Working Together. Procurement. Strategy. November Uncontrolled Copy. Procurement Strategy Borders College 25/11/13 1 Working Together
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1 Procurement Working Together Strategy November 2013 Borders College 25/11/13 1 Working Together Pub 2 BU/F/Financial Strategy.doc
2 Procurement Strategy Vision 1.1 The College will provide a managed procurement service to support value for money in its purchasing decisions, while supporting financial sustainability and meeting all statutory obligations, having particular regard to UK and EU procurement regulations, Equalities Act 2010, and environmental legislation. 2.0 Introduction and Context 2.1 In its Corporate Plan , the College has identified five Strategic Themes, relating to: - Portfolio and Partners Learning and Learners Workforce Development Quality Sustainability Each Strategic Theme has a linked Priority Outcome, with associated Objectives which the College aims to achieve. 2.2 To support the Priority Outcomes and Objectives, the College has agreed a set of nine Strategies relating to: - Learning and Teaching Learner Engagement Employer Engagement HR and Organisational Development Finance Procurement ICT Estates Marketing and Communications Although Individual Strategies are not linked to any one theme, but are intended to support the Corporate Plan as whole, the Procurement Strategy clearly links to a number of Objectives: - Objective 4.9 Meet our obligations under equalities legislation Borders College 25/11/13 2 Working Together
3 and embed and deliver on our Equalities Outcomes for ensuring that all planned actions are achieved. Objective 5.1 Be financially sustainable and develop adaptive capacity to be able to realise our strategic intent, whilst obtaining best value for public monies. Objective 5.3 Operate our estate efficiently to minimise impact on the environment, reduce our carbon footprint and embed sustainability into our day-to-day business. Objective 5.5 Deliver efficient and effective shared services at the Scottish Borders Campus. 2.3 In March 2006, the Scottish Government published the Review of Public Procurement in Scotland (The McClelland Report). This report identified some weaknesses in relation to public sector procurement and suggested that structures, people and technology were not in place to deliver effective procurement. Overall, the McClelland Report made eighty-two recommendations on how the efficiency of public sector procurement should be improved. The College reviewed the recommendations of the report and put in place a plan to develop its procurement function in a way which is proportionate to the level of spend at the College and the resources available to it. 2.4 A key recommendation of the McClelland Report was that Centres of Expertise be established for each of the main public service sectors: Local Government, the NHS, Central Government and Colleges and Universities. Advanced Procurement for Universities and Colleges Ltd (APUC) was established as the Centre of Expertise for the College and University Sector. The primary role of APUC is to facilitate collaborative procurement in the Further and Higher Education sectors with a view to achieving cost savings and transactional efficiencies. The College has consistently engaged with APUC from its inception. As part of the commitment to APUC, the College considers that its default position is that it will utilise contracts negotiated by APUC unless there is a specific rationale to make other arrangements in terms of the overriding duty to achieve Best Value which encompasses sustainability and local needs. 2.5 The College procurement function is managed within the Finance Department by the Financial Controller at an operational level and is overseen at strategic level by the Director of Finance and Resources. Borders College 25/11/13 3 Working Together
4 2.6 The Procurement Strategy incorporates and monitors Best Practice Indicators, appropriate to the College, largely based on those recommended in the report from the Scottish Government Best Practice Indicators (BPIs) for Public Procurement in Scotland published in The College is required to upload the BPIs identified by the Scottish Government onto the Scottish Procurement Hub (Hub) database on an annual basis. The College will also upload spend data and contractual information on to the Hub on an annual basis and as far as possible, utilise the Hub as a data analysis tool. 2.7 The Chartered Institute of Purchasing and Supply (CIPS), the professional purchasing body, cite that, for efficient procurement of goods and service, the five basic rights must be met. These are: the right goods at the right price delivered to the right place at the right time from the right suppliers CIPS also recommends that, where possible, goods are procured from ethical and sustainable sources. The College Procurement Strategy will aim to establish controls to attain the five rights of procurement for the procurement of goods and services. The College Procurement Strategy will align with the College s mission statement and College wide objectives detailed in the College Corporate Plan. 2.8 The College also recognises its obligations under the Equalities Act The College has developed a Single Equality Scheme and will ensure that conditions in accordance with the Scheme are included in service contracts with external providers, where appropriate. 2.9 In establishing controls to attain the five rights, the College, in liaison with APUC and, where appropriate, follows the Procurement Journey developed by the Scottish Government. The College also demonstrates commitment to the supplier community by committing to the Suppliers Charter and using the Public Contracts Scotland Advertising Portal. Borders College 25/11/13 4 Working Together
5 3.0 Strategy Themes and Objectives In supporting the Corporate Themes and Outcomes, the College has identified five themes within this Strategy. They are: With regard to Leadership and Governance, the College will: - Apply the guidance contained within the Scottish Government s Procurement Journey manual in all its procurement transactions and contracts; Utilise the Public Contracts Scotland portal and Quick Quote facility wherever appropriate; Commit to the Suppliers Charter; Continually review expenditure levels and maintain on-contract spend at a level of at least 65% of total spend; Ensure a regular review of spend and contract analysis is undertaken at senior management level; and Create a Procurement Development Plan and conduct regular reviews to ensure actions are current and appropriate. 3.2 With regard to Contract and Supplier Management, the College will: - Manage its key suppliers through a formal process, including regular meetings to ensure satisfactory performance; Maintain a schedule of all current suppliers, and conduct regular reviews to ensure all contracted suppliers remain appropriate; Clearly define and embed procurement policy and procedures within its Financial Procedures manual; and Co-ordinate procurement activity across the organisation to ensure the use of contracted suppliers wherever possible. 3.3 With regard to Sourcing Strategies and Collaboration, the College will ensure that it uses the facilities available to it to: - Participate in the work of APUC; Consider the use of national collaborative contracts to be the default position when making sourcing decisions; and Ensure that the College s obligations with regards to equalities, corporate social responsibility and sustainability are reflected in sourcing decisions. Borders College 25/11/13 5 Working Together
6 3.4 With regard to Defining the Supply Need, the College will seek to: - Embed the use of output specifications; and Embed the role of the procurement function in delivering best value solutions through a combination of assistance and challenge. 3.5 With regard to People and Performance Measurement, the College will: - Ensure that the procurement function within the Finance Department is adequately resourced with appropriately qualified staff; That all users are trained in the use of the College s procurement systems, including electronic procurement solutions; Monitor operational spend to maximise on-contact and e- procurement solutions in terms of transactions and spend; and Engage in the production of national BPIs and measure College performance against these, taking corrective action where necessary. 4.0 Responsibilities 4.1 The Board of Management is responsible for setting the strategy. 4.2 The Director of Finance and Resources is responsible for achieving the aims of the strategy. 4.3 The Senior Management Team is responsible for implementing the strategy. 4.4 The Financial Controller is responsible for the reporting on progress toward the objectives. 4.5 All budget holders are responsible for delivering their services within agreed budgets. 5.0 Monitoring and Review 5.1 The Audit Committee will receive monitoring reports in accordance Borders College 25/11/13 6 Working Together
7 with its meeting cycle. 6.0 Related Documents 6.1 Corporate Plan Sustainability Framework 6.3 Risk Register 6.4 Financial Regulations 6.6 Procurement Policy 6.7 Financial Procedures Manual 6.8 College Single Equality Scheme Borders College 25/11/13 7 Working Together
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