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Lambeth Procurement

Annual Report 2007-2008

1

Contents

Foreword 2

1. Introduction 3

The National Agenda 3

Council Objectives 3

Responsible Procurement 4

Small & Medium Sized Enterprises 4

Corporate Procurement 5

The Customer Service Survey 5

Departmental Procurement 6

2. The Corporate Procurement Team 7

Business Development 7

The Business Process Review 7

The Lambeth Procurement Gateways 7

Procurement Training 8

Financial Management 9

Contract Management 9

The Project Team 9

Tendering 10

Energy Management Unit 10

3. Departmental Procurement Teams 12

Adults & Community Services 12

Procurement Board Activity 12

Key Activities – Tendering & Projects 13

Children & Young People’s Service 13

Procurement Board Activity 13

Key Activities – Tendering & Projects 14

Central Services 14

Procurement Board Activity 15

Key Activities – Tendering & Projects 15

Environment, Culture & Community Safety 16

Procurement Board Activity 16

Key Activities – Tendering & Projects 16

Regeneration & Housing 17

Procurement Board Activity 17

Key Activities – Tendering & Projects 17

4. Key Performance Indicators & Objectives for 2008-2009 19

Further Reading 21

2

Foreword

During this past year, the procurement teams at Lambeth have put in a great deal of effort to achieve

efficient and effective procurement practice. The National Procurement Strategy, the Gershon Review

and the work of the Regional Centres of Excellence have provided the impetus and recognition that

procurement activity can improve Council services and provide better services for residents. I

commend the Lambeth procurement teams’ many achievements and I believe this positive response

results from the high level of awareness and commitment in the procurement process that all Lambeth

procurement officers have displayed.

Councillor Jim Dickson

Lambeth Cabinet Member for Finance and Resources

This is the first Annual Procurement Report we have produced to showcase the projects and teams

involved in procurement. The last few years have seen officers at Lambeth rise to the challenge of

embracing a strong user focus in the design and delivery of services, the pursuit of savings and

procurement efficiencies and the placement of quality services contracts, taking advantage of

collaborative procurement opportunities. The last part of this year has seen procurement processes at

Lambeth change and become more efficient and we have all become more confident in delivering the

transformed services and value for money that communities want. We have challenged traditional

channels of delivery, promoted greater working with local SMEs and driven out waste in order to drive

efficiency. There is still much more to do! Local government is facing rising public expectations and

increasing demand for many local services. This calls for strong and innovative approaches to

achieving efficiency through strategic procurement and effective contract management. I am confident

that the procurement community will respond to these challenges and I look forward to the future.

Sally Leigh

Head of Commissioning and Partnership Strategy

Lambeth Corporate Procurement

3

Introduction

The National Agenda

All councils can improve the quality, delivery and cost effectiveness of local services through better

procurement practices. The National Procurement Strategy outlines a framework of activity to support

local authorities by finding more effective, prudent and innovative ways of procuring services and

supplies. The Procurement Strategy was published in 2003 and covers partnering, collaboration,

eProcurement, workforce issues, accessibility and supply chain management. Lambeth is committed

to achieving the milestones set out in the Strategy and work on this has continued throughout 2008;

only two of the 21 milestones have outstanding work.

Council Objectives

The Lambeth corporate plan sets out the high level priorities and outcomes for the Council, grouped

under the priorities set out by the Council leadership. They are:

A safer Lambeth with strong communities

Respect for our environment

More opportunities for children and young people

Better housing and flourishing local economies

Developing our approach to personalising care services

Serving our customers well

More specifically, the Council has set out the following promises to underpin service delivery and help

us to achieve our vision. These are to:

Deliver Quality & Value for Money

We make sure we deliver the best services possible, whether directly or in partnership with others, within the resources that the public makes available to us

Better commissioning and procurement of services

Benchmarking the work that we do with other organisations to make sure that we compare well on cost and performance

Working better with partners to reach our residents more effectively, gaining economies of scale

Using technology effectively to find innovative ways to provide our services at a lower cost

Tackle Inequality & Social Exclusion

We make sure that we narrow the gap between the haves and have-nots by generating a better quality of life for everyone and bringing people together

Providing opportunities for people who may find it hard to access our services so that they can contact us easily, receive benefits, join the electoral register, make and receive payments and take up opportunities to work for the Council

Working closely with other departments in the council so that the customer can access the services they need without being passed from person to person

Listen To & Engage With Our Citizens

We make sure that what matters to the people who live and work in Lambeth is heard loud and clear by us and our partners

Entering into a dialogue with customers to understand their needs and wants and shape services

Consulting with residents, businesses, partners and staff to inform the decisions we make

4

Responsible Procurement

Responsible Procurement is the term introduced by the Mayor of

London’s office. This new approach to sustainable procurement

places emphasis on the social and economic aspects of

sustainable development, alongside environmental principles.

Responsible Procurement considers:

Social

Economic

Environmental

Lambeth adopted Responsible Procurement in 2008 and is promoting the three strands throughout all

procurement processes at Lambeth. Carbon reduction, reducing worklessness and the promotion of

equalities are all Council objectives that are supported by Responsible Procurement.

Small & Medium Sized Enterprises

The Corporate Procurement Team (CPT) is committed to working with other officers in the Council to

support the local economy by encouraging local businesses bid for Council work. Corporate

Procurement provides a communication forum to local vendors that seek to remove obstacles to doing

business with the Council.

In 2008 CPT introduced the following package of three procurement policy initiatives that are aimed at

improving business access to opportunities:

The Low Value, Low Risk Business Questionnaire for purchases valued below £25,000

Including Lambeth SME’s in the Quotation Process – wherever possible a local supplier must

be included in the quotation process

Tender Advertisement – all Tenders must be advertised on the Lambeth website and with

Supply 2 gov, as a minimum requirement

Supply Lambeth

The Supply Lambeth programme of events was introduced in 2006-2007 as a collaborative effort

between the Lambeth Corporate Regeneration & Enterprise and the Corporate Procurement Team.

The programme was designed to deliver a series of informative events for local SMEs, with the goal to

stimulate more business between Lambeth purchasers and local businesses and to raise the capacity

of local businesses to tender for public sector contracts and access supply chain opportunities. The

2007-2008 programme included presentations from Corporate Procurement, Supply London, One

London and LOCOG - The London Organising Committee of the Olympic Games.

All 4 events were well attended (approximately 600 attendees across 4 events) and the feedback

analysis was that 100% of delegates achieved their purpose of attending the event. The quality of the

presentations was rated very highly, with 90% of the delegates rating them as good or excellent. The

majority of delegates achieved their purpose for attending the events and the majority rated the

content of the programme as good or excellent.

5

In October 2007, Lambeth won the Black Women in Business Awards (BIBA) 2007, under the

“Mainstream Buyer of the Year” category. This award recognised Lambeth’s excellent work on its

successful procurement programme and the Supply Lambeth “Meet the Buyers” event. The

programme of events generated an estimated £174,100 for the local economy.

Corporate Procurement

The Corporate Procurement Team is part of the Lambeth Finance and Resources Department and is

led by Sally Leigh, Head of Corporate Procurement. Our aim is to:

Provide a corporate focus for the Council's procurement, commissioning and contract

management activity

Improve the Council's procurement, commissioning and contract management partnership

capability, ensuring excellent value for money

Provide the Corporate Head of Profession role for all staff employed in contracting and

commissioning across the Council, and to deliver continuous improvement

Give advice, support and information to all Council departments on procurement practice,

including the requirements of the Lambeth Procurement Guide and Best Practice guidance

Develop and deliver Lambeth's in-house suite of procurement training courses

Continuously strengthen the Council's reputation for effectiveness and efficiency as a client

and partner

Embed more modern processes and help deliver and manage the Council’s contracts

Support or lead specific strategic or corporate contracting projects

The Corporate Procurement teams are:

Team activity can be found in section 2 of this report.

The Customer Service Survey

The Corporate Procurement customer service survey for 2007 asked the Lambeth staff not only the

standard service questions about the department’s service delivery, but additional questions about the

place of professional qualifications in procurement. The information returned has been used to

develop a programme of professional procurement qualifications for the Lambeth Procurement staff.

The Corporate

Procurement

Team

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7

The Corporate Procurement Team

Business Development

The Business Development Team serves as the overall

strategic and operational reference point within the Council

for procurement regulation - including European and

United Kingdom legislation and Best Practice. The Team

is committed to ensuring probity in procurement in order to

deliver effective decision making, value for money and

quality contracts. Business Development’s procurement

knowledge and expertise is shared with and supports the

Lambeth procurement teams through procurement

communications, customer engagement and a suite of in-

house procurement and contract management training

courses.

The Business Process Review

Business Development conducted a Business Process Re-

engineering (BPR) of the procurement process at Lambeth

in 2007. The goal was to make procurement at Lambeth

more efficient but more specifically there were 7

reccommendations:

1. To increase accountability for the delegated decision maker by delegating the responsibility

closer to the work area and reducing the number of approvals

2. Reduce bureaucracy for lower value contracts

3. Make Departmental Commissioning Boards more accountable for recommending decisions

4. Increase the capacity of the Strategic Board to consider Council wide strategic issues

5. Redraft training and guidance to reflect the simplified processes

6. Introducing two new Gateways to strengthen the planning stage and the contract management

stages and to create consistency across the Council

7. Build an evidence base to support Use of Resources - CPA Assessment and promote a

culture of Value for Money

Additional improvements were identified, including improving councillor involvement and improving

engagement with local businesses. The specific procurement changes went live on 1 July 2008.

The Lambeth Procurement Gateways

The BPR project introduced the Lambeth Gateway Process, which employs 4 gateway or decision

points throughout the procurement process. The Gateway Process strengthens Gateway 1, the

procurement planning process and Gateway 4 – Contract Performance Review at the initial 90 day

The Corporate Procurement

Mission

Acting as the champion for the

Council’s procurement activities

and procurement staff members,

the Lambeth Corporate

Procurement Team will strive to

raise the profile of the

procurement function. We will

promote the achievement of

Value for Money, standards of

excellence and Best Practice in

the procurement of supplies,

services and works which help

deliver the Council’s key

corporate objectives

8

period of a new contract. The Gateways are colour-coded and conjoined with the “Plan, Think, Do,

Review” methodology of project management:

The new Contract Register will record each Gateway’s activity, providing useful management

information for Members and senior management.

Procurement Training

The delivery of better procurement in local

government must be underpinned by a vital,

interesting, dynamic and effective procurement

training programme, supplied on two levels:

Internal introductory and intermediary training

programmes that cover Lambeth’s specific and

immediate procurement needs

External, professional training programmes for

those procurement staff members seeking onward

procurement development, or more specialised

training courses

The internal procurement training courses at Lambeth

are developed and delivered by Lambeth Corporate

Procurement; post-course advice, guidance and

tutorials are also provided internally. Courses are

conducted at regular intervals as part of the Lambeth

core training programme and are highly recommended

for all Lambeth staff members who are involved in any

aspect of the purchasing, procurement or contract

management processes. A certificate is awarded to

each delegate upon completion of each course.

Content of the internal procurement training courses

leads back directly to content found in the Lambeth

Procurement Guide. Corporate Procurement currently teaches five in-house procurement and

contract management courses.

The Benefits of Internal

Procurement Training

Assurance of good corporate

governance

Elimination of waste in the

procurement process

Risk management and fraud

prevention

Motivation of individuals

Process optimisation - Best

Practice is achieved

Influence and control of

purchasing activity in all

spend areas

Provides a groundwork for

improvement – gaps to best

practice are identified

Establishment of a positive

ethical position in

procurement

Professional development of

future leaders

9

The table below lists the courses and the number of delegates taught in 2007-2008:

Course Number of Delegates Trained 2007-2008

Introduction to Procurement 54

Managing Procurement: Lambeth Core Leadership and Management Programme

63

Advanced Procurement Practice at Lambeth 57

Principles of Effective Contract Management 35

Procurement Essentials for Lambeth Senior Managers 44

Total 253

Financial Management

The CPT Finance Team manages the Corporate Procurement accounts and ensures that budgets are

adhered to and compliance with financial regulations is observed. For 2007-2008 CPT operationally

achieved a balanced budget and achieved trading income of £2.5million from the corporate contracts

managed through the Procurement Team. Corporate savings are also managed through the Team

with cashable savings of £1.628million being realised during 2007-2008. This was achieved through a

number of projects including printing, placement of multi-functional devices (MFD’s) and agency staff.

A significant contribution to the CPA’s Key Lines of Enquiry was made by Corporate Procurement, to

achieve a 3 star rating for Use of Resources for 2007-2008 - in particular through evidencing the Value

for Money areas. Significant development of the supplier database within Oracle was made in year

through categorisation and classification of vendors through ProClass, SME, commercial, third sector

and locality to the Borough. This data enhances the production of management information and in

particular KPI suites being developed in house and in conjunction with the South London Procurement

Group.

Contract Management

The Contract Management Team manages overall strategic and operational relationships with key

corporate contractors. The team leads on a Council wide programme of contract reviews dedicated to

the achievement of Value for Money, achievement of key performance indicators and the delivery of

continuous improvement and innovation. They also work to ensure that there is a minimum standard

for contract reviews of key contracts – providing a platform for senior officers to gain knowledge of

markets, contracts, reputation management and overall reduction of risk in contract management.

The Team have been assisting in the implementation of recently awarded contracts detailed below

plus extending the relationship with Pitney Bowes and introducing multifunctional devices to all offices

and more effectively procuring print material.

The Project Team

The Project Team carries out various procurement projects, either as lead or in supporting other

Lambeth departments. The Team considers the most effective and efficient service delivery

10

arrangements, including exploration of more modern and innovative procurement methods as well as

more traditional competitive tendering.

Tendering

Key contracts that were tendered in 2007-2008 include:

Managed Service Provider for Agency Staff Contract: for the provision of agency staff.

Working with Human Resources, an options paper was produced, considering the different

models to replace the ‘Master Vendor’ process. A collaborative contract with Barnsley MBC

was identified which is a vendor neutral model and is targeted to deliver savings of £950,000

(on current volumes) over the 3 and a half year contract term. This is due to start on 3

November 2008

The Planned & Reactive Maintenance Contract: will deliver maintenance services to 12

core Council buildings and reactive maintenance to 68 non-core buildings based on

competitive contract prices. Lambeth schools can also opt to utilise the contract to meet their

maintenance requirements

Translation & Interpreter Services: following a Council wide review, the Team led on an

exercise to rationalise this service, allowing the Council to improve the management and

monitoring of the service provided and improve value for money. With over 100 different

languages and dialects spoken in Lambeth, the Council has an obligation to provide an

effective translation and interpreting service that will provide access to key information to our

residents

The Vehicle Hire Framework Agreement: 4 providers will be engaged in mini tender competitions to meet the Council’s vehicle requirements. Since the Council signed the DWP Vehicle Purchasing Framework Agreement, each supplier can obtain discounted rates when buying vehicles from manufacturers who are in the framework - which they can then pass on to the Council. There is a potential saving of between £77k to £128k depending on the vehicles and the fuel variant

Energy Management Unit

The Energy Management Unit (EMU) negotiates, tenders and manages bulk gas, fuel oil and

electricity supply contracts to virtually all Lambeth accounts including most schools. EMU maintains a

computerised energy accounting

database of bills for Lambeth

clients, which assists in setting

consumption targets, prepare

budget forecasts, manage the

accounts, support budget

monitoring and manage Lambeth’s

assets. 2007-2008 has seen

significant increases in the price of

gas and electricity, compared to

recent years:

Price increases have made 2007-

2008 a very busy year for the EMU

and the team works to reduce

energy cost and consumption by

11

2012. Price increases have

made 2007-2008 a very busy

year for the EMU and the team

works to reduce energy cost

and consumption by 2012.

In April 2008 the EMU used a

reverse auction to tender for a

12 month supply contract for

the 4 portfolios of gas and

metered electricity. There have

been large increases in energy

prices but the use of

competitive electronic online

auction helped to avoid higher

costs. Lambeth changed suppliers on two portfolios, successfully managed the energy debt and

organised the transfer of accounts.

Currently the EMU are managing the procurement contracts for the statutory Display Energy

Certificates (potentially for 100 council buildings and schools). The Team’s permanent Energy

Efficiency Officer is now in post and will initially manage the retrospective audit of all Lambeth water

accounts on a shared savings basis at no cost to the Council. The EMU will now be able to directly

generate new and give increased ongoing support to all clients on building services and energy

efficiency projects.

12

Departmental Procurement Teams

Adults & Community Services

ACS procurement is part of the Strategy & Commissioning section of Adults & Community Services.

The team’s aim is to be a source of knowledge and expertise in all aspects of procurement, supplier

performance & relationship management. The staff supports all service areas within the department,

with key objectives:

Support the corporate and departmental vision and strategies

Ensure that ACS is procuring value for money services for the Council and our taxpayers

Ensure that the commissioning and procurement of services meets the requirement to

improve Lambeth citizens’:

o Health and quality of life

o Ability to make positive contributions

o Capacity in exercising choice and control

o Freedom from discrimination or harassment

o Economic well being and personal dignity and respect

Procurement Board Activity

During 2007-2008 the ACS Procurement Board has seen an increase in the number of reports for

commencements, waivers, extensions and variations. The board deems this to be positive and

demonstrates greater awareness across ACS of procurement rules and regulations. The Board has

also spent time on developmental issues such as ensuring accuracy of contracts registers and

registers of waivers. The Board also has a greater awareness of contractor performance and has

started ‘calling in’ Contract Performance Reviews for higher value and strategically important services.

In 2008-2009 ACS’ intention is to improve the quality of procurement reports and further strengthen

performance reporting of suppliers and service providers.

A summary of the procurement activity in ACS during 2007-2008 can be seen in the table below.

Contract commencements, awards, variations and extensions and waivers are shown by £ value and

by percentage in the pie chart following:

Department: ACS Commence Award Variation Extension Waiver

£27,861,941 £54,346,583 £239,299 £33,922,049 £24,380,269

Reports 14 13 1 7 6

Total Council £1,156,687,157 £283,264,103 £41,631,842 £112,962,055 £61,921,417

Total Number of reports 96 180 10 30 44

The total number of reports is also shown. These figures represent procurement activity that went to

the Strategic Procurement Board, with values at £100,000 and greater.

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ecutive comb

nclude activ

ance, Reven

, Sunnyhill a

ard as an effe

s; it has prove

l Transport c

ng the freque

n the table be

own by £ va

ion W

360 £12,

2,055 £61,

ber of reports

e figures repr

activity that w

Procurement

£100,000 an

ies - Tend

t areas of CY

e been:

bine to form

ity from: Hum

nues and Ben

14

and

ective

ed

contract

ency of

elow.

lue and

Waiver

167,481

13

921,417

44

s is also

resent

went to

Board,

nd

dering

YPS

Central

man

nefits,

Internal A

contracts

Procur

The Cen

procurem

number

for Agen

A summ

below:

DepartmS

R

Tot

Total Num

and Main

Framewo

Key Ac

Example

t

a

a

d

c

T

Audit, Demo

s let by Cent

rement Bo

ntral Services

ment works;

of these com

ncy Staff Con

ary of the pr

ment: CorporateServices

Reports

tal Council

mber of Repor

ntenance, Di

ork Agreeme

ctivities - T

es of tenderin

Managed Se

that the Cou

and a new co

Lambeth wa

another loca

departments

Insurance S

London Auth

cost

The Vehicle

lower cost, p

ocratic and Le

tral Services

oard Activ

s Procureme

commencem

mmencement

ntract and the

ocurement a

e Comm

£138,26

19

£1,156,6

ts 96

isabled Acce

ent, Informat

Tendering

ng & projects

ervice Provi

ncil currently

ontract with

s able to red

al authority co

s use this con

Services Con

horities Mutu

e Hire Frame

producing bo

Central S

egal, Custom

are used thr

vity

ent Board app

ments made

t approvals w

e Planned &

activity in Cen

mence

67,009 £3

9

687,157 £28

6

ess to the Co

ion Technolo

g & Projec

s include:

ider for Age

y holds, at ap

Matrix will be

duce tenderin

ontract with B

ntract when l

ntract: Lamb

al Limited so

ework Agree

th savings fo

Services

mer Services

roughout the

proved or rec

up the major

were awarde

Reactive Ma

ntral Service

Award

33,906,957

16

83,264,103

180

ouncil Buildin

ogy (both sof

cts

ency Staff Co

pproximately

e in place by

ng time and c

Barnsley MB

looking for te

beth joined w

o that insuran

ement: Lamb

or the Counc

Award 15.5%

Extension 18

Commence

Waiver 2.2%

Variation 0%

and Informa

e Council.

commended

rity of the app

ed, including

aintenance C

es during 200

Variation

£0.00

0

£41,631,842

10

Th

by

le

al

re

w

Bo

an

A

in

Ag

ng (e.g. Lamb

ftware and h

ontract: This

y £27m per a

y autumn 200

costs and ga

BC, which La

emporary or

with nine othe

nce for the C

beth re-let its

cil whilst deliv

%

8.9%

63.4%

%

%

ation Techno

approximate

provals with

the Managed

Contract.

07-2008 can

Extensio

£41,200,0

2

£112,962,0

30

he data is sh

y percentage

ft; the total n

so shown. T

epresent proc

ent to the St

oard, with va

nd greater.

wide range

cluding Insu

gency Staff,

beth Town H

ardware) an

s is the large

nnum. The c

08. This is a

ained savings

mbeth adopt

agency staff

er local auth

Council can b

s vehicle leas

vering “green

ology. Freque

ely £218m of

a value of £

d Service Pr

be seen in th

on Wa

000 £4,7

055 £61,9

hown by £ va

e in the pie c

number of rep

These figures

curement act

rategic Proc

alues at £100

of contracts

rance, Bank

Corporate R

Hall), the Veh

d Energy.

est value con

contract was

shared contr

s by identifyi

ted. All Lamb

f

orities to cre

be provided a

sing contract

n” vehicles

15

ently,

f

138m. A

rovider

he table

aiver

17,622

6

921,417

44

alue and

hart at

ports is

s

tivity that

urement

0,000

were let

ing,

Repairs

hicle Hire

ntract

re-let

ract and

ng

beth

eate the

at a lower

t at a

Enviro

Environm

the Busi

and guid

of makin

Procur

During th

more rep

Procurem

Council’s

the High

see that

Board re

have bee

T

T

T

£

A summ

Contract

by perce

Depart

R

Tota

Total Num

Energy Con

process

onment,

ment Culture

ness Develo

dance to offic

ng procureme

rement Bo

his past year

presentative

ment Board,

s responsibil

hways Mainte

the contract

eviewed almo

en awarded:

The Parking

The Cycle T

The Library S

£600,000

ary of the pr

t commencem

entage in the

tment: ECCS

Reports

al Council

mber of Report

Environme

ntracts: Cont

Culture

e and Commu

opment and S

cers within P

ent more effi

oard Activ

r the Procure

membership

the review h

lities in relati

enance Cont

t was highly c

ost 70 procu

Enforcemen

raining Cont

Stock Suppli

ocurement a

ments, awar

pie chart fol

Comm

£109,72

20

£1,156,6

ts 96

ent, Culture

tracts were l

& Comm

unity Safety

Support Team

ublic Realm,

cient in line w

vity

ement Board

p. Conducted

has also assi

on to Equalit

ract for the G

commended

rements of v

nt Contracts

ract, with an

ies Contract

activity in EC

rds, variation

llowing:

mence

25,887 £7

0

687,157 £2

6

e & Commun

et for electric

munity Sa

is supported

m. The Procu

, Cultural Se

with the Corp

has undergo

d within the t

sted the Boa

ties and Sec

Government

for The Bes

varying natur

- with a total

estimated v

with the Cen

CS during 20

s and extens

Award

73,587,301

15

83,264,103

180

nity Safety

Award 36.4%

Extension 0.

Commence

Waiver 1.3%

Variation 8.1

city and gas

afety

d by a Procur

urement Man

rvices and C

porate Procu

one a review

erms of refer

ard in ensurin

ction 17. The

Opportunitie

st Service Aw

e. Some of t

value of app

alue of up to

ntral Buying C

007-2008 ca

sions and wa

Variation

£16,341,645

2

£41,631,842

10

Th

sh

pr

the

wi

gr

K

&

In

%

1%

54.2%

%

1%

via an electr

rement Mang

nager provid

Community S

urement Stra

w; the result o

rence agreed

ng that more

e Procureme

es Awards an

ward. During

he most sign

proximately £

o £600,000

Consortium,

an be seen in

aivers are sh

Extens

£139,4

1

£112,962

30

he total numb

hown. These

rocurement a

e Strategic P

th values at

reater.

ey Activit

Projects

the coming

ronic reverse

ger who sits w

es advice, s

Safety - with t

ategy.

of which has

d by the Stra

e focus is give

nt Board nom

nd was deligh

g 2007-2008

nificant contr

£30million

estimated va

n the table be

own by £ va

ion W

473 £2,5

2,055 £61,

ber of reports

e figures repr

activity that w

Procurement

£100,000 an

ies - Tend

year the Boa

16

e auction

within

upport

the aim

been a

ategic

en to the

minated

hted to

the

racts that

alue

elow.

lue and

Waiver

536,774

4

,921,417

44

s is also

resent

went to

Board,

nd

dering

ard is

looking f

number

network

outcome

people in

receiving

and expe

Commun

opportun

Regen

The Reg

change d

6 person

Division

improvin

Procur

The Proc

Housing

variation

graph:

DepRegenera

R

Tota

Total Num

The majo

program

leasehol

repair or

forward to re

of significant

and the Stre

e of the Phoe

nvolved in or

g a lot of med

eriences whi

nities” and “M

nities to thos

neration

generation an

during 2007-

n contract ma

in June 2007

ng the depart

rement Bo

curement Bo

during this p

ns and extens

partment: ation & Housin

Reports

al Council

mber of Report

ority of the p

mme, designe

lders live. Th

r replacemen

R

viewing the f

t projects, inc

eetcare/Com

enix Program

r at risk of be

dia attention

ilst meeting t

More Opportu

e not in educ

& Housi

nd Housing d

-2008. In Ap

anagement s

7. In August

tment’s procu

oard Activ

oard meets w

period can be

sions, and w

g

Comme

£846,246

19

£1,156,68

ts 96

procurement

ed to improve

he Council d

nt of roofs an

Regeneratio

first performa

cluding the d

munity Safet

mme tender. T

ecoming invo

throughout

the corporate

unities for Ch

cation or em

ing

department’s

pril 2007 the

section, in an

t a new inter

urement func

vity

weekly; a sum

e seen in the

waivers are sh

ence A

6,326 £81

87,157 £283

work carried

e the quality

ecided to foc

nd windows to

on & Housin

ance reviews

digitisation of

ty CCTV netw

The Phoenix

olved in gun o

England. Th

e priorities of

hildren and Y

ployment.

s Procureme

unit consiste

nticipation of

im manager

ction.

mmary of the

e table below

hown by £ va

Award

,380,223

76

3,264,103

180

d out in the d

of the enviro

cus initially o

o many bloc

ng

Award 8.3%

Extension 3

Commence

Waiver 1.8%

Variation .1%

s of the contr

f both the Pa

work. The B

x Programme

or knife crim

e project hop

f a “Safer La

Young Peopl

nt Unit has u

ed of 10 post

the ALMO, w

arrived, who

e procuremen

w. Contract c

alue and by p

Variation

£1,210,653

4

£41,631,842

10

T

C

D

3

th

P

c

£

K

&

epartment re

onment in wh

on external ‘e

ks on the Co

%

3.7%

86.1%

%

%

racts awarde

arking Enforc

Board will als

e is designed

e - an issue

pes to build o

mbeth with S

le”, as this pr

undergone a

ts, under an

was transfer

o embarked o

nt activity in

commencem

percentage i

Extensio

£36,456,1

18

£112,962,0

30

The total num

Council is als

Department f

37% of the pr

hat went to th

Procurement

considers rep

£100,000 or g

Key Activi

& Projects

elates to the

hich Lambeth

enveloping’ w

ouncil’s hous

ed. There are

cement CCTV

so review the

d to work with

which is curr

on past succ

Stronger

roject will off

period of co

interim Mana

red to the Ho

on a process

Regeneratio

ments, awards

n the followi

on Wa

73 £18,1

055 £61,9

mber of repor

so shown.

figures repres

rocurement a

he Strategic

Board (SPB

ports valued

greater.

ties - Tend

s

Decent Hom

h tenants and

works leading

sing estates w

17

e also a

V

e

h young

rently

cesses

fer

ntinual

ager; the

ousing

s of

n &

s,

ng

aiver

119,271

15

921,417

44

rts for the

sent over

activity

B), which

at

dering

mes

d

g to the

with the

18

programme for 2007-2008 amounting to £33.75m; by using existing consortium arrangements,

cashable savings in the order of £0.46m have been secured.

In addition, the procurement process for long-term contracts to upgrade tenants’ kitchens

and bathrooms began. These contracts are being bundled with repair and maintenance,

and estate management services with the aim of making savings through economies of

scale

The Housing Opportunities Fund (HOF) of £4.45m funded contractors procured to

improve the environment on the housing estates with new and improved playgrounds and

landscaping work

The competitive dialogue procurement process for the £186m PFI scheme at Myatts Field

North continued. Framework agreements advertised for various consultants for the

Physical Regeneration division resulted in 110 firms expressing an interest

The development partner for the £75m Future Clapham redevelopment scheme was

procured and the Cathedral Group was appointed

In addition to big schemes, on-going work to support the day-to-day processes or provide feasibility

studies for the big schemes were procured, for example, adult learning provision, bed-and-breakfast

accommodation for persons presenting as homeless, etc. One of the most interesting projects was

the procurement of “The Prodigals”, a film about youth homelessness, which has been praised at all

levels and recommended by government to all local authorities.

19

Key Performance Indicators & Objectives for

2008-2009

Key Performance Indicators

Best Value, the Comprehensive Performance Assessment (CPA) Framework and Local Area

Agreements (LLA’s) have all emphasised the importance of having good performance indicators (PIs)

as part of a framework of performance management. Performance Indicators come from a range of

sources. The commonly known PIs are those, which are mandatory and set at a national level, such

as those within the Best Value framework. Quite often these

are complimented by PIs set at a local level or those

developed by specific sectors. Local authorities are

expected to set their own PIs and to monitor and publish

performance against these. Lambeth publishes progress

against Best Value Performance Indicators (BVPIs) in an

annual Best Value Performance Plan, which is audited by

the Audit Commission.

In developing the framework we balanced the need to have

a requisite number of PIs over the overall ability to describe

the Lambeth procurement service. The ideal system covers

all the crucial areas of the procurement service in as few

PIs as possible. It is acknowledged that the current

framework is not as comprehensive as would be ideal and

that there are some gaps. A number of PIs that were

intended for inclusion in the framework currently cannot be

reported as the underlying data or processes are not yet

available. Consequently they are still in development and

have been detailed as such below; Corporate Procurement

is working with the London Centre of Excellence (LCE) and the South London Procurement Group on

this. A summary list of the Performance Indicators is below:

1. Strategic Objectives

Strategy Implementation: Percentage of milestone activities completed in the National

Procurement Strategy for Local Government

Percentage of corporate spend placed with small and medium enterprises (SMEs)

Percentage of corporate spend placed with third sector organisations (TSOs)

2. Operational Efficiency

BV REF 8 - Percentage of Invoices paid on time

Percentage of orders raised electronically

Percentage of invoices paid electronically e.g. through BACS, CHAPS or direct debit

LCE – Operational: Number of new trade suppliers used in a financial year as a % of the total

used in the previous financial year

In October 2003, the National

Procurement Strategy for Local

Government was launched.

This joint response from the

ODPM and LGA to the Byatt

report provides the benchmark

for local authority procurement

practice. The national strategy

was followed by the publication

of voluntary procurement

indicators with the primary

purpose of assisting local

authorities with the

implementation of the national

strategy

20

Number of new trade suppliers used in a previous year reused again in the following financial

year as a %

LCE – Operational: Number of invoices below £100 in value paid as a % of the total number of

invoices paid in any financial year

LCE – Operational: Number of individual invoices received for a given financial year as a % of

the number of invoices received for the previous financial year

CPT - Satisfaction with Procurement Training

3. In Development

LCE – Strategic: How much current third party expenditure is under a corporate or

departmental contract?

LCE – Strategic: Value of cashable savings

Objectives for 2008-2009

Corporate Procurement will strive towards embedding new procurement processes to ensure that

procurement at Lambeth is fit for purpose. The new Contract Register will be used to improve

planning, collaboration and visibility of decisions. The key objectives, targets and measures that

Corporate Procurement will remain committed to:

Delivering quality and value for money

Council wide procurement savings of £500k through tendering and/or improved contract coverage of existing or potential corporate contract arrangements.

The procurement counter fraud initiative

Promotion/provision of London Centre of Excellence (LCE) spend analysis to departments

Contributing to evidencing and achieving VFM in Use of Resources for CPA

Developing the procurement and commissioning process to take into account the whole procurement life cycle and wider organisational processes

Implementing a five year strategy for the Council’s energy management

Tackling inequality and social exclusion

Implement processes to enhance small to medium enterprise (SME) take up of Lambeth work through improvement of the awareness of opportunities

Promoting key contractor subcontracting opportunities

Engagement with Third Sector enterprises based in Lambeth

Listening and Engaging

Carry out Corporate Procurement Customer Survey and review

Collaborative and Partnership activity will be necessary to maximise opportunities

Improve Contract Management and hold the user at the heart of improvements

Promotion/provision of London Centre of Excellence (LCE)

Engagement with the LAA, LSP and Lambeth Living

Collaborating with the Cross River Partnership – City of London, Westminster, Lambeth and Southwark Councils

21

Further Reading

The full text of the National Procurement Strategy can be found at

http://sharepoint.lambeth.gov.uk/sites/lts/corporateprocurement/Public%20documents/Pro

curement%20Strategies/National%20Procurement%20Strategy%20April%202008.pdf and

the list of milestones can be found at

http://sharepoint.lambeth.gov.uk/sites/lts/corporateprocurement/Public%20documents/Pro

curement%20Strategies/National%20Procurement%20Strategy%20April%202008%20Mil

estones%20UPDATED.doc.

The full Customer Service Survey results can be found at

http://sharepoint.lambeth.gov.uk/sites/lts/corporateprocurement/Public%20documents/Cus

tomer%20Service%20Surveys/2007%20Survey/CPT%20Customer%20Service%20Surve

y%20Results%20December%202007.ppt.

The full Performance Indicator document that outlines the source reference, definition and

formula for calculating PI measurement can be found here:

http://sharepoint.lambeth.gov.uk/sites/lts/corporateprocurement/Public%20documents/KPI

%27s/Lambeth%20Procurement%20KPIs%202007-2008.doc.