Procurement Leadership and Innovation’

transcript

Sustainable Commissioning & Procurement Strategy - Final Version 1

Appendix 2

‘Procurement Leadership

and Innovation’

Sustainable Commissioning and Procurement Strategy 2009-13

Foreword

Cllr. Brian Page

Cabinet Lead Member (Resources)

The launch of the Council’s new Sustainable Commissioning and Procurement Strategy is a good opportunity to look back at the progress achieved so far and also to look forward to the challenging times ahead. These challenges include demographic changes, natural resource constraints, heightened environmental concerns, increasing technological change and the need to deliver significant efficiency savings. This is a future in which the Council has a unique role to play both as a community leader and as the local co-ordinator of pubic services in Leicestershire. Yet we can only fulfil this leadership role through partnership working – through Leicestershire Together (our local Strategic Partnership) and through our suppliers with whom the Council spends nearly half of its annual expenditure. This Strategy sets out a 4-year commissioning and procurement framework, which will enable the Council not only to fulfil this role but also to deliver a major opportunity for change and improvement, by

• Building capacity and skills within the Council to lead commissioning and procurement activity;

• Increasing the level of joint working across public sector organisations;

• Developing a wider range of innovative procurement solutions, including user-choice, shared services and joint venture companies;

• Engaging proactively with suppliers to make sure we extract maximum value from our supply base;

• Focusing commissioning and procurement activity on delivering improvements for people and for communities within Leicestershire.

Indeed, the starting point for our commissioning and procurement activity is always the key outcomes people want to see locally whether this is, for example, improving our local economy, addressing environmental concerns or promoting social inclusion. This Strategy therefore sets out how we intend to use our commissioning and procurement activity to deliver better services for the people of Leicestershire as well as better life chances for the citizens we serve.

About this Strategy This Strategy explains how Leicestershire County Council’s commissioning and procurement activity will be used over the next four years, up to 2013, to improve the quality of life for the people of Leicestershire and make Leicestershire the best possible place to live and work for everyone1. In doing so, we expect to demonstrate our procurement leadership and innovation. The Strategy provides a clear picture in terms of:

o Our vision o Where we are now, including what we buy and how we buy o What we value o Where we want to be o How we intend to get there o How we will measure our progress

This picture is intended to enhance the understanding of everyone who has an interest in Leicestershire County Council’s business, including our employees, trade unions, the voluntary and community sector (VCS), partner agencies, suppliers and potential suppliers.

Our Vision is….. ………Through our leadership and innovation to ensure that the real long-term benefits of sustainable commissioning and procurement are generated for the people of Leicestershire. Commissioning and procurement are often seen as the process of buying goods and services but in fact they are much more than this. Commissioning and procurement involve translating needs into delivery and achieving the required outcomes in a way which delivers value for money. The various stages in the process are shown in Figure 1. Sustainable commissioning and procurement simply means meeting these needs in a way that generates benefits not only to the County Council and Leicestershire Together but also to the economy, society and the environment.

1 Leicestershire Together, Sustainable Community Strategy 2008 – 2010 (page 6)

Figure 1 – The Commissioning and Procurement Cycle

The economic, social and environmental aspects (see Figure 2) are interlinked and alongside service requirements and value for money, represent the ‘lens’ through which all the Council’s procurement activity is viewed; influencing the decisions we make and the performance measures we use. Being sustainable means challenging the need for the commissioning and procurement activity in the first place by asking: Can the need be met in some other way? Are there alternatives to buying the services/goods? Do we really need the purchase? Figure 2 – The 3 Aspects of Sustainable Commissioning and Procurement

Economic Innovation

Strong Local Economy

Social Equality & Diversity Social Inclusion

Environmental Controlled Consumption

Biodiversity Carbon Reduction

Recycling

Sustainability Regeneration Fair and Ethical Trade

Apprenticeships Protection of Human Rights Core Labour Standards Low Unemployment Rates Diverse Supply Base Skills Training

Each of these three aspects is equally important:

o The economic aspect is about maximising business value and working

with our suppliers to reduce costs on a whole-life basis, as well as making it easier for businesses trading within Leicestershire to work with the Council and to stimulate the local economy.

o The social aspect is about ensuring equalities and diversity are

embedded into the procurement process, taking the opportunity to secure relevant wider community benefits, and making sure that our suppliers comply with employment law as well as address skills, training and health and safety.

o The environmental aspect is about ensuring that all our

commissioning and procurement activities are conducted in an environmentally responsible manner, for example, by only buying goods, works and services that are necessary, reducing the use of virgin non-renewable natural resources, and considering climate change mitigation.

At the same time we constantly need to develop excellent commissioning and procurement practice across the Council and in collaboration with our partners, particularly through:

o Our governance arrangements for procurement activity; o Planning, measuring and controlling our activity; o Doing business electronically; o Supplier engagement; o Risk management; o Business continuity; o Procurement capability, skills and training.

Where We Are Now Leicestershire County Council is a successful organisation, which has been rated as four star improving strongly by the independent Audit Commission and has been named as Council of the Year 20092. We have also achieved Level 3 (of 5) of the Equality Standard for Local Government.3 Our commissioning and procurement activity has received external recognition through the 4ps Award for Excellence4 and an Outstanding Achievement in Procurement Award from the Society of Purchasing Officers in Local Government (SOPO)5.

2 Winner of Council of the Year 2009, Local Government Chronicle Awards 3 Achieved in February 2009, demonstrating that the Council is successfully mainstreaming equality into all aspects of its work, including service delivery, procurement and employment 4 Leicestershire County Council received a highly commended accolade in the efficiency category for establishing the Midlands Highways Alliance, June 2008 5 The successful development and implementation of a category management approach was externally recognised in November 2008 with an Outstanding Achievement in Procurement award from the Society of Purchasing Officers (SOPO)

The commissioning and procurement achievements of which we are particularly proud are:

o The Midlands Highway Alliance (MHA), led by Leicestershire County Council and supported by the East Midlands Regional Improvement and Efficiency Partnership (EMRIEP). The MHA comprises East Midlands local authorities and the Highways Agency working in collaboration to improve the design and delivery of highway services and to achieve forecast efficiencies of over £10m by 2011. In June 2009, the MHA received an award from Government Opportunities for ‘Best Collaborative Procurement’

o The collaboration in learning disabilities between 9 East Midlands authorities, led by Leicestershire County Council and supported by the EMRIEP, to gain a better understanding of the supply market and to manage the market more effectively. This has led to framework agreements for the provision of learning disabilities services right across the region shaped by those people using the services as well as care providers with expected savings of £900k for 2009/10.

o Increased joint working with NHS Leicestershire County and Rutland, with the Council taking the lead for the commissioning of Learning Disabilities services and NHS Leicestershire County and Rutland taking the lead for the commissioning of Mental Health services

o The support services to be provided to all voluntary and community sector organisations in Leicestershire from April 2009 as a result of the new countywide support organisation commissioned jointly with the NHS Leicestershire County & Rutland and Leicestershire District Councils.

o The creation of a Passenger Transport Unit to provide a centre of expertise and co-ordinate our procurement of passenger transport services, including local bus services. This has improved customer service and resulted in savings of £1.6m by 2009/10. We are now investigating a shared commissioning arrangement with Leicester City Council to achieve further benefits.

o Our approach to the treatment of residual waste, which has successfully secured initial government support. We expect to sign a 25-year contract in 2010/11, which will provide a sustainable way of dealing with the waste that cannot be recycled and protect Council taxpayers from increased costs in Landfill Tax.

o The consolidation of our Facilities Management services covering the Council’s portfolio of buildings and land, which is expected to achieve greater co-ordination, improved service quality, and scheduled savings of £150k in both 2010/11 and 2011/12. Schools have also been given the opportunity to participate in this arrangement as well as our partners, including Leicestershire’s District and Borough Councils.

o Our collaboration with other authorities in the East Midlands, including police authorities and fire authorities to procure external legal services at reduced rates. As well as cashable savings, the Council benefits from shared access to a training programme, specialist advice and documentation.

o The successful development and implementation of a category management approach across all our purchasing activity supported by a new Corporate Procurement Unit and our purchasing agent, Eastern Shires Purchasing Organisation (ESPO). This has delivered over £9m of cashable savings by 2009/10.

o Our successful implementation of Oracle iProcurement across the Council to help control spending on corporate commodities and provide better management information.

o The positive feedback we received following our first corporate event for Key Suppliers6, aimed at learning more about the challenges and pressures facing suppliers and the Council. Suppliers’ views and ideas on the way improvements could be delivered have been built into this Strategy.

o The development and publication of our Environmental Purchasing Policy demonstrating how the County Council accepts fully its responsibilities as a community leader in carrying out its purchasing activities in an environmentally responsible way.

o The development and publication of a Funding, Commissioning and Procurement Code of Good Practice that supports the Leicestershire Compact7. The code sets out key principles in relation to all types of financial relationships such as grants, commissioning and procurement and can be extended to all Voluntary and Community Sector and Public Sector partners in Leicestershire.

All of this has been achieved as a result of the efforts of high quality staff at all levels of the Council, including our purchasing agent, ESPO, and also through collaborative working with our partner agencies and suppliers. Yet there is still much to do. We have to increase the pace at which we achieve efficiencies through better commissioning and procurement and we have to ensure that long lasting benefits – through sustainable commissioning and procurement - are delivered to the people of Leicestershire. At the same time, we face challenges through demographic changes, natural resource constraints, heightened environmental concerns, increasing technological change and high impact events (such as the ‘credit crunch’).

6 Key Suppliers are those organisations with whom the Council places a significant amount of business on an annual basis 7 The Leicestershire Compact is a written agreement, providing a framework for the way in which Leicestershire’s voluntary and community organisations work together with Leicestershire Together Partners. It aims to promote good working relationships to provide efficient and effective services and involve the Voluntary and Community Sector in both policy development and the delivery of services.

What We Buy The Council spends approximately £275m each year on goods, works and services. The pie chart below shows how this annual spend is divided among the Council’s Category Groupings.

Procurement Spend Across Our Category Groupings (2007-8)

A) Books, Journals & Multimedia B) Building & Civil Engineering C) Design, Printing & Marketing Services

D) Consultancy & Professional Services E) Facilities Management F) Miscellaneous

G) Food & Catering Equipment/Services H) Transport J) Furniture & Furnishings

K) HR L) Stationery & Office Supplies M) Social Care

N) Utilities P) ICT Q) Vehicles & Plant

R) Waste

J)K)L)

How We Buy The Council has approximately 13,000 suppliers. The following graph shows how the Council’s expenditure on goods, works and services is distributed among its 13,000 suppliers. We use a large number of suppliers, but with over half of these suppliers we spend less than £5,000. This helps us to identify, for example, where process efficiency savings may be made. The graph also shows that a small number of suppliers accounts for the greatest proportion of our spend. We focus our attention, particularly on these suppliers, as they have the greatest impact upon our overall expenditure.

Procurement Spend Across Our Supply Base (2007-8)

702567 568

304 29788 93

0-1000 1000-5000 5000-10000 10000-20000 20000-50000 50000-100000 100000-300000 300000-500000 500000+

Procurement Spend (£)

Number Of Suppliers

What We Value We believe that the way we behave as an organisation impacts upon both the way that we do business and the way in which we are perceived by our suppliers, potential suppliers and partners. The County Council already has six Organisational Values, which summarise what we value and the way we work across the Council. Indeed, our category managers work across the organisation – rather than departmentally - to ensure that the necessary business results are achieved for the Council overall. These values are very important to how we procure and commission:

o A focus on the people of Leicestershire – A significant proportion of the contracts we put in place are for the delivery of front line services to the people of Leicestershire. Improving service users’ and the public’s experience of these services is fundamental to improving satisfaction with service provision.

o Being positive – Developing positive relationships with our

suppliers is also key to the successful delivery of service provision.

o The desire to achieve results - This Strategy demonstrates our desire to realise efficiency savings, improve service delivery and improve the sustainability of our procurement activity. We are also increasing the use of outcome specifications to focus on the end results to be achieved.

o Flexibility - This means considering the full range of procurement

options available and allowing flexibility when structuring the procurement to enable innovation and continuous improvement.

o Co-operation – Effective co-operation with our public sector

partners and with our suppliers is key to enhancing service provision and achieving value-for money.

o Speaking up – This means challenging poor supplier performance

and poor procurement practice which may affect our ability to achieve the objectives set out in this Strategy. We have also developed a Supplier Whistleblowing Policy8 to encourage suppliers to speak up, and have a similar policy for staff.

In addition, our procurement activity is underpinned by the following procurement principles:

o Competition - Commissioning and procurement will be subject to competition, wherever possible. A competitive process provides the Council with the best opportunity of gaining value for money, meeting service requirements and taking account of sustainability issues when

8 http://www.leics.gov.uk/supplier_whistleblowing_policy__emc_.doc

procuring goods, works or services. However, there may be a few valid exceptions to this principle when taking into account the nature of the requirement, for example, where the supply market is particularly immature.

o Value for money – Commissioning and procurement will be conducted

on a value for money basis. Value for money includes both whole life costs and quality. (The Council’s approach to gaining value for money is set out in its Value for Money Strategy 2009/10 to 2012/13.)

o Sustainability – This will be addressed from the start of the

commissioning and procurement and throughout. In many instances, particularly when environmental issues are relevant, sustainable commissioning and procurement will reduce whole life costs and improve quality through recycling or reducing disposal costs.

o Fairness, openness and transparency - Procurements will be fair,

open and transparent. This is based on the European Union procurement rules, about not favouring or putting any potential supplier at a disadvantage9.

o Continuous improvement – Where a contract is going to be run for a

number of years, we will make sure that the principle of continuous improvement is embedded within the contract, including sufficient flexibility to allow for changes in the requirement.

o Collaboration – Full advantage will be taken of any opportunities for

realising efficiencies and sharing knowledge through collaboration with partners and suppliers, where it is beneficial to do so.

We will continually monitor our procurement activity to make sure it aligns with these values and principles.

Where We Want To Be We expect our future commissioning and procurement arrangements in 2013 to be very different from the current arrangements. We expect there to be:

o Further significant cashable savings and non-cashable benefits achieved through continued improvements in sourcing and market development.

o Strategic commissioning arrangements in place with our partners, through Leicestershire Together, which will take ownership of the Partnership’s commissioning framework. This framework includes the Local Area Agreement (LAA) and Multi Area Agreement (MAA) service delivery plans, to ensure an integrated approach across key LAA and MAA outcomes.

9 http://ec.europa.eu/internal_market/publicprocurement/legislation_en.htm

o A clear recognition that our category managers, supported by ESPO, are ‘custodians’ of the Council’s relationship with the supply markets. As such their role is to deliver innovation and commercial solutions to meet the needs of Leicestershire people.

o Early engagement of these procurement professionals in joint commissioning arrangements and strategies with our partners, in order to challenge thinking and to influence the procurement approach from the outset.

o Clear alignment of our category managers with their counterparts in partner agencies in order to maximise resource use and procurement capabilities across all organisations. This will facilitate a joint approach, for example, in such areas as market analysis and development, joint specifications, joint cost reduction approaches and joint contract management.

o More time spent by category managers on strategic procurement activity, such as the development of long-term category plans, supplier relationship management, ensuring that category strategies are aligned to business needs and implementing category plans.

o A culture of demand management in place right across the Council supported by category managers. At a tactical level, this means staff questioning the need to spend money in the first place. At a strategic level this means reviewing a whole activity to determine whether it meets the needs and objectives of the Council.

o An increase in the number of our shared service arrangements in order to deliver real service improvements and efficiency gains.

o Greater investment in e-procurement so that the majority of our business transactions with suppliers are conducted by electronic means to reduce transaction costs.

o A shared approach to reducing costs with our suppliers, so that suppliers achieve a fair profit but at a substantially lower cost to the Council and our partners. This means moving away from the current approach of tactical price management through re-tendering and re-negotiating prices.

o Much greater attention given to arrangements for managing partnerships and contracts, to ensure that our specified outcomes are achieved.

o Greater empowerment of local people through publishing clear information on our website to explain the expected service levels of public facing contracts, which have been set up with public/service user involvement. This information will include the key performance measures that are being used to monitor performance and the standards expected.

How We Intend to Get There The following activities will be developed into a detailed Implementation Plan which will be regularly updated and progress reported to our new Commissioning & Contracts Board and Cabinet on an annual basis:

Economic o We will achieve ongoing annual procurement efficiency savings of

at least £1.2m p.a. o We will put in place a Supplier Relationship Management

Programme, for our key suppliers, so that we focus our activity on those relationships with the most value and business risk and help identify any opportunities for improvement and efficiency..

o We will work with our prime contractors - both at tender stage and during the life of a contract - to establish the contribution that small firms, ethnic minority businesses, social enterprises and voluntary and community sector suppliers can play in the supply chain.

o We will provide details of our prime contractors on our website. o We will keep the tender process as simple as possible, and

proportionate to the requirement, in order to reduce the costs to suppliers.

o We will embed whole life costing techniques across the Council. o We will publish a complaints procedure on our website outlining

how we will deal with complaints relating to fraud, corruption and malpractice, procurement processes, and contract disputes.

o We will continue to undertake detailed analysis of our supply base to identify and monitor our expenditure with local small and medium-sized enterprises (SMEs) and to give us a better understanding of the impact of our purchasing activity upon the local economy.

o We will require our suppliers to pay their sub-contractors within 30 days from receipt of an undisputed invoice (as part of the Council’s standard terms and conditions).

o We will deliver the Action Plan supporting the Small Business Friendly Concordat to which the Council is a signatory.

o We will develop a Compact between the public sector and the Voluntary and Community Sector on a Leicestershire wide basis to strengthen further our partnership relationship.

o We will develop and implement an Action Plan for the Funding and Procurement Code, which sets out the financial framework with the Voluntary and Community Sector.

Social

o We will achieve level 3 (of 3) of the new Equality Framework by March 2011.

o We will ensure that equality considerations are built into all stages of the procurement process, and that we do business with suppliers who meet their obligations under the equality legislation.

o We will conduct Equalities Impact Assessments for our commissioning and procurement activities to ensure that any potential disparities are addressed.

o We will require suppliers to provide appropriate Equality and Diversity monitoring information.

o Where appropriate, we will include social clauses as special conditions in terms of the performance of a contract, to assist in delivery of the Sustainable Community Strategy. For example, a

social clause may require the contractor to take on a number of apprentices or recruit a number of long-term unemployed people.

o We will consider ethical sourcing issues10 as part of our normal procurement practice.

o We will ensure that in the event that Council staff are transferred as a result of an outsourcing exercise that TUPE Regulations and the ‘Best Value Code of Practice on Workforce Matters in Local Authority Workforce Matters’ are complied with, including subsequent monitoring.

o We will continue to maintain the highest standards of safeguarding when commissioning services for children, young people and vulnerable adults.

Environmental

o We will aim to control our consumption of and demand for goods and services, such as stationery, consultancy, utilities, travel and venue arrangements.

o We will continue to implement the requirements of the National Flexible Framework11, so that the Council achieves Level 5 by March 2012.

o We will undertake the planned work with our key suppliers to help them improve their environmental performance. For example, baselining the CO2 (tonnes) emitted by Statutory Service suppliers with whom the Council spends £100k+ p.a.

o We will develop our environmental risk assessment tool into a sustainable procurement tool, to help our staff increase the positive benefits and reduce negative impacts on society, the economy and the environment.

o We will update our Environmental Purchasing Policy, so that it continues to support delivery of the Council’s Environmental Policy.

Excellent Commissioning & Procurement Practice

o We will play an active part in the development of the new Strategic Commissioning arrangements, which are being put in place by Leicestershire Together to ensure that the right services are in place to deliver outcomes. In the first instance this will include developing structures for commissioning across the Partnership and a supporting toolkit.

o We will put in place a governing board (Commissioning & Contracts Board) to oversee the contract award and contract management processes within the Council. The Board’s role will be to appraise project proposals, to challenge demand, to ensure sustainability issues are incorporated into the procurement process, to monitor our relationship with ESPO, to promote good and consistent commissioning and procurement practice and to share the learning

10 Ethical sourcing issues include, for example, ensuring suppliers do not use forced/child

labour, and offer wages that at least meet relevant industry benchmarks or national legal standards. 11 Source: www.defra.gov.uk/sustainable/government/documents/full-document.pdf - The

Flexible Framework is on page 74 of ‘Procuring the Future’).

from different projects across the Council. The Board will also check that contracts are meeting both Council objectives and supporting the delivery of the Sustainable Community Strategy.

o We will move to a ‘self service’ procurement model, supported by a help desk facility, for lower value/lower risk activity. This model will still be co-ordinated centrally within the Council’s category management arrangements.

o We will align our category work plans with the Council’s financial targets to ensure new savings opportunities are identified to create a pipeline for future savings.

o We will introduce a competency framework, which identifies the skills and competencies required of all those staff involved in the procurement and commissioning process.

o We will continue to provide staff procurement training to improve procurement competencies and skills and develop additional purchasing guidance.

o We will continue to develop template documents, including standard and category-specific terms & conditions.

o We will ensure that elected members have an awareness of the commissioning and procurement process sufficient to meet their identified needs and to enable them to exercise their roles as Executive Member, Scrutiny Member or member of the Corporate Governance Committee, as appropriate.

o We will revise our internal rules to ensure strict enforcement of corporate contracts and procurement policy. This will also be incorporated into future audit reporting.

o We will ensure that all our contracts have a named contract manager in place and that all contracts with a total value exceeding £1m also have a Senior Responsible Owner in place.

o We will train our category managers and contract managers in supplier relationship management techniques.

o We will pilot a Supplier Relationship Optimisation tool (a supplier relationship management technique) that facilitates a 360 degree appraisal of key suppliers’ performance to help us improve the way we work together.

o We will continue to monitor our relationship with and the overall performance of ESPO to ensure this relationship is maximised.

o We will implement further improvements in e-procurement, procure-to-pay processes and management information, so that the Council and it’s suppliers maximise the benefits of electronic procurement.

o We will continue to obtain assurance, to a level proportionate to the risk involved, of the viability of the Council’s significant suppliers' and partners’ business continuity plans.

o We will develop an approach to financial vetting both ahead of contract award and annually throughout the duration of the contracts.

How We Will Measure Our Progress The Council’s goal is to commission and procure quality services tailored to local needs to deliver sustainable outcomes and value-for-money. To measure our progress, we will look at the following and report progress to our Commissioning & Contracts Board and Cabinet on an annual basis, publishing the report on the Council’s website. We will also benchmark our commissioning and procurement performance with that of other organisations using the Audit Commission’s procurement indicators. Our Performance Measures

Economic

Commissioning & Procurement Practice

• Year on year procurement savings (cashable) achieved

• Corporate Use of Resources Score: Value-for money (out of 4)

• Percentage of payments made within 30 days by the Council where the invoice is undisputed

• Value of procurement spend transacted electronically (including purchasing cards)

• % spend with SMEs • Colleague satisfaction with purchasing arrangements

• Number of local SMEs submitting Pre-Qualification Questionnaires to ESPO when expressing an interest in Council requirements

• Key Supplier Performance across spend categories

• % of contracts supported by ESPO

Social Environmental

• No of Equality Impact Assessments completed as part of or prior to procurement process

• Level of national Flexible Framework achieved

• Level of Equality Framework for Local Government achieved

• % of high risk contracts where environmental considerations were included in the contract award (weighting 15%+)

o % of contracts with a Total Value

exceeding £1m that include a Social Clause

• CO2 (tonnes) emitted by Statutory Service suppliers with whom the Council spends £100k+ p.a.

Glossary of Terms Business Case - This is a document, which is used to obtain management commitment and approval for investment in business change. It identifies the costs, benefits and risks associated with a particular project, so that the viability of the project can be judged. Business Continuity – Where supply of goods or services is critical to the Council, evidence of business continuity and security arrangements will be obtained to minimise the probability of disruption and delayed or non delivery. Category Management – This involves coordinating and managing the purchasing arrangements across the Council for a group of similar goods, works and services. Examples of categories include transport services, energy and food. Category Manager - The Officer authorised by the Council’s Director of Corporate Resources to manage the procurement of a category or categories of goods, services and/or works. The Council’s procuring officers should notify the appropriate Category Manager of all contracts with a total value of £50k or more. Category Managers approve Centrally Negotiated Contracts, and advise procuring officers on the best route to market, tender evaluation methodology, contract terms and conditions, and the extension and variation of contracts. Commissioning - The cycle of assessing the needs of people in an area, designing and then securing appropriate service. Compact – A voluntary agreement between the voluntary and community sector and the public sector which provides a framework for how the two sectors work together. Further information is available from: http://www.leics.gov.uk/compact_guide.pdf Demand Management – This is an approach to ensuring that the business' needs are being appropriately met and that resource is not being applied unnecessarily. Demand management is not about reducing contract volumes - it is about ensuring, among other considerations, that contract volumes are appropriate for meeting the needs and objectives of the organisation. East Midlands Improvement & Efficiency Partnership (EMIEP) – Partnership set up following the publication of the National Improvement and Efficiency Strategy (December 2007) by the Department for Communities and Local Government (DCLG). It aims to bring lasting improvements to the East Midlands region by forging closer relationships between East Midland Local Authorities to help them challenge and support one another on their ‘improvement journeys’. Further information is available from: http://www.eastmidlandsiep.gov.uk/ Eastern Shires Purchasing Organisation (ESPO) - A local authority purchasing and distribution consortium formed in 1981, that is jointly owned and managed by 7 local authorities, including Leicestershire County Council. It provides a comprehensive purchasing service to its 7 member authorities and other approved customers. ESPO is the Council’s strategic purchasing agent with whom we have agreed a Memorandum of Understanding. Further information is available from: http://www.espo.org

Equality Framework for Local Government - The Equality Framework has been developed to build on the equalities achievements of local government and create a framework that helps councils to respond effectively to the increasingly complex and diverse nature of their communities, legal obligations and new performance measures. The Framework uses the broader definition of equality set out in the Equalities Review which emphasises equal life chances for all. Further information is available from: http://www.idea.gov.uk/idk/aio/9585101 Equality Standard for Local Government – The Equality Standard was launched in 2001 and was adopted by 90 per cent of all local authorities. The standard recognised the importance of fair equal treatment in local government services and employment. It was been developed primarily as a tool to enable local authorities to mainstream age, disability, gender, race, religion or belief and sexual orientation into council policy and practice at all levels. It was a best value performance indicator (BVPI). Councils reported what level of the standard they have reached from five levels. The Equality Framework has now replaced the Equality Standard. Flexible Framework – Developed by the National Sustainable Procurement Task Force to allow public sector organisations to benchmark their own sustainable procurement capability, and providing a route map for improvement. Further information is available from: www.defra.gov.uk/sustainable/government/documents/full-document.pdf Funding and Procurement Code – A framework for the financial relationship between the voluntary and community sector and the public sector, which sets out the undertakings of both sectors. Gateway Review – An appraisal of a procurement project carried out at crucial junctures in its development. It is conducted by an independent team who are not part of the project team and who can provide a ‘health check’ on the aims and the progress of the project. Further information is available from: www.ogc.gov.uk/what_is_ogc_gateway_review.asp Joint commissioning - two or more agencies pooling their resources to implement a common strategy for providing services Leicestershire Together – The Local Strategic Partnership (LSP) for the county of Leicestershire whose aim is to improve the quality of life for Leicestershire people and to improve the quality and coordination of public services in the county. Leicestershire Together has 28 members representing different sectors, including the organisations providing key services to communities across the county. Further information is available from: http://www.leicestershiretogether.org Local Area Agreement - sets out the priorities for a local area agreed between central government and a local area (the local authority and Local Strategic Partnership) and other key partners at the local level. These priorities aim to make a town, city or community a better place to live. Further information is available from: http://www.leicestershiretogether.org/mar09_laa2_refresh.pdf Local Strategic Partnership – A single body, which brings together the different parts of the public, private, voluntary and community sectors for the purpose of preparing and implementing a community strategy and agreeing community priorities. In Leicestershire, the local strategic partnership is called ‘Leicestershire Together’.

Multi Area Agreement - sets out the economic priorities for a local area agreed between central government and a local area (Local Strategic Partnerships). The Local Strategic Partnerships of Leicestershire and Leicester have agreed a MAA focused on improving the local economy and generating wealth through innovation and creativity. Oracle iProcurement - A software application which streamlines the process of purchasing goods/services replacing the manual paper order system, and is one of the principal electronic procurement tools which has been implemented by the Council to modernise its approach to procurement technology and to contribute to delivering efficiency savings. Prime Contractor – The main supplier with whom we directly contract for goods, works or services and who has responsibility for completion of the contract. Procurement - The process of acquiring goods, works and services, covering both the acquisition from third parties and from in-house providers. The process spans the whole life cycle from identification of needs, through to the end of a services contract or the end of the useful life of an asset. It involves options appraisal and the critical ‘make or buy’ decision which may result in the provision of services in-house in appropriate circumstances. Public Sector Bodies – For the purpose of this Strategy each of the following is considered to be a Public Sector Body: a local authority, a district council, a borough council, a government department, a fire and rescue authority, a police authority, a health authority, an association of or formed by one or more public sector bodies. Purchasing Card (pCard) - This is a charge card, which works in a similar way to a credit card and is used to purchase low value, high volume routine transactions, for example: hardware purchases, travel and accommodation expenses, newspapers. They replace paper based purchase orders and invoices and the use of petty cash. Risk Management - We will assess the risks associated with the development and performance of contracts and manage these risks appropriately. Senior Responsible Owner – The Council officer who is responsible for making sure that the contract meets its objectives and delivers the anticipated benefits. Small Business Friendly Concordat – A voluntary, non-statutory code of practice, which sets out what small firms and others supplying local government can expect when tendering for local authority contracts. It also sets out the standards that public sector buyers should expect from their suppliers. Further information is available from: http://www.communities.gov.uk/documents/localgovernment/pdf/135262.pdf Small to Medium Size Enterprises (SMEs) – Companies employing 250 employees or less. Statutory Service - A service that the Council is required by law to provide. Supplier Relationship Optimisation (SRO) – An analytical tool which involves gathering 360 degree feedback on suppliers and comparing this to a supplier’s own self assessment. The results are used to identify and address any important gaps in the relationship.

Sustainable Community Strategy - The Sustainable Community Strategy is prepared by local strategic partnerships as a set of goals and actions which they, in representing the residential, business, statutory and voluntary interests of an area, wish to promote. The community strategy should inform the local development framework and act as an umbrella for all other strategies devised for the area. TUPE – Transfer of Undertaking (Protection of Employment) Regulations. Voluntary and Community Sector (VCS) – The voluntary and community sector is the collective name for all the voluntary and community organisations. Voluntary Organisations – Voluntary organisations exist for their self defined purpose and are not set up by law. They are independent and range from large service providers and registered charities to small groups and clubs that may not be formally constituted, and which between them cover the entire range of activities and policy areas. They include faith groups, black and minority ethnic, refugee and asylum seeking groups, and tenants and residents associations. They may or may not use volunteers. Whole Life Costs – The costs associated with the life of an asset or service, including procurement, operation, maintenance and disposal/re-competition.

If you require information in an alternative version such as large print, Braille, tape or help in understanding it in your language, please contact 0116 305 5837 or email: procurement@leics.gov.uk

We encourage feedback on our Strategy and this can be provided to the Corporate Procurement Unit at the following address or any of our Category Managers (contact details available via website: www.leics.gov.uk): Corporate Procurement Unit Corporate Resources Department Leicestershire County Council, County Hall, Glenfield, Leicester, LE3 8RE Email: procurement@leics.gov.uk

Procurement Leadership and Innovation’

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