Acting to Protect & Save www.dsfire.gov.uk
DSFRS Procurement Strategy 2013-2017
“Saving money and improving safety”
Contents
Introduction
2
Procurement aim 1: efficiency
2
Procurement aim 2: governance
2
Dsfrs Category Management
3
Category spend analysis 2012/2013
3-4
Procurement performance measurement
5
further
information
6
Introduction
The Corporate Plan recognises that in a period of financial constraint we are unable to operate in the way we currently do. This strategy outlines the procurement teams aims for 2013-2017 and how we will contribute towards achieving the priorities in the corporate plan.
The procurement team can assist in change through; evaluating the way we work, shaping the options and facilitating and delivering changes specifically where we are working with our supply base and other organisations.
Procurement is already contributing to the Corporate Plan through delivery of complex procurements such as:
• Light Rescue Pumps Framework (contract value £10m)
• National Breathing Apparatus Framework (contract value £3m) • Network Fire Control System (contract value £4m)
• Training Records System (contract value £250k) • PSN ANd wAN (contract value £500k)
The Procurement Plan will continue to prioritise the transformation projects which seek to deliver significant changes and improvements to the way we work. In 2013 we will also be working more with our key customers and suppliers to deliver reductions in budget and challenge our assumptions to explore new ways of meeting our requirements.
The Service spends in excess of £20 million per annum on the procurement of its goods, works and services. It is our public duty to ensure this money is spent in the most effective way, delivers value for money and complies with our statutory duties.
Procurement aim 1: efficiency
Procurement will assist delivery of a proportion of the budget savings required in the Corporate Plan. To achieve this we are working with our key customers and suppliers and implementing a category management approach.
The aim is to ensure that supply arrangements are planned, executed, managed and reviewed against the wider Service requirements. As part of the efficiency aim we will seek
to prioritise procurements which also provide the potential for income generation through the letting of frameworks which are then accessible by the wider fire and rescue service, such as the National Breathing Apparatus and Light Rescue Pumping Appliances Frameworks.
Procurement aim 2: governance
As a public sector body we must comply with our legal requirements and keep up to date with legislative changes. The Service has invested and improved the procurement function and processes with the intention to simplify and strengthen the governance of our procurement practices. This will ensure; improved compliance with legislation; change in emphasis of policies and procedures towards value, risk and opportunity and simplified processes for the end-user. There will be more flexibility and less bureaucracy associated with relatively low value/low risk1 purchases which can be managed locally using tools and templates. For procurement activity of high risk/value it will be the responsibility of the Category Managers, to determine the most appropriate procurement route to enable responsive and agile approaches to meet service delivery requirements.
1Low value/risk means less than £20,000, high value/risk means greater than £20,000 and as detailed in the procurement policy
www.dsfire.gov.uk
we are in a period of change and current initiatives to improve the procurement function include: • implementing an electronic purchasing system
• embedding new procurement toolkits
• disseminating documentation and guidance • changing the procurement regulations and policy
• implementing category management and cross functional working • embedding corporate contracts
DSFRS Category Management
This approach forms a step change in the way dSFRS manage procurement activity. Category management
organises expenditure groups which are assigned to Category Managers in the Procurement Team.
Category Managers are responsible for securing the most relevant quality, value for money and supply improvements across the life-cycle of their assigned categories in consultation with stakeholders. This enables valuable and specific knowledge on categories to be jointly developed and issues collectively resolved.
Category Managers have ownership
of the procurement process from internal and external market analysis, shaping
of requirements, options appraisal,
contract and relationship management and transactional purchasing responsibilities, such as the use of Government Purchasing Cards. Category Managers must ensure opportunities for collaboration, adding economic, environmental and social value are incorporated into supply arrangements.
Estates
£6m
Fleet and
Equipment
£5m
DSFRS spend
circa £20m pa
on goods,
services
and works
Corporate
Services
£2.5m
ICT and
Business
£6m
EstatesSub-category Spend £ No. Trans Average trans. Value
Property consultants £207,919 933 £223 Hard FM £1,065,431 1577 £676 Utilities £546,185 1876 £291 soft FM £340,542 1298 £262 Major projects £3,595,567 197 £18,252 Total £5,755,644 5881
Category spend analysis 2012/2013
Fleet and operational equipment
Sub-category Spend £ No. Trans. Average trans. Value
Fuel £851,442 167 5,098 Operational equipment £1,494,382 3370 443 Scrap cars £34,463 293 118 Uniform £1,143,654 1657 690 Uniform - cleaning £124,118 55 2,257 Vehicle/fleet hire £76,940 1356 57 Vehicle/fleet maintenance £236,424 380 622 Vehicle/fleet parts £1,281,070 2976 430 Total £5,242,492 10254 Corporate Services
Sub-category Spend £ No. Trans Average trans. Value
Advertising/marketing/design £141,838 151 939
Catering £105,257 1053 100
Catering- fire ground feeding £29,292 240 122
Cleaning materials £34,922 374 93 Postage/courier £25,217 190 133 Printing/stationary/photography £231,891 450 515 Professional services £235,333 81 2,905 recruitment £725,721 928 782 Training £962,769 514 1,873 Travel £36,073 287 126 Accommodation £97,925 424 231 Total £2,626,237 4692
ICT and Business Services
Sub-category Spend £ No. Trans Average trans value
Consultancy £425,943 194 2,196 Financial services £279,213 319 875 ICT- hardware £1,355,476 250 5,422 ICT-software £738,365 196 3,767 Insurance £819,298 173 4,736 Legal services £136,543 43 3,175 Telecommunications - mobile £303,490 167 1,817 Telecommunications - rents £373,672 211 1,771 Vehicle/fleet lease/purchase £2,036,639 914 2,228 Total £6,468,637 2467
www.dsfire.gov.uk
Procurement performance measurement
The following performance measures will be continuously monitored to ensure that procurement contributes to the corporate plan.
Ref Performance indicator Measures Area
1. Efficiencies
1.1 Identification/delivery of cashable savings of £600k up to 2016/17 (circa £200k per annum).
% of savings as a cost of the procurement team Corporate
2. Governance
2.1 Procurement strategy and professional function is in place and it contributes to the corporate strategy.
Procurement and Category Strategies in place March 2014 Corporate Professionally qualified procurement employees (FTEs)
as a percentage of total procurement employees (FTEs) (greater than 50%)
department The cost of the Procurement Team as a % of organisational
running costs (less than 0.3%) and non-pay spend (less than 1.5%)
department Marketable externally and providing income generation
opportunities and targets (£30k per annum) department 2.2 Future demand for goods
and services is forecast on at least an annual basis alongside analysis of emerging market developments which inform the procurement strategy and results in a prioritised work-plan for the next 12 months.
Procurement work plan in place March 2014 department Top 20 suppliers (by spend value) will have a formal
contract/partnership agreement in place by March 2015. department Top 10 suppliers (by spend value) have contract review
meetings every annum department
% of non-pay spend actively managed by the Procurement
Team (greater than 50%) department 2.3 A positive step change
in customer experience and modernising, standardisation and simplification of procurement processes and practices.
Procurement policy and procedures are in place and are readily accessible by all staff and reviewed at least every year by March 2015
department Customer satisfaction surveys are undertaken at least
annually to understand user views on the added value brought about by the professional procurement function, with the results published internally and fed into an improvement plan which is regularly monitored.
department
Procurement Improvement Assessment Tools (RISC,
EFQM) used to inform and improve practices department High value purchasing decisions are made based on a
detailed understanding of the total cost of ownership (TCO) (also known as whole life costs) for procurements above £20k.
Category
Benchmarking data from both public and private sector sources is actively used to undertake price comparisons on key goods and services annually.
Category All term contracts > £20k are recorded and published
externally through the Procurement database. Category % of orders to be placed via approved purchasing systems
electronic system and Government Procurement Card. (80% 2013/14, 90% in 2014/15 and 99% in 2015/16)
Category
Further Information
Further information on dSFRS Procurement arrangements: • Procurement Policy
• Procurement and Contract Regulations • dSFRS Service Information Point (SIP) • www.bluelight.gov.uk
