Capital Ambition Board Report
Project Title London Procurement
Strategy – Delivery Planning
Report by:
Julia Vernalls
Date:
8 June 2011
Contact
Officer:
Julia Vernalls
Telephone:
020 9734 9955
1. Summary of
Business Case
Item no: 8C
Job title:
Programme Lead Delivering Together
Email:
[email protected]
Following approval of the London Procurement Strategy (LPS) by the London
Councils’ Leaders’ Committee and development of the LPS Prospectus detailing
the key categories to be taken forward collaboratively across London,
arrangements need to be approved and resourced for the delivery of the
strategy.
Category Management Strategy Development
A Procurement Strategy Board (PSB) has been established chaired by the
Director of Finance, LB Camden and comprising the lead directors of finance
and heads of procurement from the five London sub regions. The PSB is
responsible for delivery of the LPS and in agreeing the key categories to be
taken forward; driving collaboration, and ensuring as far as possible a coherent
and consistent approach with minimal, if no, duplication of effort between sub
regions and authorities. Once agreed, a lead authority and/or sub region will be
identified to oversee the development and implementation of appropriate
category management strategies for those categories not already in delivery
mode. This could include:
-
Adult Social Care
Children’s Social Care
Construction
ICT
Facilities Management
Temporary Agency Staff
The authorities coming forward to lead on particular categories do not have
sufficient spare resources to undertake the wider sub regional and pan London
activities needed, including the initial procurement and development of category
management strategies and implementation plans and the associated data
analyses and consultation activities required to ensure ownership and buy in.
The lack of resource at authority level will lead to the London Procurement
Strategy effectively ‘sitting on the shelf’ resulting in significantly reduced
collaborative working opportunities and failure to achieve the cashable savings
estimated in the LPS as a potential 40% of the £8.9bn third party spend across
London.
In addition to the development of the specific category management strategies,
the Sub Regional Procurement Groups are at different stages of maturity,
including knowledge, understanding and agreement of their procurement
strategies and the identification of the key categories to be taken forward either
in their sub region, or in clusters with other interested authorities within the
context of the London category strategies.
The South West London
Procurement Partnership (SWLPP) requires support to reach this stage and is
seeking funding of £25k to resource that work.
This report asks for funding to be earmarked from the residual Capital Ambition
revenue grant to resource:
i)
ii)
iii)
The procurement and development of the London category management
strategies and costed implementation plans;
Completion of the development of Sub Regional Procurement
Strategies; and to
Manage the transition of the collaborative procurement work from the
current Capital Ambition centrally driven model to ownership of the lead
sub region/authority model under the management of the Procurement
Strategy Board.
The funding would be made on the basis of £150,000.00 to the LB of Camden as
Chair of the PSB and £25,000.00 to LB of Merton. Detailed spending allocations
from the £150,000 would be agreed by the Procurement Strategy Board.
2. Participating
Boroughs
All 33 authorities and the GLA, led by the LB Camden.
3. Total
amount of
previous
funding
awarded
4. Amount of
Funding
Requested
None
Funding
Revenue
Capital
Total
Previous
New
Total
Funding
Funding
Approved for Requested
this project
0
£175,000
£175,000
0
0
0
£175,000
The original funding request of £250,000.00 was reduced to £175,000.00
following consideration by the Shared Services and Joint Procurement Board on
20 May 2011.
5.
Cashable/Non
Cashable
Benefits
Benefit Type
Cashable
Non-Cashable
Total
Amount (£)
See below
Period
6. Return on
Investment
7. Fit with
Capital
Ambition’s
Strategic
Priorities
8. Risks and
Issues
9.
Recommend
ation
The potential savings from the delivery of the London Procurement Strategy are
estimated at 40% of the £8.9bn third party spend across London. The savings
would follow the implementation of the category strategies for which this funding
is sought.
Delivery of the approved London Procurement Strategy will support collaborative
working and procurement; the achievement of significant cashable savings; the
localism agenda from increased local business opportunities for SMEs, the third
Sector and other London supply chains and improved ways of doing business
with the sector, and increase the capacity and capability of the procurement
community.
The major risk in not resourcing the management, development and delivery of
the category management strategies identified in the approved London
Procurement Strategy, is the failure to deliver the strategy and achieve the
considerable benefits and cashable savings generated from the coherent
approach to collaborative procurement for London local government.
That the Capital Ambition Board be asked to approve funding of £175,000 for the
management and development of category management strategies and costed
implementation plans for the main categories identified in the approved London
Procurement Strategy, for allocation by the Procurement Strategy Board.