Archived decisions

Contact: Phil Samms, ext 7072 email: [email protected]

1. Summary

1.1 This report sets out the desire for Members to become involved in a working group looking to develop a procurement strategy for construction related activities within the Environment Department. It proposes that nominations be sought for five Members of the Buildings, Land and Procurement Panel to assist with the review.

1.2 The work required was outlined in the `Construction Related Procurement Initiatives in the Environment Department' report presented to the Buildings, Land and Procurement Panel on 13 October 2005 and approved by the Executive Member for Policy and Resources on 4 November 2005.

2. Background

2.1 Since the approval of the `Construction Related Procurement Initiatives in the Environment Department' report, officers within the Environment Department have been reviewing current procurement practices and arrangements.

2.2 The procurement strategy for the Department has been moving towards an alignment of certain contracts in 2008. The recent agreement of a years extension to the Highways Term Maintenance Contract (TMC) now means that numerous contracts will come to an end in 2008. An opportunity therefore exists for certain works and/or services to be procured jointly in the future, if considered beneficial.

Contract	Current End Date	Comments
Highways TMC	30 April 2008	Possible extension by further two years
Professional Services Contract	31 March 2008	Possible extension by further two years
Main Road Surface Dressing	31 March 2008	-
Framework Arrangement for Minor Highway Works	31 March 2008	-
Intelligent Transport Systems (Signals)	30 June 2008	-

2.3 On a more regional level, work is also progressing through the South-East Centre of Excellence (SECE) and the South-East Counties Service Improvement Group (SECSIG) with a view to establishing more collaboration on procurement between local authorities in the South East. Hampshire, in particular, is heavily involved with work being progressed by SECE on establishing a contract database and collaboration tool for the future.

2.4 On a national level, procurement efficiency in the highways public sector has been progressing, with recent guidance on good practice published through the Highways Efficiency Liaison Group, led by the Highways Agency.

2.5 In addition to the above initiatives, the County Council has also been contacted directly by the Highways Agency with a view to collaborating with it on its Area 3 Commission which comes to an end on 31 August 2008.

3. Procurement Innovations Group

3.1 In order to meet the various agendas set out above, a department-wide Procurement Innovations Group has been established. Whilst initially concentrating on construction related procurement, the group also includes representatives from various sections of the Department and Corporate Procurement, and it is expected that lessons learnt will be shared with anyone who may benefit.

3.2 In order to consider the full agenda of procurement issues currently present in the Environment Department, the Group has established four Officer Working Groups to investigate the key areas identified below:

(i) Client Needs Group

· Organisational Structure of the Department

· Processes Involved in Scheme Delivery

· Political Process

· Local Economic Effect

· Performance Management

(ii) Standards Group

· Appropriate Conditions of Contract

· Appropriate Specifications

· Level of Design/Design Standards Adopted

· Management of Risk throughout Design and Implementation

· Opportunities for Enhanced Sustainability

· Legal Issues with Proposals

(iii) Contracts Management Group

· Risk Management

· Contracts Durations

· Incentivisation

· Exit Strategy for Term Contracts

· Links to Other Authorities

· Open Book

· Legal Issues

· Value Management

(iv) Collaboration and Innovation Group

· Early Contractor Involvement

· Design and Build

· Market Testing

· Buying

· Combining Contracts

· E-Procurement

3.3 In order to more clearly understand the priorities and preferences of Members, a fifth Working Group is being sought to seek their views. It is anticipated that this group will meet following the review stage of the main working groups, with a workshop held in September/October 2006.

3.4 It is intended that a full report of the review outcomes, including recommendations on the most appropriate procurement strategy for construction related procurement in the Environment Department, will be presented for approval to the Buildings, Land and Procurement Panel and Executive Member for Policy and Resources early in 2007.

4. Impact Assessments

4.1 It is intended to develop the Environment Department's procurement strategy considering the impact on the environment and equalities for all contracts procuring construction work and professional services.

4.2 For construction contracts, particular emphasis will be placed on developing the contractor's approach to the temporary works and traffic management required to construct the works. In addition, the opportunity to develop early contractor involvement and increased partnering will afford opportunities to influence the permanent works design equally.

Recommendation

That the Executive Member for Policy and Resources approves the appointment of a working group on a proportionality basis of 3:1:1, to assist in the ongoing review of construction related procurement within the Environment Department.

988Rpt/PS