Archived decisions

Hampshire Fire & Rescue Authority

Performance Review Committee Item 3

15^th June 2005

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

Report of Chief Officer

Contact: Philip Webb, Performance Review Manager

Tel: 023 8062 6828

E-mail: [email protected]

Summary

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

Recommendations

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

Introduction

The Best Value Review of Procurement made many recommendations that refer to action being taken subject to the appointment of a Procurement Manager. An appointment has now been made, and the successful candidate commenced his duties on 21^st February 2005. Progress on the outstanding recommendations is attached.

Contribution to Corporate Aims and Objectives

Effective procurement is essential to ensure the Authority secures effective resources. Implementation of the recommendations made in the Best Value Review of Procurement will assist the Authority in meeting Corporate Aim (5) - "to become one of the top 20% of high performing Fire and Rescue Services in the Country".

Resource Implications

There are no direct resource implications from this report. Resource allocation for the new Procurement Manager's post was addressed in the 2003/04 budget.

Equality Impact Assessment

Carrying out equality impact assessments will strengthen our Best Value Review practices by ensuring that the consequences of our proposed policies and actions comply with current legislation and expectations for improving equality and diversity in the workplace and in our delivery of services to the public.

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

Risk Analysis

Failure to implement the recommendations made by the review leave 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.

Background information (Section 100D of Local Government Act 1972)

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

Note: The list excludes: (1) published works; and (2) documents that disclose exempt or confidential information defined in the Act.

Hampshire Fire And Rescue Authority

Schedule of Outstanding Recommendations from

Best Value Reviews and Scoping Studies


KEY:
_	Action taken - recommendations met
_	Some action taken - progressing
_	No action yet taken


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	Procurement Manager now in place and reviewing Appendix B. Manager is part of Regional Procurement Team, and will be looking at regional issues as well as specifics at HFRS	_
*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	Procurement Manager now in place. Questionnaires and surveys being utilised for uniform trials. Further surveys to be done when Inventory System ISM and Stores development plans, space rationalisation and location monitoring are completed.	_
*9.4.1 Specifications for goods and services formulated in consultation with other stakeholders.*
Document decisions /evaluation to demonstrate best value adherence	Procurement Manager now in place. Specifications being confirmed and added to ISM in line with stakeholder requirements and operational trials. Standard Paragraphs and Terms of Conditions of Purchase now being utilised. Training being given to devolved budget holders and buyers for the above's incorporation. Benchmarking activities underway on the following commodities: Hose; stationery; cleaning equipment; operational hand tools; first aid equipment This does not include items being looked at regionally.	_


*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.	Procurement Manager now in place. Standard paragraphs and Terms and Conditions of Purchase now being utilised. Orders now being acknowledged as a service requirement, and suppliers advised through the use of the above. KPI now set up for the following: Bristol Care Contract; stock levels; indent issues; supplier requisitions; stock adjustments; losses and damaged ops equipment; cycle counts.	_
*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.	Procurement Manager now in place. Course identified (Review update of EC Directives (CIPS)). Procurement Manager to attend in July 2005 and flow down required guidance to relevant personnel.	_
*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	SAP now working and providing this service.	_
*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 Regulations now written and Service Order 2-1-6 being reviewed with a view to update in line with Financial regulations.	_
*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	Further benchmarking to be undertaken (see 9.4.1) this will occur naturally through the Regional Procurement Team and other initiatives set by the Procurement Manager. This will allow for a cross fertilisation and knowledge of current arrangements in the Region.	_
*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	Procurement Manager now in place. Letter to be written to suppliers asking for visibility of their policies, if they have one, or to acknowledge in writing that they have, and are working in line with equal opportunities. This will be done within the next three months.	_


*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.	Procurement Manager now in place. KPI's now integrated into HFRS supplies and stores departments (see 9.4.2)	_
*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.	Procurement Manager now in place. Operational Procurement Model (Jones) to be used to identify to a set criteria and activity listing to identify weaknesses in current procurement practice with a view to bridging any gaps that are identified. Current visibility identifies a weakness in ISM stock inventory systems and HCC ability to resolve operational issues within a timely manner. Training of buyers needs to be progressed and budgeted accordingly as a matter of priority.	_
*9.9.5 Review existing specifications and performance standards?*
Establish procedure to check on performance from purchase (specifications) to user satisfaction (performance standard).	Procurement Manager now in place. Procurement Managers looking into the best approach to this issue. Currently looking at reviewing the six major categories held within the operational store. i.e. PPE, operational equipment, uniform, stationery, first aid equipment, cleaning equipment.	_

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