dsfrs procurement strategy 2018 - 2022

DSFRS Procurement Strategy 2018 - 2022

Corporate Procurement Strategy 2018 – 2022

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Corporate Procurement Strategy 2018 – 2022The Service spends c£16 Million per annum on the procurement of its goods, services and works. It is our public duty to ensure that this money is spent in the most effective way, delivers value for money and complies with our statutory duties.


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Our Purpose:To ensure Devon and Somerset Fire and Rescue Service acquire and have available the necessary goods, works and services that are fit for purpose, meet identified requirements, represent optimum value for money, and are procured in compliance with all relevant legislation and internal governance and our corporate and social responsibilities.

Our key principles are:

• Securing Value for money

• Customer and stakeholder engagement and satisfaction

• Legal and statutory compliance

• Establishing and adhering to strong governance

• Delivering on our corporate social responsibilities

• Engaging with the market and our local economies

• Gathering intelligence internally and externally

• Be the point of contact for the service external suppliers

• Drive our ethical responsibilities

• Setting and influencing national direction

• Risk management of supply arrangements

What will we achieve?

Aim 1: Demonstrating Leadership

1. Be a Leading FRS in Bluelight and the NFCC Commercial Transformation Programme:

a. Volunteer for national and collaborative roles and responsibilities

b. Lead on collaborative and national procurement change projects

c. Participate in national projects and agreements

d. Support the objectives of the NFCC Commercial Transformation Programme

e. Support other FRS in procurement transformation

f. Collaboration to drive best practice and economies of scale


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Aim 2: Modernisation

2. Be an exemplar Service for procurement practice and outcomes

a. Adopt best practice as per the LGA/CCS guidance and diagnostics

b. Influence national agendas through participation and engagement

c. Undertake latest training and development initiatives

d. Develop more efficient and effective governance and controls

e. Review opportunities for more effective purchasing and procurement

Aim 3: Supporting our Customers and Communities

3. Provide the best products and services on the market whilst demonstrating best value

a. Pre-procurement engagement at the core of the procurement process

b. Continuous development of market intelligence

c. Agile contracts that allow for change and adaptation

d. Qualitative and quantitative benchmarking

e. Customer and user feedback into ongoing product and service suitability

f. Social Value opportunities

Aim 4: Making Savings and Efficiency

4. Procurement to be a key part of Service Planning and Engagement through;

a. Collaboration

b. Demand management

c. Cross functional team working

d. Sharing intelligence and performance data


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Our measures of success:

Aim 1: Volume of impact and contribution to the NFCC commercial transformation programme

• Lead on national or collaborative arrangements

• Participation in national or collaborative arrangements

Aim 2: Assessment against the LGA National Procurement Strategy Diagnostics tool

• CPD hours undertaken by the team (Pro rata)

• % non-pay expenditure managed by the procurement department

• Centralised purchasing function reviewed

Aim 3: Customer feedback on products and services in place

• Supplier performance

• Benchmarking quality and price paid for goods and services

• Supplies available within agreed timescales

• Supplies issued to service level agreement

Aim 4: Contracts in place for organisational requirements

• Procurement involvement in budget planning and review

• Savings that are double the cost of the function

• % stock turnover in relation to staff resources

• % of contracts in place for collaboration where that is the identified approach

• % spend contracted by the service


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The Procurement DepartmentWe ensure Devon and Somerset Fire and Rescue Service acquire and have available the necessary goods, works and services that are fit for purpose, meet identified requirements, represent optimum value for money, and are procured in compliance with all relevant legislation and internal governance and our corporate and social responsibilities.

The Procurement Department are led by our management team, which is made up of:

• Melanie Walsh (Head of Fleet & Procurement) and the National Commercial Category Lead for Fleet.

• Luke Malton (Corporate Procurement Manager) and the NFCC National Procurement Lead

The management team ensures that our approaches support the principles of; transparency, integrity, fairness and that through good stakeholder engagement we are accountable for the procurement decisions made within the service. We champion collaboration and stay abreast of market, regulatory and legislative changes and ensure we are resourced to manage our procurement responsibilities.

Head of Fleet and Procurement

Corporate Procurement

Manager

Category ManagerOperational Equipment

Category Manager

Fleet

Category ManagerEstates

Category ManagerCorporate Services

Supplies Manager(DSFRS/DCP)

Supplies Assistant

X 3

Category Manager

ICT

The Procurement Team has adopted a category management approach which analyses and organises our expenditure strategically to reflect the external market into similar groups (categories). There is a dedicated procurement resource and strategy for each of the categories. Category Managers are responsible for working closely with key stakeholders in securing optimal quality, value for money and supply improvements across the lifecycle of their assigned categories, delivering compliance with relevant legislation, and seeking opportunities for collaboration and social value where relevant.


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Social ValueWe have developed a Social Value Framework to allow the Authority to consider and prioritise the economic, social and environmental well-being objectives of the area when procuring goods and services. These outcomes are based on the vision, values and priorities contained in Our Fire and Rescue Plan, the Community Safety Strategy, Carbon Emissions Strategy and the Equalities Plan. Where appropriate in its procurement activities, the Authority will specify social value outcomes that are proportionate and relevant to the procurement and consult through pre-market research with relevant groups and seek to evaluate tenders in accordance with those social value outcomes and the specification.

We will as part of our Social Value framework consider the public sector equality duty (PSED) and potential equality considerations at the different stages of the procurement cycle.

Procurement CategoriesWe are responsible for managing the procurement arrangements for £16m of 3rd party expenditure per annum.

25%

21%

19%

19%

16%

ESTATES£4M

CORPORATE SERVICES£3.3M

ICT£3.1M

FLEET£3M

OPERATIONAL EQUIPMENT£2.6M

Note: 3rd Party expenditure is approximately £16m per annum but this figure can vary slightly year on year. In addition, whilst every effort has been made to categorise expenditure accurately there will be some variance due to the way expenditure is transacted and reported (e.g. transactions can be coded against incorrect categories at the point of order and/or certain categories of 3rd Party expenditure may not be captured in the reports used to identify these figures).


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Operational Equipment CategoryThe scope of the Operational Equipment Category incorporates all items of equipment utilised by operational personnel in the delivery of the services and in ensuring fire-fighter and public safety.

The total annual spend for the Operational Equipment category is approximately £2.6m, with the top three suppliers (by spend) being: Bristol Uniforms Ltd (fire-fighting personal protective equipment), Interspiro Ltd (self-contained breathing apparatus & ancillaries) and Terberg DTS (UK) Ltd (foam concentrate, thermal imaging cameras, other equipment).

The anticipated operational life of the equipment and personal protective equipment varies but is most commonly +/-10 years. The current replacement cycle, therefore, depends on when the equipment was originally purchased, its level of usage and maintenance schedule. It is replaced when obsolete, no longer viable to maintain, ceases to be fit for purpose or in response to changes in approach to operational delivery. Spend fluctuates depending on replacement & maintenance cycles and introduction into operational service of new equipment. Devon and Somerset are the lead procurement for the NFCC Self Contained Breathing Apparatus Framework.

Fleet CategoryThe scope of the Fleet category incorporates all vehicles owned, leased or hired by FRS including the goods and services required to maintain, repair, modify and keep the vehicles fit for purpose and available for use. The category does not include the operational or ICT equipment fitted to the vehicles or other types of operational assets such as Fire Boats or Unmanned Aerial Vehicles (UAVs). The category does not include the employment, estates, insurance or training costs associated with fleet activities as these form part of other category areas. Fleet expenditure varies depending on the capital programme of expenditure.

The total annual spend for the fleet category is approximately £3 million, with the top three suppliers (by spend) being: Emergency One UK Ltd (fire appliances), Lex Autolease Ltd (leased vehicles) and Allstar Business Solutions (fuel cards).

Devon and Somerset FRS is the Fleet Commercial Category Lead, forming part of the Strategic Commercial Board set-up as part of the NFCC Fire Commercial Transformation Programme and is the lead procurement for the NFCC Emergency Response Vehicles Framework with an estimated spend of £200M on behalf of the fire Sector.

Estates CategoryThe scope of the Estates category includes all buildings owned and leased by the Authority and all associated goods and services that are required to maintain, repair and adapt these facilities to ensure that they are fit for purpose and available 24/7 to support the delivery of front line services and associated back office support. Requirements include the provision of hard facilities management (mechanical and electrical services) and soft


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facilities management (cleaning, waste disposal, furniture etc.). Furthermore the category delivers appropriate tools to source main building contractors for works projects and any associated consultants as applicable. All utility contracts (gas, electricity and water) are managed through this category.

The total annual spend for the Estates Category (based on 17/18 FY) is approximately £4 million, but this fluctuates annually depending on the volume of capital financed build programmes to be undertaken.

Devon and Somerset Fire and Rescue Service collaborate routinely with Devon and Cornwall Police for Estates categories of expenditure.

ICT CategoryICT as a category reaches in to most areas within the service including hardware, software, communications and IT security.

The category aims to deliver top quality ICT solutions ensuring Devon and Somerset FRS have the most up to date and beneficial technology at its disposal. The challenges within the category are around low buying power of the Service which is countered by closer working within the sector, police and wider emergency services. The total spend for the category is approximately £3.1 million per year although has the highest average spend per item at over £4k.

Devon and Somerset Fire and Rescue Service were the procurement lead for the Networked Fire Control Service (NFCS).

Corporate & Business Services CategoryThe scope of the Corporate & Business Services category extends into every area of DSFRS. And includes corporate/business service wide contracts such as, travel and accommodation, stationery, printing and marketing items and catering including fire ground feeding.

The category also delivers required services to some larger departments, notably Training and HR that in turn deliver expertise across the whole of the Service. In particular for HR contingent labour requirements, occupational health and payroll & pension services. For Training meeting diverse requirements for the training needs that must to be delivered across the Service for all operational personnel. Currently assisting with a dynamic change being implemented in how training is delivered more locally. The category also captures Business Services, which delivers vital services particularly insurance services, consultants, contractors and audit requirements. The total spend for the category is approximately £3.3 million per year and fluctuates dependant on demand for various services such as contingent labour, consultants/contractors and training needs.

Devon and Somerset Fire and Rescue Service were the lead procurement for establishing the Fire and Rescue Insurance Consortium (FRIC).


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Stores/SuppliesIt is the responsibility of the team at Chelston, Wellington to ensure the timely availability of all recognised, proven and authorised supplies of operational equipment & associated sundries. The inventory profile consists of over 2000 product lines and the average monthly stock value is £175k with over £1m of goods regularly purchased and issued each Financial Year. Careful data analysis is used, along with early project engagement & supplier relationship management to facilitate this volume of demand whilst maintaining the core objectives of the department. This is facilitated using existing contracts and proven supply chains. Ensuring best practice is utilised regarding the procurement, storage and distribution of the physical goods. The small depot encourages a ‘lean’ approach which promotes stock-turnover for date sensitive products and mitigates stock obsolescence.

Financial transaction integrity is core to all the roles within the department and this approach provides both cashable (supply chain consolidation, cost avoidance, challenging invoices & price increases) and non-cashable savings (work-load efficiencies, reduced logistic carbon footprint, reduced packaging). Internal transaction reports are produced monthly to assist with the overall budget management of the organisation. The department is also used for the Service–Wide distribution of goods procured outside of the unit.

The team at Chelston also work closely with colleagues at PCC Devon and Cornwall and seek opportunities for aggregated and standardised purchasing. Under an MOU the Supplies Manager at DSFRS also oversees the Supplies function at PCC Devon and Cornwall. This has helped with the identification and implementation of collaborative initiatives and also provides a level of resilience across the two organisations. Other public sector procurement, contract, stowage and distribution collaborations opportunities are also explored.

Fire Commercial Transformation Programme (FCTP)The Procurement Department at Devon and Somerset Fire & Rescue Service are heavily involved in the NFCC FCTP. The Corporate Procurement Manager is the NFCC National Procurement Lead and runs the Programme Management Office for the FCTP. The Head of Fleet & Procurement is the Fleet Commercial Category Lead for the programme. In addition, our Category Managers have all been involved in national procurement/commercial activity coordinated through the FCTP and Devon & Somerset Fire & Rescue Service are the leading contributor to this programme.

The FCTP’s mission statement is “To pro-actively develop/support and champion a National Fire and Rescue Commercial Strategy that meets the needs of all stakeholders within the FRS community and encourage and support national and regional sector and cross sector collaboration wherever possible and ensure that VFM is delivered to the Public at both local and national level”.

What we want to achieve What will we do to achieve it How will we know if we've succeeded?

Ensure we only commit funding and utilise resources when required

Demand Management, Needs vs Wants.Business case developmentOptions appraisalChallenge and include stakeholders. Seek senior support and governance.Assist in budget preparation.

BenchmarkingBusiness case developmentStrategy developmentCollaborationSavings.

Consider: Record rejected purchases.

Ensure we only purchase goods and services that are fit for purpose.

Early market engagement. Review specifications for collaboration, improvement and incorporation of Social Value objectives.Output based specifications where appropriate. Review and consider best practice procurement guides (food, fleet etc..). Capital programme reviewsReview opportunity for centralised purchasing.

Business case captures market conditions.Pre-procurement engagement for all OJEU level procurements,Stakeholder and supplier feedback

Cashable Savings Conduct Benchmarking. Identify current WLC through strategy/business case. (contract spend and/or budgets).Collaborate with other FRS/wider public sector. Engage in and where appropriate lead FCTP activity.Review opportunity for centralised purchasing.

Budget variances (managed effectively)Demand reductionRecord on Savings RegisterContract negotiations

Non-Cashable Savings Process Improvements/Efficiencies. Collaborate with other FRS/wider public sector. Engage in and where appropriate lead FCTP activity.

Record on Savings Register.Social value opportunitiesContract negotiations

Promote Opportunities to Local Businesses

Local 'meet the buyer' events. Structure tenders to make more attractive to local and SME supply base.

Increase in use (and expenditure) of local suppliers.

Promoting the Procurement function within DSFRS.

Newsletters, Briefings, Updates, Presentations to Departments/Groups. General procurement training for relevant individuals as part of induction process and to key stakeholders.

Increased enquiries. Increased number of staff trained. More knowledge of procurement across the service.

Improved reporting and management information

Keep accurate records - build into standard process (i.e. capture certain data).Capital Programme input and review.Communicating to stakeholders on supplier performance.

Easily accessible data to populate regular reports, newsletters etc.BriefingsSupplier performance

Early engagement with stakeholders

Procurement input at early stageProcurement input for business case development.

Number of business cases with procurement input/sign-offPre-procurement engagement undertaken

Increase market involvement in the development of Procurement activity (inc user requirements)

Use of PINS, Conferences, Direct contact with suppliers, suppliers are stakeholders within projects and could be part of project teams.

Better procurement outcomes (quality of service/goods). Reduction in supplier clarification through formal tendering process.Increase in 'output or outcome' based specifications.


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Glossary

BLUELIGHT Ambulance, Fire and Police Services

CCS Crown Commercial Service

CPD Continuing Professional Development

DCP Devon and Cornwall Police

DSFRA Devon and Somerset Fire and Rescue Authority

DSFRS Devon and Somerset Fire and Rescue Service

FRS Fire and Rescue Service

ICT Information Communication Technology

LGA Local Government Association

MOU Memorandum of Understanding

NFCC National Fire Chiefs Council

PCC Police and Crime Commissioner

PIN Prior Information Notice

SIP Service Information Point

VFM Value for Money

More information about the FCTP Fire Commercial Transformation Programme can be obtained through the website -

https://www.nationalfirechiefs.org.uk/Procurement

For further information on DSFRS Procurement arrangements:

DSFRA Contract Standing Orders

DSFRS SIP and procurement guidance section

www.bluelight.gov.uk

www.blpd.gov.uk

http://www.dsfire.gov.uk/AboutUs (Supply of goods and services)

dsfrs procurement strategy 2018 - 2022

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