Archived decisions

HAMPSHIRE FIRE AND RESCUE SERVICE

HFRA F&GP Committee 15 1 2009 Appendix A

The National Procurement Strategy for the Fire & Rescue Service 2008-2011 - CONSULTATION

Hampshire Fire and Rescue Service (HFRS) welcomes the draft strategy and offers the following responses to the consultation questions:-

Question 1

Q1: Do you agree with the proposed vision for FRS procurement?

HFRS supports the proposed vision for Fire & Rescue Service (FRS) procurement, with the suggested amendment:

2.2.1 line 3 delete "operations" insert "service delivery"

Question 2

Q2: Is such a vision useful? Can you suggest improvements or alternatives?

We believe that the proposed vision should provide clarity in the procurement structure. This is essential in the current climate of delivering efficiency savings.

Question 3

Q3: Do you welcome the updating of the national procurement strategy? Is such a strategy useful?

This is timely in the current environment and the issues facing FRS. In particular Firebuy has been developing its role as a national procurement lead and this needs to be reviewed to understand the impacts it has made and how it can continue to operate to the benefit of the FRS.

Question 4

Q4: What do you see as the achievements, lessons learnt and areas for development from the 2005-08 strategy?

There is little doubt that procurement practices have improved throughout the fire and rescue service in the last three years. These improvements have been at national, regional and local levels driven by the need to deliver efficiencies and improvements.

Nationally, a significant number of fire service specific contracts are now available through Firebuy and they are progressing some major projects that will give benefits to FRS. Greater awareness of other framework arrangements such as those available through the Office of Government Commerce (OGC) also helps deliver improvement.

An improved intake of procurement managers within the services, and an increased level of collaboration regionally through the regional procurement managers has resulted in a more strategic professional outlook, and this needs to continue.

This has been supported by the formulation of the Association of Procurement Professionals in the Fire Service (APPFS).

It is acknowledged that there is still much more that can be done within the spirit of collaboration and the sharing of best practice in preference to prescription. It must be recognised that individual Fire Authorities have the responsibilities for delivering best value in procurement in line with their Corporate plans and these should naturally encourage the use of the most effective and efficient procurement methods.

Question 5

Q5: Should there continue to be a requirement to use national contracts and if so under what circumstances?

HFRS should have flexibility and choice in purchasing the goods and services it needs. This involves looking at all options from a variety of sources that would allow a best fit scenario to be achieved.

We embrace the responsibility to demonstrate best value in exercising this flexibility and are always prepared to review such arrangements from all sources in such a way that can demonstrate clear understanding of why certain options are taken.

Question 6

Q6: If there is no longer a requirement should FRAs still make a business case to go outside national arrangements and, if so, to whom should the case be made (Communities and Local Government, CFOA NPB, other)?

We believe that compulsion is not the way forward. If national contracts demonstrate good value and quality they will be attractive to FRA's.

By law, Fire Authorities must have standing orders with respect to contracts for the supply of goods or services that:

a) secure competition and

b) regulate the manner in which tenders are invited.

Prescription to use certain contracts may contravene these standing orders and result in best value not being achieved.

All contracts over £25,000 are awarded following a rigorous selection process using value for money criteria and compliance is monitored through internal and external audit processes. There should be no requirement to justify decisions to external organisations such as Communities & Local Government (CLG).

Question 7

Q7: What is your preferred option and why?

· Option 1 - Firebuy Ltd continues with modified structure and Communities and Local Government funding: a sub-option being to maximise income generation with Communities and Local Government covering any funding gap.

· Option 2 - The national procurement function is subsumed into a national body for the FRS or into Communities and Local Government.

· Option 3 - The national procurement function is transferred to an existing (non-FRS) procurement body

· Option 4 - The national procurement function is transferred to the FRS; either collectively via CFOA/LGA or through lead FRAs.

HFRS supports option one, but with the amendment that CLG should directly fund Firebuy Ltd with that funding offset by maximisation of income generation rather than the other way around.

Question 8

Q8: Are there any other options or approaches not covered above that you think should be considered?

As above.

Question 9, 10 and 11

Q9: Do you feel that changes are necessary to the current Firebuy governance arrangements?

Q10: What is your preferred number of members for the Board, should it be reduced from its current size?

Q11: Do you agree that the Chair should be independently appointed through the OCPA process?

Yes - HFRS believes that the governance model should be reviewed and that changes are necessary to engage the wider FRS with the national procurement function. The number of directors should be reduced with greater representation from FRS's not just CFOA and LFEPA and independence and transparency could be achieved with an independently elected Chair

Question 12

Q12: What is your preferred approach for increasing stakeholder involvement in the Board?

A stakeholder group could be established with representatives from LFEPA, County, CFA and Metropolitan FRS's.

Question 13

Q13: Are there any other options not covered above?

There may be advantages in combining elements from the options

Question 14

Q14: Do you agree that the Ex Officio posts should be discontinued?

Only if there is a robust system in place for Firebuy to engage with its stakeholders

Question 15

Q15: Are there any other procurement drivers for the FRS that are not covered?

None of which we are aware.

Question 16

Q16: What can the national procurement strategy and the bodies delivering it do to help FRAs implement good procurement practice, for instance in the areas such as equality, sustainability and e-procurement?

Greater engagement and guidance through NPB and APPFS would be helpful.

Support and guidance for FRS on compliance with changes in EU procurement legislation with respect to environmental impacts and e-procurement.

Question 17

Q17: Do you agree that better information on the fire market and FRS expenditure plans is required if national procurement is to be effective.

Agree - There are a number of procurement assumptions based on contract take-up and income generation for which it is essential to understand the size of the market. The size of the market in most fire specific categories is small so there is concern that the tenders are not in fact delivering competitive prices.

Even when tenders are let for a national procurement the number of potential suppliers can still be limited. There is a risk that if framework agreements are let on a single supplier basis this could reduce the number of suppliers (and competition) still further.

Question 18

Q18: How might better information on the fire market be collected? What are FRAs able to do to help this process?

FRA's can detail their spend profile over 3 years. This information can be collected regionally through the regional procurement managers and collated. In this way all can contribute to develop a far more robust approach to understanding the actual size and dynamics of a relatively small market place.

Question 19

Q19: Should the new NPS list categories of goods and services to be procured at the national, regional and local level?

The category management approach in NPS 2005-08 is a practical basis to build on for FRS specific procurement and sits alongside other procurement arrangements that already exist.

Question 20

Q20: What are your views on the use of Category Management as a way of organising and delivering national procurement in the FRS?

See question 19 above.

Question 21

Q21: What are your views on the development of the current national procurement function/role to take on identified national contract management etc. requirements for the resilience programme?

HFRS believe that it is fundamental to a national procurement body to be responsible for the management of national contracts as part of a central function since, in general, individual FRS do not have procurement staff with sufficient skills.

Question 22

Q22: What role might Firebuy Ltd undertake for the Firelink/FiReControl projects?

Firebuy could pick up the FRS out of scope requirements since these will necessarily have to interface with the Firelink/FiReControl projects?

Question 23

Q23: How is collaboration and consistency on e-procurement achieved to ensure benefits are delivered - what can/should be done at a national level?

The take up of e-procurement would be greater if there was an easy way of quantifying the costs and benefits. Could Firebuy have links to information such as OGC on its web page?

Question 24

Q24: What are the impediments to delivering the efficiencies and cost savings envisaged under the original NPS? What actions might be taken to address this?

Whilst major suppliers are able to manage the complexity of the various procurement mechanisms there is a feeling that small businesses and local suppliers are now not able to bid for FRS contracts as they do not have the skills or capacity.

Questions 25 & 26

Q25: How might some of the administrative burdens on industry, such as pre-qualification procedures, be standardised and reduced?

Q26: Who should be responsible for doing this?

We welcome any strategies that streamline the procurement process and lessen the administrative burden. OGC provides a `successful delivery toolkit' on its website: http://www.ogc.gov.uk/Resource_Toolkit_procurement_resources.asp

Question 27

Q27: Do you agree in principle that a national procurement function should be funded via a mixture of Communities and Local Government/FRS funding and other income generation?

In principal HFRS agree with the concept of a centrally provided procurement function being funded by CLG, and income generation, based on Firebuy supplying improved and beneficial contracts to the service.

Questions 28 & 29

Q28: Do you agree with the principle of a management charge? If so, how and where should this be introduced?

Q29: Under what conditions would a management charge be acceptable to the users of national contracts?

HFRS cannot see how management charges can be applied to Firebuy contracts. For example if comparing the cost of a Firebuy framework contract with one from OGC or Hampshire County Council the Firebuy price would have to include the management charge and may appear less competitive.

Question 30

Q30: What other means of income generation are there to support a national procurement function and how should these be pursued?

No response given.

Question 31

Q31: Is the list of stakeholders identified comprehensive, should others be included?

We agree with the list of stakeholders.

Question 32

Q32: Do you agree with the listed responsibilities in Appendix D? Are there any others that should be included?

A detailed set of roles and responsibilities running to some 6 pages was supported.

Question 33

Q33: Do the organisations identified currently have the capacity to deliver these roles - for instance the pivotal role identified for CFOA's National Procurement Board?

We agree that those organisations identified do have the capacity available.

Question 34

Q34: Are the current relationships between these organisations effectively represented?. How might future arrangements be simplified?

HFRS agrees that the relationships between organisations are effectively represented and acknowledges the complexity of them.

Question 35

Q35: There are proposals to address stakeholder engagement through the governance arrangements for Firebuy. Are there other opportunities for improving the engagement of stakeholders in the national procurement process?

If there is more stakeholder involvement in the new governance arrangements for Firebuy this may be sufficient.

Question 36

Q36: Does the process identified accurately represent best and current practice in the FRS?

HFRS can see no issues with the identified process.

Question 37

Q37: Do you agree with the proposed assignment of responsibilities in the matrix?

HFRS agree with the intended assignment of responsibilities in the matrix.

Question 38

Q38: Do you have any suggestions for how this can be best achieved?

HFRS feed their major procurements to the regional Procurement manager to drive the opportunity for collaboration. A regional plan is produced identifying areas of common and shared procurement. If all the regional plans were collected they could inform a strategic national procurement plan.

Question 39

Q39: What accountability should there be for the national procurement function and to whom?

HFRS agrees with the direction identified in the draft NPS. We also believe there should be a responsibility placed on Firebuy Ltd and regional contract managers to provide certification of cashable and non-cashable efficiencies accrued by FRA's participating in collaborative contracts.

We are already aware that Firebuy provides such a document for its contracts and the advised efficiencies and benefits.

Question 40

Q40: Is the list of definitions comprehensive and accurate?

HFRS agrees with the listed definitions.

Question 41

Q41: Are there any areas that you would expect a national procurement strategy to cover that are not currently included?

No - We believe that the new national procurement strategy will provide an effective step forward in improving fire service procurement practice.