Cabinet - 8 May 2014 Report of the Deputy County Treasurer Electoral Division affected: All Draft Procurement Strategy (Appendix 'A 'refers) Contact for further information: Lisa Kitto, (01772) 534757, County Treasurer's Directorate [email protected] Executive Summary The County Council has recognised that for effective and efficient procurement practices to operate at all levels within the County Council, they need to be underpinned by an overarching Procurement Strategy. The development of a procurement strategy has been a key priority of the County Council. A draft procurement strategy as now been developed for consultation and is set out at Appendix 'A'. Recommendation Cabinet is recommended to: (i) Note the County Council's draft procurement strategy set out at Appendix 'A'; (ii) Note that a consultation process involving public, private and third sector organisations will be undertaken and that a final strategy will be presented to Cabinet in September for consideration and final approval. Background and Advice The County Council has recognised that for effective and efficient procurement practices to operate at all levels within the County Council, they need to be underpinned by an overarching Procurement Strategy. The development of a procurement strategy has been a key priority of the County Council. On 6 March 2014, Cabinet received a report that set out the principles upon which the County Council's procurement strategy would be developed. In addition to this it was also note that the Amended Notice of Motion agreed by Full Council on 3 October 2013, and set out below, would also be reflected in the strategy: "Lancashire County Council: 1. Welcomes the consultation launched last month by Government to create a small and medium sized enterprise (SME) ‘single market’ for public procurement, simplifying and standardising how contracts are advertised, bid for and paid across the sector on contracts over £10,000 and would welcome similar proposals for contracts under £10,000 to follow suit 2. Recognises the huge opportunity presented to support small and medium sized businesses and contribute to a strong local economy through its procurement policies 3. Commits to adopting best practise in public procurement which takes into account the full impact of the procurement process on the local economy, and uses its public procurement role to promote the wellbeing of the local economy and the diversity of small and medium sized enterprises 4. Recognises the important role played by Third Sector partners in the delivery of services on behalf of the Council and commits to a procurement process that takes into account the social value of Third Sector provision". The draft strategy has now been developed which takes account of the County Council's priorities. This document will shape the strategic direction and delivery of procurement practices across the County Council and will be supported through the newly established Procurement Board which has Director level representation from all Directorates. Before the strategy is formally adopted it is essential that the County Council carries out a formal consultation seeking the views of key stakeholders. It is proposed that an 8 week consultation process be undertaken that involves a range of public, private and third sector organisations. In addition to this the consultation will be made available on the County Council's website that is used to advertise all tenders. This will ensure that all suppliers and potential suppliers to the County Council are aware of the draft strategy and have an opportunity to be part of the consultation process. It is intended that the results of the consultation exercise will be taken into consideration and reflected in a final strategy which will be brought back to Cabinet in September for consideration and final approval. Revised County Council Procurement Rules/Contract Standing Orders will then be submitted to Full Council for approval. Consultations N/A Implications: This item has the following implications, as indicated: Risk management N/A List of Background Papers Paper Date Contact/Directorate/Tel Report to Cabinet – 'Progress Report on the Implementation of the Changes to the County Council's Strategic Partnership with BT' 6 March 2014 Dave Gorman, Office of the Chief Executive, (01772) 534261 Reason for inclusion in Part II, if appropriate N/A
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