Contact: Shaun Le Picq,01962 826967

Hampshire County Council
Schools Forum /
Item 4
21 May2009
Contracts Affecting Schoolsand school procurement efficiencies
Report by the Director of Property, Business and Regulatory Services

1 / Summary
1.1 / The purpose of this report is to provide members of the Schools Forum with information relating to the programme of contracting activity that is likely to be undertaken by CountySupplies, part of the Property, Business and Regulatory Services Department (PBRS). These details are intended to enable the Forum to determine any requirement for further consultation about individual contract arrangements.
1.2 / CountySupplies seeks to provide schools with a wide range of pre-tendered, value-for-money arrangements for goods and services. Relatively few contracts require a firm or long-term commitment from schools. Schools continue to give strong support to these arrangements.
1.3 / CountySupplies continues to be heavily involved in, and often takes the lead on, collaborative procurement arrangements on behalf of schools through the Central Buying Consortium. It is also supporting further collaboration between the main local government consortia (known as ‘Pro5’) and is involved in regular discussions with the Office of Government Commerce (OGC) and the Department for Children, Schools & Families on collaborative procurement arrangements on behalf of schools.
1.4 / Dialogue between representatives of schools and CountySupplies already takes place, but this report is intended to provide a formal opportunity to identify specific contracts where formal consultation is required or needs to be extended. Consequently, the Forum is asked to consider whether it requires further reports on any individual contract and identify any issues that need to be addressed, particularly in relation to contract specifications, performance and the range of contracts in place.
2. / Background
2.1 / The functions of the Schools Forum include a requirement for the County Council to consult the Forum on the terms of any relevant contract at least one month prior to the invitation of tenders. This formal requirement applies to contracts with a value in excess of the thresholds stated in the relevant E.U. Procurement Directives (approximately £156,000) and which are funded from delegated budgets through buy-back arrangements or from retained funds within the Schools Budget. A report based on these criteria would involve relatively few contracts and it has previously been agreed that more comprehensive information would be reported. This report follows a similar format as those considered by the Forum in recent years.
2.2 / CountySupplies provides a purchasing, distribution and advice service to all parts of the County Council and to eligible external customers. A key function is to aggregate the expenditure of a wide range of budget holders in order to establish purchasing and supply arrangements that offer value-for-money, avoid unnecessary duplication of effort, provide the security of the County Council’s contract terms and conditions and offer compliance with Contract Standing Orders. The County Council places a general requirement on departments to use these arrangements, but for the majority of contracts, the participation of schools is based on their decision to ‘opt in’ or place orders with the companies appointed by CountySupplies.
2.3 / In 2009/10, the total value of CountySupplies’ portfolio of contracts (including expenditure by external bodies) was some £140 million per annum.
3. / Forthcoming Contracts
3.1 / A list of forthcoming contracts for the period up to November 2011 is shown in Appendix One. The list is shown in date order and includes:

framework arrangements that enable budget holders to source their requirements direct from a supplier or contractor
‘group’ service and supply contracts
goods supplied through CountySupplies’ warehouse operation.

3.2 / Contracts not managed by CountySupplies are not included in this report. The list of contracts in Appendix One also excludes all contracts that are concluded on behalf of individual schools. Around sixty of these ‘single site’ contracts, for services such as catering, cleaning and transport, are expected to be tendered over the next eighteen months.
3.3 / The value stated for each contract is to provide a general indication only. Most contracts include a provision for the initial contract period to be extended by at least one year and this may mean that the next tendering exercise takes place later than stated.
3.4 / Contracts are reviewed periodically and opportunities for schools to give feedback on contracts are available in the form of the Primary Headteachers’ Conference (PBRS Standing Committee), the County Supplies Administration Officers User Group and normal communication channels. Subject to the agreement of the Forum, this report will be circulated to the attendees of the PBRS liaison meetings with both primary and secondary headteachers for review and comment.
3.5 / It is intended to implement improved contracting arrangements in two main areas in the coming year:

Catering Framework – A framework contract is now in place to cover catering contracts for schools, which will assist in streamlining the process
Supply Teachers – a successor contract is currently being out in place, which will involve joint working with other local authorities. The new framework will enable better management controls to operate.

4. / Energy Procurement
4.1 / The County Council’s arrangements for the supply of both electricity and gas were renewed last autumn and as forecast in last year’s report to the Forum, price reductions were achieved in electricity and price increases occurred for gas. Whilst, on average, prices for gas increased by 15%, electricity prices reduced on average by 25%.
4.2 / Planning is already underway to determine the most effective procurement approach to the next generation of energy contracts and this will continue to involve collaboration with other local authorities and use of more ‘flexible’ purchasing arrangements by buying energy on regular occasions rather than all in one go. It is recognised nationally that collective buying of energy offers the greatest scope for value for money and CountySupplies will continue to deliver this on behalf of schools as effectively as possible within a rapidly fluctuating energy market. CountySupplies is also assisting Property Services in the purchase of ‘smart meters’ for schools which will assist with more accurate and timely measurement of energy usage and has the potential to help schools manage and reduce energy consumption. Reduction in energy consumption obviously not only reduces costs, but also carbon use.
5. / Collaboration and Efficiency
5.1 / CountySupplies continues to be heavily involved in, and often takes the lead on, collaborative procurement arrangements on behalf of schools through the Central Buying Consortium (CBC). It is also supporting further collaboration between the five main local government consortia (known as Pro5) and is involved in regular discussions with the Office of Government Commerce (OGC) and the Department for Children, Schools & Families on efficiencies and collaborative procurement arrangements on behalf of schools.
5.2 / Such collaboration assists with reducing time and effort spent on purchasing in individual local authorities and for individual schools and exerts downward pressure on prices through aggregation of spend (‘bulk purchasing’). It is interesting that a recent discussion paper from the DCSF: ‘Securing our future: using our resources well’ supported this sort of collaboration by saying: ‘collective buying offers great scope for better value for money’ and yet also suggested that ‘almost all procurement is currently done at individual school level’, which is obviously not the case within Hampshire schools in many key areas of spend such as curriculum supplies, photocopiers and energy.
5.3 / Collaborative contracts are identified in the attached schedule and in total more than £25 million is directed through these collaborative arrangements each year. This collaboration typically achieves an average of at least 10% savings. It is estimated that price reductions of £180,000 were achieved for schools in 2009/10 compared to previous contracts in areas such as arts materials, ICT consumables and adhesives.
5.4 / The DCSF discussion paper also encourages schools to use online procurement tools and through its discussions with County Supplies, the DCSF has recognised that the majority of Hampshire schools already have online access to collaborative purchasing arrangements through the SAP system and its associated electronic catalogue (SRM). In addition, in response to requests from Headteachers, CountySupplies has led on the procurement and implementation of ‘purchasing cards’ in schools. The current pilot is proving successful for schools in reducing the time spent on purchasing more specialist and ad-hoc items and reducing the need to reimburse through petty cash, whilst still being integrated with other spend transactions in the SAP system.
6. / Recommendations
6.1
6.2
6.3 / Schools Forum is recommended to note the programme of contracting activity and collaborative procurement arrangements to be undertaken by County Supplies.
Schools Forum is recommended to decide whether further detailed consultation with the Forum is required on any of the contracts due to be let between June2010 and November 2011.
Schools Forum is recommended to confirm that it wishes this report to be presented to the existing liaison meetings between the Property, Business and Regulatory Services Department and the Primary and Secondary Head Teachers’ Conferences.

Appendix One

(a) Forthcoming Contracts - Direct Supply/ Call-off Arrangements
Contract Title (CBC is named where the contractis
made jointly with other local authorities) / Indicative AnnualValue (all users) / Planned
Date
£000s
i) Start dates up to 1 April 2011
Brown Goods (CBC) / 70 / 01-May-10
Photographic Services / 15 / 01-Jul-10
Linen and Bedding (CBC) / 16 / 01-Aug-10
Maintenance of A/V Equipment / 80 / 01-Sep-10
Mobile Gas Heaters - Hire / 5 / 01-Sep-10
Child Safety & Nursery Equipment (CBC/ESPO) / 30 / 01-Sep-10
Entrance Matting / 29 / 01-Sep-10
Maintenance of Microwave Ovens / 2 / 01-Oct-10
Sewing Machines Maintenance / 20 / 01-Oct-10
Welding Equipment Maintenance / 8 / 01-Jan-11
Propane/Butane - Bulk and Cylinders / 15 / 01-Jan-11
Office Dictation Machines (CBC) / 10 / 01-Feb-11
Coroners Removals (North East) / 0 / 01-Feb-11
Coroners Removals (Central) / 0 / 01-Feb-11
Tuning/Maintenance of Pianos / 20 / 01-Feb-11
Occupational Health Physician Services / 42 / 01-Mar-11
Learning & Development Training (Young People) / 35 / 21-Mar-11
Swimming Pool Chemicals (CBC/ESPO) / 25 / 01-Apr-11
Oscillating Fans, Portable Heaters & Air Cons (CBC) / 10 / 01-Apr-11
Saw Sharpening / 5 / 01-Apr-11
Maintenance and Repair of Metal/Woodwork Machines / 20 / 01-Apr-11
Recruitment & Training: Independent Parental Supporters / 28 / 01-Apr-11
Market Research Services / 180 / 01-Jun-10
Catalogue Content Management System / 60 / 01-Jun-10
Tyres and Tubes (CBC/OGC) / 100 / 01-Jun-10
Solid Pack Apples (CBC/PRO5) / 57 / 01-Jun-10
Flour (CBC/PRO5) / 73 / 01-Jun-10
Canned Fish (CBC/PRO5) / 100 / 01-Jun-10
Lease Finance (CBC/PRO5) / 700 / 01-Jun-10
Classroom Tables (CBC) / 180 / 01-Jun-10
School and Corporate Textbooks / 2,900 / 01-Jun-10
Web Based Printing / 150 / 01-Jun-10
Dry Pasta (CBC/PRO5) / 75 / 01-Jun-10
Rice, Cereals & Pulses (CBC/PRO5) / 36 / 01-Jul-10
Local Stationery / 50 / 01-Jul-10
Corporate Stationery (CBC) / 66 / 01-Jul-10
Cabinet Roller Towels / 35 / 01-Jul-10
Statutory Notices / 200 / 01-Sep-10
Security Services Framework
(in arrangement with Property Services) / 740 / 01-Sep-10
Volker Beds - Service & Maintenance / 90 / 01-Sep-10
Supply Teaching Services / 2,000 / 01-Sep-10
Commercial Vehicles (CBC/PRO5) / 1,000 / 01-Sep-10
Education Audio Goods (CBC) / 75 / 01-Sep-10
Mental Capacity Act Training (Adult Services) / 160 / 01-Sep-10
Canned Soft Drinks – Non-schools (CBC) / 160 / 01-Sep-10
Par Fried Chips (CBC) / 48 / 01-Sep-10
Wooden Storage Furniture (CBC) / 120 / 01-Sep-10
Warehouse Rack, Shelving, Storage & Material Equip / 130 / 01-Oct-10
School Storage Trays (CBC) / 50 / 01-Oct-10
Signage / 80 / 01-Oct-10
Frozen Individual & Multi-portion Meals (CBC) / 500 / 01-Oct-10
Electricity - Unmetered Sites / 300 / 01-Oct-10
Catering Mixes (CBC/PRO5) / 200 / 01-Oct-10
Bakery Items / 60 / 01-Oct-10
Heating Oils and Fuels / 5,300 / 01-Nov-10
Par Fried Chips/Prepared Pots/Fresh Fruit & Vegetables / 1,540 / 01-Nov-10
Poly Chairs and Stools (CBC) / 185 / 01-Nov-10
Agency Agreement Travel and Ticketing / 700 / 01-Dec-10
Domestic Electrical Appliances (CBC) / 90 / 01-Dec-10
Timber and Fencing (CBC) / 700 / 01-Dec-10
Project Management Services / 500 / 01-Jan-11
Floor Cleaning Machines (CBC/ESPO) / 130 / 01-Jan-11
Furniture - Office Desking & Seating (CBC) / 1,200 / 01-Jan-11
Whiteboards and Noticeboards (CBC) / 400 / 01-Jan-11
Aiming High - Play Schemes / 2,000 / 01-Apr-11
Office Machines (CBC/ESPO) / 107 / 01-Apr-11
PPE, Corporate Clothing and School Wear (CBC/ESPO) / 800 / 01-Apr-11
AV Solutions (CBC) / 500 / 01-Apr-11
Mortuary Services / 400 / 01-Apr-11
Asbestos Surveying and Testing / 130 / 01-Apr-11
Actuarial Services / 100 / 01-Apr-11
Extended Services, After School, Sat & Summer Hols / 850 / 01-Apr-11
Photographic Equipment (CBC/ESPO) / 90 / 01-Apr-11
E-Tendering Software (CBC) / 26 / 01-Apr-11
Catering Disposables (CBC) / 240 / 01-Apr-11
Early Learning (CBC/ESPO) / 300 / 01-Apr-11
Total / £27.4 million
ii) Start dates beyond 01 April 2011
Flexible Working Solutions / 150 / 01-May-11
Library Security Contract / 100 / 01-May-11
Maintenance of PE Equipment / 55 / 01-May-11
Cleaning - Non-Ed - 10 Areas / 1,100 / 12-May-11
Childcare Vouchers - Salary Sacrifice / 1,600 / 01-Jun-11
Outdoor Furniture (CBC/ESPO) / 300 / 01-Jun-11
Inspect/Testing of Portable Electrical Appliances / 120 / 01-Jun-11
Catalogue Advertising Space / 300 / 01-Jun-11
Information & Participation Service - Aiming High / 450 / 01-Jun-11
Street Furniture (CBC/ESPO) / 90 / 01-Jun-11
General Furniture / 250 / 01-Jul-11
Short Break Services Disabled Children & Young People (Approved List) / 375 / 01-Jul-11
Short Break Services Disabled Children & Young People (Framework) / 375 / 01-Jul-11
Domiciliary Care for Children (Care Support) / 375 / 01-Jul-11
Music Equipment (CBC) – Approved list / 500 / 01-Jul-11
Catalogue Production (CBC) / 100 / 01-Jul-11
Domiciliary Care for Children (Care Support) - Framework / 375 / 01-Jul-11
Franking Machines (CBC/ESPO) / 128 / 31-Jul-11
Electric Lamps & Tubes (CBC) / 35 / 01-Aug-11
Provision of a Regional E-Recruitment Portal / 275 / 03-Aug-11
Removal Services / 300 / 01-Sep-11
Temporary Workers, Provision of (CBC) / 8,000 / 01-Sep-11
Cheese (CBC) / 370 / 01-Sep-11
NVQ Training Services in Health & Social Care / 200 / 03-Sep-11
Electricity – quarterly billed / 2,800 / 01-Oct-11
Electricity – maximum demand monthly billed / 1,600 / 01-Oct-11
Electricity – large sites monthly billed / 2,900 / 01-Nov-11
Total / £23.2 million
(a) Forthcoming Contracts – supplied via the CountySupplies Warehouse
i) Start dates up to 1 April 2011
Book Covering Film (CBC) / 14 / 01-Jun-10
Staplers, Staples and Perforators (CBC) / 33 / 01-Jun-10
First Aid & Medical (CBC) / 21 / 01-Aug-10
Calculators / 30 / 01-Oct-10
Desk Top Plastics (CBC) / 20 / 01-Oct-10
Office Books (CBC) / 29 / 01-Oct-10
Batteries & Torches, Supply of (CBC) / 48 / 01-Feb-11
Scissors, Supply of (CBC) / 24 / 01-Mar-11
Paints and Sundries (CBC) / 8 / 01-Apr-11
Diaries & Calendars (CBC) / 49 / 01-Jun-10
Cartridge Paper (CBC) / 40 / 01-Sep-10
Pencils / 143 / 01-Jan-11
Cleaning Chemicals (CBC) / 600 / 01-Jan-11
Glue Sticks (CBC) / 170 / 01-Mar-11
Wash Room Paper Disposables (CBC) / 800 / 01-Mar-11
Total / £2.0 million
ii) Start dates beyond 01 April 2011
Office Fastenings (CBC) / 16 / 01-May-11
Signs (CBC) / 17 / 01-Jun-11
Dividers (CBC) / 29 / 01-Jun-11
Envelopes (CBC) / 92 / 01-Sep-11
Total / £0.2 million
Grand Total / £52.8 million

Notes:

Contracts shown in bold offer suppliers a commitment that schools will participate.

Contracts shown in grey are for information only.

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