Procurement Strategy

Introduction and Purpose

The overall purpose of this strategy is to set a path for delivering necessary improvements in procurement activity, to embed a focus on value for money & social value within procurement and to support the corporate plan and the overall vision. Housing associations are contracting authorities that are mandated to ensure that procurement activity that buys in supplies and services is critical to ensuring that Value for Money is being obtained and demonstrated in accordance with the Public Procurement Regulations. 

The procurement process spans the full procurement cycle from identifying the need, through to the end of a contract or the end of useful life of an asset and any lessons learnt from the whole procurement cycle. It involves early stakeholder & customer engagement (where appropriate), assessing impact on relationships and linkages with services internally and externally, option appraisals and the critical ‘insource our outsource’ decision whilst determining the appropriate procurement strategy and routes to market. Procurement is therefore much wider than simply purchasing. Through the effective implementation of our procurement strategy, we will be able to demonstrate the significant added value that an effective procurement function can bring to One Manchester & its customers.

Key Principles

The key principles of this Procurement Strategy are:-

1. Compliance - all procurement activity is undertaken with a high level of compliancewith our internal and external obligations/regulations

2. Value for Money – improving the efficient delivery, value for money and cost effectiveness of quality services to current and future customers, and their communities.

3. Social Value – embedding social value into the procurement process, and achieve added value benefits to tenants, leaseholders and communities through effective use of supply chains.

4. Innovative Solutions – utilisation of the new Delta e-Sourcing platform to creategreater compliance, efficiencies and streamline our procurement and contract management processes.

5. Ethical Procurement – procurement conducted by the organisation be ethical andwithout corruption or fraudulent behaviour throughout the supply chain.

6. Equality, Diversity & Inclusion – One Manchester commits to equality, diversity and inclusion; ensuring fairness in all our procurement activities.

Principle 1 - Compliance 

Procurement activity is governed by the delegatory framework and financial regulations. To ensure consistency of approach across the organisation a procurement policy and toolkit is available for all budget holders to ensure adherence to internal and external regulations. The procurement policy and toolkit underpins delivery of this strategy whilst ensuring compliance with internal financial rules, procurement regulations and regulatory requirements.

 It sets procurement policy within One Manchester, and supports good practice and consistency through the provision of advice, guidance and process-maps for key activities. We will comply with all relevant PCR2015 legislation and internal procedures. We will ensure we are aware of forthcoming legislation; amend our processes and update our staff to ensure compliance is maintained.

We will also track and monitor expenditure outside of agreed arrangements and determine why non-compliant purchasing is occurring. Action plans will be developed to address these. We will ensure our suppliers, contractors and subcontractors comply with all legislation related to the service they provide and will substantiate this by regular checks at contract review meetings.

Principle 2 - Value for Money

Value for Money from procurement activity should be considered as the optimum combination of whole-of-life costs in terms of not only generating efficiency savings and good quality outcomes for One Manchester, but also benefit to society, the economy, and the environment, both now and in the future. 

We will ensure that the value for money of contracts is measurable, using appropriate key performance indicators to measure cost, quality and sustainability requirements. One Manchester is committed to improving the efficiency and effectiveness of our procurement activities to secure best value for all purchases. In order to ensure that we are achieving the best value for money in all procurement activities we will:

• Ensure pre procurement assessments consider both quality and price aspects and, where appropriate, the whole life costs of goods, services or works being procured.
• Plan and programme the procurement of goods, services or works to maximise efficiency by collaborating with others, where appropriate.
• Develop ways to secure and monitor financial and non-financial efficiencies in how we procure through improved use of resources, improved specifications, etc.
• Maximise the use of public procurement frameworks where we can secure benefit from the efficiencies of bulk procurement and reduce staff resource on procurement activity.
• We will evidence best value through regular audits and review of costs and quality of work.
• Ensure appropriate levels of competition are implemented for all procurement activity, in line with current legislation and internal Procurement procedures.

Principle 3 Social Value 

Procurement within One Manchester will:- 

• Embed social value into the procurement process.
• Consider the wider social impact of procurement, both positive and negative, in addition to quality and cost.
• Commit to influence our procurement partners and supply chain about key social value priorities, such as the Real Living Wage, to raise standards of living in our communities.
• Create real-term savings from procurement to support One Manchester’s social value activities.
• Aim to reduce our negative environmental impact wherever possible, through guiding specification choices or suggesting more efficient practices to reduce waste. 

In accordance with Public Contract Regulations, One Manchester’s approach to procurement will not create barriers for small/regional suppliers and will reduce any existing barriers organisations encounter when dealing with One Manchester. 

Principle 4 - Innovative Solutions 

One Manchester will soon be introducing and utilising a web-based procurement tool for all future procurement activities. The software that will be used is the Delta e-Sourcing web- based tendering and contract management platform and portal. The centralised contracts register in Delta will be utilised within One Manchester and responsibility to manage the portal will sit with the delegated stakeholders within each department and is accessed via the portal. The inputting of contract information commences with the signing, sealing and execution process and will record all contract details for contracts with a value in excess of £10,000. 

Principle 5 - Ethical Procurement 

One Manchester commits that procurement conducted by the organisation be ethical and without corruption or fraudulent behaviour. One Manchester will demonstrate a commitment to competition and market testing and will achieve integrity in all procurement. One Manchester employees responsible for the procurement of contracts should act impartially, independently and with integrity at all times. Employees recognise that conflicts of interest will be declared and recorded. One Manchester recognises that it is unacceptable to engage in any activity that might lead to a breach of the Bribery Act 2010. 

Therefore all employees and suppliers shall:-

Comply fully with the requirements of the Bribery Act 2010;

• Not engage in any activity, practice or conduct which would be an offence under any section of the Bribery Act 2010;
• Have and maintain during the full term of the proposed agreement policies and measures to ensure compliance with the Bribery Act 2010.
• Work with the Slave Free Alliance to eliminate modern day slavery and human trafficking risks from our supply chain 

Principle 6 – Equality, Diversity & Inclusion

 One Manchester adheres to the principle that discrimination on the grounds of age, disability, religion or belief, ethnic origin, gender, sexuality or on any other unjustifiable grounds is unacceptable. One Manchester commits to equality, diversity and inclusion; ensuring fairness in all our procurement activities. One Manchester will act to ensure that all equality and diversity needs are met for all groups with protected characteristics. Suppliers, contractors and service providers bidding for opportunities with One Manchester will be required to disclose any findings of unlawful discrimination and/or upheld investigations by the Equality and Human Rights Commission.

Key Objectives and Action Plan 

The objectives of this strategy will meet these principles through creating a consistent structured approach for purchasing within. Procurement processes within should be electronic (when appropriate), streamlined and focussed upon achieving 

Value for Money The main strategic objectives for procurement with during 2023/24 are stated below:- 

1. Introduce new procurement policy & toolkit 

2. Ensure that our procurement is carried out in full compliance with legislation 

3. Create procurement and contract management training materials 

4. Implementation of Delta e-Sourcing platform 

5. Centralise contract management 

6. Embed greater value for money and social value controls within the e-Tender process/supply chain 

7. Effective monitoring of all social value pledges (Delta embedding) 

8. Rationalise and condense current supply chain with a view to establishing internal Dynamic Purchasing Systems/Preferred Supplier Lists 

9. Review and re-procure (if necessary) contracts in the identified categories 

10. Introduce robust supplier onboarding controls 

11. Monitor performance against agreed procurement KPI’s 

12. Identify and set procurement savings targets 

13. Work with partners and stakeholders (including the Slave Free Alliance) to eliminate modern day slavery and human trafficking risks from our supply chain The objectives stated within this strategy will be incorporated into a 

Procurement Action Plan which will be reviewed and updated on at least a quarterly basis and reported to the Leadership Team. All of procurement activity is governed by the organisation’s delegatory framework, financial regulations and the procurement policy & toolkit.