Title:
1.
2.
Procurement Strategy
Our Vision for Procurement
1.1.
Fylde Borough Council will strive to achieve Value for Money and
continuous improvement when it procures goods, services and works from
third party suppliers. There will be a constant challenge to key facets of
procurement, including, quality, health & safety, sustainability and how
we deliver benefits to the local community.
1.2.
To achieve this vision the Council will ensure that there is a clear
framework of accountability and responsibility, applying appropriate
professional knowledge and skills, and using legally compliant procedures.
1.3.
The Council will ensure that its procurement strategy is fully integrated
with the Council’s Corporate Strategy and will be kept under review.
Introduction
2.1.
Procurement is the process of acquiring goods, works and services. It
includes deciding whether to buy something from an external supplier or
to source it in-house having given due consideration to the criteria defined
by the council as necessary to deliver the characteristics of the specific
purchase.
2.2.
Procurement by the council affects local people, local businesses and the
local environment, hence it is important that these local considerations are
taken into account when procurement decisions are made.
2.3.
Procurement affects local people because they pay the taxes which pay for
the goods, works or service. Procurement is a key facilitator of the council
providing service excellence.
2.4.
Procurement affects local businesses because a contract with the council
can make a company more profitable, provide long term employment and
contribute to the local economy.
2.5.
Procurement affects the local environment because what the council buys
and where it buys it from may affect pollution and emissions.
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Section
Job title
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Ian Curtis
Job title
Governance
Head of
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2.6.
3.
4.
This document sets out the Council’s objectives for procurement. It lists
the key outcomes the Council wants to achieve under each of the
objectives, and what the Council will do to achieve them. It outlines how
the Council will manage a situation in the event of conflicting objectives
and sets out a number of key principles of how the council will manage the
process.
Rules
3.1.
The Council will always comply with all of the rules and regulations that
apply to a particular procurement. These include Acts of Parliament,
Statutory Instruments, European Union law and the Council’s own
Contract Procedure Rules.
3.2.
Sometimes, rules and regulations may require the Council to adopt a
procurement process or solution other than what this document would
suggest. In such cases, the Council would comply with the rules and
regulations rather than follow this document. Should this situation arise the
council’s governance controls would be alerted.
3.3.
The Council will not do anything in a procurement exercise that would
breach any of our duties under rules about Equalities or Health and Safety
legislation.
Governance and Accountabilities
4.1.
The Council has adopted a procurement service based on devolved
accountability to internal clients. There is a strategic overview provided by
Governance who report to the Director of Resources. Ultimate
accountability and reporting is to the Chief Executive.
4.2.
Clients are empowered within the confines of the ‘Contract Procedure
Rules’. These make it clear that every contract made by or on behalf of the
Council shall comply with:
4.3.

the Contract Procedure Rules

the Council’s Financial Regulations

all relevant statutory provisions, including in particular the Local
Government Act 1988, Part II, the Public Contract Regulations 2006
and the Local Government (Contracts) Act 1997

any relevant European Council Directive; and

any direction by the Council or the Cabinet.
The procedures deal with ‘Small Contracts’, ‘Mid-Range Contracts’,
Tendering from Constructionline’ and compliance with ‘British &
European Standards’.
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5.
Objectives
5.1.
5.2.
6.
Fylde Council’s key strategic objectives for procurement are to ensure:

Value for money: to achieve the best balance between price and
quality.

Support for the local economy: to award contracts to local businesses,
where possible.

Environmental responsibility: to procure sustainably and seek to
protect the local environment.
To support these objectives, the Council will seek to:

Robustly risk manage all purchases emanating from third parties;

Take decisive action when contract non-performance is experienced
from a contracted third party;

Continuously improve the provision of goods and services from the
supply chain; and

Make Essential Management Information readily available to senior
officers and Members.
Value for Money
This is what the Council will do to get value for money:

Outcome 6.1:
The Council will use buying power to take advantage of the best
prices.
This will be achieved by:


Buying through purchasing organisations and consortia like
the Yorkshire Purchasing Organisation or the Eastern Shires
Purchasing Organisation

Using existing framework agreements set up by central
government or other public sector bodies, recognising that
the Council may wish to vary, by exception, specific facets
of such framework agreements, providing this is possible
within the terms of the frameworks

Buying as an organisation rather than as individual sections

Aggregating requirements when possible
Outcome 6.2:
The Council will use competition to find best value.
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This will be achieved by:


Using “the Chest” to facilitate pre-qualification procedures,
invitations to tender or requests for quotations

Running or taking part in electronic auctions

Looking for ways to stimulate markets

Accessing e-catalogues when available

Soft market testing

Using the Council’s extensive network in the public sector
Outcome 6.3:
The Council will focus on what it wants to achieve, not what it
wants to buy.
This will be achieved by:
7.

Helping buyers to see procurement as a key management
tool;

Taking a holistic view of the council’s requirements;

Knowing the whole life costs of what we buy.
Support the local economy
This is what the Council will do to support the local economy:

Outcome 7.1:
The Council will raise local awareness of business opportunities
with the council
This will be achieved by:


Compiling a mailing list of local companies who are
interested in doing business with the council

Encouraging local companies to register with “the Chest”

Maintaining a clear and simple online guide to doing
business with the council
Outcome 7.2:
The Council will make it easier for local companies to compete for
council business
This will be achieved by:
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8.

Not raising unnecessary barriers or making unnecessary
checks that would discourage local businesses (especially
small and medium-sized enterprises)

Where practicable, dividing opportunities into smaller lots
Environmental responsibility
This is what the Council will do to procure sustainably and protect the local
environment:

Outcome 8.1:
The Council will minimise the use of non-renewable resources
This will be achieved by:


Reusing and recycling

Eliminating avoidable waste

Specifying products made of recyclable materials
Outcome 8.2:
The Council will build sustainability into our procurement
processes
This will be achieved by:
9.

Taking account running, maintenance and disposal costs as
well as initial purchase costs

Not buying products that damage the environment where
there is a reasonably suitable alternative

Where permitted, taking into account the environmental
record of suppliers in the tendering process

Having regard to BS 8903:2010 ‘Procurement
Sustainability’ and in particular identifying through life
costs of goods and equipment purchased. This will be
supported when appropriate by conducting supplier audits
and including sustainability requirements in the Council’s
Terms and Conditions of Contract.
Squaring the circle
9.1.
Where possible, the Council wants procurement decisions to have the best
effect on local people, local businesses and the local environment. But
sometimes these aims may conflict. For example, it may be cheaper to buy
from a supplier from outside the area. This may be better for local people
(because it keeps their taxes lower) but not for local business (because a
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local company would not win the work) or for the environment (because it
the supplies will need to be transported further). This part of the strategy
sets out how the Council will deal with these situations .
10.
9.2.
Getting the best value for money will support the local economy by
keeping taxes low and giving local people more spending power, which
will benefit local businesses. The Council will always look for the best
value for money, while giving local businesses every opportunity to
compete.
9.3.
If two choices offer equal value for money, the Council will choose a local
supplier1 in preference to one who is not local, as long as rules permit this
approach, and subject to all parts of the strategy.
9.4.
The Council will never choose an option that will cause material damage
to the environment if there is a practicable and affordable alternative that
will not cause material damage.
9.5.
The Council will use evaluation models to decide which tender or
quotation to accept. Evaluation models will typically allocate at least 15%
of their scoring to the effect on the environment of accepting the tender or
quotation.
Pre-qualification and Tender evaluation.
The Council will ensure that responses to pre-qualification questionnaires and
tenders will be evaluated strictly in line with pre-determined evaluation models
that will contain appropriate criteria and weightings that reflect the specific
requirements of the purchase. The evaluation models will be prepared prior to
receipt of pre-qualification responses and tenders. The evaluation will be carried
out by nominated Council officers who will ensure that the implications of the
Remedies Directive are noted and that the decision making for contract award will
withstand scrutiny. Unsuccessful bidders will be given feedback in an attempt to
strengthen their future responses.
11.
Gateway Reviews.
In exceptional situations, for complex procurements, the Council will consider
conducting Gateway Reviews to test the intended procurement. In particular the
Council will ensure that the ‘Procurement Strategy’ and ‘Investment Decision’ are
included as essential features of the procurement process.
12.
Supply Chain Risk Management.
The Council’s Strategic Risk Management Group and Operational Risk
Management Group oversee the Council’s approach to risk management. It is
A “local” supplier means one which employs people in Fylde, or, if there is not one that employs
people in Fylde, one which does in Blackpool, Preston or Wyre, or, if there is not one that
employs people in these areas, one that does elsewhere in the ceremonial county of Lancashire.
1
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recognized that risks will inevitably exist in the supply chain and that, on
occasions, such supply chain risks will inform the Corporate Risk Register.
Potential supply chain risks include:

supplier financial failure

lack of specialist resources

technology changes impacting on IT infrastructure

serious Force Majeure events

supplier takeovers and mergers
In the event that these are likely to occur, or do occur, the Council will apply
appropriate due diligence actions to mitigate such risks. In all instances of one-off
high risk projects the Council will create a specific Project Risk Register to which
procurement will be a contributor.
13.
Contract Management.
The responsibility for contract management rests with clients, who will, postcontract award, apply appropriate resources and skills to ensure:
14.

suppliers meet their contractual obligations

excellent relationship management exists

potential supply problems are identified as early as possible

health & safety requirements are fully complied with

purchase prices do not escalate

VFM is obtained and can be demonstrated.
Openness and accountability
14.1. The public has the right to hold the Council to account for how their
money is spent. This includes procurement decisions. Companies who
want to sell to the council will have to accept that their offers, and
consideration of all offers, will be open to public scrutiny.
14.2. The Council will normally publish the results of procurement exercises.
This will include the names of companies, the value of their offers and
how the decision was reached.
14.3. The Council will continue to publish details of any spending over £500
every month.
15.
Elected Members of the Council
The Council’s procurement strategies for high risk and/or high value purchases
will have an active involvement of elected members of the Council. This will be
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achieved through existing organisational structures and communication protocols,
including:
16.

appropriate briefings

Cabinet involvement

approval of risk mitigation strategies

comment on pre-qualification and tender evaluation criteria
and weightings

notification of achievements of procurement objectives and
targets
Conclusion
16.1. This strategy is intended to help all involved in buying on behalf of the
Council to know what the Council wants to achieve from its procurement,
how to resolve conflicting priorities and how procurement decisions can
affect the local community and the environment.
16.2. If you have any suggestions about how this policy can be improved, please
contact any member of the legal team in the governance section.
Directorate
Authorised By
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Job title
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Ian Curtis
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Head of
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