Procurement Strategy
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1 Procurement Strategy Document Type: Strategy Parent Policy: PURCHASING POLICY Document Owner: Business Services Director Department: Procurement Document Writer: Head of Procurement Effective Date: 1 st June 2014 Review Date: 1 st June 2017 Reviewed August 2015 (updated Section 4) Contents 1: INTRODUCTION 2: AIM 3: BACKGROUND 4: GUIDING PRINCIPLES 5: STRATEGIC OBJECTIVES 6: LEGAL REQUERMENTS Page 1 of 8
2 1: INTRODUCTION North Wales Police recognise the importance of supporting the delivery of operational policing. The Procurement Strategy will contribute to Force performance by ensuring that the right goods, services and works are delivered to the right people and place at the right time, at the right cost and in the most cost effective way. Procurement is the process of acquiring goods, works and services, covering both acquisitions from third parties and from in-house providers. The process spans the whole-life cycle from identification of needs, through to the end of a service contract or the end of the useful life of an asset including responsible disposal. It involves initial option appraisal and critical make or buy decisions, which may result in the provision of in-house services in appropriate circumstances The next three years will prove to be the most demanding on support functions such as procurement at a time of change with the: Establishment of National Procurement Service for Wales The drive from the Home Office Crown Commercial Services to utilise national frameworks, balanced with the Police Crime Commissioners drive to buy local. Continuing drive for cost reduction and efficiency arising from the Government Spending Review. With support and co-operation we can improve how procurement supports operational policing. Page 2 of 8
3 2: AIM The aim of this strategy is to support the Force mission which is a Safer North Wales 3: BACKGROUND North Wales Police party expenditure in 2013/2014 was in the region of 29 Million and in 2012/2013 in the region of 26 Million. We currently have 257 active contacts in place covering, fleet, ICT, facilities, Uniform, PPE, operational equipment and variety of other goods and services. Procurement is managed by the Head of Procurement supported by two experienced Procurement Officers. The annual turnover under the direct responsibility for this area of business is in the region of 2.7 million, detailed as follows:- Catering 150,000 Insurance 738,00 Medical Services 558,000 Uniform and personal equipment 370,000 Interpreters fees 140,500 Miscellaneous 121,000 Procurement also has responsibility for ensuring all procurements made on behalf of the force are completed in a fair and transparent way. 4: GUIDING PRINCIPLES The guiding principles that support our strategic objectives are: To collaborate on a national level with National Procurement Service for Wales, Crown commercial Services, ACPO, Home Office and the other police forces on all procurements so as to ensure the best value for money. We will honour our contractual commitments. When dealing with suppliers and contractors we will be courteous and helpful. We will respond promptly and positively to complaints, comments and suggestions. We will comply with The Public Contracts Regulations Page 3 of 8
4 On request, we will debrief successful and unsuccessful bidders promptly of the outcome of a tender, giving constructive feedback. Commercial relationships will be based upon co-operation; we will seek to avoid adversarial and confrontational relationships. We will not divulge information submitted in confidence to third parties except as is necessary to comply with legal requirements. We will make every effort to make payments within agreed timescales. We will attempt to resolve contractual disputes amicably and fairly. We will raise awareness of Force Policies and legislation relating to Diversity. Including but not limited to age, disability, gender reassignment, marriage and civil partnership, pregnancy, race, religion and belief, sex and sexual orientation'. We will exploit the purchasing powers of national and regional procurement, identifying other, non-police, frameworks which offer value for money. We will review potential contracts which may represent better value if brought in house as well as supporting reviews of in house provision which may be better outsourced or shared. We will ensure the procurement works in the most efficient way, within EU and UK regulation, to match its resources to where the greatest value can be added by; We will utilise appropriate Framework Agreements that may provide a quick route-to-market, reducing cost in the process. Experience has shown that not all framework agreements represent good value for money and assist in achieving the strategic objective of the project however each agreement will be reviewed prior to any other procurement rout being adopted We will review pre-qualification & tender documents, terms and conditions and purchase orders, review insurance, parent company guarantee requirements, data protection requirements etc to ensure that are not over bearing but relevant. We will aim to support the local economy whilst potentially offering more flexible and dynamic product and service delivery; o The review of documentation will seek to make the processes more accessible to small and medium enterprise Page 4 of 8
5 o The review of framework agreements will identify which are poor value and contracts which may be more appropriate for local procurement and the use of SMEs, both locally and nationally. To provide management and guidance for all types of procurement so as to ensure the most cost effective balance is achieved to meet the operational and business needs of the Force. Our objectives will underpin everything we do and in turn provide the basis for our measurement of success over the next three years. To ensure the needs of the end-user are represented and instil confidence and customer satisfaction within this support function we will continually review all contracts in conjunction with the relevant end users. The key focus of our strategy will be: To support operational policing To develop and supply goods and services to ensure officers can do their job properly To improve our overall performance regarding economy, the environment, efficiency and effectiveness of our service. Value for Money 5: STRATEGIC OBJECTIVES Procurements overall objective is to support Operational Commanders, Police Officers and Police Staff in the pursuit of their strategic, tactical and operational duties through a planned and managed approach to the procurement process. 5.1 SUPPORTING OPERATIONAL POLICING Ensure that all procurement processes are clear, transparent and focused on the principles of competition and achieving value for money Ensure that The Public Contracts Regulations 2006 and any published amendments are adhered to where necessary. Ensure that procurement options are chosen on the basis that they directly support the Forces, the Regional and National priorities and objectives. Ensure that the Service levels agreed with North Wales Fire and Rescue Service are met in full. Develop a planned corporate approach to procurement and align strategic procurement to the business planning process. Page 5 of 8
6 Maintain appropriate balance between risk, innovation, cost and the required service levels Stimulate competition and build supplier capability where necessary Collaborate and partner with other forces, groups and agencies where appropriate to obtain best value and reduce duplication of effort and transaction costs through standardisation, improved processes. Contribute to the realisation of business benefits and efficiency gains. Develop a corporate approach to contract management and monitoring. 5.2 DEVELOPING AND SUPPLYING GOOD AND SERVICES To establish a research & development function pertaining to new products and technology that can support operational policing. To minimise the time the taken for decision to be made on new goods and services as well as ensuring consistency across the Force To ensure timescales outlined within contract project plans are met. To ensure the Clothing, equipment and Services Group acts as a forum to consult on transport related matters. To standardise uniform and equipment in line with National specifications so as to deliver best value although discretion will be applied to the surveillance function. 5.3: IMPROVING PERFORMANCE To monitor purchasing mechanisms so as to provide goods and services in the most economical way. To develop performance dashboards and report on procurement related expenditure so as to improve visibility and collectively work to reduce cost and deliver value for money. To ensure that all contacts provide the beat value for money Page 6 of 8
7 5.4: FUNDING DELIVERY To focus on releasing and maximising best value where opportunities present themselves. Where a clear cost and operational benefit exists, to pursue opportunities to collaborate and co-operate. 5.5: ENVIRONMENTAL ISSUES We will attempt to procure goods and services in a responsible way, both environmentally and ethically, working towards achieving sustainable procurements where ever possible in support of the forces Corporate Social Responsibilities (CSR). We will be positive in our approach to the way we conduct business and consider the elements in which we operate namely; o Our own work environment (energy consumption, sustainable sources) o The market place where we trade (Local suppliers, products, collaboration) o The local environment (pollution, noise, emissions) 6: CRITICAL SUSESS FACTORS At such a critical time for the force, it is imperative that a strategic approach towards Procurement continues to be developed and maintained. Therefore a composite strategy is required to deliver cost effective supply routes through the use of continuous improvement and the implementation of concise operating policies and procedures. If the strategy is to achieve its objectives then the factors critical to its success include: The maintenance of a centralised procurement infrastructure. The continuous development of improved Contract Management. The management of Performance Standards and Indicators. The continuing support of ACPO and Senior Managers throughout the force. The early involvement of the Procurement Department in projects 7: LEGAL REQUIREMENTS The following main legal requirements must be adhered to during the procurement process: Human Rights Act 1998 Page 7 of 8
8 The Equality Act 2010 Competition Act 1998 Data Protection Act 1998 Freedom of Information Act 2000 Health and Safety at Work Act 1974 The Bribery Act 2010 The Public Services (social Values) Act 2012 The Waste Electrical and Electronic Equipment Regulations 2006 (the WEEE TUPE Regulations 1981 and 2006 The Welsh Language Act 1993 The Chronically Sick and Disabled Persons Act 1970 The Employment Equality (Religion or Belief) Regulations 2003 The Employment Equality (Sexual Orientation) Regulations 2003 The Commission for Racial Equality s Code of Practice for the elimination of racial discrimination and the promotion of equality of opportunity in employment. The Employment Equality (Age) Regulations 2006 Together with any statutory modifications thereof to the above Acts and Regulations Page 8 of 8
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