HERTFORDSHIRE COUNTY COUNCIL
CABINET
MONDAY, 17 MAY 2010 AT 2.00PM
HERTFORDSHIRECOUNTY COUNCIL PROCUREMENT STRATEGY 2010 - 2012
Report of the Director of Environment Commercial Services
[Author: Peter Maguire (Tel: 01992 588830)
Executive Member:David Lloyd (Resources & Economic Wellbeing)
- Purpose Of Report
1.1To seek Cabinet approval of a new procurement strategy, including a Sustainable Procurement Policy, for2010 to 2012(attached at Appendix 1).
- Summary
2.1This strategy is a framework both for making decisions and for securing support and approval over the next three years. It aligns with the new corporate plan ‘County of Opportunity 2009-2012’ and to national,regional and local changes in procurement.
2.2TheStrategy targets efficiencies from the County Council’s existing and future providers. Embedded in the Strategy is equality and diversity as a core value, and the principle of being open, fair and transparent in all processes.
2.3The Strategy positions the County Council as a commissioner of personalised and localised services, focussing on need whilst enabling the Council to collaborate with partners and providers where it makes sense.
2.4The Strategy continues to support the local economy and the actions agreed by Council to the Corporate Plan in July 2009 i.e. it continues to promote Hertfordshire as a good place to do business and to makes it easierfor local companies to tender for and win contracts (see options overleaf),and advocates thatprovidersbe evaluated not just on price and quality but also in regardto social, economic, environmental and ethical factors.It maintains our support of the Small Business Friendly Concordat.
2.5The Sustainable Procurement Policy outlines key principles for a sustainable future, and proposes a flexible framework to implement it.
3.Recommendations
3.1The Policy and Resources Cabinet Panel will be considering a report on this item of business at its meeting on 13 May 2010. The recommendation being made to the Panel is that it:-
”considers the options on encouraging local procurement which should be adopted in the action plans from this strategy, and recommends that Cabinet adopts the Strategy and the related sustainable procurement policy.”
3.2The Panel’s recommendation to Cabinet will be reported orally at the meeting and circulated to Members in the Order Sheet.
3.3.In addition to the Panel’s recommendation, Cabinet is asked to agree:-
1. That the Director of Environment &Commercial Services be authorised, in consultation with the Executive Member for Resources & Economic Wellbeing, to make minor amendments to the Procurement Strategy 2010 – 2012 prior to publication.
4.Background
4.1The Council’s first documented procurement strategy was developed in 2000, in line with the Best Value regime. It was reviewed and revised 5 years ago and again in September 2006;prompted by some significant changes in procurement over the last few years,the time is now right to review the policy again. The main drivers of these changes are set out in the Strategy (document section 3: National, Regional and Sub-regional Context).
4.2Other relevant background documents are:
HCC Contract Regulations – last revised April 2008
HCC Best Practice In Procurement – last update August 2008
5.LocalEconomy- Potential ActionsTo Support Local Providers
5.1Not included in the Strategy itself are possibleprocurement actionsto help the local economy. Optionsbelow will be presented to the Policy & Resources Cabinet Panel for consideration; those agreed will be incorporated in the action plan to be produced following agreement of the Strategy, subject to compliance with European and Domestic legislation:-
(1)Promotion of the public sector portal ‘Supply Hertfordshire’ by a launch event in September 2010. The portal will advertise all tenders from the wider public sector in one place.Further promotion eventsto be carried out by the Hertfordshire Procurement Forum, on dates to be agreed. The portalcan send email alerts to providers regarding tender opportunities. Applications andtenderscan then be posted online, cuttingcosts for provider and client alike.
(2)Promotion of the ‘Supply Hertfordshire’ toolkit via meet the buyer events, helping local businesses to tender for public sector contracts in Hertfordshire and a consideration of a training programme for small business in its use alongside of the portal.
(3)Rationalisation of contract regulations across Hertfordshire.
(4)Mandatory quotes from at least one local provider or third sector partner (provided one exists) for all quotations(under £50k).
(5)Break suitable tenders into lots, by geographical area, where flexibility and quick response is required, encouraging local supply.
(6)Break(for suitable tenders) requirements down by product service type, allowing smaller specialist suppliers to compete.
(7)Usewhole life costing for service delivery options forall tenders.
(8)Includeforappropriate contracts, in theOfficial Journal of the European Community (OJEC, previously known as the Official Journal of the European Union (OJEU)) notices, clauses that take support to Hertfordshire’s economy into account. Legal advice will be taken on exact wording. Contract performance conditions and award criteria could thenbe related to social and environmental factors, such as number of local jobs created or maintained.
(9)Allow new businesses to provide information as to financial security from sources other than via a simple credit check. This information will be risk assessed in regard to the circumstances of the contract.
(10)Consider paying Small and Medium Enterprises(SMEs) more quickly than the current 20 working days, to support their cash flow. The cost of this maybe offset by agreeing suitable discounts for early payment.
(11)Include in some of the County Council’s contract specifications, measures to increase community health and well being.
(12)Run a training programme for procurement and commissioning staff to design localism into contracts.
5.2The County Council should also seek to have its contractors and providers consider these same factors for their supply chain (e.g. ask that main contractors pay their subcontractors on similar terms to that on which we pay).
6.Financial implications of the Strategy
6.1There will be savings targets agreed in connection with the savings and efficiencies principles outlined in the Procurement Strategy. They will form part of Council for the Future (C4F) enhanced procurement and commissioning strand. There are potentially also costs to support this programme. These too will be outlined as part of C4F.
6.2The portal, the Supply Hertfordshire Toolkit, and some training for providers will be supported by a grant from the regional centre of excellence (total Regional Improvement and Efficiency Partnerships (RIEP) grant was £120k for this and other work including shared services framework).
6.3The flexible framework will require the County Council to train staff. £10k has been agreed from the corporate procurement training budget to support this.
6.4Increasing capacity and a training programme are in preparation, and will be funded from the corporate procurement training budget managed by the Strategic Procurement Group.
6.5Also we are introducing a self assessment tool and an e-learning tool for all staff involved in procurement, commissioning and contract management. Cost £42k, paid from thecorporate procurement training budget.
Background Information
HCC Contract Regulations – last revised April 2008
HCC Best Practice In Procurement – last update August 2008
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