Procurement Progress Report

Introduction

This is the second Annual Procurement Update to P&R Scrutiny following the approval of the Procurement Strategy 2011 – 2014.

The Strategy addressed the key areas listed below and this update has been compiled to monitor progress / developments in relation to these key areas:

1.1 National Procurement Service

Over the past 12 months considerable activity has been directed at developing and approving the Business Case for a National Procurement Service (NPS). The purpose of the NPS is to procure “Common and Repetitive Spend” (CaRS) once for the whole of the Welsh Public Sector.

A report was presented to Executive Board on 10th December 2012 detailing the background and proposal.

1.1.1 Background

The Welsh Public sector spends approximately £4.5 billion per year on external Goods and Services of which 20-30% is common to all the sectors i.e. Welsh Government, Local Government, Health Boards, Colleges, Fire Service, Police etc.

The Efficiency and Innovation Board was set up by Welsh Government in early 2010 to provide practical leadership to help the public sector improve public services in the context of reduced budgets. Its aims were to achieve a step change in operational efficiency and innovation and transformation in public service design and delivery.

A Procurement Board was set up to generate ideas and priority areas and a report was published by the Board ‘Buying Smarter in Tougher Times’ with key recommendations identified including exploring the development of a National Procurement Service which would be responsible for buying ‘common and repetitive’ items that would be purchased once for Wales. Common and repetitive items are goods and services which are common to all sectors and include utilities, stationery, consultancy, computer hardware and software.

The Authority’s Director of Resources sat on the Procurement Board as a representative of the Society of Welsh Treasurers.

Following extensive research and consultation, a National Procurement Service is to be established in 2013 to carry out “common and repetitive spend” once for Wales.

The NPS will have independent crosssector governance – through an NPS Board attended by selected Chief Executives representing the various Sectors.

The NPS is being be set up on a ‘category management’ basis – structured so that Lead Officers have a good understanding of spend, future demand and the market enabling them to develop appropriate and relevant category sourcing strategies.

An investment of £2.4million per annum is to be made in the NPS (initially to be centrally funded by Welsh Government). The Plan envisages that the NPS will become self financing from 2017/18.

In addition to generating savings, the NPS is tasked with developing opportunities to deliver social and economic benefits.

Local procurement expertise needs to be retained and developed within Carmarthenshire County Council to deliver the 70 to 80% of non common and repetitive spend and to put in place the controls to ensure organisational compliance with agreed national and collaborative contracts.

Sector based collaboration continues to develop so as to service spend areas unique to a given sector where collaboration will drive benefit e.g. Social Care and Construction.

1.1.2 Maximising the Impact of Welsh Procurement Policy

A recent review conducted by John McClelland CBE on behalf of Welsh Government entitled ‘Maximising the Impact of Welsh Procurement Policy’ considered:

The relevant recommendations to this report included:

1.1.3 Invitation to Join NPS

Carmarthenshire CC and all other Welsh Local Authorities and Public Sector Organisations were each invited to commit to using the NPS for a 5 year period. This entailed committing to and utilising all associated NPS Contracts (other than on an Exception Basis agreed in advance of tender and through justification to NPS Board).

The NPS is to be centrally funded directly through WG budget process until it reaches a point of maturity estimated at Year 3 (2016/2017) of operation. Once this point is reached it is envisaged that the funding model switches to a “self funding rebate” from 2017/2018 onwards.

It would have been extremely difficult to justify not participating in a National initiative specifically designed “to get more from the Welsh Pound”. It is envisaged that many of the Contracts to be handled by NPS will be for commodities from Multinational Companies e.g. Energy, IT Equipment where it is argued that there is little impact or direct benefit to the Local Economy.

The Authority will closely monitor any impact on the Local Economy as the NPS develops.

The recommendation to join NPS was approved by the Executive Board on 10th December, 2012. To date 74 organisations have agreed to join WPC including all 22 Welsh Local Authorities, all Local Health Boards, all Universities and colleges and 3 of the 4 Police Services in Wales.

1.1.4 Implications of the decision to join NPS

It will inevitably take some time for the new NPS to develop and implement a rolling programme of procurement activity and the handover of work is likely to be a gradual affair as Category Managers are appointed and get to grips with their portfolios and existing contractual relationships.

The NPS Business case identified a “Go Live” date of November 2013

The creation of a NPS will inevitably drive the Authority towards increased use of electronic procurement and this will be resource hungry. A separate Strategy and Report will need to be developed at a future date.

The Corporate Procurement Unit (CPU) will also play a key role in promoting and monitoring the use of NPS Contracts and the effect of these arrangements on the local supply base.

Appendix 1 summarises the future NPS Procurement Activity.

1.2 WPC (Welsh Purchasing Consortium)

In the past, Carmarthenshire County Council (CCC) has been critical of the number of contracts managed by WPC which are of no benefit to this Authority due to our differing operational approach e.g. contracts for various building materials purchased into Central Stores are of no use to CCC . (This is due to the fact that we no longer operate a Central Building Stores as it was not commercially viable to maintain such an operation when compared to procuring direct from Builders Merchants.) The past 12 months has seen a rationalisation of WPC Contracts. Carmarthenshire continues to pursue different strategies in a number of sectors e.g. Construction and associated services where Regional Collaborations are becoming more mature and developing to show real success.

WPC has commissioned a detailed spend analysis of the remaining £800m Local Authority spend which has been identified as sitting outside the NPS arrangements and work is underway to both challenge assumptions in these areas and determine whether a WPC collaborative approach would be appropriate. Carmarthenshire is playing an active part in this work, the outcome of which will need to be fed into a business case to examine the benefits of Carmarthenshire increasing its spend via WPC or ending WPC membership in the future.

At present Carmarthenshire leads on 2 WPC contracts, Wood Pellets (for Biomass Boilers) and Rock Salt (which is an all Wales arrangement).

1.3 Other Collaboration

CCC utilises a number of other collaborative frameworks, both regional and national, to meet our procurement requirements. We call-off Value Wales (VW), Government Procurement Service (GPS) and Eastern Shires Purchasing Organisation (ESPO) frameworks for the following:-

We also collaborate with neighbouring authorities where appropriate; and we will be collaborating with the Mid and West Wales Fire and Rescue Service on a forthcoming Document Scanning arrangement.

The decision to purchase off national arrangements is taken by balancing what savings we are likely to achieve compared to the effect on potential local providers.

An efficiency target for each procurement exercise is discussed and set for each new procurement activity and efficiencies are calculated using the Value Wales agreed classification system and recorded on a half yearly basis. CPU also target efficiencies through better specification and we will actively ensure that the specification is based on realistic and sensible requirements.

In line with the Strategy, only in exceptional cases will the quality criteria weighting be allowed to exceed the price weighting. The aim is to ensure that at least 70% is based on price, however, there are circumstances where this is not always appropriate. Recent case law underlines the necessity to keep a justification for each Price Quality split decision that we make in order to provide an audit trail in case of challenge. In order to encourage contracting staff to produce clear and concise specifications, Carmarthenshire set a standard price quality split of 70% Price to 30% Quality for most situations. Where, after detailed discussion, there is believed to be a justification for increasing the quality weighting then a report is submitted to the S.151 Officer (Director of Resources) and the Monitoring Officer (Head of Legal Services).

The Authority’s ability to target further efficiencies through better procurement will in future be influenced by the extent to which an increasing amount of procurement activity will be undertaken by other external parties e.g. National Procurement Service (see 1.1 above). What is becoming clear is that the resources of the Corporate Procurement Unit are being increasingly called upon to assist in the delivery of major strategic projects such as the Extra Care Home Provision and Coleshill Development Programme. These are projects where the principal role is to ensure compliant procurement process but also highlight the need for proper and complete option appraisal to identify the most cost effective deliverable options.

The continued and expanded use of Framework arrangements (see below) continues to bring significant efficiencies (with savings being made in avoiding each of the separate costly procurement exercises).

Efficiencies continue to be targeted across the board with a 2012/13 target of £500,000. Departments gather and verify efficiency figures in line with the Welsh Government Benefits Reporting Model.

The savings total for 2012/13 calculated at the end of February 2013 is running at almost £700,000 made up as follows:

 

 

Contract title

Total Annual Efficiency - to date

PC, Laptops and Printers

£4,400

Lifeguard Services

£24,000

Consultancy Framework

£65,000

Mitel Maintenance

£11,596

Computer Consumables

£1,486

Searches Software

£20,700

Energy Efficiency scheme- Pipe & Valve Insulation

£19,545

Energy Efficiency Scheme- Draft Exclusion

£21,071

Print Commissioning

£89,000

Private Sector Leasing Scheme

£15,000

Hire of Road Sweepers and Gully Emptier

£104,165

Mobile Telecoms

£32,012

ADSL

£49,042

Building Materials

£10,000

Nantycaws Landfill Site Leachate Treatment plant operation

£37,500

Dry Goods and Groceries & Frozen Foods

£148,000

Central Government Framework Call Offs

 

Hosted Cash Receipting Solution

£6,000

VMWare Maintenance

£6,000

Mitel Maintenance - Renewal exercise

£6,000

IT Backup Replacement Suite

£6,000

2 no. 18T GVW Medium Volume Jetvac for Carmarthenshire County Council’s Hydrology Department

£6,000

Deduplicated Storage

£6,000

CISCO Switches

£6,000

Total

£694,517

We are still awaiting the reporting of efficiency figures for a number of arrangements which we expect to be available by the end of May 2013.

3.1 Electronic Tendering (e Tendering)

Electronic Tendering is defined as an internet based process wherein the complete tendering process; from advertising to receiving and submitting tender-related information are done online. This enables firms to be more efficient as paper-based transactions are reduced or eliminated.

In the space of 12 months, Electronic Tendering has increased significantly. During the Financial Year 2011/12 some 7 electronic tenders were issued compared to the end of 2012/13 with a total of 17 issued. As previously reported, the e-tendering process is secure and compliant, enabling suppliers – large or small to tender in a more cost effective way. It allows for the speedy and efficient handling of documents containing huge amounts of data without the need to take up storage space or risk the misplacing of documents. There is an additional benefit in that the process is fully auditable and self recording. CPU has been careful to monitor the appetite of the respective market place for moving towards electronic tendering so as not to inadvertently disadvantage smaller suppliers however with very few exceptions the move has been welcomed. The Corporate Procurement Unit liaise closely with Business Wales (formally The Supplier Development Service) Tender Support Officers locally who provide free training to local SME’s on the use of electronic tendering to ensure that local companies take full advantage of the excellent free support available. In the instances where a Briefing Day is held to inform suppliers of a forthcoming opportunity, part of that session will include a section on Electronic Tendering and on the free support available.

3.2 e Trading

Various technical definitions of e Trading exist but it is best thought of an an “Amazon type buying and paying experience” where as much of the process as possible is automated and involves buying from on-line or electronic catalogues.

Having carried out a comprehensive Business Case analysis in 2011/12 it was decided that there was no justification to commit the Authority to the Welsh Government e-Trading Hub (Amazon Style Shopping Experience). However, it was recognised that there would be clear benefits in focusing attention on the implementation of the Purchase to Pay solution (P2P) which is in itself a key ingredient of processing transactions via the Hub. (P2P allows electronic processing of invoice payment thus reducing or eliminating a number of less efficient paper based stages of the payment process).

Besides a forecasted lack of return on the significant investment required in committing to the e-trading hub there were serious concerns regarding the relatively short period before the expiry of the existing service provider contract term. This is always a nervous transition period which would have added pressure and risk to an already major process change. An Officer from the Corporate Procurement Unit is now attached to the Welsh Government Tendering Team and will be heavily involved in procuring the new system provider over the next two years. This will give Carmarthenshire the opportunity to both learn the detail of the new system and influence the specification.

The CPU has established a very positive working relationship with officers at Welsh Government’s Value Wales e Procurement Team and detailed discussions have taken place on the practical process of e procurement roll out across the Authority. Value Wales officers have confirmed that the implementation of a full P2P system should be completed before moving towards a marketplace style hub which in itself vindicates the original decision not to join the trading hub at that time.

3.3 Purchase Card (P. Card)

The Director of Resources gave the approval to proceed with a Purchase Card Pilot in November 2011 in order to identify the benefits and any potential issues before consideration would be taken to widen the P Card programme out across the Authority. Subsequently a Purchase Card Steering Group was set up with representatives from Finance, Internal Audit and Procurement to determine a suitable location for the pilot, to monitor the Purchase Cards usage and to determine the future use and direction of the Card programme. The initial pilot was set up to buy hardware and consumables in the ICT Procurement Unit.

On 1st June 2012 the ICT Procurement Unit commenced the Pilot of the Purchase Card, with the Administration of the Card being run from the Corporate Procurement Unit. The ICT Finance and Procurement Manager, has been very pleased with the ease of use of the card, utilising it with a range of suppliers, a few of whom do not accept purchase orders e.g. Amazon. Average spend has been between £1,000 - £1,500 per month, with 2 cards currently in use within the ICT Procurement team.

Significant benefits of the card have been reported from the pilot so far:

Next Steps

In moving forward the Steering Group is looking to expand the pilot to include another Department to further test the practicality and functionality of the Card. School Catering in Education and Children Services has been identified as a potential area to extend the pilot in order to stretch the functionality of the card e.g. utilise management information. The pilot has identified further changes that need to be made to the on-line system which manages the Card, as well as the requirement to develop the interface that will allow seamless communication between the online card system and the Authority’s financial management system (Agresso).

Given the state of the economy, the risk of challenge from aggrieved suppliers continues to rise and regularly makes national headlines, most dramatically in the case of the failed procurement exercise for the West Coast Mainline Train service which is estimated to have cost tax payers £50m.

We maintain a close working relationship with the Authority’s Legal Officers to ensure compliance and the mitigation of unnecessary risk, however, as the complexity of service demand increases and the market providing the service (or product) becomes more competitive, challenges are expected to increase. The additional ambition to include Community Benefit clauses in contracts has further pushed procurers into uncharted territory. Despite this, we are pleased to report that no formal, legal challenge has been received during the past 12 months. The Authority has developed a culture of providing open and honest feed back to bidders and is careful to be open and transparent at the start of any competitive process. In highlighting new and innovative requirements at the outset of the procurement process we in effect bring the risk forward in the belief that an early informal challenge is more manageable than a late formal challenge.

We are currently in the process of developing a Procurement Toolkit of support and guidance for internal officers tasked with purchasing goods &/or services for the Authority. The Toolkit builds upon the previous Procurement Code of Practice with the intention of making the information more accessible and understandable to those not as familiar with procurement rules and processes.

The Toolkit will have a number of different strands within it;

The aim is for the Toolkit to be launched this Autumn, it will be a continuously developing suite of documents which will expand and develop over time as and when the demand and information warrants it.

In order to improve communication between the Corporate Procurement Unit and Officers across the Authority we are in the process of devising a Procurement Bulletin to inform and update Officers of developments in Procurement.

4.1 Impact of the EU Funded European Procurement Officer

Last Year CPU was successful in obtaining European Convergence Grant Funding to secure the temporary appointment of a Senior Procurement Officer who is specifically responsible for providing procurement advice and support to Lead Officers to set up contracts and frameworks to deliver the European funded projects. This procurement carries all the risk of the standard procurement but with the added risk that a failure to comply could potentially result in a clawback of funding. This appointment has made a significant impact on the outputs achieved by projects whilst mitigating the significant risk involved. Very much a “hands on” role this officer has been involved in a very diverse range of projects including:

The advice provided typically ranges from general procurement ad-hoc support to more intense project specific support when undertaking tender exercises.

In addition to this, there was an inconsistent approach across the Authority in relation to procurement rules for Third Party Grant Recipients of European Funding. For various reasons there were several different sets of Procurement Rules being used across different projects, this was becoming increasingly confusing and represented a risk to the Authority of incorrect rules being adopted. We have worked in conjunction with WWEC and the Grants Compliance Officer to produce a standard set of procurement rules/thresholds to be applied to third party grant schemes, irrespective of grant funder. The standard third party grant procurement rules will ensure competition, openness and transparency and will also promote a consistent and compliant approach when administering third party grants. The standard rules have been approved and were implemented across all projects on 17th July 2012. On-going monitoring will ensure that the rules are updated and remain effective.

An important part of this role has involved both the development of early guidance on procurement issues to Project Managers and the provision of a number of training courses to project officers responsible for European funded procurement activities. To date some 100 individuals have been trained via 20+ half day courses with further demand for procurement training currently identified. In addition to the quotation and contract procedure rules training, 4 procurement training sessions have also been provided to approximately 60 officers who administer Third Party Grants across the Authority in accordance with the standard Third Party Grant Procurement Rules. All procurement guidance documents have been published on the Intranet to further support Lead Officers and mitigate risk.

4.2 Simplified Quotation Procedure

Working with the European Funded “Winning in Tendering Project” which is being run by Bangor University (See Section 5.2) Carmarthenshire has transformed its approach to below £75k spend. The aim is to radically simplify this process to reduce both bidding and analysis costs. The priority was to make it easier and quicker for suppliers to bid for work and, as a direct result thereby making it quicker for the Authority’s officers to evaluate these bids.

The changes introduced as part of the simplified process include:-

To date, 5 quotation exercises have been undertaken using this simplified approach with more exercises currently being prepared. The initial results are extremely positive and with on-going monitoring it is hoped that further improvements will be made to the simplified process and documents. Furthermore, it is hoped that the “Winning in Tendering Project” will seek feedback from suppliers to provide an indication of the impact of this change and potentially suggest additional improvements to maximise the benefits of simplifying the procurement process.

It is hoped that some of the developments and improvements piloted in the low value exercises can be introduced into the higher value exercises. This may be supported by the proposals to modernise the EU Procurement Directives where simplifying the procurement processes is promoted.

4.3 Spend on Consultancy Services

A recent Wales Audit Office report entitled The Procurement and Management of Consultancy Services (21st February, 2013) found that:

Public bodies spent £133 million on consultants in 2010-11, £40 million less than in 2007-08. All sectors - local government, health and the Welsh Government - recorded significant drops in spending. But despite these reductions very few public bodies were able to demonstrate that their expenditure represented good value for money. This is largely due to inadequate data, insufficient collaboration and a failure to adopt widely accepted good practice.

Adopting good practice in procuring and managing consultancy services can help public bodies achieve better value for money, and today's report identifies potential efficiency savings of more than £23 million if all public bodies were to follow good practice. However, few public bodies routinely collect and analyse data to assist in obtaining and using consultancy services more efficiently, and the data on expenditure is often unreliable. The report also found that:

Initiatives aimed at encouraging more consistent and coherent approaches to procuring and managing consultancy services have had limited impact. However, a new Consultancy Advice Service, which will be part of a planned National Procurement Service, will offer public bodies guidance and share examples of best practice. The National Procurement Service aims to strengthen collaborative procurement across the Welsh public sector. Consultancy services have been identified as a key category for potential savings of up to £5.6 million a year.

The report makes a number of recommendations including:

CPU attempted to co-ordinate an Authority wide response to the Auditor General for Wales’ request for information to populate this report and it is striking that the difficulties identified generally by the report were present in Carmarthenshire. Particularly relevant is the definition of Consultancy and the difficulties in establish exactly how this payment is coded to the Ledger. This is clearly an issue across the Welsh Public Sector and unfortunately cannot be overcome by a Spend Analysis conducted from the payments to supplier rather than coding of the expenditure on the Ledger. This is due to the spend analysis (as conducted via the Spikes Cavell Data Analysis across all 22 Local Authorities) identifying both consultancy work and other work conducted by the same supplier. For example. if payment is made to a company providing both civil engineering and consultancy services it is impossible to tell which proportion of the overall spend is which.

Taking into account the various caveats given on spend it is fair to say that Carmarthenshire County Council come out mid-table when compared to Welsh Government, Local Authorities and Health Boards and again mid-table when compared to other Local Authorities. This equates to just under 3% of expenditure on consultancy services as a percentage of total salary cost.

Given that work undertaken by the NPS will provide future guidance on the procurement of consultancy services it is recommended that CPU prepare interim guidance to officers of the Authority for discussion and approval by Corporate Management Team.

5.1 Introduction

The Corporate Procurement Unit (CPU) continues to offer targeted advice and guidance based on a programme of proactive engagement with our local suppliers.

We work closely with our partner agencies (including the Welsh Government Business Wales Tender Advice Service – Menter a Busnes, CAVS, WCVA) to deliver or signpost bespoke advice and guidance for potential suppliers. This includes tailored “One to One” support for suppliers on specific procurement tender documentation, Targeted ‘Meet the Buyer’ events for specific procurement exercises and 2nd Tier supply chain events with our contracted suppliers which complement the more traditional support areas of general ‘How to Tender’ and ‘Sell 2 Wales’ Workshops.

CPU officers are pro-actively instigating and participating in a number of awareness and early market engagement sessions such as ‘Spotlight on your Business’ events based on departmental requirements and broader ‘Developments in Procurement’ Workshops and Presentations targeting in particular SME’s, Third Sector Organisation’s and other Minority Groups. Examples being Fleet Management requirements for the fleet replacement programme, Car Parking facilities, Waste and re-cycling as well as training requirements for the Authority’s Corporate Training & Learning Division

Supplier engagement has factored highly in the strategy adopted to stimulate interest and solicit local bids for the Council’s business. Supplier Engagement days have been held in a variety of areas to seek the opinion of the market on our broad proposals and to help influence and develop the specification. . More recently, tender specific Briefing Sessions have been the focus for example the provision of Flying Start Childcare Providers whereby 70 potential providers attended the event. Incorporated was an e-tender workshop for suppliers and providers giving an insight on how to tender electronically. The e-tender workshop is currently being developed to incorporate e-auction advice and guidance where appropriate – the aim of supplier engagement sessions is to bring buyer and seller together and are intended to inform the market of procurement Briefing Days are intended to inform the market of procurement decisions that have already been taken and are intended to explain both the thinking and process involved in any particular exercise. These are often conducted in conjunction with the Business Wales Tender Support Team who is available to answer questions on the day and provide on- going training and support for bidders. Examples this year include the Supply and Delivery of Printed Literature and Printed Materials as well as the Supply and Delivery of Frozen Foods whereby local suppliers were successful in winning Council business in these areas – JD Lewis based in Carmarthen and Gwasg Dinefwr from Ammanford were successful in the Print tender and Castell Howell from Carmarthen in the Frozen Foods contract

Working in conjunction with the Regeneration Department a new communication portal to business has been developed.

5.2 Winning in Tendering Project

The Procurement Manager sits on the Project Steering Group of the “Winning in Tendering” project. Winning in Tendering” is a 3.7 million Euro, 41 month, strategic project aimed at transforming the public tendering experience of Small Indigenous Suppliers (SISs include both SMEs and Third Sector organisations such as Charities) in the INTERREG Ireland/Wales region and deputises for the Head of Economic Development on the Wales Economic Impact Group.

“Winning in Tendering” is focused on raising the skill levels of SISs to win public sector contracts and enhancing skill levels of public procurers in Wales and Ireland such that they are better able to act in a way that takes into consideration Small Indigenous Suppliers (SIS) vulnerabilities in their tendering activities. The “Winning in Tendering” project, led by Bangor University Law School's Institute for Competition and Procurement Studies, is part funded by the European Regional Development Fund (ERDF) through the Ireland Wales Programme (INTERREG 4A).

Carmarthenshire is playing an active part in the project by providing information and case studies and SIS’s in Carmarthenshire are already getting the opportunity to make use of the projects Supplier Review Service. Links have been established between Business Wales and Winning in Tendering to allow cross reference of clients in order to maximise opportunities to improve. Local Companies and individuals are referenced to this service both before bidding and in the information sent out to unsuccessful bidders to allow them to improve their offer prior to the next bid.

5.3 Partnering Approach to Frameworks

Each year the Institute for Competition and Procurement Studies organises a week long Procurement event that this year included showcasing Carmarthenshire’s Partnering Approach to Frameworks. Carmarthenshire’s submission on this Approach won the Procurement Collaboration Award category of the inaugural National Procurement Awards 2013 hosted by Jane Hutt AM, Minister of Finance and Leader of the House. This represents a significant endorsement of the Authority’s innovative approach to managing its Construction Contracts and more detail of the specific project is given in Section 8.

Good progress has been made on Sustainable Procurement issues in the past 12 months with particular emphasis being placed on identifying and delivering additional Community Benefits. The CPU has also co-ordinated an Authority wide The Sustainable Procurement Risk Assessment Framework (SPAF).

6.1 The Sustainable Procurement Risk Assessment Framework (SPAF)

The Sustainable Procurement Risk Assessment Framework (SPAF) has been updated to record our current position and set objectives and an Action Plan to deliver those objectives in the next 12 months. Each Department has been involved and has fed into the wider Action Plan which was endorsed by the Corporate Sustainability Group Chaired by the Assistant Chief Executive (Customer Focus and Policy) in February 2013. The completed results will be shared with Value Wales to record the Authority’s current position and to measure progress over the coming twelve months.

6.2 Sustainable Risk Assessment (SRA)

The use of the Sustainable Risk Assessment (SRA) is now used across all appropriate contracting activity and appropriate sustainable clauses are then implemented into the contract specification. The SRA is also being utilised as a tool to identify appropriate tenders to include community benefits (social requirement) clauses in. Since April 2011 to date we have carried out 72 SRA's. Findings from the SRA that are recommended for inclusion in specification include for example – in relation to the Design, Supply and Construction of Ammanford Splashpark whereby emphasis was on minimising the environmental impacts on some materials by considering environmentally preferable options such as environmentally friendly oils and lubricants for mechanisms, adhesives for surfacing at the instalment stage and cleaning agents for maintenance and care of the equipment. It was recommended that consideration be given to minimising the use of electric for the pumps and water relating to the water feature within the Splashpark. The intention is for the Authority’s Lead Officers to train volunteers accordingly with particular emphasis on day to day operating, health and safety and maintenance issues relating to the Splashpark and its users.

Other examples being the Supply and Delivery of Frozen Foods whereby a planned delivery of the service was recommended in order to minimise journeys made, thus minimising the impact on travelling. Suppliers were asked to demonstrate an effective distribution system and strategy that reduces and continues to reduce the impact on the environment and have a positive impact on travel costs and emissions. Also included was a recommendation to ensure packaging is kept to a minimum by asking suppliers to reduce packaging and use recycled material where possible, whether packaging has a recycled content, whether the supplier has a recycled content, whether the the supplier has a packaging re-use and take-back scheme in place

The opportunity for pursuing social requirements were also identified in both the above mentioned procurement exercises; in particular community benefits were recommended and further pursued.

6.3 Community Benefits

The Council is committed to Pursuing Community Benefits through its Procurement activities wherever appropriate. Community Benefits are sometimes referred to as Social Clauses or Social Requirements. By incorporating Community Benefits into our Procurement Exercises in addition to delivering the primary objectives of the contract (i.e. appoint a supplier to provide a service/goods/works) we are seeking to promote additional opportunities which will benefit the wider community. This might include training and employment opportunities, improved supply-chain opportunities, increased educational contributions and/or community initiatives.

Carmarthenshire County Council is committed to maximising the value for every pound it spends, and via the use of Community Benefits we believe we can promote social, economic and environmental wellbeing in the widest possible sense.

To date 15 tenders have included either core or non-core social clauses within the tender documentation. These range from a £6million infrastructure project in Cross Hands, a £1.5million per annum combined value for our Dry Goods and Groceries Contract and Frozen Food contract, to a £150,000 total value Splashpad construction project in Ammanford. Although all projects are very different in terms of the value and requirements, all will deliver training and work experience opportunities as part of the contract term.

We aim to build upon the support agencies we have link with so far, both internally and externally, who can assist suppliers in understanding the aspirations of the Council in terms of Community Benefits in Procurement and then in realising these benefits in reality upon contract award. We have also added a section on Community Benefits to our external website to improve awareness and communicate our intentions to prospective suppliers.

By carefully considering various sustainable aspects of the SRA - we aim to "influence" the specification by adopting minimum requirements and potentially push the boundaries of what it is possible to achieve using Community Benefit clauses where possible.

Through the Co- Design Partnership with Hywel Dda Health Board and our neighbouring Authorities in Pembrokeshire and Ceredigion a Joint Commissioning Code of Practice has been agreed and is being implemented to deliver a joint Commissioning approach to bringing our services together. The Mid and West Wales Collaborative Commissioning and Contracting Workstream, overseen by the Chief Executive of Powys County Council and Chaired by Bruce McLernon, Director of Social Care and Housing, the Authority is making good progress in developing collaborative arrangements across Carmarthenshire, Pembrokeshire and Ceredigion in collaboration with the Hywel Dda Trust.

The CPU continues to have a positive working relationship with the Safeguarding Manager and Commissioners across Social Care and Supporting People.

The CPU continues to have a positive working relationship with the Head of Property Services and we are pleased to report that the Carmarthenshire Contractors Framework very recently won the Inaugural Welsh National Procurement Award under the Procurement Collaboration Category. The Award was presented by The Institute for Competition and Procurement Studies (ICPS) at Bangor University in conjunction with the Welsh Government and is recognised as the Award that best showcases those leaders and teams who are most innovative, drive public procurement progress, influence change and implement procurement policy in a way that delivers real environmental, social and economic benefits for Wales. The Framework has brought together almost 20 contractors, and several supply trade organisations. It also involves key stakeholders, such as Carmarthenshire Construction Training Association Ltd, Coleg Sir Gar and Communities First, as well as acting as a source of knowledge and expertise for partner organisations including police, fire and health services. The collaborative nature of the Framework has allowed every one of these companies, organisations and stakeholders to work together, with the council as the central gateway.

The investment, and the nature of the Framework, has provided a secure platform from which local contractors have been able to develop and safeguard jobs in a time of economic downturn. Indeed, several contractors have grown from small to medium sized businesses as a result of their involvement with the Framework. It has also enabled the local development of a skilled workforce and a more consistent management of the supply chain.

It has enabled the local development of a skilled workforce and a more consistent management of the supply chain. It has helped improve cost and time certainty, has led to a reduction in defects and disputes and has allowed contractors to share a long-term commitment and a sense of ‘team ownership’. Partners accept specialist guidance and advice, and share the belief that construction has a significant impact on the wider community.

The Framework is managed by Carmarthenshire County Council, and is based upon the Dwr Cymru/Welsh Water AMP 3 partnering model.

The Procurement Unit will continue to challenge the approach taken with procurement exercises to assess the benefits of alternative solutions by constantly being aware of the collaborative opportunities that are available to the Authority.

With the significant changes in the scope and complexity of the procurement function there is a need to be proactive in managing and prioritising our support to Departments. To enable this to progress further a Forward Work Programme that identifies forthcoming procurement involvement has been produced to be made available to Heads of Service and Project Managers to establish procurement priorities on an annual and ongoing basis. The extent of CCC contracting activity continues to grow and diversify. Appendix 2, 3, and 4 illustrate the range of activity currently being undertaken or planned to commence this year.

10. Maximising the Impact of Welsh Procurement Policy – Written Statement by the Welsh Government.

The Authority welcome the Wales Procurement Policy Statement issued in December 2012 by the Minister.

The document (Appendix 5) sought to consolidate existing policy (e.g. Community Benefits, Opening Doors, etc) into one composite document and to confirm a future requirement for reporting on progress.

We can confirm that our Commissioning and Procurement Strategy 2011-2014 is based upon the principles of the Wales Procurement Policy, and that these principles are practically implemented in all our procurement activities.

We were early adopters of the detailed guidance and tools referred to within the document and have worked closely with Welsh Government and other agencies to ensure that these are put to practical use in both undertaking and evaluating the wider benefits of the approach. One such Evaluation Tool, the Welsh Government Community Benefits Calculator, was the basis for the recent CCC application that won the Inaugural Welsh National Procurement Award (Procurement Collaboration Category) presented by The Institute for Competition and Procurement Studies (ICPS) at Bangor University in conjunction with Welsh Government (see Section ).

List of Appendices

Appendix 1 – NPS Activity

Appendix 2 - CPU Contracting Activity -Current Involvement

Appendix 3 - CPU Contracting Activity -Contracts with a start date from 01/04/2012

Appendix 4 - CPU Contracting Activity - Anticipated contracting activity 2013- 2014

Appendix 5 – Written Statement by Welsh Government – Maximising the Impact of Welsh Procurement Policy – Wales Procurement Policy Statement

The variety and complexity of the work gives a good insight into the potential impact that the procurement function has on the delivery of the Authority’s services.

Appendix 1– Table of NPS Activity

Appendix 2.

Contracting Activity -Current Involvement

These are contracts that we are currently working to produce

 
   

Key

 

** Please note that the total values listed are estimated total values of spend as opposed to actual spend

 

Dept

Requirement

2013-2014 (£)**

Status

Comments

CEX

Document Scanning

180,000

Work in Progress

Collaboration with MAWWF

CEX

Training in Social Care

89,000

Scoping

 

ECS

Musical Instruments - Supply & Delivery

100,000

Renewal - Scoping

 

ECS

Flying Start Childcare Providers

360,000

Work in Progress

WG Funded, Community Benefits included (not scored)

ECS

Families First

 

Scoping

Applying for exception

RES

Banking Contract

840,000

Advertised

 

RES

Northgate Replacement

TBC

Scoping

 

RES

MIS Schools System

TBC

Scoping

 

RES

Global Equity Mandate (Consultant) - Dyfed Pension Fund

TBC

Work in Progress

 

RES

Voice Telephone Services

TBC

Scoping

ESPO Framework

RES

Washroom Services

TBC

Scoping

 

RES

Photocopiers

 

Scoping

Government Procurement Service Framework

Dept

Requirement

2013-2014 (£)**

Status

Comments

RES

WIFI Hardware

 

Scoping

 

RGN

Fitness Equipment

950,000

Work in Progress

 

RGN

Catering Leisure Centres (Carmarthen)

28,287

Advertised

 

RGN

Cross Hands Strategic East Site and Economic Link Road

6,000,000

Advertised

Convergence Funded Project, Call Off - Engineering and Construction Framework, Community Benefits included as Condition of Contract

RGN

Public Art

40,000

Work in Progress

Convergence Funded Project

RGN

Bury Port Leisure

1,000,000

Scoping

 

RGN

Developer for 2 sites in Ammanford

1,400,000

Scoping

 

RGN

Romans Project (Display Cabinet)

40,000

Scoping

Convergence funded project

RGN

Heritage Sector Research (Consult)

TBC

Scoping

RDP Funded Project

RGN

Pendine Outdoor Education Centre

TBC

Scoping

 

RGN

Pembrey/MCP Park

TBC

Scoping

 

RGN

Castles and Princes Interpretation

TBC

Scoping

Convergence funded project

SCHH

Affordable Homes

 

Scoping

 

SCHH

Flexible Care

TBC

Advertised

Scored Community Benefits included 

SCHH

Cleaning of Void Homes

TBC

Scoping

 

SCHH

Coleshill

TBC

Work in Progress

Convergence funded project

SCHH

Temporary Supported Housing for Homeless and Floating Support

300,000

Advertised

 

SCHH

Supported Lodgings for Young People

200,000

Scoping

 

SCHH

Domiciliary Care Service (Joint Approach - Health?)

 

Scoping

 

SCHH

Servicing/Maintenance/Breakdown for Mobility Equipment

 

Scoping

 

SCHH

Wheels to Work

 

Scoping

Awaiting a funding stream

SCHH

Supported Housing for Vulnerable Families

 

Scoping

 

SCHH

Provision of Funeral Arrangements

 

Scoping

 

Dept

Requirement

2013-2014 (£)**

Status

Comments

TCS

Cleaning of Multi-storey Car Parks

150,000

Scoping

 

TCS

Signage

420,000

Work in Progress

 

TCS

Mechanical and Electrical Engineering

6,000,000

Renewal - work in Progress

 

TCS

Maintenance of Pay and Display Machines

86,500

Scoping

 

TCS

Surface Dressing Binder Framework (Supply and Lay)

980,000

Advertised

One year pilot. Reduced advertising timescales - exception

TCS

Debt Collection

40,000

Advertised

 

TCS

Mid-term and Final Evaluation (Bwcabus 2)

35,000

Work in Progress

Convergence Funded Project

TCS

Minor Works

5,000,000

Scoping

 

TCS

Vehicle Activated Signs Maintenance - below £75k

TBC

Work in Progress

 

TCS

Electronic Highway Signange Framework (below £75k)

70,000

Scoping

 

TCS

Bus Services

TBC

Scoping

 

TCS

Building Maintenance Materials and Associated Products (Supply)

4,000,000

Scoping

PIN Placed

TCS

Civic Amenity Site (Newcastle Emlyn)

800,000

Scoping

 

TCS

Confidential Shredding

100,000

Scoping

 

TCS

Pro 5 Microregeneration Technology Framework

500,000

Scoping

 

TCS

Salary Sacrifice Scheme

TBC

Scoping

 

TCS

Food Caddy Liners

250,000

Work in Progress

 

TCS

Pay by Phone Parking Scheme

100,000

Scoping

 

TCS

Fleet spares and consumables framework

400,000

Scoping

 

TCS

Traffic Management Parking Scheme

TBC

Work in Progress

 

TCS

Collection of Skips and Delivery of Compost Bins

TBC

Scoping

 

TCS

Category E Clinical Waste Contract

TBC

Scoping

 

TCS

Street Scene Services

TBC

Scoping

 

TCS

Photovoltaic Installations (WPC)

TBC

Scoping

WPC?

TCS

360 Degree Cameras for Refuse Vehicles

TBC

Scoping

 

Dept

Requirement

2013-2014 (£)**

Status

Comments

TCS

Maintenance of Light Plant Tools

TBC

Scoping

 

TCS

TIC Taxi Requirement

TBC

Scoping

 

TCS

Fleet Replacement Programme

TBC

Scoping

 

These are the contracts that have been put in place since 1st April 2012.

               
                   
 

Key

               
                   
 

** Please note that the total values listed are estimated total values of spend as opposed to actual spend

               

Dept

Requirement

Value (Sell2
Wales)**

e-tender

Start Date

Expiry Date

Potential Extension (months)

Comments

CEX

Stress Management

129,000

yes

01/04/2012

31/03/2015

24

 

ECS

Genesis 2 Mobile Creche

65,500

 

01/04/2012

31/03/2014

12

Convergence Funded Project

RES

Telecom Networks - ISP Services (ADSL)

98,000

 

01/04/2012

31/03/2014

12

Government Procurement Service Framework

SCHH

Frozen Welfare Meals

547,200

yes

01/04/2012

31/03/2015

12

 

TCS

Natural Gas - WPC

4,484,000

 

01/04/2012

31/03/2016

n/a

WPC

TCS

Thin Surface Dressing

800,000

yes

01/04/2012

31/03/2014

24

 

SCHH

Floating Support for People with Substance Misuse Issues

200,000

yes

01/05/2012

30/04/2015

36

 Extension period due to Rolling Contract

Dept

Requirement

Value (Sell2
Wales)**

e-tender

Start Date

Expiry Date

Potential Extension (months)

Comments

TCS

Non-Residential Contractors Framework

100,000,000

 

22/05/2012

21/05/2015

12

Regional Collaboration, Scored Community Benefits

TCS

Residential Contractors Framework

100,000,000

 

22/05/2012

21/05/2015

12

Regional Collaboration, Scored Community Benefits

TCS

Street Scene Road Markings and Road Studs

700,000

 

01/06/2012

31/05/2014

18

Community Benefits not scored 

RES

Annual Security Testing

3,000

 

13/07/2012

One off

 

Swansea Framework

RES

VM Ware

40,000

 

06/08/2012

31/07/2013

n/a

Government Procurement Service Framework

SCHH

Coastal

350,000

 

17/08/2012

31/12/2013

n/a

Convergence Funded Project

ECS

School Based Counselling

900,000

yes

01/09/2012

31/08/2015

2

WG Funded

RGN

Mid-term and Final Evaluation (Carmarthenshire Physical Regeneration Package)

60,000

yes

21/09/2012

29/05/2015

n/a

Convergence Funded Project

TCS

Nantycaws Tender (Pumping Leachate Plant - Maintenance)

150,000

yes

01/10/2012

30/09/2014

24

 

RES

Cash Receipting System

175,000

 

15/11/2012

14/11/2015

24

Government Procurement Service Framework

RES

Corporate Workwear

500,000

 

01/12/2012

30/11/2015

12

Community Benefits not scored 

Dept

Requirement

Value (Sell2
Wales)**

e-tender

Start Date

Expiry Date

Potential Extension (months)

Comments

RES

Backup Replacement

150,000

 

17/12/2012

16/12/2015

24

Government Procurement Service Framework

RES

Mitel Maintenance

70,000

 

19/12/2012

18/12/2014

24

Government Procurement Service Framework

SCHH

Learning Disability Service - Llangennech (mini competition off select list)

1,800,000

yes

01/01/2013

31/12/2015

36

Extension period due to Rolling Contract. MHSL Call Off

ECS

Supply and Delivery of Dry Goods and Groceries and Frozen Foods

1,438,000

yes

02/01/2013

31/12/2014

24

Community Benefits not scored 

TCS

Cash Collection (Mini Competition)

188,800

yes

15/01/2013

14/01/2016

12

WPC mini competition

TCS

Splash Pad - Ammanford

135,000

yes

01/02/2013

31/05/2013

n/a

Community Benefits not scored  

TCS

South West Wales Regional Consultancy Framework

30,000,000

yes

04/02/2013

03/02/2016

12

Regional Collaboration

CEX

Supply and Delivery of Printed Literature and Printed Materials

2,050,859

yes

11/02/2013

10/02/2015

24

 

TCS

Scaffolding

498,000

yes

18/02/2013

17/02/2016

12

 

Dept

Requirement

Value (Sell2
Wales)**

e-tender

Start Date

Expiry Date

Potential Extension (months)

Comments

TCS

Jetter/vacuum tanker vehicles for Hydrology (Contract Leasing Arrangement)

273,120

yes

20/02/2013

19/02/2017

n/a

Government Procurement Service Framework

CEX

Mid-term and Final Evaluation (Environment Partnership Development Officer)

15,000

 

01/03/2013

30/06/2013

21

Convergence Funded Project

CEX

Mid-term and Final Evaluation (ASC)

15,000

 

01/03/2013

30/06/2013

21

Convergence Funded Project

ECS

Cashless Catering - Further competition

30,000

 

01/03/2013

30/04/2013

 

CCC Framework

ECS

Fruit & Vegetables - Supply & Delivery

2,568,000

 

01/03/2013

28/02/2016

12

WPC

RGN

Romans Project (Coin Cleaning)

20,000

 

01/03/2013

31/05/2013

n/a

Convergence funded project

RGN

LIF Final Evaluation (pan Wales)

60,000

yes

06/03/2013

31/08/2014

n/a

Convergence funded project. Pan Wales Collaboration with NW, SE Wales

ECS

Supply and Delivery of Milk

720,000

 

01/04/2013

31/03/2015

12

Community Benefits not scored  

ECS

Supply and Delivery of Bread

240,000

 

01/04/2013

31/03/2015

12

Community Benefits not scored  

RES

Deduplicated storage

120,000

 

01/04/2013

31/03/2016

24

Government Procurement Service Framework

Dept

Requirement

Value (Sell2
Wales)**

e-tender

Start Date

Expiry Date

Potential Extension (months)

Comments

TCS

Operational and PPE Workwear

240000

yes

01/04/2013

31/03/2016

12

 

TCS

Surface Dressing Binder Framework (Supply and Lay)

980000

yes

01/05/2013

30/04/2014

n/a

One year pilot. Reduced advertising timescales - exception

RES

Profile Management Procurement

110,000

 

annual

 

 

Government Procurement Service Framework

RES

Altirius Client Management Suite Version 7

25,000

 

annual

 

 

Government Procurement Service Framework

TCS

Bus Services

2,500,000

 

annual

 

 

Ongoing requirement

                 
 

These are the renewable contracts which we anticipate that we will be undertaking between 2013 - 2014

   
                 
 

Key

             
 

£value* - this is subject to the potential extension period

             
 

** Please note that the total values listed are estimated total values of spend as opposed to actual spend

             

Dept

Requirement

Value (Sell2
Wales)

Start Date

Expiry Date

Potential Extension (months)

Comments

TCS

Property Design Services Framework

40,000,000

01/04/2009

31/03/2013

taken

 

TCS

Staff Lease Cars

360,000*

01/04/2010

31/03/2013

12

Collaborative - Pembs lead

CEX

Distribution of Corporate Publications

786,000

01/05/2010

30/04/2013

36

Extension period due to only two bidders 

ECS

The Supply and Delivery of Fresh and Frozen Meat

 

01/06/2009

31/05/2013

taken

WPC

TCS

WPC Framework for the Supply of Bulk Rock Salt to BS3247:1991 or equivalent

7,500,000

01/06/2011

31/05/2013

24

WPC Lead

CEX

Searches Software - Supply & Maintenance

135,000

01/07/1997

30/06/2013

taken

 

RES

IT Consumables

600,000

10/08/2009

30/06/2013

taken

Value Wales Framework

RES

Office Furniture

Moratorium

01/07/2010

30/06/2013

12

WPC Contract

Dept

Requirement

Value (Sell2
Wales)

Start Date

Expiry Date

Potential Extension (months)

Comments

TCS

Supply Only / Supply and Installation of PVCu Windows & Doors to Residential Council Properties

10,000,000

01/07/2008

30/06/2013

taken

 

RES

VM Ware

40,000

06/08/2012

31/07/2013

n/a

Government Procurement Service Framework

TCS

Fuel Cards

1,320,000

23/08/2009

22/08/2013

n/a

OGC contract, WPC Contract exists

ECS

RFID

100,000

14/10/2011

31/08/2013

24

 

RES

Photocopying Equipment - Supply, Delivery & Maintenance

600,000

01/09/2009

31/08/2013

taken

Government Procurement Service Framework

RES

Telecommunications System

3,000,000

01/09/2008

31/08/2013

n/a

Government Procurement Service Framework

TCS

South West Wales Regional Contractors Framework

300,000,000

01/09/2011

31/08/2013

24

Collaboration, Scored Community Benefits

TCS

Wood Pellets

890,000

01/09/2011

31/08/2013

24

WPC Lead

SCHH

Funeral Arrangements

150,000

01/10/2009

30/09/2013

taken

 

SCHH

Private Sector Leasing Scheme

1,350,000

01/10/2011

30/09/2013

12

 

TCS

Electricity (Under 100KW) - WPC

8,386,832

01/10/2009

30/09/2013

n/a

WPC

RGN

Countryside Recreation and Access Labour and Plant

1,323,268

17/10/2011

18/10/2013

24

Convergence Funded Project

RGN

Countryside Recreation and Access Materials and Services

638,000

17/10/2011

18/10/2013

24

Convergence Funded Project

Dept

Requirement

Value (Sell2
Wales)

Start Date

Expiry Date

Potential Extension (months)

Comments

RES

Treasury Management Services

120,000

01/11/2010

31/10/2013

36

Extension period due to Risk mitigation . 

TCS

Engineering Construction Framework (Contracting)

10,000,000

01/11/2010

31/10/2013

12

 

CEX

Occupational Health

225,000

01/12/2008

30/11/2013

taken

 

TCS

Hire of Road Sweepers and Gulley Emptiers (with Drivers)

800,000

01/12/2011

30/11/2013

24

Community Benefits not scored  

CEX

Delivery of ILM Level 2, (3&4), 5 & 7 Management Awards

100,000

01/01/2011

31/12/2013

24

 

RES

Mobile Telecommunications

374,000

01/01/2012

31/12/2013

taken

Government Procurement Service Framework

SCHH

Private Sector Home Energy Efficiency Programme

233,333

13/09/2011

31/12/2013

taken

 

SCHH

Mental Health Supported Living

588,000

01/01/2010

31/12/2013

36

 

TCS

Supply of Kitchen Units (inclusive of Survey and Design Service) and Supply Only of Central Heating Boilers for Council Housing Properties

3,000,000

01/01/2009

31/12/2013

taken

 

TCS

Collection, Treatment and Disposal of WEEE and Batteries From DCFs in Carmarthenshire County Council

160,000

01/01/2011

31/12/2013

n/a

 

RES

IT Equipment & Associated Services

210,000

16/01/2012

15/01/2014

taken

VW Framework call-off

CEX

External monitoring of the Council's Welsh Language Scheme and Corporate Welsh Language Indicators

32,000

01/04/2010

31/03/2014

taken

 

ECS

Children's Domiciliary Care

280,000

01/04/2010

31/03/2014

taken

 

Dept

Requirement

Value (Sell2
Wales)

Start Date

Expiry Date

Potential Extension (months)

Comments

RES

Telecom Networks - ISP Services (ADSL)

98,000

01/04/2012

31/03/2014

12

Government Procurement Service Framework

TCS

Provision of Civic Amenity/Recycling site in Llandovery/Llangadog/Llandeilo Area, including Operation of Site

700,000

01/04/2009

31/03/2014

taken

 

TCS

Heating Oil, Petrol & Diesel - WPC

7,959,668

01/04/2011

31/03/2014

12

WPC

TCS

Mechanical & Electrical Maintenance Service Contract

7,500,000

01/04/2011

31/03/2014

24

 

TCS

Thin Surface Dressing

800,000

01/04/2012

31/03/2014

24

 


Appendix 5


WRITTEN STATEMENT

BY

THE WELSH GOVERNMENT


TITLE

Maximising the Impact of Welsh Procurement Policy - Wales Procurement Policy Statement

DATE

Thursday 6 December 2012

BY

Jane Hutt, AM, Minister for Finance and Leader of the House

I am today announcing a ‘Wales Procurement Policy Statement’.

In September I welcomed publication of the McClelland review, “Maximising the Impact of Welsh Procurement Policy”, which followed the publication in May of the Enterprise and Business Committee’s Report into “Influencing Modernisation of European Procurement Policy”. Both Reports gave important and constructive messages about a number of areas of Welsh Government policy and practice, and indicated some areas for improvement.

The Wales Procurement Policy Statement clearly sets out the procurement practices and the specific actions that will be required of every public sector organisation in Wales.

There is no doubt that good procurement can drive efficiencies and generate local benefits. I trust this Policy Statement will assist to secure greater levels of both in the future. A debate has been tabled for the New Year by the Welsh Government on “Maximising the Impact of Welsh procurement Policy”.

The Wales Procurement Policy Statement is attached at Annex 1.

Annex 1

Wales Procurement Policy Statement

As a result of the McClelland review, this Wales Procurement Policy has been developed to support implementation of the recommendations of the ‘Maximising the Impact of Welsh Procurement Policy’ report. It clearly sets out the principles against which the Welsh Public Sector, namely Local Authorities, the NHS, Education, Fire and Rescue and Welsh Government Sponsored Bodies should carry out procurement and the expectations for the way that they will do so. Leaders of these organisations should assure themselves that they are compliant and are fully adopting the more detailed guidance and tools referred to within this document and accessed through our web-based Procurement Route Planner.

The National Assembly for Wales’ Enterprise and Business Committee’s inquiry into the modernisation of EU Procurement Policy also highlighted the need for the Welsh Government to develop a clear procurement policy.

The Welsh public sector spends approximately £4.3bn per annum through procurement. This accounts for almost a third of the overall Welsh public sector budget and can, therefore, provide a vital springboard to support economic growth in Wales. We must use innovative, evidence based, approaches to procurement to support the design and delivery of efficient and effective public services and to optimise the added value that is delivered to the economy and communities of Wales.

Added value means that, wherever possible, we will utilise public procurement creatively as a strategic tool to deliver economic benefit to the people and communities of Wales through employment, training and supply-chain opportunities.

Our approach in this important area has been strengthened by the work being undertaken by a specialist Task and Finish Group chaired by Martin Mansfield, and supports the “Tackling Poverty” action plan.

Being strategic involves making early decisions on the best approach to commissioning goods, works and services, including whether grant or procurement is the most appropriate funding mechanism.

Procurement decisions should of course be made on a quality/cost/risk basis but we must also be mindful of the long-term impact. By doing so we are supporting the principles upon which the Sustainable Development Bill will be shaped.

This Policy Statement captures the approaches developed over recent years through consultation and engagement. They are tested and proven to work. There are no reasons or excuses why all organisations cannot fully adopt them and there must be no delay in so doing.

The public sector, including Welsh Government itself, has a collective responsibility to ensure that we use public money wisely, for the benefit of the people of Wales and a duty to ensure the right skills and resources are in place.

It is important that strong dialogue is maintained between the public sector and businesses to ensure continuous mutual improvement. This Policy Statement builds upon ‘Opening Doors, the Charter for SME Friendly Procurement’, and will ensure that public procurement helps to make Wales a good place for doing business, developing a strong supply base, and contributing to a healthy economic infrastructure.

Both the McClelland and Enterprise and Business Committee reviews identify the considerable variability in procurement skills resources, particularly in the local government sector.

In the Spring, a programme of fitness checks will be implemented and will enable all organisations to re-assess their functions and to address any deficiencies. The checks will also identify exemplary practice and allow others to learn and adopt.

I do not consider adoption of this Statement’s policies to be optional and the potential of legislating to ensure the progress the Welsh economy and public services require is being considered.

The Welsh Government will also consider whether it will be beneficial to transpose or regulate for the new European Directives. These EU proposals support many of our policies and provisions that can help to drive progress. If the Welsh Government policies have not been fully embraced we remain prepared to strengthen public procurement duties through additional regulation or legislation.

Adoption of the principles of this Policy Statement will be driven through in partnership with the Minister for Local Government and Communities’ Public Services Leadership Group. Business support for the Policy will be co-ordinated through the Council for Economic Renewal. The Welsh Government’s Value Wales team will oversee the implementation of this Policy and will closely monitor its adoption.

There is no doubt that good procurement can drive efficiencies and generate local benefits. I trust this Policy Statement will assist to secure greater levels of both in the future.

Jane Hutt, AM

Minister for Finance and Leader of the House

December 2012

Definition of Procurement

This policy adopts the Sustainable Procurement Task Force1 definition of procurement:

“the process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment”.

The Principles of Welsh Public Procurement Policy

In carrying out procurement activity the Welsh Public Sector in Wales is expected to adopt the following policy principles:

Welsh Government will:

    set out a ‘maturity model’, against which development of procurement can be measured across the Welsh public sector.

    develop and fund Welsh Procurement Fitness Checks.

The Welsh public sector will:

    measure themselves against the maturity model, by undertaking regular Welsh Procurement Fitness Checks and reporting the recommendations and action plan progress to Welsh Government.

How will this be achieved?

Welsh Government will:

    publish a competency framework setting out qualifications, experience and expertise that will support a structured procurement career.

    provide routes to training and development, including those which enable public bodies to cultivate professional procurement expertise.

The Welsh public sector will:

    ensure adequate skills and resources are in place to carry out effective procurement and contract management.

    have a procurement training plan which addresses resource and skills gaps and share this with Welsh Government to support future skills development strategy.

Policy link : Procurement Training

How will this be achieved?

Welsh Government will:

    provide tools such as the Sustainable Risk Assessment to ensure that procurement decisions take account of long-term impact on the combination of benefits.

The Welsh public sector will:

    apply these tools appropriately in their decision making process.

    Use the information generated by these tools to inform the annual returns to be required under the Sustainable Development Bill.

Policy link : Sustainability Tools

Welsh Government will:

    lead on maintaining and strengthening Community Benefits policy; strengthening support available on the ground and challenging the application.

The Welsh public sector will:

    apply Community Benefits to all public sector procurements where such benefits can be realised.

    apply the Measurement Tool to all such contracts over £2m to capture and report outcomes to the Welsh Government.

Policy link : Community Benefits Wales Infrastructure Investment Plan:

How will this be achieved?

Welsh Government will:

The Welsh public sector will:

    use www.sell2wales.co.uk to advertise all contracts over £25k.

    proactively publish their forward contract programmes

    Ensure that appropriate ‘lotting’ strategies are used.

    apply the SQuID approach as standard to supplier selection.

    encourage main contractors to use the ‘Tier1’ facility to advertise supply chain opportunities on www.sell2wales.co.uk.

Policy link : Supplier Qualification Information Database (SQuID)

How will this be achieved?

Welsh Government will:

    develop and promote simplified approaches to procurement based upon the adoption of common systems and processes, including the Welsh e-procurement service, that reduce the cost of doing business.

    monitor the adoption and impact of these approaches.

The Welsh public sector will:

    adopt and embed common procurement approaches.

    Make best use of available e-procurement tools

    Encourage supplier feedback on ease of process and channel through to Welsh Government

    Pay all correct invoices on time

Policy link : xchangewales Supplier Qualification Information Database (SQuID)

How will this be achieved?

Welsh Government will:

    strengthen vehicles to deliver collaborative procurement.

    use collective leadership to drive through effective collaboration.

The Welsh public sector will:

commit to participate in collaborative procurement initiatives for the benefit of Wales and their individual organisation.

    monitor and report on engagement with collaborative procurement initiatives.

Policy link : Contracts and Resources

 

Welsh Government will:

    encourage public bodies in Wales to adopt approaches to procurement that are informed and influenced by feedback from the supply chain.

The Welsh public sector will:

publish a single electronic point of contact for supply chain dialogue/feedback/ queries.

    ensure de-briefing provides adequate tender feedback.

    use outcome based specifications where appropriate to encourage business innovation

    ensure regular contract performance management reviews are conducted and use these to encourage two-way dialogue

Policy link : Procurement Route Planner

How will this be achieved?

Welsh Government will:

    provide a framework of procurement performance measures that are proportionate and help to drive improvement.

    Collate information and ask PSLG and Procurement Board to consider performance and assist policy implementation.

The Welsh public sector will:

    provide Welsh Government with regular reports of outcomes achieved through procurement.

Policy link : Measurement Framework