MPA/MPS Procurement Strategy - Action Plan

Report: 4
Linked to exempt item 6
Date: 4 April 2011
By: Director of Resources on behalf of the Commissioner

Summary

Following Member approval of the Procurement Strategy, an action plan was developed and presented to Resources and Productivity Sub-Committee on 3 September 2009. The latest quarterly update on progress is contained in exempt Appendices 1, 2 & 3.

A. Recommendations

That members:

1. Note the update on progress, as shown in exempt Appendices 1, 2 & 3.
2. Note that further updates will continue to be provided to the Resources and Productivity Sub-Committee on a quarterly basis.

B. Supporting information

1. The Authority approved the joint MPA/MPS Procurement Strategy and the various procurement models at the Finance & Resources Committee in June 2009.

2. The action plan is designed to monitor progress on the key actions required to implement the strategy. Members should also note that there is a comprehensive performance management framework in place that links objectives of the Procurement Services team and the Business Units to the Procurement Strategy and the MPS Corporate Objectives.

3. The latest update includes the changes that Members requested on the format.

Audit

4. The internal audit of the procurement framework has been finalised and the Director of Audit Risk and Assurance has concluded that:

5. The procurement control framework has considerably improved since our previous review of this area. Key controls need to be fully embedded and consistently applied before the framework can be assessed as fully effective. The DRM programme is making a significant contribution to the improvement through a number of key work streams including supply chain management, the introduction of a contracts database, and strategic procurement plans. When fully embedded these will contribute to an effective procurement control framework across the MPS.

6. The MPA/MPS Procurement Strategy was revised in 2009 and has been aligned to MPSA and MPA corporate aims and priorities and meets recommended best practice.

7. Contract Regulations and approved procurement policies and procedures are in place and available on the intranet. Procurement Services have introduced new procedures and updated the procurement manual as necessary but recognize that there remains a need to promote further awareness and understanding of the MPA Contract and Financial Regulations.

8. A clearly defined framework is in place for the proper tender and award of contracts. However, there has been a lack of consistency in applying key controls within the framework which has led to non-compliant contracts. This is being addressed by the work undertaken as part of the DRM and progress is being monitored by the MPA Resources and Productivity Committee. Work continues to embed improved monitoring controls and to ensure that all MPA contacts that have been identified as non compliant move to a compliant position.

9. A framework for contract management has been developed but is not fully embedded. The procurement Strategy sets out clearly the aims and objectives of the MPS in developing the key areas of control within contract management. This includes improving supplier relationships and the ability to monitor and manage them professionally and improving compliance, accountability and control through more effective procurement governance.

10. Procurement Services have plans in place to address the areas for further improvement and DARA will conduct a follow up review in the third quarter of 2011/12 to give assurance on the progress made.

C. Other organisational and community implications

Equality and Diversity Impact

1. In line with GLA Group Responsible Procurement four year strategy the Authority and the Service will continue to diversify their supply base through a number of compliant initiatives including simplification of the procurement processes to ensure smaller suppliers are not excluded from winning MPS business, as well as encouraging the use of CompeteFor which gives greater visibility of MPS opportunities to local small to medium sized enterprises.

Consideration of MET Forward

2. The Procurement Strategy underpins and supports the delivery of the Procurement element of Met Support by improving our infrastructure, driving out waste, improving value for money and concentrating resources on fighting crime.

Financial Implications

3. The costs associated with the activities set out in this report are covered by existing Procurement Department, and MPS wide, budgets as contained within the 2010/13 Business Plan. It is anticipated that implementation of the Procurement Strategy will result in efficiency savings being delivered and which will be built into business plans as appropriate.

Legal Implications

4. There are no direct legal implications arising from the recommendations, as this is an information report.

5. This report identifies controls that will assist highlighting risks at an early state and measures to monitor performance. Individual initiatives within the action plan may have legal implications arising, which will need to be explored on a case by case basis.

6. All MPA contracts for goods, works or services are required to be let in accordance with EC Treaty principles, the Public Contract Regulations 2006 and the MPA’s standing orders.

Environmental Implications

7. The Responsible Procurement strategy also has a number of positive implications on the environment. Most notably the MPS’s commitment to sourcing environmentally friendly products reflected by the recent achievement of Gold on the Mayor of London’s Green Procurement Code.

Risk Implications

8. There are a number of risks associated with not delivering the Procurement Strategy. These may have Financial/Legal implications which could lead to possible damage to the reputation of the MPS/MPA and financial loss. Such risks include, but are not limited to, the inability to obtain value for money contracts, failure to fully comply with the Public Contract Regulations 2006/MPA regulation and inability to manage all purchasing and procurement action in a responsible manner.

D. Background papers

• Procurement Strategy, Finance & Resources Committee, 18 June 2009.

E. Contact details

Report authors: Lee Tribe - Director of Procurement Services

For more information contact:

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

Part 2: Exempt section of the report

The reason this report has been shown as ‘Exempt’ is under Paragraph 3 of the ` Local Government Act 1972 - which states that information relating to the financial or business affairs of any particular person (including the authority holding that information). It is not considered to be in the public interest to disclose the level of detail contained in this Procurement Strategy update which by its very nature contains financial and business information of the MPA/S.

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