Hampshire Fire and Rescue Authority

Item 8

Performance Review Committee

8 September 2004

Progress Report on the actions taken to meet the recommendations made in the previous Best Value Review of Procurement

Report of the Chief Officer

Contact:

Philip Webb, Performance Review Manager

Tel: 023 8064 4000 Ext 3952

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Summary

1.1

Attached is a progress reports on the actions taken to meet the recommendations made in the previously conducted Best Value review of Procurement.

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European Convention on Human Rights and the Human Rights Act 1998

2.1

The proposals within this report are compatible with the provisions of the European Convention on Human Rights and the Human Rights Act 1998 and considered in the light of the Race Relations (amendment) Act 2000.

Recommendations

That the Committee approves the actions taken towards meeting the recommendations listed in the review of Procurement.

Section 100D - Local Government Act 1972 - background papers

The following documents disclose the facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of the report.

None

NB The list excludes:

1 Published works

2 Documents that disclose exempt or confidential information as defined in the Act

BEST VALUE SCOPING STUDY : PROCUREMENT

Recommendations

Action to Date

9.1.4 Obtained access to accurate information about is own procurement performance and compared it with that of other authorities?

Benchmarking and comparisons to continue in pursuit of Best Value and good practice

Procurement is being regionalised and we must follow the government's national procurement strategy in line with the modernisation agenda. HFRS sit on the CFOA SE Regional Procurement Group which is driving forward the National Agenda for Procurement. This is a Prince2 project covering all aspects of procurement from major capital schemes to minor consumables. We have specific responsibility for the establishment of a `hazardous chemicals database'.

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9.1.5 Consult with staff, other authorities, and stakeholders of the BV Review?

Review the procedure for delivery of goods and services in the light of comments from the staff survey.

This review not commenced, subject to the appointment of a Procurement Manager

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9.2.1 Show that users of goods and services have accessible channels to provide feedback

Introduce a formalised system for obtaining feedback from 'customers/end users'

In the absence of a formal system we have had a `Supplies/Stores Quality Survey' running on the intranet for the last 12 months and have had some feedback: www.hantsfire.gov.uk/internal/contacts/ questions/supplies.html

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9.3.1 Deliver new goods and service to users within budget and on time?

Annual questionnaire to end users to check on customer satisfaction

Will be done over the next twelve months to tie in with 9.1.4

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9.3.2 Have a project plan for all on-going procurement projects?

Issue updates to all major plans at regular intervals

To form part of the Procurement Manager's responsibilities when appointed

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9.4.1 Specifications for goods and services formulated in consultation with other stakeholders.

Document decisions /evaluation to demonstrate best value adherence

Subject to the appointment of a Procurement Manager

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9.4.2 Service requirements are specified in terms of output and performance, rather than how it providers the service?

Any agreements including those made orally, should be recorded so that both customer and suppliers know where they stand.

Subject to the appointment of a Procurement Manager

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9.4.4 Specifications are drawn up in accordance with relevant UK and UK Legislation and standards?

Personnel should be kept aware of UK and EU legislation affecting the service.

Subject to the appointment of a Procurement Manager.

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9.5.4 Delegate other purchasing decisions to a level appropriate to the value and strategic importance of the goods/ services?

Ensure a robust trail and list of staff authorised to take procurement decisions

The SAP procurement module will be implemented in November and in preparation for this, work has begun to centralise much of the low value purchasing as it is not cost effective to process large numbers of low value orders and invoices.

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9.6.1 Provide financial standing orders to give guidance on contracts for supply of goods and services.

As detailed above

Financial Regs and Standing Orders are still being revised but in the meantime budget managers were reminded to refer to the existing guidance notes on purchasing and tendering procedures on the intranet: www.hantsfire.gov.uk/manage/ serviceforms/gn-2-1-6-2.doc

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9.6.2 Promote competition for specialised products and services by shortlisting potential bidders?

As detailed above

Several contracts have been let by invitation to tender:- Supply of smoke detectors, Provision of legal services, Multi-media Presentation Units.

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9.6.3 Ensure that its competitive processes comply with UK and EU legislation?

That importance of compliance with regulations be reinforced.

HFRS now runs all its major procurement projects using Prince2 which ensures full costs included in the business case and compliance with all legislation, e.g. Replacement Fire Safety Database Contract.

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9.6.7 Take into account acquisition costs; operating costs; maintenance; replacement costs and training costs?

That wholelife and training costs should be taken into account._

HFRS now runs all its major procurement projects using Prince2 which ensures full costs included in the business case and compliance with all legislation, e.g. Replacement Fire Safety Database Contract.

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9.7.1 Ensure that contractors and suppliers operate an Equal Opportunity Policy?

Form a part of the HFRS Procurement Strategy and all suppliers on the Approved List should have an Equal Opportunity Policy.

Subject to the appointment of a Procurement Manager.

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9.7.5 Involve users and suppliers in detailing service standards within a flexible performance contract?

User/supplier input to be encouraged as part of the HFRS Procurement Strategy. The scope for flexible performance contracts to be assessed.

Subject to the appointment of a Procurement Manager

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9.7.7 Keep the number of suppliers to the minimum to meet business needs and to sustain competition.

An approved supplier list to be compiled by the Procurement Manager

Subject to the appointment of a Procurement Manager.

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9.8.4 Develop key performance indicators with suppliers and ensure than they are acted on?

The opportunity to develop PI's for the supply of some goods and services to be considered.

Subject to the appointment of a Procurement Manager

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9.9.4 Fully appraise the strengths, weaknesses, opportunities and threats of existing procurement arrangements?

The benefits of carrying out 'SWOT' analyses to be promoted in HFRS Procurement Strategy.

Subject to the appointment of a Procurement Manager

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9.9.5 Review existing specifications and performance standards?

Establish procedure to check on performance from purchase (specifications) to user satisfaction (performance standard).

Subject to the appointment of a Procurement Manager

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