APPENDIX

SCOPE

BEST VALUE REVIEW OF IWC PROCUREMENT SERVICES

Objectives of Review and Areas to be Covered

This Best Value Review will examine how the Council undertakes procurement in the widest sense, ie virtually all of the authority’s non-pay expenditure (around £80 million pa) and not just the goods and services purchased through the Purchasing Advice Office. It will, therefore, cover the processes for procuring major capital items and projects, (eg Highways, Waste Management, Coastal Protection, Land & Property Capital Building Projects) and those for major services, (eg Social Services Residential Care). It will cover the procurement activities of all of the Council’s Directorates.

There have been previous reviews of Fire Procurement and Social Services’ Contacting & Commissioning, so these areas will be covered in less depth. Efforts will be concentrated on those sections / systems / processes where it is felt that the most significant improvements can be made. The main opportunities for achieving maximum value / cost savings will be examined.

The Review will consider the whole acquisition process, from identifying need, specifying requirements, ordering, satisfactory delivery and monitoring, through to payment. New initiatives will be examined, including the authority’s progress towards e-procurement, purchasing cards etc.

The links with the Corporate Objectives and core values will be fundamental and will include how procurement impacts on the local community - using local suppliers, environmentally-friendly products, ethical purchasing etc. The organisational culture in respect of procurement activities will also be covered. The effectiveness of current procurement policies, contracting procedures etc and compliance with corporate standards will be examined. Do our procurement processes give appropriate consideration to issues such as equality and risk management?

The authority’s openness / transparency in contracting will also be considered. Are the public appropriately involved in defining what services are required and in monitoring service delivery?

The Review will consider the appropriate positioning of procurement activity within the Council and how well we are working in partnership with other commissioning bodies, eg Health. It will critically examine our use of regional consortia for purchasing and will review our contracting arrangements, experience of partnerships etc. The crucial question will be whether the authority is making full use of the all of the procurement options available to it, contracting out, competitive tendering, partnerships, trusts, in-house etc. Also, are all directorates making efforts to develop supply markets and positively engage with current and future suppliers?

Description of Services provided

Procurement within the Council is a highly devolved activity, with responsibility embedded in many different departments and sections across the organisation. The £80 million pa the Council currently spends on non-employee costs covers a whole range of local authority services from the historical “blue collar” activities of maintenance, grounds maintenance, waste collection and disposal, through to the very different procurement of nursing, residential and domiciliary care. These services, which account for the vast majority of non-pay expenditure, are specified, procured and monitored by a widespread and diverse range of Council staff who, in the main, perform other duties as well. So, whilst significant services are being managed in this way, “procurement” is not their major skill.

Procurement expertise is concentrated in the Purchasing Advice Office (part of the Finance & Business Services Department). Its sphere of influence, however, has hitherto been limited to managing a fairly narrow portfolio of supply contracts and providing general advice.

One other type of procurement, that of major building or road construction, has always been handled by specialist procurement resources located within the Land & Property and Highways functions respectively.

Main Stakeholders

·          All Directorates (budget holders)

·          Elected Members

·          Schools

·          Council Taxpayers

·          Voluntary and public sector organisations entitled to use Council contracts under the Local Authorities (Goods and Services) Act

·          Suppliers and contractors (existing and prospective)

·          Other local authorities

·          Voluntary and public sector organisations (as partners/joint service providers)

·          Service users and carers

Bob Streets                                                                                       Steve Milford

Project Leader                                                                       Best Value Facilitator