Agenda Item No. 8

 

The Vale of Glamorgan Council

 

Cabinet Meeting: 16th July 2018

 

Report of the Leader

 

Procurement Policy and Strategy 2018 - 2021

 

Purpose of the Report

  1. The purpose of this report is to obtain approval for the adoption of the Procurement Policy and Strategy 2018 - 2021.

Recommendations

  1. That the Procurement Policy and Strategy 2018 - 2021attached at Appendix A to this report be considered and endorsed.
  2. That the Council signs up to the Code of Practice - Ethical Employment in Supply Chains.

Reasons for the Recommendations

  1. To ensure the procurement practices of the Council meet the requirement to deliver good quality services at a reasonable cost.
  2. To promote good employment practice throughout the Council's supply chain.

Background

  1. The Council manages public money and has a responsibility to do so with probity, to ensure that value for money is achieved and that money is spent in accordance with the Council's key objectives. Good procurement is critical to obtaining real improvements in service quality and cost.
  2. The Council delivers its services directly through its own workforce and through private and third sector organisations. During 2017/2018 the Council spent £95.9m procuring a diverse range of goods, services and works.
  3. A Procurement Policy and Strategy 2018 - 2021 is attached at Appendix A for consideration and details how the Council will promote sustainable and effective procurement over the life time of the Strategy.

Relevant Issues and Options

  1. We recognise that we operate in an ever changing procurement landscape that is led by an agenda for improvement.  New technology, changing demographics, increasing awareness of sustainability issues, legislative changes and the drive for efficiency are all transforming the world of public procurement at a rapid pace.  These changes create challenges to which we must respond, they also offer opportunities from which we can benefit.
  1. The Procurement Strategy attached at Appendix A aims to ensure that procurement planning supports the Council's objectives.  It secures commitment to effective procurement from members and officers at all levels and provides a corporate focus in the coordination of procurement activity.  It maps out the way forward on reforming and improving our procurement function.  It guides us in:
      • smarter procurement that is a significant contributor to our efficiency targets;
      • collaboration with partners and across as well as within sectors;
      • sustainability, including it at the heart of our procurement processes; and
      • use of new technology and improved procurement tools and techniques.
  1. There are a number of key areas that the Policy highlights for work in the coming years. These include a goal to promote the use of modern technology in the procurement process and to develop e-procurement measures for use across the Council. This will reduce the resource costs of traditional procurement processes and will allow for identification of new opportunities for corporate arrangements and collaboration
  2. The Council also recognises the role that SME's have in working within their own communities to generate employment and wealth which is then locally retained. The Council has therefore adopted Welsh Government's "Opening Doors : The Charter for SME Friendly Procurement", which establishes a minimum level of good practice for public sector bodies and SMEs.
  3. When developing contract specifications the Council will consider whether a community benefit clause should be included. Such a clause can include targeted recruitment and training and the development of small business and social enterprise development.
  4. This report also seeks approval for the Council to sign up to the Code of Practice - Ethical Employment in Supply Chains which is attached at Appendix B. The Welsh Government intends that all public sector organisations, businesses and third sector organisations in receipt of Welsh public sector funding will be expected to sign up to this Code of Practice. Other organisations operating in Wales from any sector are encouraged to adopt the Code.
  5. The Code has 12 commitments and is designed to ensure that workers in public sector supply chains are employed ethically and in compliance with both the letter and spirit of UK, EU, and international laws. The Code covers the following employment issues:
      • Modern Slavery and human rights abuses;
      • Blacklisting;
      • False self-employment;
      • Unfair use of umbrella schemes and zero hours contracts; and
      • Paying the Living Wage.

Resource Implications (Financial and Employment)

  1. The Procurement Policy and Strategy is important for providing strategic direction for procurement arrangements but also for ensuring that the Council achieves value for money in the services that it procures. Savings have been built in to the revenue budget for 2018/2019 and 2019/2020 resulting from improved procurement decisions.

Sustainability and Climate Change Implications

  1. Sustainability issues are an important factor within the Policy and officers will ensure that suppliers take full account of sustainability issues when providing goods and services. This will include the use made of single use plastics by this Council and our suppliers.

Legal Implications (to Include Human Rights Implications)

  1. The Procurement Strategy is an important document setting out the procurement practices and actions the Council will take in respect of its procurements. Implementation of the strategy will require legal resource,

Crime and Disorder Implications

  1. There are no direct crime and disorder implications as a direct result of this report

Equal Opportunities Implications (to include Welsh Language issues)

  1. An Equalities Impact Assessment (EIA) scoping exercise has been completed considering the implications of adoption of a new Procurement Policy and Strategy. This can be found at Appendix C.
  2. Consultation has taken place with Equality Consultative Forum and no equality points were raised as feedback from the consultation.

Corporate/Service Objectives

  1. This report is consistent with the Council Well-being Outcome 2: An environmentally responsible and prosperous Vale

Policy Framework and Budget

  1. This is a matter for Executive decision by Cabinet.

Consultation (including Ward Member Consultation)

  1. Consultation has taken place with the Equality Consultative Forum

Relevant Scrutiny Committee

  1. Corporate Performance and Resources

Background Papers

Contact Officer

Carys Lord    Head of Finance

Officers Consulted

Corporate Management Team

Policy Officer Procurement

Procurement Officer

Responsible Officer:

Rob Thomas - Managing Director