other emergencies; 2 Protection : Influencing and regulating the built environment to protect people, property and the environment from harm; 3 Response : Planning and preparing for emergencies that may happen, and making a high quality, effective and resilient response to them; 4 Resources : Managing risk by using our resources flexibly, efficiently and effectively, continuously improving the way we use public money; 5 People : Working together to deliver the highest quality services within a safe and positive environment for everyone in the organisation; 6 Principles : Operating in accordance with our values, and ensuring that safety, sustainability, partnership and diversity run through all our activities. Where appropriate, the above Aims are reflected at the beginning of each section of the attached Action Plan at Appendix C STRATEGIC RISKS (RELATING TO THE STRATEGY) The following risks (owned by the Director of Resources). Actions being taken to mitigate them will be addressed through implementation of the Action plan under the headings of Business Continuity and Responsible Procurement. CRR 26 - Supply chain fails or does not provide value for money as a result of inappropriate procurement management (Business Continuity). CRR 3 - Insufficient opportunity is taken to reduce our impact on the environment (Responsible Procurement). 7

14 THREE YEAR PROCUREMENT STRATEGY ACTION PLAN APPENDIX C EFFICIENCY AND VALUE FOR MONEY (Authority s strategic Aim 4) Improved Procurement is a major influence in achieving efficiency Main Aim To secure improvements in value for money whist maintaining /improving standards of quality OBJECTIVE ACTION YEAR To reduce the cost of procurement process and obtain value for money on all procured goods, services and works Continue to identify and monitor savings through collaborative procurement and optimise the opportunities and use of consortia purchasing arrangements Review procurement practice across the organisation through consistency and standardisation Undertake a Review of Procurement Department which identifies and reviews opportunities to improve efficiency, effectiveness and the economy of the Procurement Department - 2 Undertake a review of the logistics arrangements for the delivery of goods and equipment to ensure the most optimal use of resources and to minimise the environmental impact of delivery. Undertake a review of the Purchase Order Management System (POMS) and management information available from POMS to enable departments to manage their spend better Investigate areas of major procurement spend across the organisation where procurement Department could add value/influence - 2 Undertake Benchmarking exercises on procurement functions and on PFI contracts on vehicles and equipment - 2 Ensure that all future contracts, where appropriate are subject to a full market analysis of options. Establish working groups with our existing major contractors to identify and achieve efficiencies and improvements In particular, work closely with our PFI vehicles and equipment provider to identify and implement opportunities for improvement and efficiency savings. Introduce a mechanism for the ongoing identification of cashable savings 8-2

15 OBJECTIVE ACTION YEAR We will seek added value through reviewing our programme of equipment replacements (e.g. PEG) 9

16 E-PROCUREMENT (Authority s Strategic Aim 4) E procurement improves aspects of communication in the procurement process and reduces some associated costs Main Aim To reduce the cost of the procurement process through improved process, standardisation and to encourage suppliers to adopt e-procurement methods OBJECTIVE ACTION YEAR Optimise use of technology to reduce the cost, improve efficiency and effectiveness of all aspects of the procurement process To consider wider use of Procurement cards Identify appropriate E- tendering tool to improve efficiency and assist in the use of standard documentation Review existing processes to identify further opportunities for automation Introduce electronic supplier collaboration to confirm order details for accuracy Introduce electronic invoicing Introduce electronic tender evaluation Encourage the use of other electronic procurement tools such as electronic reverse auctions

17 COLLABORATIVE PROCUREMENT AND PARTNERSHIPS (Authority s Strategic Aim 4) Collaboration may be within the public sector or it may be between ourselves and external suppliers. We are committed to working with partners Main Aim To improve the efficiency and effectiveness of the procurement function by working with a range of organisations to develop long term relations based on trust and continuous improvement OBJECTIVE ACTION YEAR Collaborate, engage in partnerships, and share good practice Continue to work with the GLA Group to identify and monitor savings available through collaborative procurement and the Delivering more together initiative Work closely as appropriate on joint collaboration in support of New Mayor s agenda on shared services Continue to lead the Supplier Relationship development project on behalf of Capital Ambition within the Regional Improvement and Efficiency Partnerships (formally hosted within the London Centre of Excellence) Maximise the opportunities to influence the direction of Firebuy to ensure as far as possible that the national procurement programme compliments the requirements of the Brigade - 3 LFB continue to influence the Association of procurement Practitioners in the Fire Service (APPFS) agenda through continuing to serve in high profile positions on committees LFB continue to influence the National Procurement Board agenda Review use of frameworks and work with all available purchasing consortia (benchmarking/market analysis) Work with other departments in establishing consistent procurement principles and work on specialist areas that need to be agreed with specific Heads of Departments. Improve arrangements for working with second and third tier suppliers Optimise existing relationships with our contractors and suppliers through a structured approach of implementing best practice contractual relationship techniques and processes

18 RESPONSIBLE PROCUREMENT (Authority s Strategic Aim 6) Our procurement activities and those of our suppliers affect the quality of Life of the communities we serve. We have influence and responsibility on how sustainability can be achieved. Main Aim To ensure we spend in a way that supports our responsible procurement goals and objectives and that we encourage our Contractors, and their sub contractors to follow the Responsible Procurement principles whilst delivering benefits and value for money. OBJECTIVE ACTION YEAR Drive forward all seven themes of the GLA Group Responsible Procurement Policy (i.e. encouraging a diverse base of suppliers, promoting fair employment practices, promoting workforce welfare, addressing strategic labour needs and enabling training, community benefits, ethical sourcing practices; and promoting greater environmental sustainability) Continue to engage with our top 5 suppliers in and commence engaging with further 5 suppliers including second tier suppliers from 2009 to raise awareness on the RP themes as appropriate Improve opportunities for the third sector to bid for our business Improve opportunities for SMEs and diverse groups to bid for our business Develop and roll out sustainable development impact assessments across the organisation Investigate methods of improving ethical supply Increase availability of green/recycled items on POMS and remove alternative non sustainable products Continue to lead on the RP Policy across the organisation and work with other departments to deliver the Policy Map out actions to mitigate and adapt to Climate Change through procurement activity

19 OBJECTIVE ACTION YEAR Devise innovative technical solutions to enable further progress to be made in the recruitment of a diverse workforce by removing barriers around clothing and operational equipment issues - 3 3

20 BUSINESS CONTINUITY (Authority s Strategic Aim 4) Business continuity is about managing the risk of failure of continuity of supply and building in control action around business continuity plans Main Aim To ensure that suitable controls are in place to maintain consistent high standards and ensuring that risk is managed. OBJECTIVE ACTION YEAR Develop further approach to risk management reflecting increased importance of contingency planning Test the Procurement Contingency plan on an annual basis Identify a critical list of suppliers with a view to test and review and develop the contingency plans of our suppliers and contractors Develop strategies for business continuity and develop targeted action plans for our mission critical and major suppliers and contractors Consider wider supply chain implications should a mission critical or major contractor cease trading Develop risk management through effective use of risk assessment logs within projects and contractual relationships Review and develop mitigating controls with department and corporate risk registers relating to Procurement Roll out best practice procurement contingency planning throughout our entire organisation and ensure that effective risk management is incorporated in all relevant contracts

21 PERFORMANCE MANAGEMENT (Authority s Strategic Aim 4) Performance management is an important method of assuring quality and making sure we continue to improve the way in which we deliver the procurement service Main Aim To promote the development and use of performance management OBJECTIVE ACTION YEAR Develop on-going measurement and review of the procurement process and activities Work with Finance Department on non-budget holding sections to improve scrutiny and control in the management of budgets 2-3 Review and develop departmental and corporate KPIs - 2 Develop data capture, analysis and smarter reporting management information Focus our suppliers in delivering high standards of performance through ensuring that relevant and effective performance measures are incorporated into all relevant Brigade contracts. Improve vehicle and implementation projects process to ensure more effective and efficient delivery of products - 3 5

22 TRAINING AND DEVELOPMENT (Authority s Strategic Aim 5) A key element to effective procurement is that staff (whether directly or indirectly involved in the Procurement process) are suitably trained and where necessary qualified to provide necessary professional input. The level of expertise needed ranges from to knowledge of basis procurement techniques to a formal procurement qualification and wide experience. Main Aim To ensure there is a structured approach to education, training and development for all staff with procurement responsibilities OBJECTIVE ACTION YEAR Develop the knowledge and skills of all those involved in the procurement process Establish list of key individuals across the Authority undertaking procurement and undertake a training needs analysis to ensure procurement skills are developed Progress procurement module of the corporate project management training Roll out contract management expertise and cascade knowledge across the Procurement department and the wider organisation Develop the Department s Procurement training and development strategy Arrange training for all staff on generic themes e.g. Environmental management System, responsible procurement and business continuity. Review individual Performance Review and Development System (PRDS ) and arrange appropriate training and development. Where appropriate training to include softer skills such as decision making, leadership and negotiating. Develop staff in order to address succession planning as identified in departmental risk register Create opportunities for staff gaining procurement related qualifications and make sure that continual professional development is maintained through Investors in people (IIP) Develop our existing suppliers through Supplier Relationship Management and through the Responsible Procurement programme

23 INFORMATION AND COMMUNICATION (Authority s Strategic Aim 6) Managing information which is easily accessible, relevant and efficient is crucial to providing an effective and responsive service. Main Aim To provide and encourage access to high quality information about procurement OBJECTIVE ACTION YEAR Provide and communicate high quality information Develop existing Procurement Manual and communicate across department and organisation Develop Procurement page on Hotwire which can also be utilised as part of the induction process for new staff Produce Templates and guidance on good procurement practice for use across the organisation Use information provided for Award applications to disseminate and promote best practice across the department and organisation Promote and disseminate within department and to organisation initiatives developed to promote best procurement practice Develop liaison meetings with other departments on strategic issues to develop customer satisfaction (include review of Departmental Contract Coordinators Forum and POMS User Action Group Develop Senior Management Meetings (SMT) to consider more efficient ways of communicating outcomes to staff Ensure that all Brigade contractual relationships include appropriate provisions for the data capture, analysis and reporting of relevant management information

24 STAKEHOLDER ENGAGEMENT Putting customers first at the heart of our values. We need to make sure our customers (internal and external) are involved. Main Aim To deliver and improve customer involvement (and community benefits) in our procurement processes, OBJECTIVE ACTION YEAR Develop both internal and external engagement as appropriate ensuring that that stakeholders needs are met Develop a stakeholder map Consult on our 3 year procurement strategy with our internal and external stakeholders where appropriate Develop liaison meetings with other departments and use this as a main mechanism to consult. Engage with existing and potential suppliers through a range of mechanisms Review and implement feedback from our stakeholders to make sure services and procurement processes are developed and improved - 3 Ensure that the appropriate liaison frameworks are implemented in all contractual relationships and effectively deliver best value outcomes - 3 Embed quality assurance within our Research and Development work so that we procure goods or services which are fit for purpose Procurement Department (e.g. Research and Development section) to integrate with a wide range of stakeholders (AssetCo, CMG, Ops Policy) to ensure a more effective and efficient delivery of products 8