Sustainable Procurement: The National, Regional

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Sustainable ProcurementThe National, Regional
Local Context

• Taking Forward Sustainable Procurement in the
  East of England
• Monday 15 October 2007
• Peterborough
• David Wright
• NE Centre of Excellence
• 0191 433 2230
• davidwright_at_gateshead.gov.uk

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Sustainable Procurement
UK Public Sector Spend 150 bn

• is a process whereby organisations meet their
  needs for goods, services, works and utilities in
  a way that achieves value for money on a whole
  life basis in terms of generating benefits not
  only to the organisation, but also to society and
  the economy, whilst minimising damage to the
  environment.

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Beyond the environment the triple bottom line
Source Forum for the Future
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Sustainable Procurement Potential

• Community Benefits Enhancing Wellbeing
• Collaboration, Partnership Use of Resources
• Healths Corporate Citizen agenda
• Business Sectors Corporate Social Responsibility
• Economic, Regeneration Sustainability
  strategies
• Social Cohesion, Equality Diversity
• 3rd sector public service delivery
• Environmental, Spatial and Rural strategies
• Waste strategies
• Health Improvement strategies
• Public Sector Food Procurement Initiative
• LAAs, LSPs and LEGIs

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Integrating sustainable development into
performance management processes will

• Help the authority to deliver its duty to
  progress environmental, social and economic
  well-being
• Help the authority achieve an excellent CPA
  assessment.
• Help the authority assess and manage risks more
  effectively.
• Help the authority progress joined up service
  delivery
• Help the authority deliver value for money and
  efficiency improvements.
• Help the authority improve partnership working.
• Help the authority to deliver the Governments SD
  strategy Securing the future and the CLGs
  Sustainable Communities agenda.

Financing Local Futures - CIPFA, LGA, IDeA, SDC
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Harnessing Participants

• Public Sector policy, strategy, service,
  procurers scrutiny
• Professional organisations
• GOs, Government departments and agencies
• RDAs
• Environment Agency
• Procurement Consortia
• Business Sectors 3rd Sector
• Business Support Sector
• IDeA
• Audit Commission
• Academia
• RCEs

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National SP Activity
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Expectations

• A corporate, strategic and partnership issue
• Local Government White Paper
• Local Strategic Partnerships
• Sustainable Community Strategies
• Health Sector Corporate Citizenship
• Business Sector - Corporate Social Responsibility
• UK Government Sustainable Procurement Action Plan
  March 2007
• Local Government Sustainable Procurement Action
  Plan 2007
• Health Sector Sustainable Procurement Action Plan
  - 2007
• National Procurement Strategy for Local
  Government - 2003
• National Audit Office September 2005
• Audit Commission Sustainable Development Approach
  July 2007
• Audit Commission Use of Resources 2008 August
  2007.

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Sustainable Procurement Task Force Action Plan

• Identified three building blocks for sustainable
  procurement
• Flexible Framework approach
• 5 key themes
• People
• Policy strategy communications
• Procurement process
• Engaging suppliers
• Measurement results
• Setting priorities
• Toolkits for procurers

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Top 30 spend categories for all council spend
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The challenge for the public sector

• Barriers
• Perceived
• Too expensive / poor VFM
• Against EU procurement directives

• Solutions
• Whole life costing
• Economies of scale reduce prices raise
  standards
• Tools, training awareness

• Genuine
• Fragmented procurement
• Poor governance
• Duplication of contracting effort
• Suppliers divide and conquer
• Under-resourced supply teams
• Lack of SP leadership

• Promote collaborative procurement spend
  hierarchy
• Reduces duplication
• Introduces best practice category management
• Frees up local resource

Source Forum for the Future
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Draft LG Sustainable Procurement Action Plan (1)

• Councils, working with local partners, will
  pursue the achievement of social, economic and
  environmental benefits through the Sustainable
  Community Strategy, Local Strategic Partnership
  and Local Area Agreement -including leveraging
  the purchasing power of the partners.
• Award contracts on the basis of whole life costs
  and benefits.
• Review and, where necessary, reset strategies,
  policies, priorities and targets for sustainable
  procurement and asset management against the
  Flexible Framework and measure progress through
  the councils performance management system.
• Encourage ownership of our commitment by the
  political and managerial leadership of the
  council and engage scrutiny in the search for
  more sustainable solutions.
• Secure appropriate training and development for
  councillors, senior managers, procurement and
  service managers.
• Mainstream sustainable procurement and asset
  management into all of our activities including
  those carried out at arms length and through
  strategic partnerships.

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Draft LG Sustainable Procurement Action Plan (2)

• Acting collectively, councils will take the
  following action -
• Prioritise action on construction and facilities
  management - the largest category of procurement
  expenditure in the sector followed by waste
  management, energy, transport and food.
• Collaborate locally, regionally and nationally,
  using our purchasing power to transform these key
  markets including the stimulation of innovation.
• Work together to agree a clear set of standards
  for the sector linked to corresponding standards
  under development for the rest of the public
  sector.
• Identify exemplars of good practice (against the
  Flexible Framework) and challenge ourselves to
  raise our own performance.
• Expect our achievements to be measured and
  recognised through the new performance management
  framework including our use of resources.
• Take account of the recommendations of LGAs
  Climate Change Commission in our local and
  regional strategies.

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Draft LG Sustainable Procurement Action Plan (3)

• Expect Government to put enablers in place in a
  timely manner to help us achieve the shared goal.
  
• Look to the joint National Improvement
  Efficiency Strategy to mobilise sector resources
  in support of this agenda including through the
  Regional Improvement Efficiency Partnerships.
• Review guidance for local government, including
  budgeting, investment appraisal and tender
  evaluation, with regard to the consideration of
  whole life costs and benefits.
• Invite the LGTF to play a leading role on
  sustainability in the construction and facilities
  management priority area together with 4ps.
• Examine how the focus on sustainability within
  the local government gateway review process can
  be enhanced.
• Develop the national programme on third sector
  commissioning through a dialogue with councils,
  the wider public sector and third sector and as
  an integral part of the sustainable procurement
  agenda.
•  

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Governance of Improvement EfficiencyDelivering
Value for Money in Local Government Meeting the
challenge of CSR07 - CLG Oct 2007
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Support for CouncilsDelivering Value for Money
in Local Government Meeting the challenge of
CSR07 - CLG Oct 2007
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Various Elements of Good PracticeDelivering
Value for Money in Local Government Meeting the
challenge of CSR07 - CLG Oct 2007
Gap Analysis
Plan Implement Improvement Programme
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Improvement Efficiency Timetable

• RCE current horizon is 31 March 2008
• RCEs and RIPs merging into RIEPs by March 2008
• National Improvement Efficiency Strategy
  funding determined by CSR07
• National Improvement Efficiency Strategy
  headlines Nov 2008
• Regional IE Strategies prepared by Jan 2008
• CLG IE prospectus by Feb/Mar 2008
• CSR07 priorities, resources, delivery plans,
  devolved resources
• Regional IE Strategies approved by Mar 2008
• RIEP delivery commences July 2008