To seek Cabinet’s agreement of the updated Procurement Strategy.

Cabinet was reminded that a revised Procurement Strategy had been circulated prior to the meeting that superseded the version included in the original agenda pack.

The Cabinet Member Resources presented the report on the Procurement Strategy 2009 and informed Cabinet that this strategy was a departure from the previous year’s approach as it reflected the importance of sustainable procurement and of the local sourcing of goods and services where possible. The strategy sought to reflect the collaborative approach developed with NHS Herefordshire to deliver efficiencies and reinforced the Council’s commitment to achieving value for money which would be further reflected in the Use of Resources assessment.  Cabinet was advised that whilst local suppliers could not be favourably discriminated due to their location, the Council had developed a proactive approach to increase the awareness of local suppliers to opportunities to bid for Council contracts and business.  This included an event which was attended by 40 medium and small local business which was co-facilitated by the Council, Business Link and the Chamber of Commerce and which assisted potential suppliers to understand the requirements when tendering for public sector contracts.  To increase the potential opportunity for local bids, the Cabinet Member stated that it would be mandatory for all requirements of £5,000 or over to be published on the Council’s web portal (located within the Council’s website).  Cabinet was advised of the inclusion of a new  Forward Plan section in the updated strategy which outlined considerations of the impact to procurement systems and processes of organisational changes and efficiencies e.g. shared services agenda, Herefordshire Connects project.  The need for appropriate staff training was emphasised and the Forward Plan reflected the training provided to core practitioners. 

Responding to a query raised regarding the scope of the shared services agenda, the Leader stated that undertaking this work should strengthen the financial viability of public service provision in Herefordshire at a time of considerable pressures on all organisations within the public sector.  It was confirmed that there was active dialogue with the County Hospital as it was a formal partner within the shared services partnership; other public sector organisations would be welcomed to consider joining in the approach in order to deliver greater efficiencies and maintaining a wide range of public services within Herefordshire.

The Chief Executive was encouraged to continue active lobbying with Government and others regarding the issue of contractual boundaries between public sector organisations and specifically between that of the NHS and local government procurement processes, in order that best value could be delivered from holistic contract procurement negotiations.

It was stated that as a greater emphasis was being placed, by OFSTED and the Department of Schools and Families, on schools to deliver value for money, schools should be strongly encouraged to use existing procurement arrangements (e.g West Mercia Supplies [WMS]) and increase their use of generic products.  It was suggested that the Director of Resources and the Director of Children’s Services issue a joint briefing note to schools on this issue which would emphasise the importance placed by the Department of Schools and Families on delivering value for money and the way that existing procurement arrangements would support schools in demonstrating this.

The issue of fair-trade was also highlighted and it was stated that WMS would be looking further at this issue.

Responding to a question raised regarding the availability of priorities and time lines relating to potential saving opportunities outlined in para 7.4.3 of the strategy, the Acting Head of Financial Services stated that this work was being overseen by the Herefordshire Connects Programme Board and was consolidating much information.

Responding to a comment regarding the need to reduce duplication through the maintenance of a corporate contracts register, the Cabinet Member Corporate, Customer Services and Human Resources stated that work to provide solutions to this issue was underway.  The Leader emphasised, in response to a comment regarding the possible limitations of the Hospital for joint purchasing, that the shared services project’s focus was entirely on back office and administrative functions which would be of benefit to all partners.

It was suggested by Cabinet that the Herefordshire Connects benefits realisation process be considered as a possible issue for the scrutiny function.

Whilst welcoming the support provided to local suppliers, a member in attendance requested that consideration be given to minimising bureaucracy within the procurement processes and illustrated an example of where a local supplier did not progress with a contract due to the bureaucratic procurement process.

RESOLVED That:

a)            the updated Procurement Strategy be approved subject to additional wording at para 7.8.9 to read: “... to ensure schools are aware of the need to deliver value for money opportunities which arise from the procurement strategy”; and

b)           the Strategy’s emphasis on sustainability be noted.