Procurement Strategy & Policy - Background, Strategy & Purpose
1. Background, Strategy & Purpose
1.1 What is Public Procurement?
Public procurement is the process by which public authorities purchase goods, works or services from external providers that enable them to deliver the services for which they are responsible.
It is the process of the acquisition, usually by means of a contractual arrangement after public competition, of goods, services, works and other supplies by the public service and adopts ‘Best Value for Money’ as the most advantageous combination of cost, quality and sustainability to meet customer requirements.
As such, procurement is a critical function of the Council, and it accounts for a significant proportion of its spending. Given the resource implications, it is essential that procurement activity is well managed to secure the maximum possible value from this expenditure.
The overriding procurement policy requirement is that all public procurement must be based on value for money, defined as “the best mix of quality and effectiveness for the least outlay over the period of use of the goods or services bought.”
Procurement is also about making choices and the Council’s procurement activity provides a very clear signal of our values and how we want to be seen now and in the future.
At a strategic level, aligning procurement decision making to the Council’s broader policy objectives means that our purchasing power can be leveraged to make a positive impact towards those goals, for example to achieve wider economic, environmental, and social benefits.
1.2 Mission Statement for Mid & East Antrim’s Procurement Policy
The objective of Mid and East Antrim Council’s procurement activities is to secure the best value for money (VfM) outcome for the ratepayer whilst delivering on the key economic, environmental and social outcomes set out in the Mid and East Antrim Borough Council Corporate Plan 2024-2028
1.3 MEA Strategic Procurement Approach
To address the above, overarching objective the Council’s strategic procurement approach has four key elements, as summarised in the table below:
|
Strategic Objectives |
What this will involve |
|---|---|
|
Achieving Value-for-Money |
|
| Promoting Economic Development |
|
| Supporting Social and Environmental objectives |
|
| Compliance, Transparency and Risk Management |
|
1.4 Purpose, Application and Scope
The purpose of this policy is to govern the method by which MEA Council procures the goods, works, and services it requires to enable it to deliver its services effectively.
This document is designed to assist Council officers in determining the most appropriate method of procurement when purchasing goods, works and services.
It details what the Council expects from its officers in terms of behaviour, actions taken and processes to be followed.
This Policy applies to all Council officers involved in the execution of works, supply of products or provision of service contracts, where they are involved in a procurement process, whether as requisitioners, specifiers, purchasers or those who validate or authorise payment.
This includes full-time and part-time employees on a substantive or fixed-term contract and associated persons such as agency staff, contractors and secondees.
Consultants working on behalf of the Council who are involved in the procurement process must ensure their documentation complies with this Policy.
This Policy does not apply to:
- the acquisition or rental, by whatever financial means, of land or existing buildings;
- Certain legal services (for example, legal representation or advice by a lawyer in judicial proceedings before the courts or in situations where there is a high probability that judicial proceedings will result);
- Certain financial services (for example, those in connection with the issue, sale, purchase, or transfer of securities), loans, statutory external audit, National Fraud Initiative.
- Employment contracts;
- Civil defence and danger prevention services that are provided by non-profit organisations;
- Using public transport services;
- Public contracts between public sector entities that satisfy a range of conditions;
- Statutory payments such as TV licensing, LPS rate payments, pension contributions;
- Cost of attending training and development events;
- Cost of study courses; attendance at conferences, exhibitions, seminars and workshops;
- Officers’ professional fees required as legal necessity to perform their duties;
- Payments to individuals, such as speaker fees; musician fees; medical reports;
- Internal purchases (including petty cash); and
- Grants.
This Policy is supported by Procurement Procedures that officers must follow as they progress through the procurement process.
1.5 Guiding Principles of Procurement
There are 12 guiding principles governing public procurement:
- Accountability: effective mechanisms must be in place in order to enable Officers and their equivalents to discharge their personal responsibility on issues of procurement risk and expenditure.
- Competitive Supply: procurement should be carried out by competition unless there are convincing reasons to the contrary.
- Consistency: economic operators should, all other things being equal, be able to expect the same general procurement policy across the public sector.
- Effectiveness: public bodies should meet the commercial, regulatory and socio-economic goals of local government in a balanced manner appropriate to the procurement requirement.
- Efficiency: procurement processes should be carried out as cost effectively as possible. Where possible and allowed, collaborative procurement is to be encouraged.
- Fair dealing: suppliers should be treated fairly and without unfair discrimination, including protection of commercial confidentiality where required. Public bodies should not impose unnecessary burdens or constraints on suppliers or potential suppliers.
- Integration: the procurement policy should pay due regard to the Council’s other economic and social policies, rather than cut across them.
- Integrity: there should be no corruption or collusion with suppliers or others.
- Informed decision-making: public bodies need to base decisions on accurate information and to monitor requirements to ensure that they are being met.
- Legality: public bodies must conform to all legal requirements.
- Responsiveness: public bodies should endeavour to meet the aspirations, expectations and needs of the community served by the procurement.
- Transparency: public bodies should ensure that there is openness and clarity on procurement policy and its delivery.
1.6 Managing Public Money
Managing Public Money NI, published by the Department of Finance requires everyone working in public services in Northern Ireland to be aware of the need to manage and deploy public resources responsibly in the public interest.
This requirement is clearly very relevant when undertaking procurement activity which must be carried out:
- In the spirit of, as well as to the letter of, the law;
- In the public interest;
- To high ethical standards; and
- To achieve value for money.