Contents

Procurement Landscape

Procurement at Bexley is driven by 4 key factors:

  • National Legislation
  • The wider economic climate
  • Bexley’s own aims and values
  • The need to achieve budget savings

1. National Legislation

All Public Sector Contracts, no matter what their value, are covered by the Procurement 2023 and the Procurement Regulations 2024. This legislation mandates procurement processes to be followed for requirements which exceed various financial thresholds and, also goes some way to guide contracting authorities in the manner that they procure under threshold requirements and manage existing contracts. It also focuses on greater transparency of procurement processes.

2. The Wider Economic Climate

Unprecedented cuts to the central government grant have given Bexley one of its greatest challenges yet; the need to maintain the quality and delivery of key services whilst adjusting and adapting to a significantly reduced budget. These changes call for a new, more streamlined Council, involving the identification of considerable cashable savings and a shift to a more creative, innovative approach across the board.

Whilst this drive for savings will put huge pressure on Bexley to produce better value contracts, it is important to remember that the repercussions of the current economic crisis are being felt as much in the private as it is in the public sector. With this in mind, a strong commitment to a fair and open procurement process will be more important than ever in what has become an increasingly competitive marketplace.

3. Bexley’s aims and values

Although the London Borough of Bexley’s procurement function is subject to the economic and legislative context in which it operates, it also has the potential to deliver significant benefits and value. The Bexley Plan reflects Bexley’s vision and aims as a community. The role of procurement will be key in helping delivering this vision and ensure that the Council’s considerable spending power achieves its potential.

4. The need to achieve budget savings

In response to the government’s annual expenditure reductions the Council is always targeted to identify additional savings.

The Procurement function will be key in supporting the achievement of this challenging programme: For all new procurements, there will be an expectation that the cost of service will reduce over the life of the contract.

The following mechanisms will help drive this cost reduction:

  • A strategic approach to the issue of requirement and delivery of that requirement, streamlining contracts where possible
  • A consistent competitive approach to the procurement of all term contracts
  • Improved contract management and contract management support to better control spend via a contract and helping to reduce the contract price over the life of the contract as a result of efficiency improvements of the service provider. 
  • The contract length is another mechanism to determine the optimum period between providing the supply base stability and confidence, when the service solution requires high levels of capital commitment, whilst ensuring that Bexley has the flexibility to reconfigure services in its search for further savings during the current financially challenging times. Appendix A provides more information on factors that influence contract length and their impact on Bexley.