DOC

Birmingham City Council

By Alfred Hall,2014-07-11 16:50
12 views 0
Birmingham City Council ...

    Public Agenda

    WARDS AFFECTED: ALL

REPORT OF CORPORATE PROCUREMENT SERVICES MANAGER

     thTO CABINET: 26 April 2004

NON KEY DECISION

    THE IMPLEMENTATION OF THE BIRMINGHAM GATEWAY

    1.0 SUBJECT AND BRIEF SUMMARY OF PROPOSALS

    1.1 In line with the recommendations of the Byatt Report (Delivering Better

     Services for Citizens, A Review of Local Government Procurement in

     England, Sir Ian Byatt June 2001) the Cabinet approved the introduction th of a Gateway system for projects on 10 February 2003.

    1.2 Work is now complete on drawing up the Birmingham Gateway and this report

     seeks endorsement for the completed work and its introduction for major

     procurement projects.

2.0 RECOMMENDATIONS

    2.1 That Cabinet endorses the introduction of the Birmingham Gateway.

3.0 BACKGROUND

    3.1 The Office of Government Commerce (OGC) introduced a ‘Gateway’ system to

    provide a number of check points that would allow high value/high risk

    Government projects to be reviewed in order to ensure that the business case

    remained valid and that the correct procedures were adhered to. Enhanced

    planning and better budgetary control were two of the benefits that the OGC

    have identified in using a Gateway process. Local Authorities currently use the

    OGC Gateway procedure for their own high value/high risk projects through the

    4Ps organisation.

    3.2 Local Authorities are implementing a more appropriate version for smaller scale

    and lower value projects as a result of both Byatt and the National Procurement

    Strategy (October 2003) recommendations. The importance to the Council of

    good business processes for managing projects is also emphasised by the

    Comprehensive Performance Assessment.

V1001:GP:ReporttoCabinet-April 1

    3.3 Benefits for the Authority in introducing the Gateway system include the

    following:

    ? Early financial information and Member involvement.

    ? The Gateway process would support work on the cost, quality, and

    rationale for tendering including equality and sustainability

    considerations, etc.

    ? Greater oversight and information on procurement decisions and

    spending would be available to support the Council’s ability to predict

    and control spending on contracted services. This would also

    support Corporate Procurement Services (CPS) role in managing

    procurement activity across the Authority, for example by

    aggregating similar contracts together and achieving greater

    economies of scale.

    ? CPS would be able to provide advice and guidance to departments

    at an early stage in the life of a project leading to improved

    performance of contractors, suppliers and service delivery.

    3.4 The requirements of the Gateway System are:-

? that it will be used for all procurement projects with an estimated value in

    excess of ?500,000 (?150,000 for IT projects).

? that each procurement project will require a business case that covers a

    number of areas, such as budget provision, Whole Life Cost, equalities,

    sustainability and rationale for tendering.

? that it will build on existing procedures and be scaleable dependent on the

    value of the contract. But there will always be two gates prior to

    commencement of procurement.

? that it will require all procurement projects to be owned and project managed.

? the need to set up Project Gateway Panels, to be made up of a senior

    manager, finance officer and other managers who would act as an

    independent challenge to the project requirements and business case.

? that the Procurement Cabinet Committee will approve the commencement

    of the procurement process for the majority of projects (major capital

    projects will go to Cabinet)

? that Project Managers will bring their projects to Cabinet when seeking

    approval of the Award Report that would form part of their business case.

    4.0 IMPLEMENTATION

    4.1 The Birmingham Gateway will rely on a ‘light-touch’ in order to provide a

    minimum standard of project approval without imposing a large administrative

    V1001:GP:ReporttoCabinet-April 2

    burden for staff. It will also provide a basic project approval process that can be

    built upon as project management capacity within the Authority increases.

5.0 MATTERS FOR DECISION

    5.1 Endorsement of the Birmingham Gateway.

    6.0 EVALUATION OF ALTERNATIVE OPTIONS

    6.1 The alternative would be to do nothing and not introduce a Gateway system.

    This would mean that the benefits to BCC referred to in 3.3, would not be

    achieved and we would fail to meet the national requirements as stipulated in

    the National Procurement Strategy.

    7.0 CABINET MEMBER CONSULTATION

    7.1 The Deputy Leader has been consulted and is in agreement with the contents of

    this report.

    8.0 WHAT CONSULTATION HAS TAKEN PLACE

    8.1 Cross departmental consultation, 4Ps presentations and internal publicity.

    Presentations to CMT, Cabinet, Procurement Cabinet Committee and

    Procurement Support Group.

    9.0 WHAT REPRESENTATIONS HAVE BEEN RECEIVED

    9.1 None

10.0 LEGAL POWERS AND IMPLICATIONS FOR RESOURCES (INCLUDE FINANCE,

    PEOPLE, PROPERTY AND IT CONSIDERATIONS)

    10.1 There are resource implications both for CPS and all Directorates in

    implementing and administering the Gateway system. These implications

    should ultimately be offset by efficiencies gained from better managed projects.

    11.0 IMPLICATIONS FOR POLICY PRIORITIES

    11.1 Corporate Policies Priorities

    11.1.1 The Birmingham Gateway will support and ensure that projects clearly

    explain how policies are to be implemented. More efficient and better

    managed projects will have a direct impact on the Council’s ability to

    develop Birmingham as a City of flourishing neighbourhoods and

    improve Council services.

V1001:GP:ReporttoCabinet-April 3

    11.2 Service Specific Priorities

    11.2.1 Improved management of large projects will improve services across the

     Authority.

    11.3 Equalities

    11.3.1 The Birmingham Gateway supports the Authority’s Equalities policy by

    ensuring that projects clearly address this element as part of their

    business case.

    11.4 Environmental

    11.4.1 The Birmingham Gateway supports the Authority’s Environmental policy

     by ensuring that projects clearly address this element as part of their

     business case.

12.0 ARE THE RECOMMENDATIONS IN THIS REPORT CONSISTENT WITH ANY

    APPROVED ‘POLICY FRAMEWORK’ PLANS OR STRATEGIES OR THE

    APPROVED BUDGET

    12.1 Meets Priority 5 of the Deputy Leaders Portfolio to:

    Improve procurement by ensuring that different methods of service provision are

    realistically and effectively assessed Introduction of Birmingham Gateway.

    13.0 REASONS FOR RECOMMENDATION

    13.1 To have better managed projects.

    14.0 BACKGROUND DOCUMENTS

    14.1 Delivering Better Services for Citizens, A Review of Local Government

    Procurement in England, Sir Ian Byatt June 2001.

    The Procurement Strategy

    Birmingham Gateway Report February 2003

    …………………………………………………… Andrew Coller

    Corporate Procurement Services Manager

    …………………………………………………… Councillor Stewart Stacey

    Deputy Leader

    V1001:GP:ReporttoCabinet-April 4

OFFICER CONTACTS

    Andrew Coller Tel. No. 0121 303 6610

    Corporate Procurement Services Manager Fax No. 0121 303 7322

    Email:andrew_coller@birmingham.gov.uk

    V1001:GP:ReporttoCabinet-April 5

Report this document

For any questions or suggestions please email
cust-service@docsford.com