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