Procurement partnership strategy

Vision and key principles

Vision

• to secure value for money and maximise the benefits from our spend with suppliers
• to support the delivery of appropriate, affordable and quality services for the people of Lincolnshire
• to work well with our partners and suppliers, ensuring high standards of practice

Key principles

This strategy is based on the following key principles:

• we are clear how our funds are spent and how this offers value for money for Lincolnshire residents
• we take a Lincolnshire-based approach to procurement, working with other public bodies where possible
• we will manage suppliers to ensure commitments are met
• we will increase our understanding of the challenges suppliers face and work hard to make Lincolnshire markets sustainable
• we will seek community benefits through procurement
• we will provide procurement opportunities to small and medium enterprises (SMEs)

Key challenges

Financial pressures

• the council is experiencing sustained financial pressure, with an increasing demand for services and reduced funding
• we recognise that competition through procurement helps maximise the value of our spend with providers
• we will explore opportunities to generate revenue and reduce costs, without putting public funds and services at risk

Safeguarding the vulnerable

• the council has a duty to safeguard vulnerable residents eligible for social care and other health-related services. The complexity of needs and demand are both growing, within a difficult market
• we will monitor suppliers and have controls in our contracts to protect vulnerable service users and ensure quality
• we will provide support to suppliers who need it, identifying any concerns and how they can be addressed

Service quality

• the council will procure the quality of services needed to deliver the outcomes identified in the Corporate Plan
• we will define our requirements clearly so that contracts are easy to understand

Market sufficiency

• the council's suppliers range from large multinational companies to local charities, with some finding it difficult to remain sustainable in the current financial climate
• we will work with suppliers and service users to shape a vibrant, competitive market encouraging SME participation. This will be supported by planning to minimise the effects of any supplier failure

Sustainability

• climate change, plastic pollution and the use of natural resources are important issues the council has a duty to consider, both with regard to its own operations and those of suppliers
• we will ensure suppliers consider how to minimise their impact on the environment and adopt sustainable business practices

Commercial management

• we will ensure commercial terms hold suppliers to account while striking a balance that is fair to both parties
• our contracts will protect the interests of the council while providing sustainable commercial opportunities for suppliers
• we will favour open-book arrangements, and our contract terms will reflect the size and value of the contract and the market
• pur procurement processes will be efficient, and we will work with commissioning colleagues to let contracts promptly

Legal compliance

• the council operates in a regulated environment where the consequences of getting things wrong are costly
• we will ensure we have the skills, practices and capability to effectively manage risk when making commercial and procurement decisions

How we will deliver

Compliance and transparency

• we will operate effective governance arrangements, with transparency around what decisions have been made and why
• we will have strong internal processes to ensure procurements comply with our regulatory duties
• we will manage the quality of our procurement practices through Quality Assurance, Gateways and Peer Reviews

Value for money

Specifications and contracting terms

• we will use market knowledge when developing specifications and contractual obligations
• we will identify outcomes that are important to Lincolnshire and ensure suppliers are held to account for delivering them
• we will build payment mechanisms to encourage and reward good performance
• we will introduce a set of light-touch terms and conditions for procurements of lower value

Category management

• procurement resources will be allocated to the market areas or categories we rely on most, helping us improve our understanding of them
• our key spending areas are:
  • Adult Care and Community Wellbeing
  • Children's Social Care
  • Education
  • Information Technology (IT)
  • Environmental Services (including waste)
  • Highways (incl. grounds maintenance)
  • Property Services (including construction)
  • Transport and Vehicles
  • Employment Services, Agency Workers and Consultancy

Supplier relationship management

• we will identify strategic suppliers and engage with them to: 
  • improve performance
  • reduce cost
  • mitigate risk
  • support innovation
  • share benefit as appropriate
• the council will take a reasonable and collaborative approach to managing relationships with strategic suppliers

Contract management

• our contracts will be regularly reviewed to monitor service delivery, compliance, transparency and actual versus planned spend
• opportunities for additional value from specification and performance reviews will be assessed on an ongoing basis
• any agreed contract changes will be recorded as part of a change control process
• where suppliers are experiencing difficulty, we will do our best to support them to succeed

Partnerships, collaboration and relationship management

• we will work collaboratively and develop relationships with other public sector organisations in Lincolnshire such as:
  • the NHS
  • schools
  • Lincolnshire Police 
  • district councils
  • the Local Enterprise Partnership
  • the University of Lincoln
• we will adopt a 'one Lincolnshire' approach to our contracts, seeking to ensure they complement related services contracted by public sector partners
• we will contribute to regional and national working groups, sharing best practice and guidance for the benefit of the public sector

Efficient practices

• we will use frameworks awarded by public buying organisations such as Crown Commercial Services and the Eastern Shires Purchasing Organisation where they meet our requirements
• this will help us to benefit from the public sector's purchasing power whilst saving on time and resources
• we will follow the council's Contract and Procurement Procedure Rules and use the exception process in those rules, particularly for Social Services
• when appropriate, we will use tried and tested solutions rather than creating bespoke new ones
• in routine contracts, we will use standard documents and contract terms for simplicity and speed
• we will invest in skills development and build capacity so the council has a highly skilled and experienced procurement team

Social and community benefits

• in our procurement, we will consider whether additional community benefits can be achieved without significantly increasing costs
• we will look at how suppliers can provide opportunities to young people, including any in line with our Corporate Parenting Strategy
• our specifications will have regard to the environment, especially energy efficiency, waste reduction and the use of natural resources
• we will provide "always-on" digital tendering support for suppliers, giving SMEs the back-up they need to bid for our contracts