COMMUNICATIONS REPORT NO Procurement Strategy - Progress Report

Transcription

1 AGENDA ITEM NO. 2 CORPORATE SERVICES 10TH SEPTEMBER 2009 CHIEF EXECUTIVE S OFFICE HEAD OF STRATEGY & COMMUNICATIONS REPORT NO Procurement Strategy - Progress Report 1 Introduction and Background The Council s Procurement Strategy was agreed by the Council in November In order to progress the strategy more quickly, in 2008 the Council agreed to invest more resources into procurement, the Better Procurement Project was established and a part time procurement officer appointed. The better procurement project has subsequently been incorporated into the Service Transformation Programme and the hours of the procurement officer increased to enable more focus on the savings elements of the strategy in line with our key priority to deliver the savings and efficiencies required by the Council s financial strategy. To date savings have been achieved as follows: Capital: 34,500 Revenue: 20,246 Efficiency: 53,368 Attached as Appendix 1 is the strategy action plan which sets out current progress against the original targets in the plan. Some key elements of the strategy are covered in more detail in the remainder of this report. 2 Spend Analysis Rushmoor participated in a detailed joint Hampshire and Isle of Wight spend analysis for financial year. As a result a number of projects were identified as suitable for investigation as to whether a collaborative procurement approach would make achieve savings for Rushmoor. In addition to this, the spend analysis has been used to identify areas to be further investigated with regard to better procurement and savings potential. Areas that have been looked at or are scheduled for review include: Cash collection Insurance Mail services Street signage Uniform and Protective clothing

2 It is hoped that there will be a further collaborative spend analysis undertaken by all authorities in Hampshire for the financial year in order to build on progress that is made over the next year. 3 E-Procurement Project The Council s electronic procurement system, E-series, has been implemented successfully and approximately 50% of suppliers are now receiving orders electronically and/or sending in invoices via centrally to the invoice team. A Service Transformation led project has also been established to maximise the efficiencies and benefits associated with e- procurement. As part of this project, the suppliers on Rushmoor s database will be categorised in order to make future spend analysis more useful and will compliment other areas of procurement strategy. 4 Embedding Better Procurement Practice As part of increasing the profile of better procurement at Rushmoor, a morning of seminars was held with an aim to provide information to officers about best practice and how it can be applied. Following this, a procurement hub has been developed on Inform, the Council s intranet. This provides information on the better procurement project, guidance on where to find some best deals, access to centralised suppliers and tracks savings. We have also become more transparent in how we procure through use of The South East Business Portal. The portal is designed to advertise opportunities in a very accessible manner and allows engagement with sizes of business. Rushmoor has been very successful with this tool, advertising 10 opportunities since March, with over 300 responses and our procurement officer now represents Hampshire on the Portal user group. In future we plan to have a list of all contracts Rushmoor have with suppliers including contract renewal timescales on the Council website to increase transparency further. 5 Supporting Small Business In line with the Council s commitment with the strategy to support small business, Cabinet agreed to Rushmoor signing up to The Small Business Friendly Concordat and following the recommended principles. Since signing up many of the recommendations have been put in place, including advertising of opportunities on a business portal

3 6 Procurement Cards The Directors Management Board agreed the Business Case for Procurement cards and approved a 6-month trial of the cards in 4 departments across the Council. The cards will be used for low value, transactional purchasing with the aim of paying suppliers within 3-4 business days and reducing the number of low value invoices needing to be processed. 7 Sustainable Procurement Cabinet has agreed to sign up to the sustainable procurement strategy as part of a project being led by Improvement and Efficiency South East. Rushmoor is currently in line with most authorities in Hampshire with regard to achieving the criteria for sustainable procurement and work is being carried out to measure the sustainability of our suppliers is being undertaken as part of Rushmoor s procurement action plan. 8 Next Steps The existing procurement strategy and plan should be fully implemented by the end of the financial year. Officers will be preparing a new strategy to provide the framework to enable the Council to continue improving its approaches to purchasing and achieving ongoing savings from better procurement. Procurement projects will continue to be monitored through the Service Transformation Programme 9 Recommendation That members note the progress being made and that a new procurement strategy for will be prepared to build on the achievements from the current strategy. Karen Edwards Head of Strategy and Communications 1 September 2009 Contact: Katherine Booker, Procurement Officer (Extension 8482) Background Documents Procurement Strategy 2006/2009

4 APPENDIX 1 Procurement Strategy Action Plan Strategy and Communications Version 12 Updated as at August 2009 Action NPS 1 Target Date Action Lead and Team Status Ref. 1. Prepare revised strategy and action plan for Cabinet approval 2 July 06 Corporate Projects Officer Complete (KW) 2. Using spend analysis, investigate and identify spend areas with potential for savings or central procurement over the next three years Update: A detailed analysis has been carried out and areas for savings N/A June 08 Head of Strategy and Communications with Procurement Officer. identified which include some collaborative procurement with HIOW authorities. A number of these projects sit under the Better Procurement Project on the Service Transformation Programme. 3. Revision of Constitution including Contract Standing Orders and Financial Regulations N/A Dec 06 Legal Services, Head of Democratic Services Complete 1 National Procurement Strategy

5 4. Identify training requirement for all staff and Members involved in procurement and develop a training plan Update: Training seminar held in February 2009 for key budget holders and buyers. Event included outside speakers and was very well received by those who attended. N/A Ongoing Head of Strategy and Communications with the Procurement Officer, Legal Services, Democratic Services and Personnel Staff training Member training 5. Service reviews to include appraisal of service delivery options 3 Ongoing Corporate Project Officers Started in current service reviews 6.Disseminate new strategy and best practice guidance to staff ( How To manual) including whole life costs, best value, improvements, sustainability, local support and equality 7 March 08 Head of Strategy and Communications and Procurement Officer. Update: Strategy on Intranet and Internet, best practice guidance from other authorities reviewed, a procurement section on Inform has been developed which encompasses a How to guide. 7. Identify and recommend key procurement performance indicators based on current guidance Update: Relevant procurement PI s are to be considered/agreed on a Countywide basis as part of the HIOW Strategic Procurement project. PI currently in place relating to payment of invoices within 30 days. N/A On hold Policy with Procurement Officer / Finance and Procurement Strategy Task and Finish Group On hold

6 8. Develop (a) processes to identify and measure outputs and review performance targets, and (b) a checklist for those engaged in letting contracts Update: (a) Currently on hold, linked to action 7 above. (b) Original target recommended the production of a checklist decision made that financial standing orders and regulations is sufficient and HoS reminded to follow these. These can be found on the website at N/A On hold Head of Strategy and Communications with Corporate project officers, the appropriate Head of Service and the Solicitor to the Council. 9. Development of standardised documentation and templates for procurement. N/A Dec 07 Solicitor to the Council and Update: Models available for some procurement and contract types, PQQ Procurement Officer. on Inform, signposts to SE portal. 10. Undertake an annual review and quarterly report of progress against this 2 Mar 07 Head of Strategy and action plan, including capturing and disseminating lessons learnt, good Communications, practices and successes in major procurements Procurement Officer to DMB and Members (Task and Finish group) 11. Undertake a bi-annual audit of spend and transactions analysis N/A Jan 08 Senior Accountant 12. Engage with suppliers on e-procurement 7 June08 Senior Accountant (SC) / Update: Suppliers contacted and details recorded Finance and Corporate Projects Officers 13. Encourage take-up of e-procurement by SMEs 7 From July 06 Senior Accountant (SC) / Update: Started within e-procurement project. Finance and Procurement Officer. (a) On hold (b) Ongoing Ongoing, to maintain

7 14. Implement the e-procurement system within all services Update: Electronic approval of invoices live March 08, implementation of electronic ordering scheduled for June Establish use for Marketplace throughout the Council and disseminate information and training for usage Update: this project is on hold, need to embed some other procurement processes first. 16. Investigate and recommend an approach to the implementation of payment cards Update: Trial starting September Explore the use of a buying consortia for the bulk purchase of utilities Update: Have joined The Office of Government (OGC) contract for gas. Electricity is likely to follow. 14 June 08 Senior Accountant (SC) Corporate Projects Officer 16 Nov 07 Head of Strategy and Communications, Procurement Officer. 15 To be agreed Procurement Officer with support of Financial Services and Audit 13 Ongoing Facilities supported by Procurement Officer On hold 18. Maintain a procurement section on the Council s website and intranet 6 Ongoing Procurement Officer Update: The procurement pages on the website have been revamped in August Monitor performance of existing and new contracts 8 Ongoing Relevant Contract Monitoring Officer / Service Managers

8 20. Explore methods and advance use of partnership working Update: RBC is represented on the HIOW Improvement Board and Supporting Officer s Group. Initial work commenced through the HIOW Procurement Partnership to identify collaborative opportunities. 21. Adopt the Small Business Friendly Concordat and good practice guidance from the DCLG 2 Update: Cabinet signed up and we are complying with many of the priciples. 22. Engage with small businesses as per the Economic Development Strategy Action Plan : Update: Economic Development Strategy approved on 22/2/07. Progress is monitored by the Corporate Economic Development Group. 23. Update contract procedure rules and constitution to reflect EU thresholds and changes required by this strategy and other legislation 13 Ongoing Head of Strategy and Communications, Directors and Heads of Service 7 April 07 Head of Strategy and Communications 7 Ongoing Planning Policy Adopting the principles of the small business friendly concordat with assist with this N/A Ongoing Solicitor to the Council 2 Department for Communities and Local Government