appendix 1 procurement strategy

Rotherham Metropolitan Borough Council Corporate Procurement Strategy 2009 - 2012

Contents

Foreword 3

1.0: INTRODUCTION 4

1.1: Purpose of this Strategy 4

1.2: Who Should Read This Strategy? 4

1.3: Commissioning and Procurement 5

1.4: Procurement Vision 5

1.5: Alignment with Corporate Priorities 6

1.6: External Drivers 7

1.7: The Council’s Procurement Activity 8

2.0: PROCUREMENT STRATEGY THEMES 10

Theme 1: Supporting the Local Economy 10

Theme 2: Engaging with the Voluntary and Community Sector (VCS) 12

Theme 3: Equality and Diversity 13

Theme 4:Fairtrade and Trade Justice 14

Theme 5: Environmentally Friendly Procurement 15

Theme 6: Legal Procurement 17

Theme 7: e-Procurement 18

Theme 8: Achieving Value for Money (VFM) 19

Theme 9: Building Capacity 22

Appendix 1: Glossary of Terms 23

3

Foreword “In recent years procurement has increasingly been under the national and political spotlight. Far from being just a means to buy the cheapest goods, procurement is now another element of a Local Authority’s toolkit as it seeks to deliver its wider social, economic and environmental aims. When procuring goods, works or services an effective procurement officer will ask him or herself a number of questions about the project such as: How can it boost the local economy? What is the most environmentally friendly way to fulfil this need? Can I involve the voluntary and community sector? Is the product ethical? How do the citizens of the borough want this delivered? It has long been recognised that value for money is not necessarily achieved by choosing the cheapest price, but by looking at the sum total of whole life costs and benefits. However, recognising this is not enough. Procurement procedures must be in place to allow for the long term, more sustainable option to be selected over the short term cheaper price option, and more importantly, budget setting must reflect this. The Council’s last corporate procurement strategy (2006 – 2009) took us a long way towards achieving sustainable procurement. This latest strategy aims to consolidate the improvements that have been made over recent years and strengthen our procurement processes wherever necessary. Taking our lead from the Local Government White Paper - Strong and Prosperous Communities - we will be looking at better community engagement and strengthening our relationship with the voluntary and community sector. To improve environmentally friendly procurement, the Local Government Sustainable Procurement Strategy provides a benchmark, so we can see what we have achieved and what work still needs to be done. Rotherham Council’s Procurement has been recognised as excellent by achieving Beacon Status in 2006. It is hoped that this latest strategy will build upon past successes and drive further continuous improvement so that our procurement service will carry on providing best value and meeting the demands of its users.” Cllr Wyatt – Cabinet Member for Resources

4

1.0: INTRODUCTION 1.1: Purpose of this Strategy This Strategy sets out what Rotherham Metropolitan Borough Council (the Council) means by procurement, its aims and objectives for procurement and our plans for continuing to strengthen this key area over the next three years. The Strategy is aligned with the Council’s Corporate Commissioning Framework which sets out the Council’s approach to strategically managing all commissioning activity, to ensure maximum gain from any efficiencies that may be generated. The Strategy clearly describes how the Council intends to procure its goods, works and services in order to support the Council’s overall aims and objectives over the next three years. It outlines the work we are currently doing in key areas of procurement and identifies areas where we are planning to strengthen our arrangements. The implementation of the Strategy is supported by an action plan and is overseen by the Council’s Procurement Panel. 1.2: Who Should Read This Strategy?

• Council Members – so that they can lead, challenge and monitor the way procurement is carried out in the Council.

• Strategic Directors – so that they can ensure that the principles and actions contained in the strategy and action plan are applied consistently across all Directorates.

• Procurement Managers – so that they can input ideas to support the improvement agenda laid out in the document and shape their procurement processes accordingly

• Procurement Officers – to help explain the background behind the need for areas of development.

• Suppliers and potential suppliers across all sectors – so that they can see the direction the Council is intending to take and influence it through existing consultation channels.

• Suppliers and potential suppliers in the Voluntary and Community Sector – so that they can comment, input and be aware of the Council’s procurement agenda.

• Citizens - so that they can comment, input and be aware of the direction the Council is taking.

• Internal Customers of the Procurement Service – so that they can be aware of the policies, processes and systems in place.

• Partners – So that our policies and strategic direction can be aligned.

• Other stakeholders – such as other Councils, Government Agencies, the Audit Commission, Environmental and Quality agencies.

5

1.3: Commissioning and Procurement This Strategy is very closely aligned to the Council’s Commissioning Framework which was published in April 2009 although it is important to distinguish between ‘commissioning’ and ‘procurement’ Commissioning For the purposes of clarification, “commissioning” is defined as: “the process of specifying , securing and monitoring services to meet people’s needs at a strategic level.” It is about looking at the total picture of needs across the borough, capturing the budget and funding available to meet these needs and developing the best strategic fit for service delivery. Effective commissioning ensures the best possible outcomes for citizens. Accordingly, the Council’s Commissioning Framework focuses on the strategic over-arching process to determine the future shape and direction of services. Procurement “Procurement” can be seen as a sub-set of “commissioning” and is the physical activities involved in sourcing, engaging and managing spend with suppliers. Clearly this will be informed and influenced by the approach that the Council takes to its commissioning. Procurement processes encompass:

• Identifying and defining the need

• Developing the business case

• Defining the approach

• Competitive procurement

• Awarding and implementing the Contract

• Managing the Contract

• Review of delivery and lessons learnt Figure 1 illustrates how procurement fits within commissioning. 1.4: Procurement Vision The Council has a clear vision for effective procurement:: “The Council will procure goods, services and works by the most efficient and sustainable means to ensure that the needs and aspirations of the community are furthered, within a clear framework of accountability and responsibility. In doing so, the Council will strive to become best in class by adopting world-class procurement practices and techniques“.

6

Figure 1: The relationship between commissioning and procurement. The Council’s approach to procurement is to achieve best value through effective procedures and robust option appraisal leading to a clear mix of service and goods provision. The Council can demonstrate its strength in building sound relationships through a variety of delivery models involving partnerships with private and voluntary sector providers. 1.5: Alignment with Corporate Priorities The Council’s strategies and plans are all focussed around 7 priority themes. There are:

• Rotherham Alive

• Rotherham Achieving

• Rotherham Safe

• Rotherham Proud

• Rotherham Learning

• Fairness

• Sustainable Development To support the delivery of our corporate priorities, this Strategy aims to develop procurement in Rotherham that is co-ordinated, socially responsible and efficient. To make this happen, this Strategy delivers across the following themes:

7

• Theme 1: Supporting the Local Economy

• Theme 2: Voluntary and Community Sector

• Theme 3: Equality and Diversity

• Theme 4: Fairtrade and Trade Justice

• Theme 5: Environmentally Friendly Procurement

• Theme 6: Legal Procurement

• Theme 7: e-Procurement

• Theme 8: Achieving Value For Money

• Theme 9: Building Capacity These themes will ensure that the Strategy delivers across all of the key areas which drive and are impacted by our procurement activity. The implementation of this Strategy will be overseen by the Council’s Procurement Panel who will contribute to and drive through the associated action plan. The Procurement Panel is made up of procurement managers from across the Council and other stakeholders in the procurement process. It is Member led, being chaired by the Cabinet Member for Resources and attended by both the Cabinet Member for Economic Development, Planning and Transportation and the Chair of Performance and Scrutiny Overview Committee. 1.6: External Drivers The two main drivers for the 2006 – 2009 procurement strategy were the ‘National Procurement Strategy’ and the value for money focused ‘Efficiency Review’. The future of procurement lies in developing a comprehensive framework for sustainable procurement and ensuring better outcomes for local people. This strategy sets out how procurement will balance the priorities of:

• Achieving best value for money

• Improved engagement with organisations who represent our diverse community

• Ensuring environmental, social and economic considerations are factored into procurement processes

In addition to this the Council’s procurement is consistent with Rotherham’s Compact with the Voluntary and Community Sector, and the Local Area Agreement. Figure 2 summarises the context within which the procurement strategy operates.

8

Figure 2: The Procurement Strategy in Context.

Rotherham Council will achieve best value by employing sustainable procurement processes. The “Sustainable Procurement Taskforce” describes sustainable procurement as: “a 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 the society and the economy, while minimising the damage to the environment.” 1.7: The Council’s Procurement Activity Procurement activity in the Council is mainly undertaken in the following areas:

� Bought in Goods and Services – RBT (Connect) Ltd � Construction � Social Care and Support

o Neighbourhoods and Adult Social Services o Children and Young People’s Services o Supporting People

� Decent Homes Project – 2010 � Civil Engineering and Grounds Maintenance – Ringway Strategic

Partnership

9

Construction Rotherham Construction Partnership (RCP) is the Council’s current strategic construction partnership. Managed by the Environment and Development Services (EDS) Directorate within the Council, the partnership is coming to the end of its life. The Council has been awarded the lead for the South sub-region of the developing, collaborative YORbuild project, which will provide a series of construction frameworks for the procurement of building contractors to carry out new build and refurbishment works for the Yorkshire and Humber region (http://www.yorbuild.com/). RBT (Connect) Ltd In 2003 the Council and BT Ltd created a 12yr joint venture company RBT(Connect) Ltd in order to provide vital business services on its behalf; one of which being the procurement of bought in goods and services. The partnership has a target of achieving £30m savings over the life of the contract. Social Care and Support The Council commissions a range of care and support services from external providers in Adult Services, Children and Young People’s Services and in the Supporting People Service. Procurement is carried out in a context of a mixed economy of care and best value. Decent Homes Project The Housing “ALMO” (Arms Length Management Organisation) 2010 Rotherham Ltd took over the running of the borough’s council houses in May 2005. The company is responsible for the management, repair and improvement of the Council’s 23,000 houses. Ringway Ringway is the Council's strategic partner for new highway construction, major highway maintenance, and general civil engineering - through a 7 year framework agreement which expires in July 2011.

10

2.0: PROCUREMENT STRATEGY THEMES

Theme 1: Supporting the Local Economy

The Council supports business growth in Rotherham, a fact which was recognised by the award of Beacon Status for Supporting New Businesses. The Council is contributing to achieving a robust economy in the area by engaging with the local provider market and making its processes accessible to a range of suppliers. The Council seeks to achieve community benefits through procurement by actively engaging with a diverse range of suppliers. The Council recognises that long term benefits for Rotherham can be achieved by carefully selecting a mixture of provision through:

� Small and medium sized enterprises (SMEs) � Black and minority ethnic (BME), women and disabled people owned

and run organisations, which are often SMEs � Voluntary and community sector (VCS) organisations � Local companies

Small and local organisations can offer real benefits to Rotherham Council, such as: � They can often respond quickly and flexibly to customer needs � They can be a source of innovation, ideas and products � They can offer cash savings, improved quality, service and effectiveness � They may have a better understanding and better access to diverse

groups and communities including hard to reach groups � They may provide added value in supporting other services delivered to

local people

Procurement legislation means that all companies, including small or local businesses have to compete for business against potentially large, national and even multi-national companies. Our supplier selection and tender evaluation procedures must be transparent, non-discriminatory and based on best value. However, the Council does take sustainability and quality into account when service delivery options are being considered. Additionally, factors such as carbon footprint, replacement cycles and social benefits are taken into consideration wherever it is appropriate to the contract. These elements are considered at the beginning of any procurement process, during the formation of the business case and in the writing of the specification. In order to do this successfully procurement and commissioning officers need to be knowledgeable and familiar with what the market can offer in terms of added value and this can only come about by regular dialogue and consultation with providers and potential providers.

11

How We Are Achieving Against This Theme Now

• We have signed up to the Small and Medium Enterprise Friendly Concordat and its associated guidelines, and endeavour to incorporate these principles into our standard processes.

• We engage with SME suppliers via an annual “Meet the Buyer” events in addition to advertising our contract opportunities in “My Tenders” www.mytenders.com we also post a forward plan of future contracts on our website at www.rotherham.gov.uk/procurement.

• We have a standard point of access for tendering for bought in goods and services - along with 22 other Local Authorities - via the Centre of Excellence developed Supplier and Contract Management System (SCMS) e-tendering system and have trained providers in its use.

• We have published our agreed standards on equality and diversity and the environment and we have developed a “How to do Business with the Council” guide which can be found on our website.

How We Intend to Strengthen Achievement Against This Theme

• Clearly communicating the general standards we require from our suppliers.

• Rolling out the Council’s e-tendering system (SCMS) across the Council.

12

Theme 2: Engaging with the Voluntary and Community Sector (VCS)

Supporting the VCS through the procurement of their goods and services contributes to the local economy by keeping money in Rotherham and providing an alternative means of sustainability for the sector outside of funding which can be sporadic and uncertain. Many small, local VCS organisations can offer the same advantages of SME companies but additionally, VCS organisations may offer personalised public services and are often better placed to do so than the private sector. This strategy aims to open up opportunities to the sector by building effective relationships, and removing some of the barriers they face in providing successful service delivery.


• Following the action plan resulting from the 2006-2009 Strategy and the launch of the Rotherham Compact in March 2006, the Council has improved its engagement with the VCS and has improved its understanding of what the sector can offer.

• We have engaged with the sector via a “Meet the Seller” event and we hold Provider Forums which reflect our robust partnership approach.

• We now award 3 year (or longer) contracts wherever possible. This provides a level of certainty which enables VCS providers to invest in the systems or staff required to carry out their services effectively.


• Better communication of smaller contracts (under £50k), which are perfect for organisations that want to enter the procurement market.

• Training to be provided for procurement officers by the Compact officer to be backed by a training guide for officers working with the VCS. Issues to be covered in the training include: o Helping to develop capacity in the market by facilitating sub-contracting

and consortia building wherever beneficial. o Investigating the extent to which an approach to working with the third

sector can be developed with our strategic partners. o Ensuring that decommissioning is carried out in line with the Compact. o Ensuring all service specifications are outcome focused. o Ensuring that outcomes are defined and captured to measure success. o Recognising the need to ensure full cost recovery.

• We will enable smaller organisations to successfully compete against larger, national organisations through the provision of advice and support.

13

Theme 3: Equality and Diversity

Organisations in the public sector pride themselves on leading the way in promoting the values and practices of a fair society in particular around issues of race, gender and disability. Rotherham Council has set high standards in this area and has implemented many policies and strategies to actively tackle discrimination and promote equality. This includes carrying out functions, developing policies, delivering services and employing people. All equality work is focussed on:

• Promoting equality of opportunity

• Promoting good relations

• Promoting positive attitudes

• Eliminating harassment, and

• Eliminating unlawful discrimination The Council ensures that equality considerations are built into each stage of the procurement process.


• Rotherham Council is committed to achieving “excellent” for the forthcoming Equality Framework for Local Government.

• Procurement Officers have agreed on a standard set of Pre-Tender Questionnaire (PTQ) questions, contract clauses and guidelines around equality and diversity and these are published on our website. Further work is required to embed the monitoring of “first tier” suppliers (direct suppliers to the council) policies and practices, and to provide help for them to drive equalities issues throughout our supply chain.


• To provide more help for suppliers to enable them to assess their current equality policies and action plans such as signposting to helpful websites.

• Re-checking our procurement processes to ensure we remain accessible to BME, Women and Disability owned organisations.

• To engage with suppliers on a voluntary basis to improve equality practice through positive relationships.

• To embed equality and diversity issues into our existing supplier monitoring.

• To compile instances of best practice and publish these on our web site to promote and encourage supplier activity.

• To use the SCMS system to capture equality information on tender success rates.

14

Theme 4:Fairtrade and Trade Justice One in five people in the world today, or over one billion people, live in poverty. Trade justice is about promoting activities that result in economic, social and environmental benefits for all, not just those within Rotherham. The Council’s Trade Justice statement says that “we believe that everyone in the world has a right to feed their families, make a decent living and protect their environment”. How We Are Achieving Against This Theme Now

• The Fairtrade Foundation is an organisation which seeks to work with world farmers and producers in a non exploitive way. Rotherham has been awarded Fairtrade Town status.

• In order to keep this the Council commits to maximise the volume of Fairtrade products that we buy and to increase the awareness of Fairtrade within the borough.

• The Council has a wide range of Fairtrade products in its e-catalogue and has included a statement in all relevant tenders about Fairtrade products.


• Ensuring the use by default of Fairtrade products in all Council owned cafes.

• Improving the competitiveness of Fairtrade products on our e-catalogue.

• Providing Fairtrade refreshments at all Council hosted events held within the Rotherham Borough.

15

Theme 5: Environmentally Friendly Procurement Environmentally friendly procurement is about considering the following:

• The use of renewable resources

• Reduce, Reuse, Recycle principles

• The use of whole life costings

• Choosing low energy alternatives

• Choosing green energy All this is done with the ultimate aims of:

• Diverting from landfill.

• Preserving non renewable resources.

• Reducing CO2 Emissions.

• Reducing greenhouse gases. The Local Government Sustainable Procurement Strategy includes a flexible framework which is a tool intended to guide Local Authorities in the actions required to make sustainable procurement happen. How We Are Achieving Against This Theme Now

• The Council has examined the way it procures and improved its environmental performance in a number of areas. Our procurement systems are much more sustainable now with the introduction of e-procurement in 2005 and the subsequent e-programme which followed.

• With the use of e-invoices, procurement cards, e-RFQs (request for quotations) and e-tendering, the Council’s systems are world class – allowing for standardised processes and substantial paper saving.

• We have agreed and published the environmental standards that we expect our providers to offer, and we have begun to audit a percentage of our key suppliers for their compliance in relation to these standards.

• The Council has set itself environmental targets and reports against these on a monthly basis to the Procurement Panel and quarterly to the Council’s Performance and Scrutiny Overview Committee. We gather data on the subsequent reduction of CO2 emissions, and diversion of waste to landfill achieved through the procurement of products made from recycled materials.

• The December 2007 RMBC Sustainability Energy Management Report by the Energy Saving Trust rated Rotherham Council’s Procurement as ‘fair/good’. It is clear that the way Rotherham Council procures takes consideration of the environment, however there is more work to be done to ensure that sustainable procurement is embedded in our processes.

16


• Setting clear guidelines for the procurement of environmentally friendly products.

• Using electronic procurement systems throughout the Council in order to reduce paper usage, and to make our processes more efficient.

• Removing barriers and ensuring budgetary mechanisms enable and support sustainable procurement.

• Developing capacity within the Council through training and awareness raising, and ensuring that sustainable procurement is included as part of the Personal Development Review process.

• Identifying incentives for sustainable procurement both within the Council and throughout the supply chain.

• Ensure that scrutiny of capital projects includes checking that the project has embedded sustainable issues.

• Investigate whether we should use the Carbon Disclosure Project as a way to measure and manage carbon in our supply chain.

• Reduce all maverick procurement which diminishes the power of aggregated procurement spend.

• Assess the Council’s procurement processes against the Sustainable Flexible Framework and develop an action plan to ensure compliance.

• Report on the findings of the exercise undertaken by Rotherham Construction Partnership (RCP) to assess the success of monitoring and setting targets for minimum recycled content in planning guidance.

• Explore the specification of minimum sustainable construction standards in developments where the Council sells the land to developers and has an influence on what is built.

• Capture the successes of the Recycling Action Yorkshire (RAY) project which was undertaken last year in a case study that can be used as a “lead by example” story.

17

Theme 6: Legal Procurement

All procurement undertaken by the Council must follow EU and UK legislation which states that procurement must be conducted on the basis of:

• Non discrimination on the grounds of nationality.

• Equal treatment of all potential bidders and suppliers.

• Proportionality of contract value to procedures used.

• Transparency of the whole procurement process.

• Mutual recognition of standards, qualifications and specifications.

Additionally, the Council must procure within its own Standing Orders and Financial Regulations. These set out what the financial limits of each procurement method are and the procedures that must be followed for each.


• The Council has maintained a good reputation for legal procurement and has robust processes in place that follow UK and EU legislation.

• It has recently reviewed and updated its Standing Orders and Financial Regulations and has developed an e-RFQ (request for quotation) process to make complying with the regulations more efficient.


• Monitor and analyse the procurement related Freedom of Information requests received by the Council to ensure we learn from feedback.

18

Theme 7: e-Procurement Huge efficiencies can be made by effectively e-enabling the function as it can reduce some of the costs associated with procurement. How We Are Achieving Against This Theme Now

• Rotherham MBC has fully e-enabled its procurement processes having embedded:

o e-requisitioning o e-authorising o e-ordering – where possible o e-invoicing – where possible

• e-tendering is in use in RBT via the SCMS (supplier and contract management system) system that is shared by 22 local authorities in our region.

• e-RFQ (request for quotations) have just been introduced.

• Procurement cards are in use or planned to be introduced in areas where they will benefit.

• The Council is committed to engaging with suppliers and potential suppliers, including those from the voluntary sector, to explain how they can operate our e-tendering system in order to be able to compete effectively. Several workshops have already been held to support this and the Council will continue to provide help where it is needed.


• Agree an acceptable turnaround for e-RFQ quotations.

• Further roll out of the SCMS e-tendering system across the Council.

• Investigate the extent to which we can store all invoices electronically.

19

Theme 8: Achieving Value for Money (VFM) The Government introduced its arrangements for the Comprehensive Spending Review 2007 (CSR07) on 1st April 2007 and, as part of this, set the level of net cashable efficiency gains that the public sector is being asked to deliver over the life of CSR07 - 1st April 2007 to 31st March 2011. The indicative level of efficiency gains for this period was set at £4.9bn and the government has suggested that 57% of this figure should be delivered by through smarter procurement. For the Yorkshire and Humber Region this is estimated to be £280m. The 2009 budget report increased these savings targets further, confirming that councils will now be asked to find £5.5 billion of savings over the current review period - the equivalent of an extra 1% saving each year on top of the 3% annual savings already expected. Measurement Within the new performance framework Councils will report their efficiency savings through a single indicator (NI 179) twice during the financial year. Whole Life Costs Obtaining value for money means choosing the bid that offers the optimum combination of whole life costs and benefits that meet the customer’s requirements. This is not necessarily the lowest initial price option and requires the assessment of the ongoing revenue costs aswell as the initial capital investment. The requirements can include social, environmental and other strategic objectives and should be clearly defined and set out at the earliest stages of the procurement cycle to enable effective tender evaluation. Consultation Where appropriate it will be necessary to consult with the customer – whether the customers are internal or citizens of the borough. In these cases – only by involving the clients will we know what it is that we need to deliver, making it possible to translate this knowledge into effective tendering. Relevant procurement projects – those that have an impact on the public - should follow the Council’s Consultation and Community Involvement Framework. We should also consider the effects of the Council’s activities on the general public and do our best to minimise disruption to every day life. One way in which we do this is by signing up to the Considerate Constructor Scheme for construction projects that are close to public areas. Risk Assessment Appropriate risk assessments must be undertaken during the pre-tender stage, to gauge a potential supplier’s financial stability, and ability / capacity to deliver the contract. We should also be aware of what proportion of a local provider’s total turnover constitutes Council business, so that we can take steps, where necessary, to avoid economic loss within the borough. Performance Management To help ensure optimum delivery of contracts, effective performance management

20

must be utilised. This can be achieved by developing service level agreements, or some other kind of performance indicator at the beginning of the contract. Regular contact with the supplier is beneficial in order to discuss any problems with delivery and to explore opportunities for improving performance. Continuous improvement should be built into contracts to ensure that our services are getting better and more efficient over time. Collaborative Procurement and Shared Services Certain contracts will bring best value for money through collaborative procurement. Procuring with partners or other local authorities can bring greater savings due to increased volume of demand. Collaborative procurement also provides efficiencies in the form of reduced workload where one body procures on behalf of two or more organisations. In addition, different procurement processes and practices are shared, providing opportunities for organisations to learn from one another. This is especially evident in shared services where two or more Councils or organisations share their services to enable better economies of scale, to capitalise on expertise and to drive efficiencies through. Added Value The Council should also look for opportunities to add value to a contract where appropriate. For example tenders could include the question “what extra value could you bring to the contract?” This will allow potential providers to explain what they could provide in addition to the simple running of the contract. This could include providing local employment, training local people, sustainable delivery of the contract, and in the case of social and voluntary organisations investing any profits into services for the community. By leaving the question open it allows for innovative answers from suppliers and provides an opportunity for providers to show how they can bring more value to a contract than others. It is important that procurement officers are familiar with the supplier market so that they can identify opportunities for added value within contracts. How We Are Achieving Against This Theme Now

• The Council consistently holds primary positions in the annual efficiency statement tables for Bought in Goods and Services (BIGS) demonstrating that we are excellent at identifying and capturing savings in this area. These savings are based on total cost of ownership including disposal of goods at the end of their life.

• When buying our BIGS, our procurement processes evaluate whole life costs.

• Our Procurement Officers have embedded financial risk assessment and supplier performance management into their processes and ongoing improvements are continually sought. Our partnership with RBT is enabling the Council to lead on a number of shared services and we are involved with the rest of the sub-region in a number of procurement initiatives.

• We share the e-tendering tool - Supplier Management and Contracts (SCMS) System with 22 other local authorities which has reduced the costs required to develop a stand alone system.

• Since April 2009 RMBC has had a ‘duty to inform, consult and involve’. This

21

means providing greater opportunities for local people to get involved and influence the decisions that affect them. Rotherham Council is embedding this duty in its procurement activities.


• Investigate the DEFRA Shadow Price of Carbon where emissions are given a monetary value to aid cost benefit analysis.

• Utilise the Council’s Consultation and Community Involvement (CCI) Framework for consultation purposes for large, public facing procurement projects.

• Introduce risk assessments for procurement impact on the local economy for BIGS.

• Encourage and exploit opportunities for added value to contracts.

• Further encourage and support RBT in the expansion of shared services.

22

Theme 9: Building Capacity

The Council is involved with a number of strategic partnerships. Some of these are undertaken within a procurement framework and others are joint agency partnerships; this strategy is concerned with the former. Partnerships are a way of accessing investment and skills that are currently unavailable in the Council. They can bring innovation and a new approach to services, helping the Council to achieve its vision. It is vital that Procurement Officers are trained in the procurement skills required to effectively fulfil their roles. Officers need to be aware of a variety of issues and policies; procurement law, standing orders and financial regulations, ethics policy, sustainable procurement, SME friendly concordat, VCS approaches in addition to being aware of tender and evaluation procedures. They also need specialised knowledge of their area of procurement. We therefore need to monitor our officers’ knowledge and skills and invest in training and development. How We Are Achieving Against This Theme Now

• The Council has an approved partnership protocol which sets out some of the advantages and risks that are brought about with such procured partnerships and defines the approach to governance which the Council should adopt.

• The last Procurement Strategy saw the introduction of the skills matrix which was implemented across the Council in those areas where procurement takes place. This is designed to add to the personal development review process to highlight gaps in procurement officer’s skills and knowledge in order to contribute to staff development plans.

• In addition to this many officers across the Council have received external training such as Chartered Institute of Purchase and Supply. The Sustainable Flexible Framework highlights the necessity for up to date sustainability training for procurement staff.


• Ensure all officers are trained in sustainable procurement and procurement with the Voluntary and Community Sector.

23

Appendix 1: Glossary of Terms CO2 A greenhouse gas (see greenhouse gases definition below) CSR07 Comprehensive Spending Review 2007(see http://pbrcsr07.treasury.gov.uk/ for more information) DEFRA Department for Environment, Food and Rural Affairs Gateway Panels These are groups set up to scrutinise the progress of procurement projects. They are used when the project involves a lot of money and / or a lot of risk. Panels will check the project at several pre-agreed stages to monitor progress and check that the end product is on track to meet the planned outcome. Greenhouse Gas Emissions These are components of the atmosphere that contribute to the greenhouse effect and are broadly considered to contribute to global warming. Some greenhouse gases occur naturally in the atmosphere, while others result from human activities such as the burning of fossil fuels. Naturally occurring greenhouse gases include water vapour, carbon dioxide, methane, nitrous oxide and ozone. Fairtrade Fairtrade is about dealing ethically with the developing world through better prices, decent working conditions, local sustainability, and fair terms of trade for farmers and workers. For more information please see the Fairtrade website http://www.fairtrade.org.uk/ Full Cost Recovery Full cost recovery means costing in overheads such as building costs and salaries when costing up the cost of service provision. JVC JVC stands for Joint Venture Company such as the RBT (Connect) Ltd partnership that the Council has set up with BT plc. Local Area Agreement (LAA) The Local Area Agreement sets out the main priorities for Rotherham, which have been identified by Rotherham's communities in the Community Strategy and also through further consultation events that have been held with a wide range of partners across Rotherham. http://www.rotherham.gov.uk/NR/rdonlyres/C8BADAFE-59D5-4734-9B40-A92D2E6E5787/0/LAAFinalSubmission.pdf

24

My Tenders My Tenders is a website used by over 2000 public sector users for the advertising and communication of tender notices in the UK. http://www.mytenders.com/ Panel of Scrutiny and Overview Committee (PSOC) PSOC co-ordinates and manages the workload of the Council’s scrutiny panels. It also undertakes major scrutiny of Council wide activities (such as the budget), and those of other publicly funded bodies in the Rotherham area. Scrutiny is an important process carried out on behalf of the residents of Rotherham by front line councillors, together with experts with specialist knowledge. Private Financed Initiative (PFI) PFIs are usually building projects using private sector investment. Rotherham Council has been involved in a number of PFIs in projects such as new schools and leisure facilities. Rotherham Compact with the Voluntary and Community Sector The Rotherham Compact is a statement of partnership between the Voluntary, Community, Statutory and Private sector partners represented in the Rotherham Partnership http://www.thecompact.org.uk/shared_asp_files/GFSR.asp?NodeID=100555 SME Small or Medium Enterprise. SME Friendly Concordat This is a voluntary, non-statutory code of practice that the Council has signed up to in order to ensure that our procurement processes take account of the needs of smaller organisations. http://www.rotherham.gov.uk/NR/rdonlyres/43C1E843-33EA-41B4-8403-412E7C87D0E6/0/GoodPracticeGuidance.pdf South Yorkshire Buy Local Buy Local is a supply chain development scheme that helps businesses to find new suppliers and selling opportunities within their region. http://www.buy-local.co.uk/ui/Login.aspx Third Sector Another term for the Voluntary and Community Sector

appendix 1 procurement strategy

Documents