Procurement Strategy 2023-27
Procurement Strategy 2023-27
With an annual spend on bought in goods, services and works of almost £228m in Financial Year 2021-22, the Council must manage this spend responsibly. We are faced with the challenge of ever increasing demands and expectations for services at a time when our resources have reduced in real terms.
We must therefore endeavour to find efficiency savings and become commercially focused, recognising the current context of the difficult market conditions within which we are operating.
However we also recognise the opportunity to maximise the social value opportunities available through such a large annual spend; the opportunities to support the local economy and to assist our zero carbon journey. To this end we are committed to using procurement to improve the social, economic, environmental and cultural well-being of Pembrokeshire.
This Strategy will embed the principles of the Well-being of Future Generations (Wales) Act 2015 into our processes and ensure our procurement activity plays a positive role in helping the Council achieve its target of becoming a net zero carbon contributor by 2030.
Cllr Alec Cormack
Cabinet Member for Finance
Procurement is defined as:
“The whole process of acquisition, covering goods, services, works and/or capital projects. The process spans the entire life-cycle from the initial concept through to the end of the useful life of the asset (including disposal) or the end of a service contract or a works/capital project”.
The role of the Procurement Service is to act as the champion and coordinator throughout the organisation to ensure that the Council achieves its objectives in relation to its procurement activity.
The role encompasses:
- Managing all procurement exercises in accordance with legislation* and Contract Procedure Rules
- Establishing corporate contracts for use by the Council.
- Providing advice on, and managing, the procurement process for contracts that exceed the thresholds as determined by the legislative procurement regulations.
- Establishing corporate procurement and contract management standards. Contract management is the process by which all contracts and variations are managed effectively to control costs, secure the quality and timeliness of agreed outcomes and performance levels and minimise the occurrence of risks.
- Providing clear routes and guidance for providers wishing to do business with the Council
- Monitoring and evaluating our procurement spend.
- Working with Welsh Government and Welsh Local Government Association to ensure consistent approaches across the Welsh Public Sector.
* The current Public Contracts legislative framework (Public Contracts Regulations 2015) is due to be replaced by the Procurement Reform and Social Partnership & Public Procurement (Wales) Bill at the end of 2023.
This is the Council’s fourth Procurement Strategy (the first being produced in 2001) and aims to build on the progress made to date and sets out to provide strategic direction to our procurement activity for the next four years.
The Council delivers its services through a mixed economy, providing some services directly through our own workforce and public sector partnerships and delivering others through private and third sector organisations.
The Council’s vision for procurement is to demonstrate the achievement of value for money through the responsible procurement of its current and future requirements. We will operate a mixed economy of service provision, using a diverse range of suppliers, (including small firms, social enterprises and voluntary and community groups), and in-house resources, to ensure high quality services.
This Strategy is aimed at promoting responsible procurement across the whole Council. Responsible procurement means striking a balance between the provision of detailed guidance and allowing a flexible framework within which required outcomes are achieved efficiently, and risk managed appropriately, with a strong focus on achieving the aims of the Corporate Plan and the Well-Being of Future Generations (Wales) Act 2015.
The specific aims of the Strategy are:
- To ensure that our procurement activity is conducted in line with all current procurement legislation.
- To ensure that our procurement activity is undertaken by professionally qualified staff with the aim of compliant, effective procurement. Recruiting, developing and retaining professionally qualified staff will underpin the Councils’ ability to address issues and particularly issues of value.
- To ensure that our procurement activity supports the aims and aspirations of the Council, as reflected in our Corporate Plan.
- To ensure all procurement activity is conducted in a fair, open and transparent manner, allowing all potential suppliers to compete for business.
- To ensure that the principles of the Well-being of Future Generations (Wales) Act 2015 (opens in a new tab) are appropriately promoted in all procurement activities.
- To ensure that the ten principles of the Wales Procurement Policy Statement (opens in a new tab) are appropriately promoted in all Procurement activities.
- Embracing public procurement transformation and innovation including making procurement easier for bidders
In addition this Strategy attempts to meet the requirements of different procurement objectives such as obtaining value for money, procuring responsibly and supporting Small Medium Enterprises (SMEs) and Voluntary, Community and Social Enterprises (VCSEs). It recognises that these objectives can sometimes be in conflict with one another and that achieving the best outcome will often depend on the circumstances surrounding a particular procurement exercise.
SMEs play a major role in Pembrokeshire in creating jobs and generating income and can deliver real social and economic benefits. Engagement with this sector is a core operational way of doing business, integrated into all directorates and service areas with regular reporting against targets. The Council recognises that voluntary or third sector organisations can help play a significant role in delivering social value.