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ITEM EX9

EXECUTIVE – 7 SEPTEMBER 2004

CORPORATE PROCUREMENT STRATEGY

Report by Head of Finance

Introduction

  1. This report sets out proposals for the formation of a Strategic Procurement Board to oversee the development and implementation of a Corporate Procurement Strategy for the Council, and the setting of targets and programmes, and to monitor the performance of the organisation in complying with the corporate requirements and meeting those targets and programmes.
  2. Background

  3. In October 2003 the Office of the Deputy Prime Minister and the Local Government Association launched the National Procurement Strategy for Local Government. This Strategy aims to raise the profile and importance of professional procurement in local government. The National Strategy sets out 39 specific recommendations that local government should implement over the years 2003 / 2006. These are summarised in Annex A.
  4. In the light of the National Procurement Strategy, the developments surrounding the Gershon Review of public sector efficiency (published alongside the recent public spending review) and the efficiency savings programme which the Council has itself set, it is clear that the importance of procurement, and in particular cost savings arising from improved procurement, will increasingly be important to the Council over the next few years. This message has been reinforced by the recent SAP review.
  5. Developing a Corporate Procurement Strategy

  6. One of the key recommendations of the National Strategy is that each council should have a corporate procurement strategy. A draft strategy was taken to CCMT and approved in principle on 29 April 2004. The draft Strategy (a copy can be seen in the Members’ Resource Centre) now needs to be developed and consulted on before being brought to the Executive for formal approval.
  7. A key aspect of the Corporate Procurement Strategy will be the need for it to be truly corporate and, in line with the National Strategy, to involve elected members. One of the key provisions in the draft Oxfordshire Strategy is the establishment of a corporate Strategic Procurement Board. The Executive is now recommended to agree the implementation of this provision so that it can (among other things) assist in the further development of the Corporate Procurement Strategy.
  8. The Role of the Strategic Procurement Board

  9. A draft Constitution and Terms of Reference for the Strategic Procurement Board are attached as Annex B. This sets out proposed functions in some detail. It is expected that the Board would initially meet perhaps at perhaps 2-monthly intervals and thereafter as required.
  10. RECOMMENDATION

  11. The Executive is RECOMMENDED to approve the establishment of a Strategic Procurement Board in accordance with the draft Constitution and Terms of Reference set out at Annex B to the report to oversee the development and implementation of the Corporate Procurement Strategy.

CHRIS GRAY
Head of Finance

Background papers: Draft Corporate Procurement Strategy

Contact Officer: Stuart Rowe, Strategic Procurement Manager, tel (01865) 810139

August 2004

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