Corporate Procurement Strategy September 2020 – August 2022

 

Version Draft 0.17


Contents

1.     Executive summary                                                                                                                    3

2.     Introduction                                                                                                                                  3

3.     The procurement landscape                                                                                                     4

4.     Strategic aims and  key priorities                                                                                              5                                 

5.     Equalities in Social Value via Procurement                                                                          9

6.     Equalities in Procurement                                                                                                      11

7.     Ethical and Sustainable Procurement                                                                                  13

8.     Procurement Overall Aims                                                                                                      13

Appendix 1 - Social Value Statement                                                                                   17

Appendix 2 – Ethical Procurement Statement                                                                    24

Appendix 3 - Equalities in procurement                                                                               29

Appendix 4 – Procurement Strategic Objectives                                                                 32

Glossary                                                                                                                        36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.    Executive summary

The City of Oxford has a vibrant and diverse community, one that is rich in culture and history. It is a global centre for education, health, bioscience, information education, publishing, the motoring industry, and tourism. Serving the local community and economy is at the heart of everything we do.

 

Historically, the Council spends circa £91M per annum on procuring goods, services and works excluding Capital, £128M including Capital. In a time of significant austerity, Covid -19 and Brexit, there is even more focus on procurement to help the Council to deal with the severe challenges we face.

 

 

 

This is a two year strategy defining how procurement will support the delivery of the Council’s Corporate Plan for 2020-2022 allowing for updates in further strategies to cater for the current external factors (Covid-19, Brexit and Procurement team management) as well as meeting the Council’s legislative obligations.

 

The strategy takes into account EU Procurement regulations, the potential changes that will require implementation following Brexit, the Council’s vision to become a world-class city for everyone incorporating Social Value, Social Enterprise, Equality and Diversity and moving rapidly towards Zero Carbon.

 

Whilst this procurement strategy is designed primarily for the Council, it is intended that it will align with the procurement strategies of the Council’s wholly owned companies, Oxford Direct Services Limited (ODSL) and Oxford City Housing Limited (OCHL) to ensure that as a group they benefit both from financial savings and efficiencies from joint procurements and frameworks wherever possible.

 

 

2.    Procurement Introduction

 

Delivering value for money is at the heart of what procurement does.

 

This Procurement Strategy has been prepared in response to the ever changing procurement agenda and the current financial climate. The strategy sets out the procurement aims and goals for the Council for 2020 - 2022 and will be reviewed on an annual basis, to reflect any changes in both national and local policies and priorities.

 

In this Procurement Strategy we have aligned our procurement ambitions in line with the Council’s corporate vision and aims for 2020-2024, with the Contract Rules (Section 19 of the Constitution) being kept under review throughout the life of the strategy to ensure that the Council stays ahead of best practice.

 

This strategy seeks to adopt a pragmatic approach to procurement, one that is balanced and considers the value and risk associated with individual procurements and is designed to enable the Council to continue on its journey of change and innovation.

 

The Council is mindful that the impact of procurement is far greater than processes objectives and principles and that effective procurement can incorporate a wide ranging socio-economic agenda. That means at the heart of this strategy sits the aim to deliver an inclusive economy, whereby the Council uses its purchasing power to retain wealth that benefits the local economy, influences sectors to provide an Oxford Living Wage and unleashes the potential of the voluntary and third sector. In taking this approach, the Council will not only deliver a successful local economy for everyone, the leverage of our power can help address a wide range of ethnic and social disparities, push employers to become inclusive, significantly contribute to our ambition to be zero carbon and  deliver value for money for Oxford’s citizens.

 

Community Wealth Building (CWB) is a people-centred approach to local economic development, redirecting wealth back into the local economy and is a response to the contemporary challenges of austerity and automation seeking to provide resilience where there is risk.  There are five key principles of CWB one of which is progressive procurement of goods and services.  The Council has committed to the CWB agenda and therefore this is reflected within this Procurement Strategy.

 

 

3. The Procurement Landscape

 

3.1 Legislation

Public procurement operates in a highly regulated environment governed by the Council’s internal procedures and rules such as the Contract Rules in the Constitution and legislation such as the UK Public Contract Regulations 2015, The Concession Contracts Regulations 2016 and the Utilities Contracts Regulations 2016. The Public Services (Social Value) Act 2012 will be applicable to pre-procurement procedures and the Council must consider how any services it is considering procuring might improve social priorities and the wellbeing of the service area. Policies relating to procurement currently set by the European Union may, through Brexit, be subject to change although it should be noted that the UK will still be treated as an EU member state during the Brexit transition period.  

 

3.2 Challenges and opportunities

The Council continues to operate in a very challenging financial environment.  Demand for local public services is rising and cost pressures are increasing, yet government grant to councils has reduced markedly. The Council has itself lost around £6 million of Revenue Support Grant since 2016. The recent COVID19 global pandemic has brought with it significant financial challenges both in the short and longer term and ensuring best value is obtained for every pound spent on supplies and services by the council will require a clear Procurement Strategy.

 

High on the Procurement’s agenda is increasing social value opportunities. Social value is about using the Council’s spend and influence to drive social and economic opportunities to those most in need, it's about delivering services, tackling inequality and  protecting our planet one procurement at a time.  It is also about breaking down barriers and developing opportunities to do good business in an inclusive economy context. By engaging with key stakeholders and seeking their buy-in to the process we will take the first step towards consistently delivering and evidencing such value.

 

Procurement undertaken in the right way can positively impact on various sectors of the economy. Tendering processes need review to ensure Small and Medium Size Enterprises (SMEs), third sector organisations and social enterprises have adequate opportunity to compete for opportunities (directly or as a subcontractor).

 

3.3 Strategic vision and aims

 The Corporate Plan 2020-24 sets out the Council’s vision for the city and quality of  

  life of its residents and the plans for how it will achieve the objectives in the four key

  priority areas:

 

Oxford City Council: Building a world-class city for everyone

 

1.    Foster an inclusive economy

2.    Deliver more affordable housing

3.    Support thriving communities

4.    Pursue a zero carbon Oxford

 

 

4. Strategic Aims and Key Priorities

 

 

4.1 Procurement vision

Procurement by its very nature is well placed to support the delivery of the Council’s corporate priorities.

 

Recognising that the procurement strategy, policy and practice impacts significantly on outcomes, our vision for procurement is:

 

·         to create value through strategic thinking, efficient processes, use of technology and exceptional customer care in the fulfilment of the Council’s corporate priorities

·         to create real value through people powered procurement

·         to provide solutions to needs, on-time and in full

·         to make procurement easier and better for everyone in order that stakeholders can focus on what they do best.

 

In the above context, delivery of the Council’s objectives, including better outcomes from public services and regeneration of places, requires resourcefulness and Procurement is responding to this requirement by:

 

·         maximising value for money – gaining further social value benefits,

·         supporting stakeholders in the use of frameworks and other procurement portals like the digital market place where value for money can be demonstrated.

·         creating commercial opportunities – promote revenue generation through promotion and support of the Council’s two wholly owned companies

·         smarter ways of working – embracing innovation, collaboration and embedding change.

 

The use of the Government Market Place, and other frameworks put in place by buying organisations such as ESPO (Eastern Shires Purchasing Organisation), YPO (Yorkshire Purchasing Organisation) and many more will enable the team to focus resources into areas where they can deliver greater value, added to that over a period of time frameworks can deliver many benefits such as

·         Remove the need to undertake costly and time consuming procurements

·         Significant reduction on procurement timescale

·         Robust agreements resulting from thorough professional due diligence

·         Pre-agreed terms and conditions

·         Reduced Contract costs due to aggregation of spend

 

 

4.2 Procurement aims

 

·         Stakeholder engagement

o   engage with relevant stakeholders and service users ensuring business needs are analysed and the design of specifications reflects community requirements, whilst recognising the contribution of existing services;

o   secure the ongoing commitment of internal stakeholders to implement the Strategy, by continuing to increase the profile of procurement within the Council;

o   Provide a professional knowledgeable support function to train internal stakeholders and offer guidance on procurement related activities

·         Route to market

o   procurements valued in excess of £100k have an approved procurement strategy prior to commencement that delivers sustainability, local economic development, social value, equality and diversity and inclusivity objectives;

o   collaborate with other public bodies and partnering arrangements with suppliers to maximise efficiencies;

o   encourage a varied and competitive supply market;

o   support and enable the Council to be competitive and portrayed as the supplier of choice when bidding for commercial opportunities;

·         Inclusive economy in Procurement

o   provide an innovative service which delivers quality outcomes to the citizens of Oxford City;

o   procure goods, services and works in a lawful and ethical manner which encourages participation, collaboration and sustainable economic growth;

o   ensure the Procurement Strategy is aligned with the Council’s corporate priorities in particular to be an efficient and effective Council;

·         Outcomes and development

o   develop staff in Procurement who lead on regulated procurements; through training, secondments and mentoring;

o   provide reporting of procurement performance and compliance;

o   provide responsible sourcing through the procurement service to deliver value for money and financial savings

 

See Appendix 4 (Procurement Action Plan) for further aims and actions related to Social Value, Equalities, zero carbon etc.

 

 

 

4.3 Key priorities for our regulated procurements for 2020:

 

4.3.1 Corporate aim 1: Foster an inclusive economy

 

Small, Medium Enterprises (SMEs), and Voluntary, Community and Social Enterprise organisations (VCSEs)

 

The Council has an ethos of promoting opportunities for local businesses, either directly with the Council or indirectly through contracts that it holds with prime contractors. Procurement is a mechanism for delivering and realising tangible benefits for the economy and local communities. Over 75% of the Council’s spend is local to Oxfordshire and over 60% of the Councils spend is spent with SME’s (Small and Medium Enterprises).

 

The Council’s Contract Rules provide a clear requirement which directly supports these priorities:

·         at least one local supplier must be sought in all instances unless the opportunity is advertised via an open process;

·         to seek a commitment from suppliers to pay their employees the Oxford living wage (where work is undertaken within Oxford) or the Living Wage Foundation Rate: this includes (where appropriate) any employees engaged by a sub-contractor in fulfilling the contract.

·         To understand  our supply chain and how it can support more local businesses, including social enterprises and cooperatives, promoting wider benefits to the local economy

 

The Council is also proud to be an accredited member of the Living Wage Foundation and procurement will seek to promote and increase the number of suppliers that adopt the Oxford Living wage or Living Wage Foundation rate on supply of goods, services or works.

 

Working with Council Service Heads, and our two wholly owned companies ODSL and OCHL Procurement will also undertake the following to support this corporate aim:

·         Adopt a corporate defined approach to social value

·         Incorporate 5% evaluation criteria on social value requirements where proportionate and relevant in regulated contracts and increase this weighting where it is deemed appropriate to do so.

·         Improve contract management to ensure contracts are delivering the social value offered at point of contract award ensuring that the Council measures and records the actual deliverables

·         Further develop social value and update procurement documentation to reflect developments.

·         Where possible, simplify procedures to assist SMEs and third sector enterprises to bid, working with relevant member champions.

·         Hold a corporate “meet the buyer” event to engage with suppliers from all areas to understand the market and barriers.

·         Hold “how to tender” workshops to support suppliers in the tender process.

·         Target and encourage BAME/Women-led SMEs to come to “meet the buyer” events to tackle issues of under-representation in specific service sectors.

·         Pay undisputed SME invoices within 14 days and other supplier invoices within 30 days of receipt.

 

 

4.3.2 Corporate aim 2: Deliver more affordable housing

 

The Council has established a Housing Development Company, OCHL to undertake housing developments which increase the supply of social, market and shared housing in Oxford, to meet the ever increasing demand.

 

Procurement will work with the Council’s wholly owned company OCHL, to ensure procurement processes support the delivery of affordable housing projects whilst ensuring compliance with the necessary regulations.

 

Procurement will seek to make savings on construction, refurbishment, repair and maintenance procurement exercises delivering value for money whilst not hindering project deadlines.

 

Procurement will ensure visibility of the value for money for each project that it is involved with in the form of added value contract deliverables or financials for grant based income.

 

Procurement will work with its stakeholders to procure works,  goods and services for delivery that provide best value for money and good standards of quality. This may involve setting up Dynamic Purchasing System (DPS) frameworks, utilisation of national frameworks or tendering requirements directly with the market.

 

Procurement will also undertake the following to support this corporate aim:

 

·         Assist the Council in tackling the housing challenges it faces by supporting Service Areas to tackle homelessness.

·         Engage with OCHL and ODSL to understand their needs early in the process and offer options for the most appropriate route to market

 

 

4.3.3 Corporate aim 3: Support thriving communities

 

 

Thriving Communities

Procurement will work with the Council’s Community teams in their aim to respond to and support communities, offering appropriate procurement advice to help towards developing sustainable communities.Examples where we can assist:

·         Attending Communities facility review meetings advising on best practice and routes to market for projects;

·         Working with internal and external agencies to deliver culturally competent services for BAME, disabled, elderly and vulnerable people; and

·         Working with the Council’s Community Services to deliver high quality cultural events and activities where procurement of goods and or services is required.

·         Providing business start-up advice to potential new suppliers in Oxford particularly around the procurement websites that they may wish to register with along with advice concerning the standard selection questions that suppliers should be aware of.

 

Procurement will also undertake the following to support this corporate aim:

·         Engaging early with stakeholders to seek input as to how procurement may be able to support them.

·         Reviewing, supporting and checking procurement exercises where the Modern Slavery Act 2015 and preventing human trafficking may be relevant.

 

See appendix 2 for further information

 

 

4.3.4 Corporate aim 4: Pursue a zero carbon Oxford

 

Procurement can make an important contribution to sustainable consumption and production; it can play a key role in helping to become a more resource-efficient economy. As part of this we will:

·         Work with the Council’s Citizens’ Assembly on procurement projects such as the purchase of renewable electricity and gas, that not only would help meet the 2050 zero carbon future for the city, but also the aim for the Council to be net zero by the end of 2020;

·         Ensure the whole lifecycle from purchase to disposal is considered in every regulated procurement project;

·         Ensure products purchased meet the latest minimum energy efficiency requirements;

·         Wherever possible, take into account the operational energy use and environmental impacts of vehicles as part of the procurement process; and

·         Consider where relevant the EU Green Public Procurement criteria.

 

Procurement will also undertake the following to support this corporate aim:

·         Engage early with internal stakeholders to understand fully the requirements for the future and how Procurement can best support this.

·         Engage with external stakeholders to understand how the market is changing and identify potential available options.

·         Engage with other buying organisations including other Public and Local Authorities to understand how they are tackling this issue.

 

 

See Appendix 2 for further information

 

5. Equalities in Social Value via Procurement

 

The Public Services (Social Value) Act 2012 requires public authorities to consider how they can improve the economic, social and / or environmental wellbeing of their local area through the way in which they procure goods, services and works.  The Act requires consideration to be given to procurements over the EU thresholds.  The Council has taken steps to impose Social Value into the procurement process and not only over the EU threshold levels.

 

Social value, although not expressly defined does refer to the wider financial and non-financial impacts of projects, it is an indispensable part of procuring public services.  It can shift the focus from processes to outcomes that have direct benefits for the Council and the City.

 

The overarching objective is to achieve the best commercial results, whilst supporting key social outcomes that meet Oxford’s needs strategically; creating opportunities for local people, and encouraging spend with local SMEs, social enterprises, co-operatives and voluntary bodies and organisations committed to environmental improvement by:

 

·         Considering throughout the commissioning cycle what community benefits can be derived through social value, and where building provisions for such in all our contracts is beneficial;

·         Incorporating social and environmental aspects into specifications award criteria and contract conditions where appropriate and proportionate to what is being procured or provided;

·         Promoting innovation, employment and social inclusion, protection of the environment, energy efficiency and combating climate change; and

·         Creating and nurturing a vibrant, healthy, innovative, competitive rich and representative diverse marketplace of suppliers reflecting Oxford localities that include and encourage small business, mutual, charities, community groups, co-operatives and social enterprises.

·         Varying the extent to which social value might be measured by the Council.  Some contracts will be well placed to deliver greater social value in the communities they serve than others.

 

The Council is committed to sustainable procurement and its procurement activities are not solely based on the economic factors, but aim to achieve the best value based on the whole life costs, the associated risks, measures of success and implications for the society and environment.

 

Procurement is focused on developing its approach to how it accesses, manages and monitors the use of community benefits in its contracts to ensure the additional benefits offered by the Council’s suppliers will deliver the best possible social value for the communities of Oxford City.

 

During 2019/20 procurement included as part of regulated procurements where relevant and proportionate a 5% evaluation weighting on elements of Social Value that bidders could commit to. 

 

The outcome of this proactive role in targeting the social value offered across the City and its group of companies is recorded on the Contract register. The information is passed to the Contract Manager to monitor over the life time of the contract.  Examples of social value and the number of suppliers that have committed to social value within their tender response has been detailed below:

 

Social value submitted by suppliers

OCC

ODSL

OCHL

Support mentoring, placements and apprenticeships: Offers vary from taking on an apprentice in years 2 or 4 of a contract, or taking one on when the spend is over £5m, or just looking into the apprenticeship schemes/ ex-military schemes

3

7

3

Recruit/support local subcontractors and SME                Offers vary from using local suppliers as sub-contractors, spending locally for supplies, support local employment, sub-contract 80% to SMEs

1

6

3

Support a charity donation

Offers vary from charitable contributions, donations to community funds, donations to Oxford based charity, Oxford office to raise money for local hospice

0

7

0

Support/provide time to volunteer for community work/engagement

Offers vary from providing 1 member of staff a day to help at a community or voluntary group, provide 1 day voluntary work, 1 hour per week community engagement

0

5

3

General response in line with our corporate priorities.

Some responses just agreed with our objectives/principles with no specific benefits

6

0

0

Contribute to the delivery of Oxford’s Zero Emission Zone

Proposals around supporting a reduction in emissions

7

1

0

Support Oxford Living wage

Only 3 tender proposals included in SV submissions but all suppliers sign up to Terms and Conditions that state that supplier/sub-contractor shall make all reasonable endeavours to ensure they comply with the “living wage”

0

0

3

Provide Health & Safety cost advice/awareness training

1

1

0

Support paperless systems

2

0

0

Support the environment (reduction of noise, air and chemical pollution)

1

1

0

Work placements

Offers vary around work experience, 4 weeks work placement, work placement for Academy

0

3

0

Work with schools or colleges in Oxford

Offers vary from 40 hours with schools or colleges, attending a school career event, run sustainable design w/shops, career fairs.

1

3

0

Increase tourist revenue

1

0

0

Invest in hybrid vehicles - reduction in carbon footprint

1

0

0

Specialist advice to local people

0

1

0

Support disabled residents of Oxford (and their families)

1

0

0

Support the eradication of vehicle congestion

1

0

0

Support waste recycling

0

1

0

Use environmental friendly packaging

1

0

0

27

36

12

 

 

All Procurement templates include a 5% Social Value weighting. Moving forward procurement aim to work with suppliers to identify opportunities which best align their own corporate social responsibility (CSR) objectives and those of the Council aiming to establish a fair evaluation methodology for responses to Social Value.  During the 2020 – 2022 period the Council will look to increase the weighting allocated to Social Value where proportionate and relevant to do so for regulated procurements.

 

Please refer to Appendix 1 - Social Value Procurement Statement.

 

6. Equalities in Procurement

 

The Council provides a wide range of services to residents and businesses in the City.  In some cases these are provided directly by the Council, in others by our contractors and partners.

 

Each year, the Council enters into contracts worth many millions of pounds for buying goods, works and services on behalf of the people of Oxford.  Whether provided by the Council or by external organisations, it will not differentiate on the grounds of disability, impairment, employment status, gender, gender reassignment, home address, marital status, nationality, national origin, race, and religious belief, responsibility for dependants, sexual orientation or trade union membership.

 

The Council has a statutory duty to ensure that public money is spent in a way that ensures Value for Money and does not lead to unfair discrimination and social exclusion.

 

The promotion of equalities in the procurement process will help the Council to:

 

·         improve the quality of local authority services

·         Ensure that public money is not spent on practices which lead to unfair discrimination

·         Deliver more responsive and flexible services in combating social exclusion and building strong and cohesive communities

·         Encourage other organisations to practice the Council’s public service ethos on equalities

·         Deliver services that meet the diverse needs of the City

·         Improve employment conditions

·         Enable an inclusive economy

 

The Council will take into account in its tender evaluation and contracting processes, a potential contractor’s approach to equalities in terms of its employment practices and service delivery outcomes.  It will do this by asking potential contractors relevant questions and include appropriate provisions in its contract documents relating to these matters.  The response to these questions will be evaluated as part of the selection process. 

 

The impact of the procurement with regard to the promotion of equalities within service delivery and employment opportunities will also be monitored and managed during the life of each contract. 

 

This policy supports the Council’s Equality Strategy and is designed to ensure a consistent approach across the authority to all areas of equalities work.

 

Under the Public Sector Equality Duty (PSED) it is important to ensure the Council is encouraging as many companies and other organisation as possible to bid for Council business whether directly or through our two wholly owned companies ODSL and OCHL. The Procurement Team provides procurement oversight and advice to all three entities of the Council’s Group including its wholly owned companies OCHL and ODSL. Working across all parts of the Group the Team ensure where practically possible the procurement strategies of each entity are aligned with the Council’s Corporate Priorities and values and that procurements with suppliers are undertaken in a consistent and transparent manner in line with procurement regulations. Procurement will work with potential new contractors to identify ways to aid and support entry for all businesses and increase responses to tenders. 

 

It is important that Procurement foster an environment integrating consideration of equality and good relations into its day to day business by considering how a function can affect different groups in different ways. The intention is that the Council will draw on a broad range of talents to better represent the community it serves with the aim of increasing satisfaction with public services.

 

Objectives include:

 

·         Ensuring that all entities within the Council Group benefit from supplier procurements

·         Working with SMEs and Voluntary Sector Organisations to support where possible applications to become a supplier

·         Seek feedback to understand negative experiences

·         Utilise methods other than the corporate procurement portal if required to support suppliers from all backgrounds and ability.

·         Incorporate a section on Equalities, diversity and inclusion into the Selection Criteria of the procurement templates

·         Ensure that specifications and contractor obligations meet the requirement of the Council’s equality and Diversity policies, regulations and objectives and through on-going contract management ensure compliance.

 

The Council’s contracting officers should follow the checklist in Appendix 3 which also details the equalities questions that procurement will include in regulated procurements with the aim of fostering an inclusive economy.

 

 

7. Ethical and sustainable procurement

 

7.1 Procurement plays a vital role in promoting both ethical and sustainable procurement, and in furthering sustainable development through the procurement of goods, services and works, as procurement decisions can have significant socio-economic and environmental implications, both locally and globally, now and for future generations.

 

7.2 The Council has been procuring goods, services and works in an ethical and sustainable manner for many years. The Council’s approach is now formalised under the Ethical and Sustainable Procurement Statement. Appendix 2 -

 

7.3 For procurements valued at £100k and above strategies are designed to ensure that contracts represent value for money on the basis of whole life costs, that they generate benefits for the local economy, and have a positive impact on the environment. Procurements include social value or sustainability criteria where possible as well as a request for the supplier to pay the Oxford Living Wage for Oxford bases suppliers and or workers, or the Living Wage Foundation Rate for workers outside of Oxford.

 

 

8.    Procurement overall aims

 

Along with the corporate vision, procurement have the following key aims:

 

Electronic procurement

 

The Council recognises the importance of electronic procurement (e-procurement) in delivering lower transaction costs for both itself and suppliers, improving visibility of contract opportunities to the supply market, making the procurement activity visible internally and providing a clear audit trail.

 

Procurements valued at £10k or more are required to be conducted using the corporate procurement portal. Support can be given to local small businesses on how to use the portal at events such as Meet the Buyer or where the Council hosts supplier days for particular procurements.

 

For the majority of purchases the Council requires an official order to be raised in the relevant ordering system when commissioning goods, services and works. Orders are required for accounting purposes in terms of authorising the transaction, to give a financial commitment and to confirm to the supplier what has been ordered. Orders also enable invoices to be processed efficiently. Where a goods receipt note has been completed and matched with the order within a financial tolerance a payment can be generated automatically with little or no human intervention.

 

Requisitions created in the Agresso procure to pay (P2P) system are raised against defined products which classifies what is being procured, and whether it is against a contract or not. Requisitions raised against non-contracted products are subject to procurement approval where the value of the order is £5k or more.

 

The Procurement and Payments Team use management information to monitor spend including identifying opportunities to reduce non-contract spend, improve the performance of P2P and the authorisation of payments to suppliers and to reduce transaction costs.

 

Purchasing cards are used for low value purchases where efficiency is required whilst maintaining compliance with the Council’s Constitution.

 

The Council’s payment strategy is to pay undisputed invoices within 30 days of receipt and within 14 days for SMEs.

 

Contract Management

 

Embed improved contract management through:

 

·         Ensuring all contract managers are aware of the aims of the Procurement Strategy and empowered to deliver them

·         Promoting good contract and supplier management to monitor the effectiveness of regulated procurements in achieving their purposes, building good relationships

·         Championing risk management through contract management to ensure staff manage, monitor and control all internal and external supply chain risks and service delivery throughout the procurement stages and contract life.

·         Developing good working relationships with key stakeholders to identify and include appropriate KPI’s in all specifications pre tender

·         Completion of a contract handover procedure on award outlining Service Level Agreements, risk areas, specification and payment details

·         Creating, rolling out and embedding procurement training sessions for staff who manage regulated contracts

·         Encouraging contract managers to develop strong relationships with suppliers to monitor all areas of performance, mitigate risks and consider any opportunities to improve efficiency, reliability and reduce costs.

·         Developing a centralised corporate contract risk register to include supplier stability checks and performance against contract terms

 

 

Effective contract management results in improved supplier performance leading to more efficient outcomes. Contract management must:

 

·         Ensure that service expectations are met or exceeded;

·         Be responsive to securing further savings through identifying cost reductions, efficiency or process improvement, better demand management or an improvement in service delivery over the term of the contract;

·         Monitor and secure other non-cashable benefits such as improved quality, sustainability, and local economic and health outcomes as stipulated in the contract; and

·         Mitigate any supply chain or contract risk and the costs associated with the materialisation of a risk event.

 

Contract management will be reviewed in line with International Association of Contract and Commercial Managers (IACCM).

 

Value for Money

Procurement will ensure that through its regulated procurements the following key principles will be applied.

·         Increasing collaboration with other Councils and organisations including the use of buying organisation frameworks

·         Maintaining consistency and transparency in procurement processes

·         Considering where appropriate the whole-life cost of what is being procured in a clear, transparent and proportionate manner

·         Improved engagement with the Council’s wholly owned companies, local authorities and other organisations

·         Review procurement templates ensuring they remain fit for purpose and encompass all changes in procurement requirements and regulations

·         Reduce level of non-contracted spend

 

 

Contract Register and Procurement forward plan

The Council has over 575 contracts with external organisations in operation at any one time. Our wholly owned companies ODSL and OCHL have a further 220 and 15 respectively. The procurement team will maintain a register of contracts valued at £5k and above.

 

Procurement will update the Council’s contract register on a quarterly basis ensuring live and pending contracts are visible not only to internal stakeholders to aid in their management of their contracts, but providing information to suppliers of when Contracts may be coming up for tender.  Procurement will:-

 

·         Update and publish the  contract register in June, September, December and March each year.

·         Review Contract storage ensuring that there is one central repository for Contracts

·         Ensure all contracts are held on the corporate contract register and linked to a signed copy of the contract and actively monitor contract expiry dates

·         Notify contract managers in advance of contract extension requirements and contract end dates and work with them on preparations for retendering as appropriate

 

Transparency

 

Ensure that the Council’s regulated procurements will be carried out in compliance with our duty to act in a transparent and proportionate manner, at each stage of the procurement process, through;

·         Use of electronic communication for all procurement activity;

·         ensure open public and market engagement

·         use of clear and precise language to ensure a common understanding of requirements; utilising Council thresholds to ensure proportionality regarding the appropriate procurement route

·         supplier checks to mitigate risk to the Council of unsuitable suppliers being awarded a Council contract

 

General Data Protection Regulation (GDPR)

 

Article 28 of the GDPR adds a requirement upon controllers (the organisation who determines the purposes and manner in which personal data is processed) to ensure that certain provisions are included in contracts where there is personal data being passed from one party as the controller to another acting as a processor of that personal data.  The aim of the Article is to ensure that a controller of data who passes personal data to the processor controls how that processor can use that data.  In order to achieve this, the Article stipulates that any processing of personal data by a processor shall be governed by a contract containing certain information.

 

Procurement will therefore ensure that GDPR is addressed where required at each stage of a regulated procurement and recorded appropriately on the Contract register by:

·         ascertaining what type of personal data will be held as part of the contract and where that data will reside

·         identify how the data will be obtained, how it will be stored and who it will be shared with

·         identify which suppliers are affected by GDPR and record accordingly on the Contract register

 


 

 

Appendix 1 – Social Value Procurement Statement

 

Introduction

 

Implementing and embedding Social Value at a local level involves making commissioning and procurement decisions in a new way that ensures wider benefits are considered throughout the commissioning cycle and how this links to the strategic themes and policy areas within Oxford City Council

 

Practical examples could include requiring suppliers to pay the Oxford Living Wage where possible for workers based in Oxford or the Living Wage Foundation rate for workers based outside of Oxford, employ a specified number of apprentices or take certain actions to minimise environmental damage.

 

Consideration for Social Value should be given at the start of a procurement exercise.  Where practical and appropriate. Relevant and proportionate outcomes should be identified and included as part of the tender evaluation criteria against which bids will be scored.  The outcomes will be linked to the strategic vision and aims.

 

Due to the wide range of goods and services the Council and its Group of Companies procures, it is recognised that this process needs to be flexible and be tailored to each exercise.  It is the role of service commissioners and procurement leads to consider, on a contract by contract basis, relevant Social Value outcomes that could be incorporated into the process, linking to the strategic aims.

 

Suppliers can then be asked to demonstrate how they intend to deliver against those priorities that are relevant and the responses of the winning bidder would then be written into the final contract for the Contract Manager to manage and ensure the benefits are realised.


 

 

 

Application of Social Value (SV) flow chart

 

Is the value of the tender above OJEU threshold for Services?

 

                           Yes                                                              No

Optional to include Social Value considerations
Social Value considerations to be applied
 

 

 

 


                                                                                      Yes – Apply steps 1 - 7Step 1 – identify relevant policies / strategies

                                                                                                             

 

 

Step 2 – identify added Social Value considerationsNo – Document reasons why not                                                                                                          

 

                                                                                                                                                  

                                

                           

Step 3 – Verify Social Value
 

 


                                                                                                               

 

Step 4 – Add SV measures / outcomes into specification
 

 


                                        

 

 


Step 5 – Confirm SV weightings (e.g. 5% / 10% etc.)                              

 

 

 


Step 6 – Conduct tender and evaluate SV outcomes                        

 

                 

 

 


Step 7 – ensure through contract management that the deliverables are fulfilled                         

 

 

 

 

 

 


 

Examples below of the types of Social Value that can be evaluated within a tender:

 

Social

Economic

Environmental

Volunteering in the community

Hosting work placements

Reducing energy use and carbon emissions

Hosting community events at your business

Employing local people and spending with local suppliers

Supporting improvements to public spaces and parks

Flexible working policies for staff

Mentoring and providing career advice to young people

Using sustainable products and materials

How else can Procurement Assist with Social Values?

Use of local suppliers

Clearly using local suppliers will help the local area in terms of employment and wellbeing of residents in the locality. The Council has set a target of local supplier spend compared to total spend. The target for the Council’s local spend (including OCHL, ODSL and ODSTL) is 75%.   The Council achieved a local spend in 2019-20 of 75.34%.

Part of the CWB action plan (Appendix 4) will be to see how the Council can best analyse the social impact of it’s spend

The Council local Oxfordshire spend % excluding ODS, ODSTL and OCHL

 

 

 

 

 

 

 

 

The Council local Oxfordshire spend % including ODS, ODSTL and OCHL

Use of SMEs

The use of Small to Medium size Enterprises (SMEs) is another widely acknowledged measurement of Social Value. Often the financial standing or lack of it is a first measure of the economic value of a locality.

What is a SME?  The UK government follows the EU’s definition of SMEs, and to qualify as an SME, there are two criteria: staff headcount of between one and 250, and an annual turnover of no more than €50 million (approximately £45 million). 

The Government is committed to 33% of central government procurement going to small and medium size enterprises (SMEs), directly or via the supply chain by 2022. Procurement have set a target in line with the National Public Sector target for SME spend of 33%, however the Council is exceeding this figure and that trend is expected to continue.   

In the 2019-20 financial year the Council achieved a spend (including ODS, ODSTL and OCHL of 24.78% with SME’s.  If the Council excludes ODS, ODSL and OCHL this increases to 63.44%).

Indirect SME spend (Spend through Large Suppliers with SMEs) is not currently monitored. Central Government has started to monitor this spend, but only with large spend (above £5M)

Latest figures available nationally

 

 

Council SME spend excluding ODS, ODSTL and OCHL

            Council SME spend including ODS, ODSTL and OCHL

 

Respect for accreditations and unions

Awareness of Trade Unions and accreditation schemes such as the Fair Tax Mark need to be considered in the procurement process, organisations that seek to encourage and recognise companies that pay the right amount of corporation tax should be celebrated.

 

Social Values that have already been incorporated into OCC Tenders

1. Sugar Smart – which is a campaign run by Sustain to help local authorities, organisations, workplaces and individuals to reduce the amount of sugar we all consume, our current tender for vending includes a requirement for tenderers to include the Sugar Smart options of increasing the number of items below 5% sugar and to clearly identify any items over 5% sugar using a traffic light system.

2. Contract for Resilience Support awarded to Northgate for a 4 year term, spend approx. 122k per annum.  We included a question within the evaluation regarding CSR 2.5% Northgate’s response included an offer to pay End Youth Homelessness (part of CenterPoint) or another suitable charity 0.5% of the annual charges that the Council pays to this charity annually. Northgate also offered volunteers to promote community projects from their NPS Community Volunteering scheme, which is a scheme where their employees may take two day’s paid leave per annum to participate in community projects.

3. Contract for Print Framework – included evaluation questions regarding Environmental Policies and use of sustainable products which accounted for 10% of the total quality score.

4. Contract for external Caterers for the Town Hall – included evaluation questions regarding sustainability, developing “Fair Trade” procurement in their supply chain, and how the Suppliers can support local businesses which accounted for 15% of the total quality score.

5. Contract for Banking with Barclays – included a question based on 5% of the score which requested details of the Social, Economic and Equality benefits offered in the Oxford area. Response included examples of employee volunteering, Life skills (Covering the transition into work to 11-19 year olds) and Money Skills (covering young and disadvantaged people assistance in opening bank accounts etc.) to over 250,000 in the last 3 years, and have employed over 1000 apprentices UK wide per annum.

6. Contract for the repairs to the Covered Market roof included a provision for the Supplier to employ an apprentice.

7. Barton Park contract included the Contractor employing 8 apprentices, 7 local enterprises being employed on site and the Contractor has worked with local educational institutes to  organise visits to site for pupils.

8. Tower Block refurbishments Contract included 4 new jobs created, 6 new apprentices, 12 work experience placements – 3 of which were those facing greater social barriers, 8 school visits to provide career advice, 4 visits to provide career advice to long term unemployed, Work with local partners, including OCVA, to support one initiative per year targeted at hard to reach groups, 1 workshop with Chamber of Commerce to support new business start-ups in the contract area, 2 visits to provide business planning support, financial advice, legal advice and HR advice to support community and voluntary organisations / social enterprises, provide 2 events to deliver energy efficiency advice and target fuel poverty within each of the tower blocks at the start of each winter period, support a local charity – in fact Shelter received £2,700 from the Contractor, and protecting bio-diversity with the installation of bird boxes.

9. Contract for insulation included a requirement to insulate the lofts of one of the local homeless hostels free of charge.

 

Social Value Issues

The legal basis for public procurement in the European Union is provided within the OJEU Directive and offers some scope for taking account of social considerations, provided they are linked to the subject-matter of the contract and are proportionate to its requirements and as long as the principles of value for money and equal access for all EU suppliers are observed.

It must be decided case by case based on which social considerations are relevant to the procurement of the requirement, depending on the category and on the objectives, to what social value questions can be incorporated into our tenders.

Obtaining “Value for Money” means: choosing the supplier that offers “the optimum combination of whole life costs and benefits to meet our requirements.”

Monitoring presents one of the biggest challenges for Social Value.  How do the Council monitor that what was promised at tender is actually delivered throughout the Contract?

The Council is keen to improve the way in which it procures goods services and works to ensure not only continuation of  compliance with the Social Value Act and LGA  but also to increase our social value considerations and value for money in all aspects to incorporate the Council’s corporate priorities.


 

 

 Appendix 2 – Ethical and Sustainable Procurement Statement

 

This statement sets out The Council’s approach on ethical and sustainable procurement.

 

 

Ethical Procurement

 

‘Ethics' in purchasing and supply management can relate to a wide range of issues from supplier business procedures and practices to bribery and corruption. The common areas relate to ethical behaviour in companies such as fair-trade, ethical trading, ethical sourcing, social accountability, social auditing, corporate social responsibility, corporate citizenship, codes of conduct and reputation assurance.

 

This statement is based on the following principles and includes information as to how they will be implemented:

a.    safe working conditions;

b.    non-excessive workinghours;

c.    employees are paid at least a minimum living wage;

d.    training is provided;

e.    diversity, equality and good workforcepractices are encouraged;

f.     elimination of child labour; and

g.    elimination of inhumane treatment.

 

The following principles set out the minimum requirement expected from suppliers and their supply chains.

Safe working conditions

§  Suppliers will operate appropriate health and safety policies and procedures and agree to the Council’ Health and Safety Policy before commencing work. Responsibility for monitoring and ensuring compliance with these policies and procedures will rest with a senior manager. Responsibility also extends to ensuring that employees have received the necessary training and that they have the necessary health and safety equipment.

§   Suppliers will provide comfortable and hygienic working conditions with necessary provisions (such as clean drinking water, washroom facilities etc.). Such provisions also extendwhere accommodation/housing is provided.

 

Non-excessive working hours

§   Suppliers must comply with national and international laws or industry standards on employee working hours, whichever affords the greater protection. Employees should not be expected to work more than 48 hours a week on a regular basis and on average receive one day off at least every seven days.

§   Overtime should be voluntary and not demanded on a regular basis and where required it should be reimbursed at an appropriate rate and not exceed 12 hours in any week.

§   Suppliers should provide clear, easily understood disciplinary, grievance and appeal procedures; these must be lawful and appropriate. Suppliers must ensure that they do not deprive their employees of their legal or contractual rights.

Employees are paid at least the minimum living wage

§   Suppliers delivering contracts within Oxfordshire are requested to pay employees at least the Oxford Living Wage and this forms part of the contract. Outside of Oxfordshire expectation is that suppliers will be an accredited member of the Living Wage Foundation or adhere to any minimum or living wage requirements set out by the UK Government.

§   Suppliers should provide their employees with easy to read contracts of employment.

§   The payment of wages or salary should be in monetary form and not in kind (e.g. goods, vouchers). Any deductions must not be made unless in accordance with relevant law or agreedwith the employee,and without duress.

 

Training is provided

§   Suppliers are expected to invest in their employees by providing training opportunities which seek to raise skills required for their role.

 

Non discrimination

§   Suppliers are not to practice any discrimination in the hiring, compensation, training, promotion, termination or retirement eitherdirectly or indirectly of any employees.

 

Elimination of child labour

§   Suppliers are expected to support the elimination of child labour both directly and indirectly through its supply chains.

§   Suppliers shall provide for any children found to be performing child labour to attend and remain in quality education until no longer a child.

§   Suppliers shall ensure that no children or young persons are employed at night or in hazardous conditions as definedby the International Labour Organisation.

 

Elimination of inhumane treatment

§  Suppliers must prohibit physical abuse or coercion, the threat of physical abuse, sexual or other harassment and verbal abuse or other forms of intimidation.

 

Modern Slavery Act 2015

§  The Act is designed to combat modern slavery in the UK and consolidates previous offences relating to trafficking and slavery.

§  Suppliers tendering for contracts are requested to disclose whether the Modern Slavery Act 2015 is applicable in terms of compliance with annual reporting.

§  If applicable, Modern Slavery statements are checked and logged on the contracts register.

 

Technical specifications and standards

Where relevant to the contract, the Council will use technical specifications and standards to integrate ethical considerations into procurement, such as standards for IT systems to ensure that they are accessible to people with disabilities and interoperable with software and hardware intended for disabled users.

The specification must be relevant to the requirement and must not discriminate against other products or providers from other member states, nor must it restrict competition. Unnecessary use of these principles may place an undue burden on small businesses and other organisations, which might have a disproportionate impact on their ability to compete and therefore be unlawful. In all cases, contracting authorities must be prepared to consider equivalent standards from suppliers from other countries (with different national standards) that meet the underlying requirement. The onus is on the supplier to prove that the solution being offered meets the requirements.

 

Sustainable and Responsible Procurement

 

Sustainable procurement is "a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment" (Department for Environment, Food and Rural Affairs, 2006).

 

The Council recognises that it has a duty to use every opportunity to support wider social, economic and environmental objectives, in ways that offer real long term benefits and reduce negative impacts on environmental and social wellbeing.

 

Sustainable procurement is one of the most tangible, visible and simple ways in which the Council can have a positive influence and work towards its vision and the Climate Change Mitigation Strategy.

 

Buying ‘green’ not only contributes to improving the Council’s environmental performance, but also drives greater sustainability and innovation within the market place. There can be significant cost savings as modern green products are in many cases more energy efficient and cost less on a ‘whole life cycle cost basis’.  It may take time to realise these benefits as buying green currently can incur additional costs.

 

The Council is committed to managing its supply chain so in particular looks to:

§  Reduce the consumption of scarce natural resources, including fossil fuels, water and tropical timber

§  Reduce the emission of greenhouse gases and other environmental pollutants

§  Reduce packaging at source

§  Reduce residual waste

§  Reduce landscape degradation and impact upon wildlife habitat

§  Reduce traffic congestion

§  Reduce workforce exploitation

 

Procurement will continue to show its commitment to embedding sustainable development considerations into procurement decisions.  This means minimising negative impacts of the supply chain and the product/service, maximising social benefits and buying resource-efficient products.  Furthermore, procurement recognises that, as an organisation spending money on goods, works and services, it has a duty to investigate environmentally acceptable alternatives and wherever practicable, purchase products and services that have minimal impact on the environment.

 

The Council will particularly look at the energy efficiency rating of all equipment and buildings, as part of its purchasing decisions. When seeking tenders for the design and construction of any new Council building, it will expect to see designs that meet best practice in the context of current building regulations.

The Council will look to work with its partners and stakeholders to share good practice in relation to sustainable procurement wherever possible.

 

Procurement will look to adopt mechanisms and indicators for improving, monitoring and reviewing the environmental and sustainable performance related to procurement.

 

Steps towards Sustainable Procurement

 

1. Ensuring that the Council’s regulated procurements will be carried out in compliance with the sustainable procurement duty, through;

·         Ensuring that sustainability issues are considered at all stages of individual procurement exercises;

·         Ensuring that procurements take into consideration the EU Green Public Procurement Criteria

 

 

Stage

Outcomes

Measures

A

Pre-Procurement

Commissioners to consider what sustainable aspects could be beneficial in their contract.

·         CO2 emissions/energy and water consumption

·         Resource efficiency, waste reduction and recycling

·         Impact of transport in the City

·         Biodiversity, nature conservation and greening

·         Noise, land, air and water pollution

 

 

B

Procurement

Specifications to include criteria where relevant on those items below and other emerging sustainable aspects that are proportionate to the Contract

·         CO2 emissions/energy and water consumption

·         Resource efficiency, waste reduction and recycling

·         Impact of transport in the City

·         Biodiversity, nature conservation and greening

·         Noise, land, air and water pollution

 

 

C

Post Procurement

Contract Managers to ensure Suppliers are managed appropriately and aspects of Sustainability committed to in the tender response is delivered throughout the lifetime of the contract

 

2. Ensuring that the Council’s regulated procurements address climate and political changes, through;

i)              Considering any climate change adaptations are incorporated in major projects at all stages of the procurement exercises;

ii)             Mitigate any operational impact on the Council’s supply chain with the possible impact of UK’s exit from Europe.

 

 

Actions

Outcomes

Measures

A

Develop

Understanding any supply chain risks presented by climate changes

 

B

Develop

Understanding the nature of the political risk to supply chains

 

C

Develop

Allow resources for legacy contract renegotiations due to the UK having left the EU. For example:

·         the possibility of changes to the value of the sterling/dollar

·         payment terms

·         risk analysis on the criticality of the supplier

·         administrative impact re VAT on imported goods from EU countries

 

 

D

Develop

Work with Citizens Assembly in Oxford to help consider how Procurement can deliver carbon reduction to address the climate change

 

E

Develop 

Collaboration with other service areas and other public bodies on awareness-raising, sharing good practice and investment in skills

 


 

Appendix 3 Application of Equalities in procurement flow chart

Determine whether equality is a core requirement in the Contract

 

                           Not Core                                                                Core

• Review the equality impact of the Council's current arrangements 
 • Consult internally and externally how better to meet the duty to promote equality
 
 
 ,• Relevance
 • Proportionality
 • Risk assessment and accountability
 ,Consider in Planning
 

 

 

 

 

 


                                                                                     

                                                                                                             

 

 

                                                                                                          

Drafting Specifications             

                                                                                                                                                  

                                

                           

Not required Include equality requirements in the 
 specification
 

 


                                                                                                               

 

Drafting Contract Conditions
 

 


                                        

 

Include non-discrimination Contract Clauses
Where relevant, include additional contract clauses on equality in employment and service delivery. 
 Ensure that contract monitoring arrangements and Performance Indicators are included in contract conditions
 

                              

 

 

 

                        

 

                 

Selecting Tenderers
 

 


                         

 

State the Council’s equality requirements in OJEU (Official Journal of the European Union) and any other notice. 
 Where relevant, ask questions about equalities policy, training and compliance with the equalities legislation
 ,Refer to the relevant statutory duties in Equalities Legislation and state equality evaluation criteria in the invitation to tender. ,Ask about findings of discrimination in employment and service delivery and any action taken as a result in the pre-qualification questionnaire.,Standard Selection Question,Invitation to Tender (tender documentation),Evaluating Tenders,Check tenderers’ acceptance of equalities contract conditions.,Evaluate tenderers’ proposals for meeting equality requirements in the specification.,Managing and Monitoring Contracts
Meet the successful contractor to ensure full understanding of the Council’s equalities duties and requirements in contract specifications and to agree contract management and monitoring.
Meet the successful contractor to ensure full understanding of non-discrimination conditions and agree reporting arrangements.
Consider a voluntary agreement with the contractor for additional equality measures.
Monitor the contractor’s performance of equalities requirements in the specification e.g. accessibility for the disabled.
Monitor the contractor’s performance of equality contract conditions.
Where equalities performance is inadequate, invoke default provisions or warn the Contractor that they may not be considered for future contracts.
Where equalities performance is inadequate, invoke default provisions or warn the Contractor that they may not be considered for future contracts.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Procurement will take the following steps to ensure equalities within procurement

Procurement steps towards equality in Contracts

1. Ensure that, so far as reasonably practicable, the following payments are made no later than 30 days (14 days for SMEs) after the invoice relating to payment is presented:

i)              payment due by the Council to a contractor or any sub-contractor;

ii)             Including a standard clause to this effect in regulated procurement contracts;

iii)            Promote effective contract management and monitoring is undertaken to ensure prompt and correct payment continues to be applied throughout the duration of the contract.

 

Stage

Outcome

Measure

Key Performance Indicators

We aim to meet the target of 98% of undisputed invoices paid within 30 days of receipt during 2020

 

On-going Development

Review all SME suppliers to ensure correct 14 day payment terms

All regulated procurements in 2020 will include the standard clause in relation to payment

 

2. Ensure that the Council’s regulated procurements will include Social responsibilities by:

 

i)              Considering how individual procurement exercises can assist the Council to improve the economic, social and environmental wellbeing of Oxford City.

ii)             Social value is embedded in all specification and procurement activity, help to embrace new behaviours by establishing a leadership position on social value outcomes.

iii)            Supporting Social enterprises, co-operatives and VSCEs where possible

 

Key Performance Indicators

All tenders/quotes have a weighting of 5% on Social Value issues regardless of project value.

Ensure awarded SV measures are consistently captured, recorded on the Contracts Register and reported annually  to HOS

On-going Development

To hold SME and VCSE training on our electronic tendering platform South East Business Portal through supplier workshops for relevant projects.

How to Tender workshops

On-going Development

Share knowledge and participate in events aimed specifically at local SMEs and VCSEs

Meet the Buyer event

On-going Development

Promote Oxford Living Wage compliance.

 

3. Modern Slavery Act 2015: Requirements under Modern Slavery Act 2015[1]

Key Performance Indicators

Inclusion of mandatory clauses in regulated procurements.ie Modern Slavery Act 2015

 

On-going Development

Monitoring of how this clause is responded to and cost impact on the  Contract

 

Appendix 4 Procurement Action Plan

 

Area

Actions

By whom and when

Training – in house

Publish a training programme to roll out the procurement strategy.

Procurement Manager

October 2020

 

Agree an internal training programme on Equalities and Diversity with an EDIB incumbent “Meeting Public Sector Equality Duty Requirements through the Procurement Cycle”

Procurement Manager

December 2020

 

Liaise with HR to identify new starters that may require Procurement training and agree a training programme for those new starters

Procurement Specialist

September 2020

Training - External

Roll out the internal EDIB training to external partner organisations who are already in receipt of grants and/or in the process of applying or thinking about applying.

Procurement Manager

February 2021

 

Consider how to re-start “How to Tender” workshops.  Propose a solution and delivery programme

Procurement Specialist

October 2020

 

Review options to deliver a “meet the buyer event”

Procurement Manager

December 2020

Service Level Agreement

Review all Procurement service levels (in-house and with Council organisations) ready for the 2021 procurement Strategy – engaging with internal stakeholders to identify internal requirements and required support.

Procurement Manager

March 2021

Resource

Assess team structure in line with the career grading and support the team through their CIPS qualification

Procurement Manager

On-going

 

Review roles undertaken in Procurement in-line with the constitution and propose changes if required

Procurement Manager

January 2020

 

Coach and mentor the team on-going with particular focus on

·         Social Value

·         Contract Management

·         Best Practice

·         Equalities and Diversity

Procurement Manager

On-going

Constitution

Work with Legal to review the current Constitution and recommend any changes that may improve the process for the Council whilst remaining complaint with EU Procurement Regulations

Procurement Manager

January 2020

 

Following Brexit agreement ensure that the Constitution remains in-line with any amended Regulations

Procurement Manager

February 2020

Social Value

Undertake further research in “how to create a level playing field” for tenderers related to Social Value

Procurement Manager

December 2020

 

Review current tender documentation to identify how to encourage suppliers to engage fully in their delivery of Social Value

Procurement Specialist

December 2020

 

Review the Contract Management hand over document and on-going monitoring and recording of Social Value

Procurement Specialist

December 2020

 

Benchmark the Council spend with SME’s against other similar Councils nationally.

Procurement Specialist

December 2020

 

Organise an event bringing together neighbouring Council, support service providers and experts together to improve overall standards and learn from one another.

A suggestion may be to utilise the Bucks and Oxon procurement hub to start the process

Procurement Manager

November 2020

Tender Documentation

Review all documentation to ensure best practice

Procurement Manager

On-going

Equality and Diversity Impact Assessment

This assessment is mentioned in procurement documents and past strategies but Procurement do not have any – they need defining

Procurement Specialist

March 2021

Equality and Diversity tracking

Work with the Community services team to identify a baseline figure to enable tracking of contracts in line with the demographics of the City

Procurement Specialist

May 2021

Sustainability Impact Assessment

This assessment is mentioned in procurement documents and past strategies but Procurement do not have any – they need defining

Procurement Specialist

March 2021

Audit

Procurement to begin service area audits for procurements undertaken without the procurement team to ensure

·         Compliance with the constitution

·         Records are kept

·         Identify areas where spend could be aggregated with other service areas to create one contract offering better value to the Council

Contracts Officer

January 2020

Contract Management

Review hand over document

Procurement Specialist

December 2020

 

Using the Contract register to notify contract managers early when their contract is due for either extension or renewal

Contracts Officer

On-going

 

 

Identify a key list of SLA’s and KPI’s for future tenders

Procurement Specialist

March 2021

 

Ensure key supplier financial and stability checks are conducted as a minimum yearly

Contracts Officer

On-going

 

Social Enterprise

Fully understand who all social enterprises, co-operatives, charities,  VCSE’s and public service mutuals who may consider selling to the Council or becoming part of the supply chain for delivering  public services.

 

Procurement team

On-going

Community Wealth Building

Through inclusive economy work, review how procurement can work with, learn from and influence other local institutions

Procurement Manager

March 2021

Community Wealth Building

Analyse the impact of the Councils spend with the local economy

External analyst / Finance

September 2021

Community Wealth Building

Review the CLES report “Own the future” with particular attention to:

·         Scaling up social value

·         Market intelligence to drive social value

·         Interventionist market shaping

·         Deepening the local supply chain

 

Living Wage

Review procurement templates in line with this strategy to reflect wages both within Oxford and outside of Oxford.

Procurement Manager

October 2020

 

Further actions may be added during the 2 year period up to and including August 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Glossary

 

Term

Description

Award

A decision to accept a tenderer’s offer to supply/ provide specified goods/ services/ works according to agreed terms & conditions thereby creating a legally binding contract.

Best Value

The Council has a statutory duty to obtain best value for money under the Duty of Best Value.

Citizens Assembly

A group of people who are brought together to discuss an issue or issues, and reach a conclusion about what they think should happen.

Collaboration

Cooperative joint working with another public sector organisation.

Contract Management

The process of monitoring the performance of a supplier to contract.

Contractor

The provider of any supplies, services or works under contract. Or, in the context of works at any stage of the process.

Co-Operatives

Society run for the mutual benefit of members who use its services (the community)

  Corporate Plan

The plan that sets out the Council’s strategic direction.

Corporate Social   Responsibility (CSR)

A mechanism for businesses to assess the impact they have on society and consider putting responsible, ethical policies in place to support individuals, the local community and the environment.

EU GPP

European Union Green Public Procurement

Equality Duty

Compliance with the terms of the Equality Act 2010.

Framework agreements

An agreement or other arrangement between one or more contracting authorities and one or more economic operators which establishes the

terms (in particular the terms as to price and, where appropriate, quantity) under which the economic operator will enter into one or more contracts with a contracting authority in the period during which the framework agreement applies.

GDPR

General Data Protection Regulation

ICT

Information and Communications Technology

KPIs (Key Performance Indicators)

Measurable value that demonstrates how effectively the Council is carrying out procurements

Local Government Transparency Code 2015

Issued to meet the government's desire to place more power into citizens' hands to increase democratic accountability. Details information that local authorities must make available in the public domain.

Meet the Buyer

An event hosted by a buying organisation which invites current and potential suppliers to understand the buying process.

OJEU

Official Journal of the European Union

Oxford Direct Services Ltd

A Local Authority Trading Company (LATCo), owned by Oxford City Council.

Oxford City Housing Ltd

A City Council wholly owned Housing Development Company

 

 

Oxford Living Wage

An hourly minimum pay that promotes liveable earnings for all workers and recognises the high cost of living in Oxford.

Procurement Exercise

Full end to end procurement exercise documentation from strategy development to contract & supplier management.

Public Contract Regulations 2015 (PCR 2015)

Regulations governing the procurement of supplies, services and works for the public sector.

P2P (Purchase to Pay) Process

Entire supply chain process – from goods receipt to payment process

Regulated Procurements

Procurements conducted by the procurement team and subject to EU Procurement Regulations

 

Services/ Supplies/ Works

A public service contract is a contract having as its object the provision of services.

A public supply contract is a contract having as its object the purchase, lease, rental or hire purchase with or without an option to buy, of products.

A public works contract is a contract having as its object a building or civil engineering project or piece of work.

SMEs (Small & Medium Enterprises)

The category of micro, small and medium-sized enterprises (SMEs) is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding 50 million euro and/or an annual balance sheet total not exceeding 43 million euro.

Social enterprises

Businesses whose primary objectives are social or “more than profit”

Specifications

The part of the invitation to quote or invitation to tender which details the nature and quality of the goods, services or works

Stakeholder

Any person or group, who has a vested interest in the success of the procurement activity, i.e. either provides services to it, or receives services from it.

Supplier

An entity who supplies goods or services

Supply Chain

All activities, resources, products etc. involved in creating and moving a product or service from the supplier to the procurer.

Sustainability

In relation to procurement, sustainability involves understanding the potential environmental, social and economic impacts that are a result of purchasing decisions.

Third Sector

The third sector includes charities, social enterprises, co-operatives and voluntary groups; delivers essential services, helps to improve people's wellbeing and contributes to economic growth.

Value for Money

An economic assessment by the public sector as to whether a project represents value for money; the optimum combination of cost and quality to provide the required service.

Whole life costs

The costs of acquiring goods or services (including consultancy, design and construction costs, and equipment), the costs of operating it and the costs of maintaining it over its whole life through to its disposal – that is, the total ownership costs. These costs include internal resources and overheads.