Corporate Procurement Plan - 2019-2021 Tipperary County Council - V 1.0 - Tipperary County ...
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Tipperary County Council Corporate Procurement Plan 2019-2021 V 1.0 Page 1
Contents Foreword from the Chief Executive ................................................................. 3 Acronyms ................................................................................................ 4 1.0 Introduction ..................................................................................... 5 1.1 Corporate Procurement Plan ............................................................... 5 1.2 Procurement Reform ........................................................................ 5 1.3 Office of Government Procurement (OGP) .............................................. 5 1.4 Tipperary County Council .................................................................. 5 1.5 Procurement Function – Organisational Structure ...................................... 6 2.0 Mission Statement ............................................................................. 7 2.1 Tipperary County Council Corporate Plan 2015-2019................................... 7 2.2 Corporate Procurement Plan 2019-2021.................................................. 7 2.3 Mission Statement - Procurement ......................................................... 7 3.0 Corporate Procurement Objectives .......................................................... 7 4.0 Specific Goals ................................................................................... 8 1. Implement changes in the Procurement Organisational Structure ...................... 8 2. Implement changes to procurement processes, training and IT systems............... 9 3. Expenditure Optimisation and Compliance Reporting .................................... 9 4. Effective communication and implementation of procurement policy ................. 9 5.0 Implementation Plan .......................................................................... 10 6.0 Proposed Procurement Organisational Structure in TCC ................................ 13 6.1 Flowchart .................................................................................... 13 6.2 Terminology used in flowchart 6.1 ....................................................... 14 7.0 Performance Measurement .................................................................. 15 8.0 Approval of Corporate Procurement Plan .................................................. 15 9.0 Links ............................................................................................. 15 V 1.0 Page 2
Foreword from the Chief Executive This corporate procurement plan sets out Tipperary County Council’s procurement objectives for the period 2019 – 2021. The objectives reflect EU, National and local procurement policies and priorities. The plan has been prepared in the context of implementing the procurement reform programme being driven by Government as part of the modernisation of the Public Service. It also reflects the increasing professionalisation of the procurement function. As Chief Executive, I am committed to making the most effective use of the resources available to our organisation. A fundamental component of this approach is to ensure efficient service delivery using compliant, equitable and transparent procurement processes that deliver value for money. The implementation of this three-year plan will put structures in place to ensure that Tipperary County Council will meet its corporate governance requirements. Joe MacGrath, Chief Executive, Tipperary County Council V 1.0 Page 3
Acronyms
CCMA County and City Management Association
CE Chief Executive
DoS Director of Services
HoF Head of Finance
IA Internal Audit
IT IT section
LEO Local Enterprise Office
LGMA Local Government Management Agency
LGOPC Local Government Operational Procurement Centre
LGSPC Local Government Strategic Procurement Centre
MT Management Team
OGP Office of Government Procurement
PC Procurement Coordinator
PCG Procurement Coordinator Group
PO Procurement Officer
ProcRef Procurement Reference field in Agresso. It identifies the specific
contract under which a spend is made
PSG Procurement Strategy Group
SupplyGov Procurement System which facilitates the procurement of Plant Hire
and Minor Building & Civil Works
V 1.0 Page 41.0 Introduction 1.1 Corporate Procurement Plan This Corporate Procurement Plan identifies the procurement actions that will be implemented over the three-year period 2019-2021. The main focus will be on a restructuring of the procurement function. This has been designed to strengthen the professionalisation of the procurement function in order to efficiently meet corporate governance requirements and continue to deliver value for money. The procurement objectives will support efficient and effective delivery of services by Tipperary County Council. This Plan has been prepared in accordance with the Local Government Strategic Procurement Centre (LGSPC) document ‘Guidance for Corporate Plan Procurement Planning in the Local Government Sector’ (Feb 2018) and the ‘Corporate Procurement Plan Information Note Jan 2019 OGP’. 1.2 Procurement Reform The ‘Report of the Local Government Efficiency Review Group (2010)’ highlighted the need for procurement reform to meet changing economic conditions. The ‘Public Sector Reform Plan 2011’ requires procurement to achieve better value for money through an increased use of centralised procurement frameworks, increased professionalism and more innovative use of technology. The CCMA and LGMA resourced the setup of the LGSPC to support the local government sector to play a meaningful role in the reform of procurement. The LGSPC supports the development of the procurement function as well as the processes and systems needed to meet new national requirements. 1.3 Office of Government Procurement (OGP) In 2014 the Government established the OGP to implement its Procurement Reform Programme. The OGP is implementing a new model which is leading a shift from decentralised to a more centralised model of procurement for goods and services. This involves a transition to greater use of centralised contracts and frameworks by all public bodies including Local Authorities. Tipperary County Council as a contracting authority will remain accountable for all procurement it carries out. Government Policy is that public bodies, where possible, should make use of all central arrangements. Where public bodies do not utilise central procurement frameworks they should be in a position to provide value for money justification. 1.4 Tipperary County Council Tipperary County Council is the eighth largest local authority in the country. Between January 2016 and December 2018, the Council spent in the region of €544m delivering services. Of this the breakdown was €424m Revenue: €120m Capital. A wide range of goods, services and works are tendered annually using eTenders (Works, Goods and Services), SupplyGov (Minor Buildings Works and Civils; Plant Hire), OGP and other Sector-Led national arrangement categories. i V 1.0 Page 5
Tenders are sought for individual or aggregate contracts of €25,000 and over ex VAT for Goods & Services. For Works, it is for €50,000 and over ex VAT. These are advertised on eTenders, SupplyGov or include using OGP or other partner led arrangements. Quotations are sought for contracts of €25,000 or less ex VAT for Goods and Services, or €50,000 or less ex VAT for Works. Quotations are sought when there is no suitable national or local framework available. 1.5 Procurement Function – Organisational Structure Tipperary County Council currently operates a primarily decentralised procurement system. Each directorate focuses on the delivery of its own specialist services. The procurement of goods, services and works is carried out separately within each directorate. This works well for efficient service delivery, keeping procurement as close as possible to the user. It is not as efficient when required to participate in central procurement arrangements. One of the main objectives of this three-year plan is to bring about the organisational changes needed to interact efficiently with the national centralised requirements and at the same time, retain the advantages of the decentralised approach for the delivery of services. A Chief Executive’s Order lays out the procurement authorisation levels for Authorised Officers. The Chief Executive (CE) has ultimate responsibility to ensure compliant procurement. The CE delegates significant budgetary and procurement responsibilities to Directors of Services (DoS). Each Director has the responsibility to ensure that the budget holders, to whom they in turn delegate, take responsibility for the compliant procurement of all goods, services and works for which they authorise spend. The Procurement Officer’s role is mainly strategic in nature, incorporating: the preparation of advice and guidance to management team and staff on legislative, compliance, risk management and good practice requirements; procurement data management; and pro-actively engaging with the LGSPC and OPG at national level. The role also includes the implementation of the Corporate Procurement Plan 2019-2021. This plan was developed on the basis of a review of the previous plan; new national procurement initiatives; the increasing professionalisation of the procurement function; and identifying a procurement structure and process that enables this Council to deliver its core functions and services efficiently while meeting corporate governance requirements. The Procurement Officer will identify new risks, such as Brexit, when they arise, and liaise with the national procurement advisors and internal buyers to develop an appropriate risk management strategy. V 1.0 Page 6
2.0 Mission Statement
2.1 Tipperary County Council Corporate Plan 2015-2019
The ‘Tipperary County Council Corporate Plan 2015-2019’, provides a strategic
framework for Tipperary County Council to deliver its core functions and
services. The Vision Statement ‘Tipperary Together – Ambitious for our
communities, demanding of ourselves and working to a shared purpose to
delivery prosperity across the County’ is supported by three Strategic
Statements focusing on developing a Strong Economy; Quality of Life; and a
Quality Environment.
2.2 Corporate Procurement Plan 2019-2021
This Corporate Procurement Plan sets out how to achieve effective and efficient
procurement that will support the Council’s corporate objectives. The Council’s
procurement of goods, services and works facilitates the development of critical
infrastructure, community services and improved environmental quality.
2.3 Mission Statement - Procurement
Our mission is ‘to ensure that Tipperary County Council’s procurement function
drives and facilitates the sustainable development of the County; operates in
accordance with best practice and all legislative standards in public
procurement; achieves effective service delivery; delivers best value for money;
with accountability and transparency across all functions of the organisation’
3.0 Corporate Procurement Objectives
1. To ensure that staff engaged in procurement are compliant with procurement
Directives, Legislation, Circulars, other legal requirements and the Council’s
procurement policies and procedures. This will minimise procurement and
reputational risk.
2. To support effective service delivery in accordance with the strategic
objectives in Tipperary County Council’s Corporate Plan
3. To achieve greater value for money by
• ensuring that procurement is carried out in a coordinated manner
• ensuring that competitive processes are used unless there are justifiable
exceptional circumstances for not doing so
• reviewing, and where possible, streamlining existing procurement
processes
• identifying opportunities for aggregation and efficiencies
4. To facilitate economic, SME, social and environmental considerations through
procurement where feasible
V 1.0 Page 74.0 Specific Goals
1. Implement changes in the Procurement Organisational Structure
A number of options were considered by the Procurement Steering Group when
determining the most suitable procurement organisational structure for
Tipperary County Council (TCC).
i. Retain the structure ‘as is’
TCC has a high number of staff involved at each stage of the procurement
process. This is in part due to the decentralised structure of the procurement
function and in part that some of it is managed as an administrative task rather
than as a specialised function. An evaluation of the time and resources required
to train these numbers to the professional standards needed, indicated that it is
not a practical proposition to continue ‘as is’.
ii. Create a centralised procurement unit to handle all procurement
for the organisation
Given the range of goods, services and works procured by the Council; the
geographical spread; and the level of on-the-ground contract management that
needs to be carried out as part of staff functions, a centralised unit would need
to be of significant size. There would be overlap of procurement, implementation
and contract management functions. To retain the current advantages and
efficiencies, the organisation’s procurement function needs to be as close as
possible to the section users, particularly where it involves works, H&S, plant
and vehicles. The relative merits and demerits of this approach would indicate
that at this stage, it would not be an efficient or effective solution.
iii. Adapt the existing structure to maintain the advantages of
decentralised procurement; enable the organisation to
appropriately professionalise the procurement function; reduce
duplication; meet the national requirements to utilise central
contracts when appropriate; and generate spend and compliance
data at a corporate-wide level
This third option is the recommended one and is outlined in the Goals set out in
section 5.0 ‘Implementation Plan’. It forms the basis of the three-year plan. The
adaptations incorporate the fundamental principles:
• that all stages of the procurement process will involve significantly fewer,
but more highly trained staff
• that a cross-directorate element to the procurement process is developed
through the Procurement Coordinator function
• that the procurement process for each tender has a second trained person
carry out a compliance procedure as a quality control measure
The flowchart 6.0 ‘Proposed Procurement Organisational Structure in TCC’ gives
the structure to be in place by the end of the plan.
V 1.0 Page 82. Implement changes to procurement processes, training and IT
systems
This is to ensure the systems are fit for purpose and are adaptable to changing
legislative and best practice requirements. As procurement becomes more
professionalised, fewer staff members will remain involved in the procurement
process. Those who continue must be provided with the right training and have
opportunities to develop expertise, good practice skills and the experience
needed for their level of responsibility. They will also require the right tools and
support to perform efficiently. This includes the development and availability of
electronic systems and processes required to deliver smart procurement.
3. Expenditure Optimisation and Compliance Reporting
The ‘National Public Procurement Policy Framework’ sets out the procedures to
be followed by the public sector under National and EU rules. Through the OGP’s
central purchasing model, the public service speaks with ‘one voice’ to the
market, eliminating duplication and taking advantage of the scale of public
procurement to best effect. These arrangements will be used when possible. For
spend with no central arrangement in place, competitive tendering processes
carried out in an open and transparent manner will deliver best value for money.
There is an increased requirement for centralised compliance reporting on more
specialised procurement arrangements. Coordination through Procurement
Coordinators and the utilisation of improved IT systems, such as Spend Data
Management Systems tools to monitor spend across the organisation will be
required to ensure that compliance reporting requirements are met.
4. Effective communication and implementation of procurement
policy
Effective communication with all stakeholders involved in the procurement
process has been identified as key to the development and implementation of
effective and efficient procurement procedures. Timely communication to
relevant stakeholders has been identified as a cornerstone of plan
implementation. The review of the ‘Procurement Communication Plan’ will aim to
deliver more focused and timely interaction with the range of stakeholders
involved.
V 1.0 Page 95.0 Implementation Plan
Goal Goal Target Measure of Delivery Owner
ID
Actions to Achieve Goal
Start Date
1. Implement 1. Agreement at Management Team Q1, 2019 • Approval of Corporate Procurement Plan MT (Management
changes in the (MT) on changes to Procurement 2019-2021 based on new procurement Team)/ PO
Procurement Organisational Structure. Procurement organisational structure (Procurement
Organisational Coordinators embedded in Officer)
Structure directorates with a ‘cross-directorate’ • Required resources in place
ie Corporate role
2. Procurement Coordinators (PCs) in • No. of Procurement Coordinators identified Each DoS
place • No. of Procurement Coordinators trained
(Director of
a. Civils, Plant &Vehicles Service)/ PSG
a. Q1, 2019 • No. of Directorates with Cross-directorate role
b. Housing (Procurement
b. Q2, 2019 embedded into directorate function; agreed
c. IT Strategy Group)/
c. Q2, 2019 cover and hand-over procedures in place
d. Other Directorates PO
d. Q2, 2020
e. Facilities e. Q2, 2021 • No. of tender and award processes that have PCs/PO
f. Professional Services f. Q4, 2021 undergone new compliance procedures
3. Procurement Strategy Group (PSG) in Q2, 2019 • Composition of PSG providing evident link to CE (Chief
place TCC corporate strategies Executive) / DoS
• New organisational change implemented with /PO
senior management overview and direction
• Risks such as Brexit identified, added to the
risk register with relevant mitigation actions
• Procurement risk register actively managed at
appropriate level
• Annual progress report to MT
4. Procurement Coordinator Group (PCG) Q2, 2019 • Improved compliance procedure processes PO/ PCs
- Technical group set up • Identification of No. of opportunities to:
o encourage SME involvement
o incorporate green and social considerations
o create new aggregation arrangements
o develop sustainable procurement
o extend stakeholder engagement
V 1.0 Page 10Goal Goal Target Measure of Delivery Owner
ID
Actions to Achieve Goal
Start Date
2. Implement 1. Through development of Procurement Q2, 2019 1. Reduced numbers involved in the PO/ HoF (Head of
changes to Coordinators (PC) skills, fewer staff procurement process / PCs/
Finance)
procurement with better expertise manage the DoS
processes, procurement process
training and IT
systems to 2. Exclude occasional users from use of Q2, 2019 2. Reduced numbers using procurement PO/PC/HoF
ensure they are procurement systems platforms
fit for purpose
and are 3. Provide specialist training for those Q2, 2019 3. No. trained in targeted procurement training PO
adaptable to involved in procurement process
changing
legislative and 4. Train staff to a more specialist level in Q2, 2019 4. No. trained in targeted procurement training PO
best practice the use of systems
requirements
5. Through PCs identify corporate Q2, 2020 5. Contract management and supplier PO/PCG
processes to manage contract performance measures developed and
management and supplier implementation plan actioned
performance
6. Re-develop in-house systems to suit Q4, 2019 6. No. of systems upgraded. Generation of PO/IT
changing requirements procurement information based on systems
a. Tender Log in line with national requirements
b. ProcRef
c. Energy Management System
PO/IT/LGSPC
7. Develop solutions to improve linkages Q3, 2019 7. Solutions implemented (Local Government
between the national and local IT Strategic
procurement platforms and systems Procurement
Centre)
8. Identify most appropriate platform for Q1, 2020 8. Implementation of electronic quotations PO/PCG/PSG/
the management of quotations and system initiated LGSPC
transition to its use
V 1.0 Page 11Goal Goal Target Measure of Delivery Owner
ID
Actions to Achieve Goal
Start Date
3. Expenditure 1. Use national arrangements as Q1, 2019 1. No. of national arrangements being used PO/PCs
Optimisation and appropriate
Compliance
Reporting 2. Identify new opportunities for spend Q1, 2019 2. No. of TCC arrangements in place for PCs
aggregation aggregate spend categories
3. Meet national compliance reporting Q1, 2019 3. LGMA/OGP quarterly spend reports PO
requirements submitted on time and in format required;
No. of tenders compliantly advertised;
No. of Contract Awards published;
Q3, 2019 All steps in procurement process have a PO/PCs
compliance procedure carried out by a
Procurement Coordinator;
Reputation maintained for fair and
transparent procurement practices
4. Effective 1. Review Procurement Communication Q2, 2019 Reviewed Procurement Communication Plan PO
communication Plan to complement new Corporate prepared and implemented
and Procurement Plan
implementation
of procurement 2. Maintain national and regional links Ongoing TCC has an input into the development of PO
policy with procurement bodies national and regional procurement arrangements
3. Develop strategies as required to Ongoing Relevant procurement changes and PO
address changes in the procurement developments are implemented appropriately
environment and in a timely manner
V 1.0 Page 126.0 Proposed Procurement Organisational Structure in TCC
6.1 Flowchart
Procurement
Procurement
LGSPC Office Strategy Group
LGOPC Procurement STRATEGIC/RISK
OGP Coordinator Group
National networks MANAGEMENT
Regional networks
TECHNICAL
ROADS
• Districts CIVILS; PLANT; VEHICLES
• Roads
• Road Design Procurement Coordinator
• Machinery Yard
HOUSING
• Housing Capital BUILDINGS
• Housing maintenance
Procurement Coordinator
CORPORATE SERVICES
• HR PROFESSIONAL SERVICES
• Training FACILITIES;
• Property Procurement Coordinator
management
FINANCE
• IT
ICT
• Finance
Procurement Coordinator
PLANNING
• Forward Planning
Procurement Coordinator
• Development
Management
• Water Services
ENVIRONMENT
• Landfill
Procurement Coordinator
• Civic sites
• LAWPRO
Professional Services; Facilities
C&E
• LCDC
Procurement Coordinator
• LEO
Civils; Plant; Vehicles
• Sports
• Economic Development
EMERGENCY SERVICES
• Fire/CD
Buildings
• Libraries/Cultural Procurement Coordinator
Services
IT
• Shared Services
In-section procurement Procurement Coordinator
V 1.0 Embedded in Directorate 136.2 Terminology used in flowchart 6.1
Procurement Coordinators (PCs): This is a new role in the organisation which
forms a central part in the reorganisation of the procurement function. These
staff members are staff based in Directorates and will carry out procurement
compliance procedures, i.e. a quality control function on tender processes within
their own Directorate. Some will have a significant cross-directorate i.e. a
‘corporate’ role in relation to specific categories, such as the procurement of
Civils, Buildings, ICT, Facilities Management and Professional Services. They will
have significant training in public procurement and will develop hands-on
experience through managing an increased volume of procurement activity. Most
will also have other related roles in their directorates.
Procurement Coordinator Group (PCG): This group of Procurement
Coordinators will develop and implement procedures to streamline procurement
processes and compliance procedures within the Authority. It will identify risks,
implement strategies to mitigate; and identify opportunities to incorporate green
and social considerations in tendering.
Procurement Strategy Group (PSG): This small new group, led by a Senior
Manager, will meet three times per year. The PSG will take a corporate overview
of procurement issues; will monitor and evaluate the implementation of the
organisational change; will manage the procurement risk register; and will bring
strategic issues to Management Team.
Civils: Road Making materials, Supply/Supply-Lay
Road Markings
Other roads related arrangements on SupplyGov/OGP
Civil Works related services: design, engineering eTenders/ quotations
Roads related contracts on eTenders or SupplyGov
Civil Works related contracts on eTenders or SupplyGov
Plant, Machinery, Vehicles:
Hire on SupplyGov
Hire or purchase arrangement on eTenders
Buildings: CWMF building contracts (over €50k)
Minor Buildings Works frameworks on SupplyGov
Works related Professional Services
Electric and Plumbing services
Energy Efficiency Retrofitting works
Facilities: Facilities Management contracts (OGP); other TCC requirements
Professional Services: (excludes IT and Works related professional services)
National OGP professional services arrangements
Other professional services arrangements
IT: IT hardware and software
IT systems
IT related professional services
V 1.0 Page 147.0 Performance Measurement
The Implementation Plan set out in Section 5 covers a three year period and will
be monitored on an annual basis through a progress report prepared by the
Procurement Officer for the Procurement Strategy Group.
The plan will be fully reviewed in 3 years and a new plan will be prepared for
2022-2024
8.0 Approval of Corporate Procurement Plan
This plan was approved by management team in March, 2019
9.0 Links
• https://ogp.gov.ie/national-public-procurement-policy-framework/
• ‘Guidance for Corporate Plan Procurement Planning in the Local Government
Sector’ (February 2018)
• Corporate Procurement Plan Information Note Jan 2019 - OGP
• Routinely available information under FOI Model Publication Scheme
P-d
i
Procurement Spend Categories utilised by Tipperary County Council
OGP-Led Categories Sector-Led Categories
Professional Services Local Government
Facilities Management & Maintenance o Minor Building Works and Civils
Utilities o Plant Hire
ICT and Office Equipment Education
Marketing, Print and Stationery o Veterinary/Library Book Purchase
Travel and HR Services o Laboratory, Diagnostics and Equipment
Fleet and Plant
Managed Services
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