Tuesday, 30 September 2014 Review of Procurement Arrangements & Processes
Supply Chain Management - Achievements • £400k savings delivered • Improvement of Hounslow 13/14 Highways Contract – Performance of street • Identified savings 14/15 cleansing by 10% from 85% excess of £500k to 95% May 2014 • Improvement of missed • • Leisure accreditation – BS Leisure accreditation – BS collections, spillages and collections, spillages and ISO19001 complaints for SITA Contract (Waste & Recycling) • Working in conjunction with WLA (Ealing and Brent) • 300 streets per week (approx. 20%) checked
Supply Chain Management – Next Steps • Migration of further • Supplier Engagement Day contracts to Supplier for local businesses Performance • Review of the scope for • Updated Contract Procedure Departmental Contracts Rules Board • • Launch of the Supply Chain Launch of the Supply Chain • • Further recruitment to bring Further recruitment to bring Manual team up to full compliment • Tackling Non-Contracted • Go Live of Personal Care Spend Framework
P2P - What has been achieved in the past 9 months Purchasing MOTs Agresso • Improved the reputation of SCM • From January 14 compliance checks carried • Identified potential areas for savings (Client out at supplier set-up stage by SCD. This storage and Domiciliary care within Mental ensures the Tenders and Contract Health) Regulations are adhered to. ProContract (e-Tendering) • Turnaround reduced to 2 days (from 5 days) • All procurements carried out by SCM use e- Non-Contracted Spend tendering (38 ITTs, equating to £43.4m) • • Identified, by value, the highest value Identified, by value, the highest value • • Public facing contract register has been Public facing contract register has been suppliers without contracts populated for all in place contracts held by Legal and in Controcc, that are over £30,000 • Have plans in place for non-contracted going back to 2010 (267 active contracts, spend and expiring contracts 210 expired) P-Cards • Tripled the number of cards and transactions (29 cards, 101 transactions in August 14) • Doubled the number of cardholders reviewing transactions correctly. (88% reviewed in August 14, 38% in December 13)
P2P – What is still to be done Purchasing MOTs Agresso • Further promotion of the reviews and their • Optical Character Recognition to enable e- benefits (September 2014) invoicing as part of the E-post room project • Phase 2 to review groups of cost centres • Move to product based ordering for and category areas and identify further improved MI actions (Q4 14/15) • Implementation of Punch Out catalogue for ProContract (e-Tendering) Stationery Non-Contracted Spend • All Procurements over £5,000 will use the e- tendering system from December 2014 tendering system from December 2014 • • Top 50 non-contracted suppliers passed on Top 50 non-contracted suppliers passed on • Use of e-auctions to drive better value to Procurement to begin to determine • Training users on use of Quick Quotes procurement process where needed (by March 2015) P-Cards • Remaining above OJEU non-contracted • Implementation of Embedded Cards in suppliers (350) to be analysed and action stationery contract to reduce invoice volume plan determined by SCD (by March 2015) (October 2014) • Engagement with service areas to promote the benefits of P-cards to expand the programme to 75 cards (by March 2015), and reduce one-off purchases through Agresso
“As Is” Process
Issues Identified & Recommendations Issues Identified ; during the consultation for the updated Recommendations Contract Procedure Rules several suggestions have been made to improve the processes that are part of this review: APP risk categorization is manual. There is currently a lack of Scored risk ratings and defined parameters for the risk categories. guidance around what constitutes high, medium and low risk factors for a procurement. Little challenge of the APP risk rating or identified savings in the APP Commencement form to include identified savings. APP. Departmental Contracts Boards to challenge APP risk ratings. No quality assurance of business case to procure or consideration DCB terms of Reference being to include review of procurement of cross directorate spend. business cases and procurement pipelines. In instances where the APP Appendix is approved by Cabinet as a Combine the APP Registration and the Authority to Commence ‘C’ you are then in a situation where the next task is to seek ‘C’ you are then in a situation where the next task is to seek forms. This will remove the issue described, and potentially save 4 forms. This will remove the issue described, and potentially save 4 Cabinet Approval to Commence. weeks from the tender process without reducing project visibility to Cabinet or Members. Lack of clarity over who constitutes “Procurement Officer” on the (i) Change of wording from “Procurement Officer” to Authority to Commence form. “Procurement Hub Category Manager” (ii) Transfer authority documentation to an e-form, which will automatically workflow documents to the correct officers for approval. Not every signatory on the AtA includes a declaration of interests Additional declarations added for each signatory to specifically declare interests. No request for supporting documentation when accessing (i) Amend AtA to request Appendix of Customer Access framework agreements (usually a Customer Access Agreement) Agreement (or equivalent) when framework is confirmed. on the AtA. Due Diligence should also be carried out by (ii) Procurement Hub approval to include confirmation Due Procurement Hub prior to completion Diligence has taken place for the framework.
Suggested Process
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