DSFRS Procurement Strategy

Transcription

1 DSFRS Procurement Strategy Saving money and improving safety Contents Introduction 2 Procurement aim 1: efficiency 2 Procurement aim 2: governance 2 Dsfrs Management 3 spend analysis 2012/ Procurement performance measurement 5 Further information 6 Acting to Protect & Save

2 Introduction The Corporate Plan recognises that in a period of financial constraint we are unable to operate in the way we currently do. This strategy outlines the procurement teams aims for and how we will contribute towards achieving the priorities in the corporate plan. The procurement team can assist in change through; evaluating the way we work, shaping the options and facilitating and delivering changes specifically where we are working with our supply base and other organisations. Procurement is already contributing to the Corporate Plan through delivery of complex procurements such as: Light Rescue Pumps Framework (contract value 10m) National Breathing Apparatus Framework (contract value 3m) Network Fire Control System (contract value 4m) Training Records System (contract value 250k) Psn and wan (contract value 500k) The Procurement Plan will continue to prioritise the transformation projects which seek to deliver significant changes and improvements to the way we work. In 2013 we will also be working more with our key customers and suppliers to deliver reductions in budget and challenge our assumptions to explore new ways of meeting our requirements. The Service spends in excess of 20 million per annum on the procurement of its goods, works and services. It is our public duty to ensure this money is spent in the most effective way, delivers value for money and complies with our statutory duties. Procurement aim 1: efficiency Procurement will assist delivery of a proportion of the budget savings required in the Corporate Plan. To achieve this we are working with our key customers and suppliers and implementing a category management approach. The aim is to ensure that supply arrangements are planned, executed, managed and reviewed against the wider Service requirements. As part of the efficiency aim we will seek to prioritise procurements which also provide the potential for income generation through the letting of frameworks which are then accessible by the wider fire and rescue service, such as the National Breathing Apparatus and Light Rescue Pumping Appliances Frameworks. Procurement aim 2: governance As a public sector body we must comply with our legal requirements and keep up to date with legislative changes. The Service has invested and improved the procurement function and processes with the intention to simplify and strengthen the governance of our procurement practices. This will ensure; improved compliance with legislation; change in emphasis of policies and procedures towards value, risk and opportunity and simplified processes for the end-user. There will be more flexibility and less bureaucracy associated with relatively low value/low risk 1 purchases which can be managed locally using tools and templates. For procurement activity of high risk/value it will be the responsibility of the Managers, to determine the most appropriate procurement route to enable responsive and agile approaches to meet service delivery requirements. 1 Low value/risk means less than 20,000, high value/risk means greater than 20,000 and as detailed in the procurement policy 2

3 We are in a period of change and current initiatives to improve the procurement function include: implementing an electronic purchasing system embedding new procurement toolkits disseminating documentation and guidance changing the procurement regulations and policy implementing category management and cross functional working embedding corporate contracts DSFRS Management Estates 6m DSFRS spend circa 20m pa on goods, services and works Corporate Services 2.5m Fleet and Equipment 5m ICT and Business 6m This approach forms a step change in the way DSFRS manage procurement activity. management organises expenditure groups which are assigned to Managers in the Procurement Team. Managers are responsible for securing the most relevant quality, value for money and supply improvements across the life-cycle of their assigned categories in consultation with stakeholders. This enables valuable and specific knowledge on categories to be jointly developed and issues collectively resolved. Managers have ownership of the procurement process from internal and external market analysis, shaping of requirements, options appraisal, contract and relationship management and transactional purchasing responsibilities, such as the use of Government Purchasing Cards. Managers must ensure opportunities for collaboration, adding economic, environmental and social value are incorporated into supply arrangements. spend analysis 2012/2013 Estates Sub-category Spend No. Trans Average trans. Value Property consultants 207, Hard fm 1,065, Utilities 546, Soft fm 340, Major projects 3,595, ,252 Total 5,755,

4 Fleet and operational equipment Sub-category Spend No. Trans. Average trans. Value Fuel 851, ,098 Operational equipment 1,494, Scrap cars 34, Uniform 1,143, Uniform - cleaning 124, ,257 Vehicle/fleet hire 76, Vehicle/fleet maintenance 236, Vehicle/fleet parts 1,281, Total 5,242, Corporate Services Sub-category Spend No. Trans Average trans. Value Advertising/marketing/design 141, Catering 105, Catering- fire ground feeding 29, Cleaning materials 34, Postage/courier 25, Printing/stationary/photography 231, Professional services 235, ,905 Recruitment 725, Training 962, ,873 Travel 36, Accommodation 97, Total 2,626, Ict and Business Services Sub-category Spend No. Trans Average trans value Consultancy 425, ,196 Financial services 279, Ict- hardware 1,355, ,422 Ict-software 738, ,767 Insurance 819, ,736 Legal services 136, ,175 Telecommunications - mobile 303, ,817 Telecommunications - rents 373, ,771 Vehicle/fleet lease/purchase 2,036, ,228 Total 6,468,

5 Procurement performance measurement The following performance measures will be continuously monitored to ensure that procurement contributes to the corporate plan. Ref Performance indicator Measures Area 1. Efficiencies 1.1 Identification/delivery of cashable savings of 600k up to 2016/17 (circa 200k per annum). % of savings as a cost of the procurement team Corporate 2. Governance 2.1 Procurement strategy and professional function is in place and it contributes to the corporate strategy. 2.2 Future demand for goods and services is forecast on at least an annual basis alongside analysis of emerging market developments which inform the procurement strategy and results in a prioritised work-plan for the next 12 months. 2.3 A positive step change in customer experience and modernising, standardisation and simplification of procurement processes and practices. Procurement and Strategies in place March 2014 Professionally qualified procurement employees (FTEs) as a percentage of total procurement employees (FTEs) (greater than 50%) The cost of the Procurement Team as a % of organisational running costs (less than 0.3%) and non-pay spend (less than 1.5%) Marketable externally and providing income generation opportunities and targets ( 30k per annum) Procurement work plan in place March 2014 Top 20 suppliers (by spend value) will have a formal contract/partnership agreement in place by March Top 10 suppliers (by spend value) have contract review meetings every annum % of non-pay spend actively managed by the Procurement Team (greater than 50%) Procurement policy and procedures are in place and are readily accessible by all staff and reviewed at least every year by March 2015 Customer satisfaction surveys are undertaken at least annually to understand user views on the added value brought about by the professional procurement function, with the results published internally and fed into an improvement plan which is regularly monitored. Procurement Improvement Assessment Tools (RISC, EFQM) used to inform and improve practices High value purchasing decisions are made based on a detailed understanding of the total cost of ownership (TCO) (also known as whole life costs) for procurements above 20k. Benchmarking data from both public and private sector sources is actively used to undertake price comparisons on key goods and services annually. All term contracts > 20k are recorded and published externally through the Procurement Database. % of orders to be placed via approved purchasing systems electronic system and Government Procurement Card. (80% 2013/14, 90% in 2014/15 and 99% in 2015/16) Corporate 5

6 Further Information Further information on DSFRS Procurement arrangements: Procurement Policy Procurement and Contract Regulations DSFRS Service Information Point (SIP) 6