Article: Procurement policy Article Body Procurement is the process of acquiring goods, works and services covering both acquisitions from third parties and from in-house providers. The process spans the whole cycle from identification of needs, through to the end of a services contract or the end of the useful life of an asset. It involves options appraisal and the critical make or buy decision which may result in the provision of services in-house in appropriate circumstances. NPS Barnsley is the voint venture between the council and the NPS Group. The procurement team at NPS Barnsley has the responsibility for the development of policy and strategy, which is linked to improving the council's procurement service in response to the issues raised in the National Procurement Strategy for Local Government (2003 - 2006) and more recently to The Stronger and Prosperous Communities White Paper (2006). The white paper requires local authorities to achieve greater efficiency through the transformation of local services by process improvement techniques, the joining up of services, better responsiveness to citizens, e-procurement initiatives, fair and open competition and the development of the local government services market The policies and the strategy are reviewed annually and updated to fit circumstances and government/market changes. NPS Barnsley Ltd. has achieved certification by the Chartered Institute of Purchasing and Supply (CIPS). CIPS certification provides a standard of excellence for an organisations purchasing strategies, policies and procedures and also meets the purchasing requirements of IS0 9001:2000. Strategy The councils procurement strategy covers the period September 2009 to August 2012. This addresses the issues raised in The Stronger and Prosperous Communities White Paper (2006) and supports the councils three main corporate drivers. The Contracts and Procurement service is central to procurement within the council. The main aims of the service are to provide information, guidance, advice and support to other departments during the procurement process, to manage its own specialist categories and to maintain policy and strategy with central government objectives and guidelines. Consortia and collaborations Barnsley Council works with other local councils, procurement agencies and consortia where efficiencies can be delivered through sharing services or leveraging spend. Currently Barnsley is working with other local councils for Decent Homes, Highways, and Waste Management and through meet the Buyer/ Supplier Events, as well as with the Yorkshire Purchasing Organisation and the Government Procurement Service. The Yorkshire Purchasing Organisation (YPO) Barnsley Council is one of the founder members of the YPO, along with 12 other local authorities in the north of England. The YPO supplies goods and services both through its catalogue and through framework agreements where direct supply contracts are arranged. The YPO frameworks used by the council include: Building materials Energy (gas, electricity, coal) Food Fuel Highways materials Horticulture IT consumables Multi functional printers Piped water Vehicles Suppliers who are interested in supplying the YPO should view the YPO website. Government Procurement Service Government Procurement Service ia an executive agency of the cabinet office, whose overall priority is to provide procurement savings to the UK public sector as a whole and specifically to deliver centralised procurement for central government departments. Barnsley Council uses Government Procurement Service for many different types of products and services including mobile phone and landline telephone maintenance. To become a Government Procurement Services approved supplier please view the Government Procurement Services website. E-Trading The council is working closely with @UK-plc, which allows organisations to integrate existing trading websites into their system or create a personalised fully functioning e-trading site for clients. The ability for Barnsley Council suppliers to trade independently between themselves and other organisations on the @UK system to generate a wider sales market was a major factor in the choice of system utilised. This will create and promote a local e-economy for the community that could in time enhance the region's economic status. The system creates the possibility of a fully electronic purchasing route from requisition to invoice settlement. No human intervention will be required for many transactions The procurement process To secure value for money and to ensure the fair distribution of contracts to potential suppliers the council procures goods and services in the most competitive and equitable way possible. The thresholds of the contract value determine the procurement process, and the choices that may be made. The rules for these contract values are as follows: A contract estimated to be below £2,500 an officer needs to ensure value for money is being obtained. A contract estimated to be between £2,500 and £50,000 needs a minimum of three written quotations to be obtained. In these cases officers within individual directorates will refer to existing supplier records, directories and information submitted from potential suppliers. For a contract estimated at £50,000 and above, a tender exercise must be carried out For higher value procurements the European Procurement Directives apply. European procurement directives The European Procurement Directives are the secondary legislation adopted by the European Parliament and the Council (Member States) on the co-ordination of procedures for the award of public contracts. The European Union (EU) procurement directives are intended to reinforce the European Treaty's provisions on the free movement of goods and freedom to provide services within the internal market to ensure compliance in all member states with the treaty principle of equality of treatment, non-discrimination and transparency. The EU procurement directives apply to all public sector contracts equal or above specific thresholds. The thresholds which apply from 1 January 2012 are: Goods and services: £173,934 Works: £4,348,350 The directives set out clear procedures and standards to be followed by the council when choosing tenderers and awarding contracts. Terms and conditions for goods and services Standard Terms and Conditions for the supply of goods and services apply to Barnsley Council orders except where contracts have been awarded against tender or quotation exercises which may have their own specific terms and conditions in addition to these. Terms and conditions for works contracts Works contracts are usually subject to specific industry terms and conditions which will be identified at the time of the procurement exercise. Transparency As part of the governments commitment to greater transparency, the council has to make information on procurement more visible. With effect from the 1st February 2011, the following clause will be included in the terms and conditions for all Barnsley Council procurement exercises: The parties acknowledge that, except for any information which is exempt from disclosure in accordance with the provisions of the Freedom of Information Act ("the Act") the text of this contract, and any schedules to this contract is not confidential information. The Council shall be responsible for determining in its absolute discretion whether any part of the contract or its schedules is exempt from disclosure in accordance with the provisions of the Act. Notwithstanding any other term of this contract, the Contractor herby gives its consent for the Council to publish the contract in its entirety, including from time to time agreed changes to the contract, to the general public in whatever form the Council decides. What does this mean for suppliers? Suppliers should be aware that if they are awarded a tender, the resulting contract between the supplier and the council will be published. In some circumstances limited redactions will be made to some contracts before they are published to comply with existing law. Suppliers are encouraged to identify information they believe is commercially sensitive and would not wish to be published; the final decision however will rest with the council The Supplier and Contract Management System (SCMS) This is the tendering system for the councils within the Yorkshire and the Humber region and is being deployed throughout the council. The system is designed to give suppliers the information needed to be able to trade more easily with councils and gives direct access to a wide variety of procurement opportunities across the region. There is no cost for suppliers to use this system. Suppliers only need access to the internet. The website can be accessed through supplier and contract management system The SCMS supplier guide gives help and assistance for prospective suppliers. Why suppliers should work with the council? Barnsley Council spent in the region of £194 million in goods, works and services in 2007/08. There is a statutory duty on the council to ensure that the procurement of these goods, works and services represents the most cost-effective solution and that the best possible value-for-money has been achieved. The advantages of supplying the council The council has a legal duty to be fair, honest and professional in both its initial choice and subsequent treatment of contractors/suppliers. The council is a financially stable customer. The council has a duty to pay promptly (within thirty days or as otherwise agreed). The council seeks continuous improvement and works to develop innovative solutions that can benefit it and those it employs or contracts with. The council is a caring customer willing to work closely with those it employs and its contractors. It promotes ethical, environmentally sound, non-discriminatory approaches that benefit its area and all those who work and live in it with a view to their wealth, health and safety. How to contact us Our help desk number is: 01226 774341 Email: procurement.barnsley@nps.co.uk