cabinet - 23rd february 2012

8/3/2019 CABINET - 23RD FEBRUARY 2012

http://slidepdf.com/reader/full/cabinet-23rd-february-2012 1/3

AGENDA ITEM NO. 3(1)

CABINET - 23RD FEBRUARY 2012

SUBJECT: PROCUREMENT SERVICES COLLABORATION BETWEEN MERTHYRCOUNTY BOROUGH COUNCIL AND CAERPHILLY COUNTY BOROUGHCOUNCIL.

REPORT BY: DEPUTY CHIEF EXECUTIVE

1. PURPOSE OF REPORT

1.1 The report outline proposals for collaborative strategic procurement arrangements betweenCaerphilly County Borough Council and Merthyr Tydfil County Borough Council

1.2 This Collaborative would support the modernisation agenda in Local Government in Wales.

2. SUMMARY

2.1 Public Sector Procurement in Wales has been subject to much change in recent years. Formany the function has moved from an operational devolved activity to a strategically ledcentral function with standard operating practices.

2.2 Merthyr Tydfil CBC, although making progress in the last twelve months is still an organisationwith limited procurement resource and capability.

3. LINKS TO STRATEGY

3.1 The proposed collaboration between Caerphilly and Merthyr supports the following keystrategic documents:

• Buying smarter in tougher times• One Wales, a progressive agenda for Government of Wales.

• Making the Connections in Delivering better services for Wales• Better Value Wales

4. THE REPORT

4.1 Better local authority collaboration has been the focus of many reports in recent years.

4.2 Merthyr Tydfil CBC has carried out a procurement capability and maturity assessment during2011. The conclusion shows a clear capacity and capability deficiency within the authority interms of strategic procurement.

4.3 Caerphilly CBC has invested money in improving its procurement capacity over the last 10years. The Authority has an established team of procurement professionals with dedicatedresponsibility on a directorate by directorate basis.



4.4 The Authority has embedded e-Procurement and e-Trading capacity.

4.5 In Caerphilly the time is right to take further steps to build on and further optimise theinvestment in Skills and Capability.

4.6 There are clear opportunities to leverage the current level of professional services intoMerthyr CBC and possibly other less mature organisations.

4.7 The model of a collaborative procurement service with Merthyr would harmonise well with theWelsh Agenda of increased collaborative working.

4.8 The model will support current thinking on Joint Working, standardisation of process andprocedures including standing orders for contracts and standard terms and conditions.

4.9 The work would complement current work in Wales in developing collaborative working oncommon and repetitive spend.

4.10 It is proposed that the Head of Procurement from Caerphilly will develop a target operatingmodel by end March 2012 with the transition phase following during April - September 2012.

This work will be supported by a project team with Officers from Caerphilly County BoroughCouncil and Merthyr Tydfil County Borough Council.

4.11 The Head of Procurement from Caerphilly will develop a full training programme for SeniorOfficers and Members within Merthyr to be presented within the first 3 months of the project.

5. FINANCIAL IMPLICATIONS

5.1 Officers are currently investigating opportunities for funding with Value Wales and WLGA.

5.2 Officers will provide details of cost to Members once the Target Operating Model has been

agreed.

5.3 Savings could be achieved through effective management of the supply chain and reducedduplication in procurement processes.

6. PERSONNEL IMPLICATIONS

6.1 The proposal, through the redesigning of the current staff structure within Merthyr Tydfil, willcreate opportunities for existing employees, whether internally or externally focused. Theseexternal opportunities would be potentially as part of the broader collaborative groups, whereopportunities exist.

6.2 There are no personnel implications for staff within Caerphilly County Borough Council.

7. CONSULTATIONS

7.1 The views of the consultees have been reflected in the report.

8. RECOMMENDATIONS

8.1 It is recommended that members agree the proposal for a Collaborative Procurement serviceto be developed.



9. STATUTORY POWER

9.1 Local Government Act 1972 and 2000.

Author: Elizabeth Lucas, Head of ProcurementConsultees: Alison Standfast, Deputy Director, Value Wales (Procurement),

[email protected]

Paul Charkiw, WLGA, Head of Efficiency and Procurement,[email protected] Thomas, Director of Customer Services, [email protected] Barnett, Deputy Chief Executive, [email protected] Scammell, Head of Corporate Finance, [email protected] Cooper, Assistant Director Customer Services, [email protected] Phillips, Business Development Manager, [email protected]

Ken Thomas, CMC Partnership, Managing Consultant,

[email protected]

Cllr Colin Mann, Cabinet Member, Finance, Resource and Sustainability CountyCouncillor, [email protected]

cabinet - 23rd february 2012

Documents