Hampshire Fire and Rescue Authority

Item 7

Performance Review Committee

1 December 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 8062 6850

1

Summary

1.1

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

1.2

Many of the outstanding recommendations refer to action being taken subject to the appointment of a Procurement Manager. I can confirm that short-listing for this appointment took place on the 9^th of November 2004 (9 applications) and an appointment is expected to be made in early January 2005.

2

Risk Assessment

2.1

Failure to implement the recommendations made by the review, leaves the Authority vulnerable to the consequences of the identified risks and shortcomings. These progress reports are considered to be an important process within the Authority's strategic risk management strategy because they ensure that Members are fully aware of any problems (including any resource implications) associated with addressing the issues raised and the priority given to driving down or eliminating specific risks.

3

European Convention on Human Rights and the Human Rights Act 1998

3.1

The proposals within this report are considered compatible with the provisions of the European Convention on Human Rights, the Human Rights Act 1998, and 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

9.1.5 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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9.3.1 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 appointment of the Procurement Manager who will assess opportunities for comparative benchmarking.

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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

HFRS now runs all its major procurement projects using Prince2 which ensures regular update reports are produced, e.g. Replacement Fire Safety Database Contract

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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 provides 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 EU 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 was implemented in November and 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.

Must have financial standing orders that set out how contracts for supply of goods and services are to be provided, i.e., where you need competitive quotes and where tendering is required.

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?

Promote strong competition for highly specialized products and services by short-listing potential bidders.

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

To 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.

SMT have approved centralization of procurement within HFRS and this commenced on 1^st October 2004. Consultation with the users is now an essential element of the procurement process to ensure their needs are met.

(See attached report)

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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

SMT have approved centralization of procurement within HFRS and this commenced on 1^st October 2004. It is now possible to rationalize the number of suppliers as the majority of ordering is concentrated in one department.

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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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