Sunday, September 23, 2012

Maximising the Impact of Welsh Procurement Policy report

Not got much time to blog at the moment, but i did want to flag up the Welsh Government review undertaken by John McClelland this week on making the most of procurement with all the associated implications these could have. He made 28 recommendations, mainly positive and focusing on the implementation of existing policy.  A statement from Jane Hutt accepting or rejecting the findings is expected later this autumn, lets see what happens.  

The full report is HERE and the recommendations are below

Recommendation 1
Welsh  Government  procurement  policy  should  be  consolidated into  a  single  ‘Policy  and  Practices  Document’  which  would  be available as a handbook for leaders, executives and procurement professionals to use as a blueprint for their conduct of all public procurement.

Recommendation 2
Given that further progress is heavily dependent upon practical  implementation,  rather  than  on  new  policy,  implementation  of  public  procurement  policy  should  be  regarded  as  a  duty  rather than  an  option.  In  the  short  term,  this  duty  should  be  made  mandatory  through  its  inclusion  as  a  condition  of  grant  for  all public  sector  funding  provided  to  organisations  by  the  Welsh Government.

It  is  also  recommended  that  the  Welsh  Government  strongly consider introducing legislation in the medium term that would make  the  duty  to  adopt  and  implement  policy  a  legal  requirement, as well as a condition of grant.

Recommendation 3
The  Welsh  Government  should  formally  adopt  the  content  and  recommendations  of  the  Buying  Smarter  in  Tougher  Times    Report  into  Welsh  public  procurement  policy  thus  making  its    acceptance and implementation mandatory.

Recommendation 4
To  correct  any  misconception  over  targets,  the  Welsh Government  should  confirm  that  it  expects  delivery  of  a  balanced set of wider benefits.

Recommendation 5
t  should  also  be  a  duty  to  ensure  that  the  function  of  procurement within every public sector body is staffed with skilled procurement  resource to a level that is adequate to support the public  body’s  obligations  for  governance,  and  delivery  of  the Welsh Government’s policies and required practices. This  should include  appropriate  recognition  of  the  value  and  positioning  of  procurement within organisational structures.

Recommendation 6
Local Government should take urgent steps to address its skills deficit and in particular the serious shortfalls in resources at some authorities.

Recommendation 7
Given  that  staffing  at  the  Welsh  Government  Corporate Procurement  Services  unit  seems  inadequate,  the  Welsh Government  should   examine  patterns  and  granularity  of    
Spending covered by the service to establish where it should be benchmarked for resources given the unique nature of activities.

Recommendation 8
The Welsh Government should sponsor the reintroduction of regular ‘procurement capability assessments’.

Recommendation 9
Given  the  scale  of  the  skills deficit  the  Home  Grown  Talent programme  should be expanded to provide a greater number of trainees

Recommendation 10
The  Welsh  Government  should  commission  a  full  and  formal survey  of  procurement  resources  and  professional  skill  levels  in the public sector.

Recommendation 11
The  mandatory  duty  for  all  funded  bodies  to  adopt  Welsh   Government  procurement  policy  should  include  delivering  the wider benefits of economic, social and environmental impacts.

Recommendation 12
All bodies in Wales funded by the Welsh  Government  should be required to include in their annual reports a statement describing how  they  have  delivered  on  the  policy  of  wider  benefits,  and should show and comment on the value and % proportion of their total procurement expenditure that has been spent in Wales and also with SMEs.

Recommendation 13
The  concept  of  directly  linking  economic  development,  and specifically  supplier  support  and  development,  to  public  procurement should be vigorously pursued.

The  lead  role  and  strategic  responsibility  of  the  Business,  Enterprise, Technology and Science Division in this area should be underlined  in  a  formal  communication  to  the  public  sector  in Wales.  New  mechanisms  to  work  directly  with  procurement operations across Wales should be developed and should require the  appropriate  participation  of  individual  and  collaborative  procurement units.

Recommendation 14
The budget for investment in supplier support and development should be reviewed and increased to provide wider and more in depth coverage of the priorities described above.

If funding cannot be augmented then the available resources and finances should be concentrated on priority areas that will provide the greatest and potentially quickest return.  Given the value of spend and its relevance to the  economy the  construction  sector should be considered as a prime candidate for this concentrated approach.

Recommendation 15
The Welsh Government should identify the factors that contribute to a higher proportion of spending with SMEs, and  require plans from  the  lower  performing  organisations  to  bring  them  to  that level.

Recommendation 16
Interaction with the third sector should be reviewed with a view to fully understanding its concerns about public procurement and the contribution it can make to wider benefits.
Ways  should  be found  to  enable  practical  engagement  with  the  public  sector  in 
designing services to support defined outcomes.

The  recommendations  of  the  ‘Barriers  to  Procurement  Opportunity’  research  should  be  implemented  as  soon  as possible  and  in  particular  overall  implementation  of  the  SQuID tool should be a priority.

Recommendation 17
A  specific  standalone  programme  for  the  construction  sector should  be  initiated  immediately  so  that  those  with  highest  expectations of SQuID can experience early progress.  

Recommendation 18
A replacement IT solution for Sell2Wales should be introduced at an early date.

Recommendation 19
Within the operating model local   procurement is not conducted consistently well  and  especially  within  Local  Government.  I recommend  that  all  organisations  address  this  at  an  early  date including correcting contributing weaknesses in staffing.

Recommendation 20
To substantially  improve  the  collaborative  coverage  and  the   effectiveness of the operating model, I recommend that the Welsh Government  sponsor  and  provide funding  support to  establish  a new  national  procurement  service  to  address  the  national,  common  and  repetitive  categories  of  spending.  This proposal is described in detail in section 6 of the full report

Recommendation 21
Given  the  low  proportion  of  Local  Government  spending  that  is  conducted against collaborative contracts, I  recommend that the Local Government sector a) invests substantially more in existing consortia to  increase the  collaborative  coverage  of  unique  Local Government  sector  categories,  and  b)  participates  actively  in  a new national procurement service.

Recommendation 22
Given  the  level  of  collaborative  spending  by  the  Welsh  Government  and  its  Sponsored  Bodies,  I  recommend  that  the spending of Welsh Government Sponsored Bodies come under the remit  of  its  Corporate  Procurement  Service,  so  that  one  professional  procurement  unit  can  provide  the  WGSBs  and  the Welsh  Government  departments  with  unified  support,  including access to, and use of, collaborative contracts from all sources.

Recommendation 23
The system of governance should be “tuned” to ensure that it is effective in  having  clear  line  of  sight  responsibility  and accountability vertically down and horizontally across the layers of procurement  activity.  I  recommend that the membership  of the Procurement  Board  is  reviewed  to  ensure  that  there  is  100%  representation of all procurement operations in the public sector and,  that  within  this  review  the  Chairs  of  the  two  Local         
Government purchasing consortia  in  Wales  be  appointed  to  the Procurement Board.

Recommendation 24
The model of governance should be used even more effectively to drive progress  by  examining  and  measuring  performance.  I recommend that the Measurement Framework contain a relatively small   number of data driven performance indicators addressing
the critical success factors for procurement and this “dashboard”   format  be  adopted  by  every  organisation  in  the  Welsh  public    sector. 

Summaries  of  these  key  performance  indicators  and   adoption  and  implementation  of  Value  Wales  programmes  and tools,  should  be  reviewed  sector  by  sector  or  consortium  by  consortium at the Procurement Board.

Recommendation 25
During this review I observed a  deficit of essential data and also problems  in  transforming  available  data  into  management  information.  I recommend that the Welsh Government considers making an appropriate investment in this capability.

Recommendation 26
Implementation of the programmes and tools that support Welsh  Government  policy  should  also  be  mandatory  and  use  of  the Sell2Wales  advertising  channel  for  all  OJEU  and  Sub-OJEU contracts but above local thresholds, should be the focus of early action.

Although the xchangewales service has been extremely effective in its delivery of e-procurement, new investment is required.  This should only be  made  if  organisations  across  the  public  sector commit to using the service.

Recommendation 27
The imperative  of  overseeing,  examining  and intervening  across the  public  sector  to  drive  implementation  of  policy  and  the     adoption of required practices should become a core part of Value Wales’  activities. The allocation and prioritisation of resources, communication of the authority vested in it and its position within the sector should be consistent with this realignment.

Recommendation 28
The mission and structure of Value Wales should be reviewed for  assurance that its current responsibility for providing operational services to the Welsh Government and the wider public sector is consistent  with  the  intense  and  independent  focus  required  on
policy adoption and implementation
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