NePP Regional Workshop Monday 3 rd November 2003 – Latton Bush Centre - Harlow Thurrock Council’s Local Business Initiative 9 years of Strategic Supplier Relations Margaret Gozna MCIPS Principal Procurement Officer

Copyright of Thurrock Council Thurrock BusinessInitiative What is it? Thurrock Business Initiative What is it? Partnership between: Thurrock Council Thurrock Local Enterprise Agency Limited Thurrock District Association of Industries Thurrock Chamber of Commerce Objective:- Maximise the amount of work awarded to local business, both directly & indirectly, within the bounds of legality

Copyright of Thurrock Council Best Practice Thurrock Council’s Local Business Initiative (LBI) ISO Procurement – one of the ‘few’ National Procurement Strategy (Page 49) National Procurement Strategy (Page 49) I&DeA Sustainability in Local Government Procurement (Page 67) I&DeA Sustainability in Local Government Procurement (Page 67)

Copyright of Thurrock Council Thurrock Business Initiative Objectives of Policy Monitoring amount of supplies, goods & services awarded locally Online business introduction form - select list and other registers recognising local business Encouraging contractors to enter subcontracts using standard T&C’s Changing standard documents – simpler – tenders available on-line Organising training & seminars for local business Changing payments’ conditions – SME protection – direct payments

Copyright of Thurrock Council Thurrock Business Initiative Achievements ThurrockCumulativeTotalPercentage Payments £m % 1996/ / / / / / / /200426* * Projected to 31/3/04

Copyright of Thurrock Council National Procurement Strategy & Local Business Initiative  Collaborative Arrangements  E-procurement Internal & external projects (no decision re:- ‘Marketplace’ etc. yet – keeping open mind)  Sustainable procurement ISO REGASS©

Copyright of Thurrock Council Thames Gateway and South Essex Investment in THURROCK

Copyright of Thurrock Council TLBI & Local Government Act 2000 Clause 2 provides local authorities with power to take any steps which they consider are likely to promote or improve the economic, social or environmental well-being of their local community Procurement Strategy Equality, Regeneration & Sustainability

Copyright of Thurrock Council Thurrock Trade School Practical Steps  26 youngsters aged 15  Teenagers focus on a future career  Carpentry, plumbing, electrical, bricklaying, plastering, decorating  Saturday mornings  Collaboration - Local Business helps facilitate

Copyright of Thurrock Council Sustainability in times of Rapid Growth  Economic  Social  Environment Demonstrating we care

Copyright of Thurrock Council Phase 2 REGASS© project Future Plans – Beyond the LBI Developing a regionally focused ‘Blue-Print’ for supplier & community sustainability LOCAL AUTHORITY PROCUREMENT CATALYST FOR TRUE ECONOMIC DEVELOPMENT Thames Gateway South Essex region as pilot focus Nurturing local markets

Copyright of Thurrock Council Thank you for your Time Any questions? Please visit our website ‘e’-mail : -

Copyright of Thurrock Council CHANGES TO SELECT LISTS & TENDERS Less ‘one-off’ contracts Less ‘one-off’ contracts Larger value higher risk partnerships Larger value higher risk partnerships Need to retain local recognition Need to retain local recognition Specifications to reflect/promote local labour Specifications to reflect/promote local labour More proactive preparation of tenders More proactive preparation of tenders Keep the simple stuff simple – don’t introduce restrictive arrangements Keep the simple stuff simple – don’t introduce restrictive arrangements Commercially focused & better aligned to private sector Commercially focused & better aligned to private sector

Copyright of Thurrock Council Local SME Capacity Building PLATINUM GOLD SILVER BRONZE Need to create a common minimum standard of accreditation 4 Levels Reflecting Overall Supplier Capacity & Sensible Risk vs Value balance

Copyright of Thurrock Council Case Study 1 Complex Supply Chain & Packaging of Works Chadwell High Rise - £1.5m project - local contractor Inputs  The will  Support (not always easy to find the time)  Partnering and training approach  Make sure they are paid on time  The local business initiative Council Policy  Co-operation & support between Council Departments  Risk, identified, managed and taken Outputs  Successful project  Saving of money £250,000 and time completed 8 weeks ahead of schedule  Profit for local business

Copyright of Thurrock Council The ‘e’ Procurement S.W.O.T Strengths Pockets of Good Practice Internal & external initiatives Public sector expertise Awareness of legislation Location, Location, Location Weaknesses Tendency to be ‘precious’ Too introspective - only seeing boundary of local authority Need to challenge 3 rd party solutions Council Select Lists – L.A.s not doing Suppliers a favour – we need them!!! Opportunities Identify synergies - business & LAs – greater collaboration More outward facing Maximise Investment & regeneration Keep an open mind ……… more than one solution more than one solutionThreats Risk - internal focus -L.A.s losing sight of primary objective Poorly thought through/imposed systems Suppliers turn away from public sector contracts Introducing systems that are too complicated or expensive