Sustainable Procurement Policy

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Sustainable ProcurementPolicy Communications

• PROCURMENT POWER
• Tuesday 1 May 2007
• Derby
• David Wright
• NE Centre of Excellence
• 0191 433 2230
• davidwright_at_gateshead.gov.uk

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Policy into Action

• WHY?

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Sustainable Procurement Potential

• LSPs and Sustainable Community Strategies
• LEGIs
• Community Benefits Enhancing Wellbeing
• Collaboration, Partnership Use of Resources
• Healths Corporate Citizen agenda
• Business Sectors Corporate Social Responsibility
• Economic, Regeneration Sustainability
  strategies
• Social Cohesion, Equality Diversity
• 3rd sector public service delivery
• Environmental, Spatial and Rural strategies
• Waste strategies
• Health Improvement strategies
• Public Sector Food Procurement Initiative

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Why Sustainable Procurement in Local Government?

• 40bn LA sector annual procurement spend
• Corporate Procurement Strategy aligned to
  Sustainable Community Strategies
• National Procurement Strategy for LG 2003
• Gershon efficiencies
• SPTF Action Plan
• 3rd Sector future public service delivery
• ONE PLANET!

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Policy into Action

• WHY?
• WHO?

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Harnessing Participants

• Public Sector policy, strategy, service,
  procurers scrutiny
• Professional organisations
• GOs, Government departments and agencies
• RDAs
• Environment Agency
• Procurement Consortia
• Business Sectors 3rd Sector
• Business Support Sector
• IDeA
• Audit Commission
• Academia
• RCEs

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Policy into Action

• WHY?
• WHO?
• WHAT?

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National Procurement Strategy for LG 2003 -
Sustainability Drivers

• Corporate Procurement Strategy aligned to
  Sustainable Community Strategy
• Achieve community benefits
• Improve supplier engagement
• Establish agreements with the SME and 3rd sectors
• Encourage effective supply chains development
• Assure equality diversity
• Evaluate whole life costs
• Stimulate markets

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RCE National Strands

• Adult Care Services - SE
• Supporting People - NE
• Corporate Transactional Services - YH
• Productive Time - London
• Social Housing - London
• Fire Rescue Services - SW
• Waste Environmental Services SE
• Commodities, Goods Services National
• Construction (inc Housing, FM, Highways civils)
  - EM
• Childrens Services - WM
• Education - NE
• Culture Sport - NE
• Integrated Local Transport - NW

SUSTAINABLE PROCUREMENT
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Value forMoney, People Place
Social, Economic Environment Wellbeing
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Evidence from pathfinders

• Commitment from the top and to sustainability
  generally.
• Corporate approach related to LAs priorities and
  engaging range of services.
• Lead by example
• Use the SPTF Flexible Framework
• Plan, prioritise and set targets
• Be imaginative
• Build interest, capacity and enthusiasm
• Understand change management
• Identify and remove barriers
• Emphasise the positive
• Promote champions
• Engage with suppliers
• Provision of coordinator to unlock greater
  potential.
• Whole life costing/value but evidence shows short
  term costs also competitive!
• Kudos and improved reputation.

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Importance
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Policy into Action

• WHY?
• WHO?
• WHAT?
• WHERE?
• HOW?
• WHEN?

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Issues for LG Response to SPTF(1 of 5)

• Councils, working with local partners, will
  pursue an integrated approach to the achievement
  of economic, social and environmental benefits
  through the Sustainable Community Strategy, Local
  Strategic Partnership and Local Area Agreements.
  This will include leveraging the purchasing power
  of the partners (sustainable procurement).
• Review and where necessary restate policy,
  strategy, standards, targets and information
  management for sustainable procurement.
• Encourage ownership of commitment by the
  political and managerial leadership of the
  council and engage scrutiny in the search for
  more sustainable solutions.

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Issues for LG Response to SPTF (2 of 5)

• Secure appropriate training and development for
  councillors, senior managers, procurement staff
  and other professionals and service managers.
• Identify exemplars of good practice (against the
  flexible framework) and challenge to raise
  performance.
• Mainstream sustainable procurement into all
  activities including those carried out at arms
  length and through strategic partnerships.
• Collaborate regionally and nationally, using
  purchasing power to transform key markets
  including the promotion of innovation.

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Issues for LG Response to SPTF (3 of 5)

• Prioritise action on construction and facilities
  management - the largest category of procurement
  expenditure in the sector followed by energy,
  transport and food.
• Work together to agree a clear set of standards
  for the sector linked to corresponding standards
  under development for the rest of the public
  sector. Begin by making a commitment to using
  timber from sustainable forests
• From 1 April 2009 only timber and timber products
  originating either from independently verified
  legal and sustainable sources or from a licensed
  Forest Law Enforcement, Governance and Trade
  (FLEGT) partner will be demanded for use on the
  local government estate appropriate
  documentation will be required to prove it. From
  1 April 2015, only legal and sustainable timber
  would be demanded.

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Issues for LG Response to SPTF (4 of 5)

• Expect achievements to be measured and recognised
  through the new performance management framework
  including use of resources.
• Look to Government to put enablers in place to
  help achieve the shared goal and welcome the
  proposal to develop a Sustainable Products Unit
  to develop evidence on the life cycle impacts of
  products and the possible use of Salix funding.
• Take the recommendations of LGAs Climate Change
  Commission.

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Issues for LG Response to SPTF (5 of 5)

• Joint National Improvement Strategy to mobilise
  sector resources in support of this agenda
  including through the regional Improvement
  Partnerships/ Regional Centres of Excellence.
• Look at how sustainability can be incorporated
  into the gateway review process for local
  government projects.
• Develop the national programme on third sector
  commissioning as an integral part of the
  sustainable procurement agenda.
• Develop practical guidance on whole life costs in
  the procurement process and investment appraisal
  guidance for local government. (This should be
  supported by worked examples that can be used to
  demonstrate pay back to members and senior
  managers).

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LG Response Next Steps

• 2 May Draft for Consultation
• LAs
• Professional bodies
• Strategic partner sectors
• www.rcoe.gov.uk
• 21 May assess initial responses
• End of June response period closes
• Early July submit response to SPTF and
  Government