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Joint Procurement Strategy Helps to Deliver Both Councils’ Strategic/Council Plans

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Joint Procurement Strategy Helps to Deliver Both Councils’ Strategic/Council Plans North Lincolnshire Council & North East Lincolnshire Council Joint Corporate Procurement Strategy 2009-2012 Contents Introduction .................................................................................1 4.14 Partnering, collaboration & strategic alliances...............26 4.15 Recession Pledge.........................................................27 1 What is procurement?........................................................2-4 4.16 Economic Development...............................................27 1.1 What is procurement?...................................................2 4.17 Equality and diversity in procurement...........................28 1.2 Why is procurement important?.....................................2 4.18 Sustainability in procurement.......................................28 1.3 Strategic Procurement & Commissioning........................3 4.19 E-Procurement and e-commerce..................................30 2 Where are we now?............................................................4-9 5 How will we know how we are doing?................................31 2.1 Key procurement challenges..........................................4 5.1 Benefits realisation......................................................31 2.2 Local context................................................................5 5.2 Performance management...........................................31 2.3 National context............................................................9 6 Appendices .................................................................32-61 3 Where do we want to be?..............................................10-11 Appendix A PANNEL Business Plan 2009 - 2012.....................33 3.1 The purpose and objectives of this strategy..................10 Appendix B Benefits Realisation Measures.............................52 Appendix C Supplier Positioning Tool.....................................53 4 How will we get there?..................................................12-30 North East Lincolnshire Council Spend 4.1 Strategic procurement framework ...............................12 and Gap Analysis................................................54 4.2 Procurement Governance............................................14 Savings Analysis.................................................56 4.3 Structure & Organisation of procurement activity .........15 Appendix D Strategic Sourcing Matrix 4.4 Category management................................................18 and Procurement Spend Analysis........................58 4.5 Customer focus...........................................................20 Appendix E Identified Areas of Mutual Benefit.......................59 4.6 Building capacity – competencies and training..............20 Appendix F PANNEL Structure..............................................61 4.7 Project management and risk assessment ...................21 4.8 Contract procedure rules.............................................22 4.9 Contract and standing list management.......................22 4.10 Ethics probity and conduct...........................................23 4.11 Workforce matters and staff involvement.....................24 4.12 Skills pledge................................................................24 4.13 Mixed economy of providers & approach to the market...............................................24 Ashby-cum-Fenby Introduction 1 North Lincolnshire Council and North East The updated strategy builds on this progress. The North Lincolnshire North East Lincolnshire Lincolnshire Council jointly spend £210 million every main development priorities going forward are: n year on the supplies, services and works needed to Delivery of further savings of £1.5m per deliver services to the people of both areas. How council by 2010/11 through smarter Councillor Mark Kirk Councillor Andrew DeFreitas well we procure our requirements has a critical collaborative procurement targeted at key Leader of the Council Leader of the Council impact on our performance and the value for money categories of high value procurement spend, we provide. such as construction, social care and education services in addition to common-use Councillor Len Foster Councillor Tony McCabe This Joint Corporate Procurement Strategy sets out commodities Deputy Council Leader Deputy Leader the direction which will help to ensure that together n Ensuring that procurement continues to our procurement continues to deliver excellent value support our skills and recession pledges and supports the attainment of both councils’ n Continuing to develop better relationships with transformational visions. the Third Sector and small business community Councillor Steve Swift Tony Hunter n Further development of our sustainable Cabinet Member Chief Executive Both councils have continued to make significant procurement policy to ensure that economic, for Corporate Services progress in developing their strategic social and environmental outcomes for the Member Procurement Champion procurement capabilities over the last year. Key area are achieved through procurement highlights during 2008/9 include: n projects PANNEL rated as "performing well" by the n Council-wide roll-out of electronic procurement Simon Driver Audit Commission under CPA Use of technologies to reduce the internal Chief Executive Resources Assessment n administrative processing costs associated with Joint procurement savings of £2.5m identified the procure-pay cycle. through completed projects - £1.3m at NELC and £1.2m and NLC n Municipal Journal Achievement Awards 2008 - The joint strategy will help both councils achieve the Commended objectives set for their shared procurement service n Innovative Joint Compact signed with ‘Procurement Alliance North and North East Lincolnshire’ Voluntary Action North Lincolnshire & (PANNEL). It recognises national and regional Voluntary Action North East Lincolnshire development agendas and our local needs. n Positive supplier satisfaction survey findings The strategy is supported by a business plan covering from Small & Medium Sized firms tendering the next three years. This will require commitment from for council contracts n officers, elected members and partners to realise its Level 1 of the National Sustainability Flexible ambitious targets and objectives which have the Framework achieved n potential to deliver transformational outcomes for the Framework for procurement rated as "strong" benefit of both areas. under the Equalities Standard Assessment The Angel Suite, Brigg Chapter 1 - What is procurement? 2 1.1 What is procurement? 1.2 Why is procurement important? ‘Good procurement is essential to ensure good public services, from buying Procurement is defined as goods and services that work as they are supposed to, to achieving savings that can be ploughed back into front-line services. The public sector spends ‘The process of acquiring supplies, services and works, from the initial assessment over £125 billion a year procuring a wide range of goods and services, from of a need through to the end of life of the asset or service’ every day items such as pens and paper, to major construction projects such as schools and hospitals. All those who, as taxpayers, use and fund public An illustration of a typical procurement cycle: services have the right to expect government to meet the highest professional standards when it procures on their behalf.’ Transforming Government Procurement ‘Getting procurement right is important. It is about improving the delivery Closure and cost effectiveness of quality public services to citizens.’ Define service need Prepare for future National Procurement Strategy for Local Government Develop the programme arrangements, review or project brief service need Procurement is an essential tool which if used effectively will enable the Gateway review 5 Gateway review 0 councils to deliver better services and continuously improve value for money (VfM) for local people. Manage contract Develop business case It will enable the councils to realise the potential of effective and innovative Service delivered, benefits Options identified and achieved, performance and appraised; value for money procurement to: value for money maintained established n improve services and deliver the outcomes set out in their Strategic and Corporate Plans and Community Strategies; n Gateway review 4 Gateway review 1 identify and realise significant savings and efficiencies; n Define supporting NI179 and medium term financial plans and Award & implement procurement approach n realise other benefits from working together in partnership with other contract Develop an approach, specify Prepare for delivery of service requirement and update organisations in all sectors, in particular: business case - North East Lincolnshire Care Trust Plus - Northern Lincolnshire and Goole Hospitals Foundation NHS Trust Gateway review 3 Competitative Gateway review 2 - East Riding of Yorkshire Council procurement - Hull City Council Advertise, supplier evaluation, confirm successful supplier, - Yorkshire and Humber Regional update business case Improvement and Efficiency Partnership - Voluntary Action North Lincs - Voluntary Action North East Lincs - North East Lincolnshire LSP - North Lincolnshire LSP Chapter 1 - What is procurement? (Continued) 3 1.3 Strategic Procurement and Commissioning Strategic Commissioning Commissioning means securing the services Our commissioning strategies help to ensure that that most appropriately address the needs
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