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The Assignment

The Assignment. Review of the initial assignment and the background to the brief Review of the current state from a commercial perspective Review of current/possible procurement policy Review of current/possible contract management policy

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The Assignment

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  1. The Assignment • Review of the initial assignment and the background to the brief • Review of the current state from a commercial perspective • Review of current/possible procurement policy • Review of current/possible contract management policy • Proposals/action on both to help CBC meet its objectives

  2. Overview • CBC Commercial Strategy 2016-2020 - procurement strategy/framework + contract management areas of focus • CBC Commercial Strategy: • Success will be measured by a series of key deliverables and performance indicators as part of a performance management... • Procurement framework will look to ensure that CBC gains value for money for every pound of public money it spends... • Effective contract management will ensure we achieve savings and continuous improvement throughout the life of our contracts… • Attractive ambitions - strategy doesn’t outline specific measures/actions to support delivery of the ambition • CBC has made a start via the draft procurement strategy 2018/19, though more work is required to refine this • LGA “National Procurement Strategy for Local Government in England 2018” - high level point of comparison • Toolkit for self-diagnosis - 5 rankings possible (minimum, developing, mature, leader, innovator) - CBC ‘developing’ • Toolkit for guidance, ‘one-size-fits-all’ approach is not supported by the sector or advocated in the strategy • Each council chooses the level of maturity it will aim for • CBC must therefore decide if progression is appropriate - we hope that progression up to ‘innovative’ will follow • The LGA report places emphasis on both contract/relationship management and procurement so directly relevant

  3. Procurement issues Overview • CBC contract procedure rules run to 46 pages, and encompass 35 sections plus appendices - needs updating • CBC have spent c£3.7m externally since 2014 and many of the resultant contract are still ‘live’ • May 2018 - c50 contracts in existence for annual values ranging from c£1.8m to c£1.15k - terms ranging 6 months+ • Number of contracts small but range/complexity important - gaps (i.e. consultants/interim staff)? • Procurement policy needs review to cater for this spread of value/term - ensure consistently used framework in place Weaknesses / gaps • CBC procurement ambition good - policies/rules do not outline measures/actions to support delivery • The CBC contract procedure rules need widespread updating • The 2018 draft procurement strategy would benefit from updating, though this is generally a helpful document • Include simple parameters that can be easily communicated in staff guides to ensure consistency

  4. Procurement recommendations • Conduct an annual review of CBC procurement management - implement changes to improve based on experience • Review/rewrite contract procedure rules – seek standardisation of process • Capture uniform information on all contracts/category expenditure • Review the emphasis on local delivery • Develop Chest related activity • Develop a category/sector management approach - consider combining expenditure/service provision • Reduce reliance on project initiation documents for all procurements • Increase emphasis on developing new procurement strategies/policies • Refer to Ernst & Young and Essex County Council procurement policy and procedures • Review authority levels • Reinforce responsibility for procurement • Establish a procurement champion in each department • Deliver a CBC wide change and training programme for all staff • Ensure that leadership on change comes from the top of the Council

  5. Aide memoire

  6. Aide memoire

  7. Contract issues Overview • CBC policies to cover the pre purchase - gaps in policy where contract/supplier management is concerned • There is only very little guidance available to staff on such matters - numerous sources of best practice: • PWC “Supplier Relationship Management”  • National Audit Office “Good practice contract management framework”   • Deloitte “Redefining the value of strategic supplier collaboration” • Chartered Institute of Purchasing and Supply Contract Management Guide Weaknesses / gaps • CBC need a policy on contract/supplier management • New approach needed to contract/supplier management • CBC should seek to work in partnership with suppliers - requires well trained people to lead • Knowledge gaps exist - L & D on new contract/management processes required  • Possible culture where suspicion/challenge/confidentiality designed to offer a CBC win/suppliers loose balance? • Trust/cooperation/sharing should offer a CBC win/suppliers win balance - better

  8. Contract recommendations • Conduct an annual review of CBC contracting/supplier management - implement experience driven change • Give 1 person responsibility for contract and supplier management • Gather uniform information on all contracts, use the information • Review all contracts, develop a consistent approach to contract reviews • Use a consistent team for contract reviews, create templates • Develop a coordinated approach to strategic supplier management • Seek to leverage supplier relationships in a spirit of partnership • Ensure that CBC pay suppliers promptly • Share ideas, communicate…hold a supplier’s day? • Deliver a CBC wide change and training programme for all staff • Ensure that leadership on change comes from the top of the Council

  9. Aide memoire

  10. Summary • CBC strategy/documentation do not outline adequate measures/actions to support delivery of ambition • CBC has made a good start but focussing on procurement not contracts • CBC appear to be in a developing state – action needed – innovators? • CBC needs revised policies on procurement and contract/supplier management • CBC must deliver widespread CLT driven change initiative - CLT must ‘own’ the initiative • All staff must receive appropriate training, with a particular emphasis on managerial accountability • Easy reading, brief documentation supported by simple aide memoires will be useful tools in driving change • Use the numerous sources of reference on best practice in procurement and contract/supplier management • Work required to review/develop policies/processes and then roll out should be completed over next 6 months • CBC leadership position amongst local authorities/Cumbria in particular – rethinking and then sharing? 

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