Together we are stronger

The Procurement
Action Plan
2008 - 2011

Consultation Document

Photos by Peter Barton

CONTENTS

Introduction to The Procurement Action Plan 3

Efficient and Effective Procurement 4

ƒ Efficiency and Value for Money 5

ƒ Controls, Standards and Risk 6
ƒ Training and Development 7
ƒ E-procurement and Purchasing Cards 8
ƒ Performance Management 9
ƒ Collaborative Procurement 10
ƒ Information and Communication 11
ƒ Community and Customers’ Involvement 12

Socially Responsible Procurement 13

ƒ Sustainability and Environmental Management 14

ƒ Equality and Diversity 15
ƒ Fair Trade 16
ƒ Ethical Procurement 17
ƒ Regeneration 18

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INTRODUCTION TO THE PROCUREMENT ACTION PLAN

The arrangements in place to secure the Procurement Lincolnshire Strategic Objectives

are set out in a high level Action Plan for implementation. The following Action Plan will
enable Procurement Lincolnshire to deliver and embed procurement principles for effective
and efficient procurement and socially responsible procurement in all Partner Authorities in
Lincolnshire, ensuring overall value for money for all goods, services and works procured.
A detailed procurement annual work plan has also been developed, showing the actions,
responsibilities and milestones. This is published on Procurement Lincolnshire’s Website.

We have identified two procurement priorities:

ƒ Efficient and Effective Procurement; and

ƒ Socially Responsible Procurement.

We have set out our strategic objectives and targets under each priority in this document.
The targets are intended to provide a framework within which further specific targets can
be developed during yearly service planning. As well as a general approach, we will also
develop strategies and specialist areas.

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EFFICIENT AND EFFECTIVE
PROCUREMENT

Efficient and effective procurement is essential to show that we are achieving value for
money on goods, services and works. The areas of this Strategy that relate directly to
efficient and effective procurement are:

ƒ Efficiency and Value for Money;

ƒ Controls, Standards and Risk;

ƒ Training and Development;

ƒ E-procurement and Purchasing Cards;

ƒ Performance Management;

ƒ Collaborative Procurement;

ƒ Information and Communication; and

ƒ Community and Customers’ Involvement.

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EFFICIENCY AND VALUE FOR MONEY
The Government Spending Review 2007 statement sets Local Authorities a target for efficiency gains. Improved procurement is seen as a major influence on
the Partnership’s ability to achieve its efficiency targets.

Main Aim
Secure tangible improvements in value for money whilst maintaining or improving standards of quality that will benefit the citizens of Lincolnshire. Through
procurement activities Procurement Lincolnshire will make a significant contribution to the efficiency targets set out in the Comprehensive Spending Review
2007.
OBJECTIVE ACTION YEAR

To reduce the cost of procurement ƒ Develop the savings register and align it with the reporting requirements of the Efficiency 1–3
process and obtain value for money on Statement.
all procured goods, services and ƒ Achieve procurement savings year-on-year in line with the Detailed Business Case to
works. support Comprehensive Spending Review 2007 efficiency targets.
1-3
ƒ Annual savings targets for Partner Authorities to be agreed and Key Performance 1-3
Indicators to monitor performance to be introduced. This detail is provided in the Annual
Procurement Work Plan.
ƒ An Annual Procurement Work Plan to be produced for 2008/09 and subsequent years 1-3
which identifies savings in line with the Detailed Business Case.
ƒ The Annual Procurement Work Plan to identify all planned major procurement activity. 1-3
ƒ Work with key Partners including public sector purchasing consortiums to benchmark any 1-3
purchasing activity to inform future priorities.
ƒ Develop and promote guidance on achieving efficiency through improved procurement. 1
ƒ Undertake a cost and benefit analysis (whole life cost model) during tender evaluation to 1-3
ensure that contracts are awarded on the basis of price and quality, rather than on price
alone.
ƒ Undertake a full review of the role and structure of Procurement Lincolnshire. 3
Links to our Core Values:
Looking After Lincolnshire
Effective Working Partnerships
Provide Value for Money
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CONTROLS, STANDARDS AND RISK
There are a number of restrictions relating to public sector procurement. We have a duty to our ratepayers to apply controls and consistent standards to
provide value for money.

Main Aim
To ensure that suitable controls are in place to maintain consistent high standards and make sure that risk is managed.

OBJECTIVE ACTION YEAR

To ensure that risk is appropriately ƒ Develop a standard set of contract procedure rules. 1
managed and that all procurement
remains legal, ethical and transparent ƒ Review the contract procedure rules to ensure compliance with this strategy and review 2–3
whilst embodying our Core Values. annually thereafter. Previous years monitoring to be reported to the Client Group.

ƒ Review the use and coverage of Standing Lists and co-ordinate their use in future. 1
ƒ Undertake an external assessment (Gateway Review). 1
ƒ Introduce and review the effectiveness of ‘Gateway’ controls. 2
ƒ Ensure that controls and standards are streamlined, secure value for money and 1-3
encourage new ideas.

ƒ Ensure that there is greater co-ordination of skills by introducing standard documents. 2

ƒ Introduce tools to ensure contract managers develop risk registers and controls within the 2
tender process.

Links to our Core Values:

Looking After Lincolnshire
Putting Customers First
Code of Conduct

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TRAINING AND DEVELOPMENT
A key element to effective public sector procurement is staff that are suitably trained and qualified to provide the necessary professional input. The level of
expertise needed ranges from a formal procurement qualification and wide experience, to knowledge of basic procurement techniques.

Main Aim
To ensure there is a structured approach to education, training and development for all staff and council members with procurement responsibilities.

OBJECTIVE ACTION YEAR

Develop the knowledge and skills of all ƒ Undertake a robust analysis of the existing training and skills needs of staff and produce a 1
those involved in the procurement training programme.
process to enable the implementation
and delivery of the actions and ƒ Introduce a programme of procurement training and competency framework for staff. 1-2
processes set out in this strategy.

ƒ Increase the number of staff gaining procurement related qualifications and make sure that 1-3
continual professional development is maintained.

ƒ Introduce a procurement training programme and deliver to Partner Authorities elected 1-2
members.

ƒ Ensure that all staff with significant procurement responsibilities have received training in 2
managing projects.

ƒ Include procurement in management training. 2

ƒ Ensure that procurement is included in the staff induction process. 2
Links to our Core Values:
Looking After Lincolnshire
Valuing Colleagues

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E-PROCUREMENT AND PURCHASING CARDS
E-procurement is essentially ‘doing procurement’ electronically. E-procurement improves aspects of communication in the procurement process and reduces
some of the associated costs.

Main Aim
To make the best use of information and communications technology to improve efficiency and effectiveness. To improve the cost of the procurement process
and to encourage suppliers to adopt e-procurement methods.

OBJECTIVE ACTION YEAR

To use technology to reduce the cost, ƒ Develop and implement an e-procurement strategy. 1
improve efficiency and effectiveness of
all aspects of the procurement ƒ Introduce electronic tendering. 1
process. ƒ Seek to introduce a ‘market place’. 2
ƒ Provide training opportunities and workshops to support the introduction of e-procurement. 1–3
ƒ Develop a comprehensive website which includes information to suppliers on “How to Sell 1
to Procurement Lincolnshire”.
ƒ Develop a user-friendly database of contract information. 1-3
ƒ Continue to roll-out the Lincolnshire Procurement Cards. 1-3
ƒ Assess introducing further e-procurement solutions such as e-auctions. 3
Links to our Core Values:

Looking After Lincolnshire

Putting Customers First
Provide Value for Money
Valuing Colleagues

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PERFORMANCE MANAGEMENT
Performance Management is an important method of assuring quality and making sure we continue to improve the way we deliver the procurement service.

Main Aim
To promote the development and use of performance management.

OBJECTIVE ACTION YEAR

Provide on-going measurement and ƒ Support regional performance standards through the Regional Investment and Efficiency 1-3
review of the procurement process Partnerships.
and activities.
ƒ Develop further methods of measuring agreed performance standards. 1

ƒ Improve the range and quality of financial and general procurement information available. 2

ƒ Review the strategy Action Plan and produce a monitoring report for the Client Liaison 1-3
Group on a quarterly basis.

ƒ Analyse all spending on procurement activity. 1–3

Links to our Core Values:

Looking After Lincolnshire

Putting Customers First
Effective Working Partnerships
Provide Value for Money

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COLLABORATIVE PROCUREMENT & PARTNERSHIPS
The Government has identified collaboration as a positive way forward which has resulted in the creation of Procurement Lincolnshire. Collaboration may be
within the public sector or it may be between ourselves and external suppliers. We are committed to working with Partners.

Main Aim
To improve the efficiency and effectiveness of services by working with a range of organisations to develop a Partnering approach with Partners and Suppliers
to create mutually advantageous, flexible and long-term relations based on trust and continuous improvement.

OBJECTIVE ACTION YEAR

Collaborate, consult, share good ƒ Work with the Regional Improvement and Efficiency Partnerships and other procurement 1-3
practice and learn from experiences as professional organisations to identify more opportunities for joint working.
a way of providing more flexible and
cost effective services. ƒ Identify and monitor savings we could make through collaborative procurement. 1-3
ƒ Work with the Lincolnshire Procurement Forum to develop joint arrangements. 1–3
ƒ Regularly review our existing partnership arrangements to influence future partnership 1-3
projects. Produce clear guidance.

ƒ Increase our involvement in departmental efficiency reviews to identify opportunities for 1-3
partnership arrangements.

ƒ Produce guidance in relation to benefitting the community. 2

Links to our Core Values:
Looking After Lincolnshire
Putting Customers First
Effective Working Partnerships
Provide Value for Money

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INFORMATION AND COMMUNICATION
Managing information efficiently is crucial to providing an effective and responsive service. Communication is an important part of managing information and
makes sure that accurate and appropriate information is easily available.

Main Aim
To provide and encourage access to high-quality information about procurement.

OBJECTIVE ACTION YEAR

Provide and communicate high quality ƒ Provide guidance on the intranet for the procurement process. 1–3
information to allow efficient and
effective procurement decisions to be ƒ Produce a list of staff with procurement responsibilities so we can share information.
made. 1
ƒ Continue to review operational procurement and develop methods for collecting, 1–3
receiving and sharing information.

ƒ Provide research into developments in procurement. 1–3

Links to our Core Values:

Looking After Lincolnshire
Putting Customers First
Effective Working Partnerships
Valuing Colleagues

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COMMUNITY AND CUSTOMER INVOLVEMENT
Putting customers first is at the heart of our values. We need to make sure our customers are involved in designing, delivering and improving the services they
receive.

Main Aim
To deliver community benefits and involvement in procurement processes, and working with stakeholders to improve the procurement process.

OBJECTIVE ACTION YEAR

Deliver processes and procedures to ƒ Develop and promote guidance on involving users in the procurement process. 1
facilitate stakeholder input to
procurement activities.
ƒ Ensure that consultation with users has contributed to improved service descriptions 1–3
before starting the procurement process.

ƒ Work with users to provide training and awareness on their role in the procurement 1–3
process.

ƒ Provide training and support to suppliers to make sure that we involve communities and 2–3
customers in our services.

ƒ Review and report on feedback to make sure services and procurement processes are 1–3
developed and based on users’ needs.

Links to our Core Values:

Looking After Lincolnshire

Putting Customers First
Effective Working Partnerships

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SOCIALLY RESPONSIBLE
PROCUREMENT

We recognise that our activities have an effect on the society in which we work, and that
developments in society affect our ability to work successfully. We are committed to
achieving environmental, social and economic aims that tackle these effects. These are
set out in our Vision and Strategic Objectives.

This section of the Strategy outlines the aims and objectives of the social responsibility
agenda and relate directly to the areas of:

ƒ Sustainability and Environmental Management;

ƒ Equality and Diversity;
ƒ Fair Trade;
ƒ Ethical Procurement; and
ƒ Regeneration.

It should be noted that in some of the above areas there are linked targets and action
plans, for example Environmental Policy targets such as CO2 reduction and carbon
management plans; equality and diversity targets.

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SUSTAINABILITY AND ENVIRONMENTAL MANAGEMENT
Looking after Lincolnshire is one of our values. Our procurement activities, and those of our suppliers, affect the global and local environment and have an
influence on whether we achieve our sustainable and environmental aims as set out in Partner Authorities environmental policies.

Main Aim
Achieving value for money with goods, services and works that are manufactured, delivered, used and disposed of in a manner which minimises their social
and environmental impacts and which maximises their social and environmental benefits;

OBJECTIVE ACTION YEAR

• Promote Value for Money Sustainable ƒ Develop an environmental and socially responsible procurement policy.
1
Procurement practices and policies
which contribute to improved
performance and reduce global and ƒ To implement National Best Practice – Flexible Framework for sustainable procurement
local environmental impact in by:
1–3
accordance with adopted o Delivering training and development activity that helps embed sustainable procurement
environmental policies; objectives.
• Develop procurement principles to o Developing policies to facilitate and promote sustainable procurement and communicate
encompass community benefits. progress to achieve sustainable procurement objectives to stakeholders.
o Developing and embedding tools that enable sustainable objectives to be addressed in
the procurement process.
o Working with suppliers to improve sustainable performance through the supply chain and
stimulate innovation.
o Developing and utilising indicators of sustainable procurement performance.

ƒ Work with other external agencies e.g. Regional Investment and Efficiency Partnerships,
public sector purchasing consortiums and partners to develop a regional approach of
1–3
good practice.

Links to our Core Values:

Looking After Lincolnshire

Demonstrate Leadership and Sustainable Procurement
Provide Value for Money

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EQUALITY AND DIVERSITY
We can use our influence to promote a positive approach to equality and diversity. In our procurement processes, we will make sure that we give our suppliers
advice on equality issues and make sure that contracts promote equality and diversity.

Main Aim
To promote procurement practices and policies which contribute to our priorities on equality and diversity by providing information on equality issues and
making sure we treat all suppliers and potential suppliers equally.

OBJECTIVE ACTION YEAR

Promote procurement practices and ƒ Develop standard procurement statements to support the Equality and Diversity 1
policies which contribute to the priorities Strategies of Partner Authorities.
on equality and diversity.
ƒ Include appropriate equality and diversity clauses in all contracts. 1-3
ƒ Support the work towards level 3 of the Equality Standard for Local Government and 1-3
thereafter level 4.

ƒ Provide guidance and advice via a number of channels on equalities for all organisations 1–3
doing, or wishing to do, business with Procurement Lincolnshire.

Links to our Core Values:

Looking After Lincolnshire

Putting Customers First
Code of Conduct

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FAIR TRADE
Fair Trade is a system of making sure that suppliers get a fair price for their goods.

Main Aim
To increase our understanding of opportunities arising from Fair Trade.

OBJECTIVE ACTION YEAR

Work towards Lincolnshire being a Fair ƒ Undertake a comprehensive investigation and evaluation of Fair Trade. 1
trade County.
ƒ Review each Partners current position and commitment in being awarded Fair Trade 1
status.

ƒ Consider and develop a Policy and provide the necessary advice on how to put it into 2
practice.

Links to our Core Values:

Looking After Lincolnshire

Putting Customers First
Demonstrate Leadership in Sustainable Procurement

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 ETHICAL PROCUREMENT
Ethical procurement concerns the living standards of people locally, nationally and internationally who may be affected by our procurement activities.

Main Aim
To raise the profile of ethical issues in the procurement process and introduce our suppliers to ethical issues in the supplier relationship to ensure a positive
ethical impact.

OBJECTIVE ACTION YEAR

Ensure that we meet the highest ƒ Introduce ethical considerations into our contracts and increase the awareness of related 1–3
standards of ethics and probity and issues with suppliers.
in turn expect the highest ethical
standards from our suppliers.
ƒ Produce guidance to help suppliers. 2
ƒ Write and publish a policy statement and code of conduct concerning ethical procurement. 1
ƒ Ask suppliers to show their commitment to ethical issues within their own company. 2
ƒ Provide information and training on ethical procurement. 2
ƒ Ensure our suppliers are aware of our Whistleblowing Policy. 1–3
Links to our Core Values:

Looking After Lincolnshire

Demonstrate Leadership in Sustainable Procurement
Code of Conduct

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 REGENERATION
Working with small and medium-sized enterprises, social enterprises, voluntary and community sector suppliers, local suppliers, and black and ethnic-minority
suppliers in our procurement process will support Partner Authorities local regeneration strategies, benefit the community and contribute to economic
development and the Socially Responsible Procurement agenda.
Main Aim
To support local regeneration and redevelopment by providing high-quality information and encouraging a varied supply market.
OBJECTIVE ACTION YEAR

Encourage a mixed range of ƒ Develop a Supplier Management Strategy for collaborative procurement that includes 1
suppliers to help develop a varied small suppliers.
and competitive market place.
ƒ Include the voluntary and community sector compact in our processes. 1-2
ƒ Work with varied and local suppliers, and support them in working with Procurement 1-3
Lincolnshire.
ƒ Undertake a review to ascertain how we can maximise the opportunities for using local 1-2
suppliers.
ƒ Develop proposals and plan for improving access to Procurement Lincolnshire’s business 1-2
for community and voluntary sector organisations.
ƒ Work with the Regional Investment and Efficiency Partnership in developing the 1-3
collaboration agenda.
ƒ Sign-up to the national small business friendly concordat. 2
ƒ Encourage our suppliers to use small firms and local labour. 1–3
ƒ Work with suppliers assisting them to reduce their environmental impacts and increase 1–3
resource efficiency and competitiveness.
Links to our Core Values:
Looking After Lincolnshire Demonstrate Leadership in Sustainable Procurement
Putting Customers First Effective Working Partnership

© Procurement Lincolnshire 2008

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