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ANNEX 1 Response to Internal Audit Report on Procurement

By Sherry Peters,2014-03-16 13:14
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08 MARKET INTELLIGENCE. The Head of Procurement and Projects should put in place proceduresTo be covered in report to Directors and FPP in July 2003

    ANNEX 1 Response to Internal Audit Report on Procurement

     Recommendation Response Priority Deadline

     AREA: Strategy and

    Policy

    Procurement strategy already documented (BVPP M April 01: PROCUREMENT A procurement strategy should be formally 2002/03). To be reviewed and updated by April 2004 STRATEGY documented, approved by Directors and 2004 and to be made accessible to all staff. Members and published. The mode of

    publication should ensure for high visibility

    of the document.

    Procedural guidance should be documented, promoted Agreed, to be actioned by November 2003 when the M November 02: PROCUREMENT

    and publicised by the Head of Procurement and contract standing orders will be updated. 2003 PROCEDURE

    Projects. Procedural guidance should ensure for

    consistency of approach and adherence to best practice

    procurement principles throughout the Council.

    The procedural document should clearly outline when

    Council officers are obliged to refer their procurement

    proposal to the Head of Procurement and Projects (see

    Recommendation 23 for further information).

     AREA: Contract

    Records

    A register should be created and maintained by the Agreed. Register being prepared. To be finalised by H June 2003 03: CONTRACT

    Procurement Officer to record the current contracts in June 2003 and maintained on the intranet for general REGISTER

    place (over a pre-defined limit; it is suggested that the access.

    limit reflects the limit of mandatory referral).

    A record of forthcoming contracts expected to be Arrangements to be reviewed in the update of the L 2004/05 04: PUBLICATION

    awarded or let over the ensuing 3 years, and the type procurement strategy (November 2003) OF FORTHCOMING

of service provision, should be documented and CONTRACTS

    publicised; preferably in electronic form.

     AREA: Engage with

    Suppliers

    A prospectus, or similar literature, should be To be reviewed in update of procurement strategy L 2004/05 05: PROSPECTUS

    developed and published for potential suppliers. This AND GUIDANCE

    should be accompanied by a publication detailing how companies can become engaged in a commercial

    relationship with the Council (the Office of the Deputy Prime Minister suggests entitling the document “how to do business with the Council”).

    The Council should review the current tender process To be built into guidance on tender process M April 06: ANALYSIS OF

    in operation from the suppliers’ perspective. 2004 TENDER PROCESS

The Council should establish a central database of Guidance on tendering to identify those areas where M April 07: SUPPLIER

    those suppliers who have both satisfied the standard a supplier data base would be effective and to review 2004 DATABASE

    pre-qualification requirements and consented to financial and technical assessment processes on all retention of their details. contracts

    The Head of Procurement and Projects should put in Agreed. H On-going 08: MARKET

    place procedures to ensure that he is in consultation INTELLIGENCE

    with the supplier market for the benefit of the Council.

     AREA: Council

    Support of

    Procurement Strategy

    and Procedures

    The Head of Procurement and Projects should co-Agreed with priority for officer training. Training H December 09: TRAINING FOR

    ordinate, and have involvement in, procurement for contract management officers being arranged & 2003 OFFICERS AND

    training for Members and specific Officers. to be carried out by December 2003. Regular MEMBERS

     reports to be made to FPP Members on contract

    management arrangements with effect from July L April

    2003. Further training needs to be re-assessed April 2004

    2004.

    A Procurement Panel should be established to give the Keep under Review. Procurement arrangements to L April 10:

procurement strategy and the Head of Procurement be reported to FPP. Major procurement 2004 PROCUREMENT

    and Projects the necessary level of review and support. developments and issues to continue to be reported PANEL

     to Directors. Need for procurement panel to be re-

    assessed 12 months after appointment of P&P

    Officer

     AREA: Tender

    Process and Contract

    Evaluation

The Head of Procurement and Projects should Agreed M December 11: RATIONALISE

    establish standard template documents to be used 2003 TENDER

    Council wide for the tender process. This should be DOCUMENTATION

    publicised and held on the intranet for all to reference.

Corporate standards of evaluation should be Agreed covered in Contract Standing Orders but to H December 12: STANDARD

    formulated and promoted by the Head of Procurement be covered in guidance notes 2003 PRINCIPLES OF

    and Projects. EVALUATION

A standard evaluation checklist should be documented Agreed M December 13: STANDARD

    and publicised by the Head of Procurement and 2003 EVALUATION

    Projects to assist officers in the practical application of CHECKLIST

    the standard evaluation criteria and ensure for consistency, objectivity and fairness in application.

Where necessary for the type of service contract, a site Agreed for larger contracts. To be covered in M December 14: SET AGENDA

    meeting should be included as part of tender terms, to guidance documentation 2003 FOR POST TENDER

    inspect the contractor site as against requirements of MEETINGS

    the contract specification. A standard format should

    be used and specifications should be individually

    weighted and scored.

A meeting should be held with the selected contractor Agreed. To be covered in guidance documentation M December 15: SET AGENDA

    to discuss the terms of the contract and formalise the 2003 FOR PRE

    contract monitoring arrangements. CONTRACT

     MEETINGS

The Head of Procurement and Projects should draft a

    standard agenda for pre contract meetings.

    The rationalised tender documentation should be Agreed as part of e-government strategy. To be L 2004/05 16: WEBSITE

    publicised on the Council website (alongside the covered in procurement strategy. AVAILABILITY

    supplier prospectus and forthcoming contracts’

    register) and the internet should be used to exchange tender documentation.

     AREA: Contract

    Monitoring / Contract

    Performance

The Head of Procurement and Projects should Agreed. To be covered in guidance notes and M December 17: STANDARD

    formulate standard guidance for monitoring of contract maintained on intranet. 2003 GUIDANCE ON

    performance. Guidance should reflect best practice PERFORMANCE

    policy and procedure and past experience (for MONITORING

    example, result of post completion appraisals).

The Head of Procurement and Projects should Agreed. To be covered in procurement strategy L November 18: REWARD AND

    formulate a proposal of rewards and incentives to be update and guidance notes where appropriate. 2003 INCENTIVE

    supported by the Council, to be included within SCHEME

    specific contracts for specific performance terms, to encourage good quality performance and maintain strong contractual relations. Rewards and incentives should be encouraged; this means of inducing good performance is promoted by central government as an Agreed, performance management and appraisal M March integral theme of effective partnership working. In scheme already provides process for this. To be 2004 addition, the Council should adopt a procedure of emphasised when core competencies are reviewed

    formally recognising the services provided by Officers and targets set for 2004/05.

    who are responsible for high-performance contracts.

The Head of Procurement and Projects should ensure Agreed. To be covered in guidance notes. M December 19: ANNUAL

    that contract specifications, where appropriate (to be 2003 REVIEW OF

    defined), include a term to commit both parties to POTENTIAL FOR

    undertake an annual review of quality and FURTHER

    performance output to identify potential for IMPROVEMENTS

improvement of service delivery.

The Head of Procurement and Projects should Blanket approach to penalty system not agreed. No L December 20: CORPORATE

    formulate standard guidance for a corporate penalty need for standard guidance in view of the relatively 2003 PENALTY POINTS

    point system to be included within contract terms. small number of large contracts and the variety of SYSTEM

    Contractual exceptions to this system should be clearly services provided. Agreed that guidance notes

    defined and reasoned. should cover this for all larger contracts and advice

     on penalties to be given on all contracts by

    procurement team.

    The Head of Procurement and Projects should promote Agreed. To be covered in report to Directors and H July 2003 21: COMMITMENT

    the Council’s commitment to decisive action for poor FPP in July 2003 TO DECISIVE

    performing contracts and put in place procedures to ACTION ON POOR

    ensure that it is enforced in practice. PERFORMING

     CONTRACTS

    A post completion review should be undertaken for Agreed, subject to minimum value. To be covered M December 22: POST

    every service contract and this information should be in guidance notes. 2003 COMPLETION

    used to inform forthcoming decisions and contract REVIEW

    practices.

     AREA: Performance

    of the Head of

    Procurement and

    Projects

    The authority of the Head of Procurement and Projects Agreed. To be covered in report to Directors and H July 2003 23: JURISDICTION

    should be clearly defined. A limit should be set to FPP in July and to be confirmed in update of CSOs /

    ensure for the mandatory referral of contracts over a in December 2003 December fixed value, it is recommended that this reflects the 2003 value required for tender of contracts. However see Appendix 1 for recommendation that this limit is

    reviewed with the aim of reducing it.

The Head of Procurement and Projects should ensure Agreed, this is the reason post was established. H December 24: CENTRE OF

    that he can provide specialist information to Council Actual role of the post to be defined in guidance 2003 BEST PRACTICE

    Officers which is relevant, reliable, accurate, current, notes and reinforced by update of delegated

    complete and consistent with best practice. authority.

    The Head of Procurement and Projects should Agreed. Use of call-off contracts and market M 2004/05 25: REVIEW OF undertake a review of the cost-benefit and practical partnership initiatives to be developed over next 12 COLLABORATION

    feasibility of collaboration with neighbouring 18 months

    authorities for procurement of specific goods /

    services.

Local performance indicators should be established to Agreed but priority is implementing documentation L March 26:

    enable the effectiveness of both the Head of and guidance notes. To be reviewed in March 2004 2004 PERFORMANCE

    Procurement and Projects to be assessed. INDICATORS

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