Strategy and Policies

Procurement Strategy

1. Introduction

This document was approved by [the Council] on the 5 November 2003.

The aim of this document is to broadly set out Bexley's strategy and approach with regard to the procurement of its services, goods and works.

While adhering to the provisions of legislation and guidance, Bexley's approach to procurement will continue to remain pragmatic taking account of the considerable discretion allowed as to how the Council is to seek improvements in it's services to the public.

It is recognised that procurement activities by the Council directly impact upon everyone's quality of life, and consequently it is vital that they are delivered to a high standard, are socially inclusive and are responsive to the needs of users. In the initial preparation of this strategy the Byatt report and its follow up "The State of Local Government Procurement in England Today (March 2003)" were taken into account.

2. What is Procurement?

Procurement is the process of obtaining supplies, services and works spanning the life cycle of the asset or service contract. The term 'procurement' has a far broader meaning than that of purchasing, buying or commissioning. It is about securing services and products that best meet the needs of the users and the local community in its widest sense.

'Life cycle' may be defined as being from the initial definition of the business need through to the end of the useful life of the asset or service contract.

The Council will procure best value for supplies, services and works by:

Adopting the life cycle approach to the assets or contract
Applying effective and up to date procurement procedures
Ensuring procurement helps deliver the Council's key corporate objectives
Effecting continuous improvement in all of it's procurement processes

3. Purpose of the Strategy

The purpose of this strategy is to communicate to all stakeholders: operational managers, strategic directors, procurement specialists, suppliers (in the private and voluntary sectors), the Council's vision for the way forward in its procurement of services, supplies and works so that they may play a meaningful role in the implementation of that vision.

This document will be available to all key stakeholders and suppliers. Comments and views are welcomed so that the Council can develop the strategy in future years.

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4. The Council's Policy Approach

The Council's fundamental policy is that all procurement activities are to be based on value for money, are transparent and focussed. The Council will continue to challenge through the principles of Best Value how services, goods and works are delivered and look for new and innovative ways to deliver quality services to the people of Bexley.

In order to deliver improvements in the provision of public services within available resources, Best Value legislation and guidance require authorities to holistically view issues of competition and maximise the use of public money to be achieved within a mixed economy of provision. Such an approach to procurement is part of Bexley's strategy and is reflected in its core values, constitution, standing orders and formal Member and management structures.

The Council acknowledges that, depending on the nature of the procurement activity, there will be a requirement to balance considerations of cost and quality as it is unlikely that either a purely cost driven or an unjustifiably expensive procurement process will represent Best Value.

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5. Guiding Principles

The Council will ensure compliance with all current procurement legislation, statutory guidance and the Councils Contract Standing Orders. All procurement activity will reflect the Council's corporate objectives, core values and organisational development policy and will be underpinned by the following:

Probity: Procurement activity in Bexley will always take place to the highest standards of probity. All officers involved in tendering contracts will act as guardians of these standards. The Council's own Standing Orders and associated guidance set the rules and procedures to which all officers and Members must adhere. The Council expects external suppliers and service providers to operate at all times to public sector standards.

Innovation and modernisation: The Council will seek to continually improve and innovate its procurement methods, which will include:

Using integrated e-Systems for tender, invoicing and payments;
Improving information systems on what we spend, where and how much we spend on contractors in order to avoid duplication in activity and increase the quality of management information.
Enable departments to order directly from suppliers;
Removing chains of invoice processing;
Rationalising suppliers;
Minimum entry standards for all contractors undertaking Council work or providing services and supplies.

In addition the Council will continue to explore opportunities to implement Partnership arrangements where they will provide an outcome which secures Best Value and quality of service for clients as well as enabling continuous improvement in the Council's Procurement processes. The Partnership approach, whilst often enabling more innovative means of service delivery, is seen fundamentally as a matter of contract style and innovative approach to contract management rather than a radical change in the way contracts themselves are established. The establishment of the initial contract relationship will be conducted through a clear, transparent and fair process applying the normal high standards of propriety and competition. The broad framework within which Partnership arrangements will operate is set out in Contract Standing Orders and more detailed guidance will be provided in the Code of Practice on Procurement.

e-Governance is a key government initiative that aims to use new technologies to deliver better quality and more accessible services. The Council will develop these areas in relation to procurement as detailed in the e- Procurement Strategy.

Sustainability: The concept of sustainability recognises that social, economic and environmental issues are linked and must be addressed together. The four objectives which need to be met at the same time to achieve sustainable development are: (a) social progress which recognises the needs of everyone; (b) effective protection of the environment; (c) prudent use of natural resources; and (d) maintenance of high and stable levels of economic growth and employment.

For procurement this means:

Ensuring the needs of different communities are met when assessing the business need for the contract, in writing specifications, evaluating tenders and throughout the delivery of the contract.
Addressing environmental issues in the design of contracts and supplies, throughout the tender process and in the delivery of services.
Considering how procurement procedures impact on local businesses and how we can assist them in their ability to bid for Council contracts;
Reviewing the Council's approach to resource use and procurement of utilities.

Equality: The Council strongly supports equal opportunities, equal access and positive outcomes for all sections of the community. It strives to ensure that the standards it expects internally are supported by organisations, which carry out work for the Council. This includes not discriminating on the grounds of sex, race, disability, religion or belief, sexual orientation or age. Specifically, the Race Relations (Amendment) Act 2000, which applies to all local government, imposes a positive General Duty to improving race relations, eliminate unlawful discrimination and promote equal opportunities in all local authority functions. It also applies to any arrangement a local authority makes for its functions to be carried out by a private or voluntary organisation. The Council will make every effort to pursue its obligations under this Act in the tender process. This means contractors will have a responsibility under the contract to ensure the Council is meeting its obligations under the General Duty.

Workforce matters: The Council will seek to comply with the requirements of the law and statutory guidance in regard to workforce matters involved in procurement exercises, as detailed in the Code of Practice on Procurement.

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6. Procurement Plan

For each financial year, a Procurement Plan shall be drawn up setting out contracts of significant value (i.e. which exceed EU Prior Information thresholds) which are due to be procured during the forthcoming 12 months. This document will provide a means of forward planning of procurement exercises and associated procurement resources over the coming year.

At the beginning of each financial year, the Council shall publish a Prior Information Notice (PIN) in the Official Journal of the European Union (OJEU) listing the contracts for services and supplies which exceed EU Prior Information thresholds and which are expected to be procured during the financial year. In relation to contracts for works which exceed the EU Prior Information threshold, the council shall publish a PIN in the OJEU when the works are approved.

7. Code of Practice on Procurement

Pursuant to this strategy a Code of Practice on Procurement is being developed which will be a document which contains detailed operational good practice to be followed throughout the Council.

8. Review and Accountability

Both this Strategy and the Code of Practice on Procurement its effectiveness, application and currency will be monitored and reviewed as is appropriate by the Borough Secretary and reported to Members as necessary. Further any subsequent Government Guidance (such as that expected in the Autumn 2003) will be considered as part of any review.