REPORT OF:
HEAD OF FINANCE & PROCUREMENT
AUTHOR:
GRAHAM FRIDAY
TELEPHONE:
01737 276556
E-MAIL:
[email protected]
TO:
EXECUTIVE
DATE:
17TH MARCH 2004
EXECUTIVE MEMBER:
COUNCILLOR M.H.C. BUTTERY
AGENDA ITEM NO:
WARD(S) AFFECTED:
KEY DECISION REQUIRED:
YES
ALL
SUBJECT:
PROCUREMENT STRATEGY
PURPOSE OF THE REPORT:
THE PURPOSE OF THIS REPORT IS TO SEEK
APPROVAL FOR THE COUNCIL’S PROCUREMENT
STRATEGY
RECOMMENDATIONS:
1.
To approve the Strategy set out on Annex 1.
Executive has authority to determine the above recommendation.
Background
1.
At the meeting on the 8th December 2004, the Executive approved the draft
strategy for consultation with the Overview & Scrutiny Committee.
2.
The purpose of this report is to now seek formal approval of the Strategy
following that consultation.
Outcome from Overview & Scrutiny Committee consideration of the Draft
Strategy
3.
The Overview & Scrutiny Committee considered the draft strategy at their
meeting on the 16th December 2004.
4.
Overall the Committee was very supportive of the strategy and had no
comments or recommendations to make on the content.
5.
The Committee did recommend that performance indicators be identified to
monitor the effective implementation of the strategy and that those
performance Indicators be added into the Council basket of reported
indicators.
6.
The Committee also sought further information on how the Council’s
procurement processes ensured effective price comparison with the private
sector.
Performance Indicators
7.
Officers have identified the following indicators as those appropriate to
monitor the implementation of both the Strategy and the Council’s general
progression towards implementation of the National Procurement Strategy for
Local Government.





8.
Percentage of expenditure through framework agreements and
contracts (including those set up by other parties such as purchasing
consortia, OGC Buying Solutions etc);
Average expenditure per Supplier;
Average invoice value;
Percentage of milestone activities completed against the National
Procurement Strategy for Local Government;
Achievement of BVPI 8 (Payment of suppliers) and BVPI 157
(Electronic Government).
In addition the following indicators will be used to manage the Council's
operational procurement activity:



Return on resources consumed in undertaking the procurement
function;
Percentage of orders sent electronically;
Percentage of invoices processed electronically;
Number of suppliers used.
Comparison with the Private Sector
9.
The Council’s procurement procedures allow for comparison with the private
sector at two levels.
10.
The highest level is using comparative private sector data to help determine
overall service delivery options.
11.
The second level is using data on costs within the private sector, (where they
can accurately obtained) as comparators for determining costs that the
Council will pay on the purchasing its own goods and services.
12.
The Council’s uses its Project Management methodology to manage its major
procurement exercises. The methodology requires that all benefits and cost
comparison are undertaken and documented as evidence of any decision.
Resource Implications
13.
The attached Strategy sets out resource requirements that can be contained
within existing budgets.
14.
The financial savings that is it hoped will be generated from a successful
implementation of the Strategy will be monitored thought the Council’s budget
setting and monitoring processes.
Consultation / Policy Framework
15.
In accordance with the Council's Policy Framework this Strategy will be a
Level 3 document.
Background Papers:
National Procurement Strategy for Local Government
Previous Executive reports