MPA commitment to GLA four year responsible procurement plan

Report: 09
Date: 22 January 2009
By: Director of Resources for the Acting Commissioner

Summary

This report informs members of the new GLA four year Responsible Procurement Plan and, in particular, seeks approval for the targets and initiatives that MPA officers and the MPS has provisionally put forward in support for the Plan.

A. Recommendations

That Members approve the provisional MPS targets and initiatives contained within the GLA four year Responsible Procurement Plan.

B. Supporting information

1. The GLA group have provisionally put forward a four-year responsible procurement strategy /plan with quantifiable targets supporting specific commitments. These targets will either be group based or specific to individual functional bodies. The following represents the latest position arrived at through discussions over the last few weeks

2. The aims of the strategy will be to target improvements in three key areas relating to distinct customer groups within the capital under the banners of:

• Our People – Improve standards of living and promote opportunities for sustained employment for Londoners
• Our Businesses – Open up opportunities for London’s businesses and to promote equal life chances for all to the business community
• Our City – Promote greater environmental sustainability and make London a better place to live and work.

3. The Mayor launched the strategy on 26 November 2008 under the banner 'Equal Life Chances For All'.

4. The plan covers both previously identified areas of improvement (e.g. the London Living Wage) and new initiatives. There is an increased focus on Corporate Social Responsibility issues and a large number of initiatives involving functional bodies persuading our suppliers and London boroughs to adopt initiatives as opposed to work to change our own internal procedures and standards. The MPS is currently looking at ways in which we can approach our supply base without swamping them with initiatives and thus negating the chance of implementing.

5. MPA officers and the MPS have jointly put forward 22 individual targets or MPS contributions to group targets. It has rejected two proposed target areas as inappropriate to the Authority and identified a remaining four proposed target areas that have yet to be discussed in any detail. Attached as Exempt Appendix 1 is the latest draft documentation forwarded by MPA Officers and the MPS.

6. A number of the initiatives are new to the Authority; involve potential changes to processes and procedures or resource implications. Where such initiatives have been identified, we have caveated our acceptance as dependant on a suitable trial and/or an appropriate review of resource requirements.

7. Where an initiative involves a particular supplier or group of suppliers, there will be appropriate involvement with internal MPS budget holders prior to any substantive work or agreement to implement is undertaken.

8. Because of the timescales required to support the launch of the new strategy and, more importantly, the sub-committees to the Finance and Resource Committee had yet to commence, based on agreement with the MPA Deputy Treasurer, the provisional targets were submitted to the GLA with the caveat that they are subject to appropriate MPA Committee approval which we are seeking from this Committee.

9. There are a number of additional initiatives that the GLA are looking for the group to add to the four-year plan. These concern issues such as the adoption of certain standards regarding transportation of goods by our suppliers and early payment to Small Medium Enterprises (SMEs) that was the subject of a paper to this Committee in December 2008. Following that meeting, a further paper advising on how the MPS can improve the time to pay SMEs is due to be reviewed by this Committee in February 2009. However given the importance of this initiative, the MPS is seeking to finalise this update in time for it to be added as an Exempt Appendix 2 to this report. Any additional new initiatives will be subject to separate papers as required.

10. Each functional body has to confirm their commitment to individual initiatives through their own corporate governance body. In some cases this commitment will be quantified as the achievement of an actual number. Once all functional bodies have approved their own target, these targets will be consolidated into one target figure for the GLA group. Where in the current plan that approval and consolidation exercise has not been finalised, “XXX” is referenced in Exempt Appendix 1.

Glossary of branded initiatives

C. Race and equality impact

The four-year plan aims to improve the diversity of the workforce within London and increase the life opportunities for those who suffer prejudice and discrimination. Therefore any impact could be said to only be positive.

D. Financial implications

The costs associated with the London Living Wage initiative and MPS support to the Central GLA Responsible Procurement team are built into the medium term MPS finance plan. New initiatives will be subject to appropriate business cases if investment or additional resources are required.

E. Background papers

None

F. Contact details

Report author(s): Chris Gibson, Procurement Services, MPS

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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