Collaborative Procurement Programme - Executive Summary

In 2008 it was identified that North East local authorities spent in excess of £1.5 billion per year annually on bought in goods and services. Whilst procurement collaboration in the North East had a good track record, there was a significant opportunity to deliver more financial, operational and efficiency benefits as well as economic remuneration for the local community.


Done right, procurement can drive efficiency savings, promote more efficient business practices, reflect equality of opportunity and diversity, and deliver better value for money. Other benefits are an increase in sectoral growth and the promotion of new modes of working. Overall, effective procurement generates a positive impact for all North East communities.


The focus of the Collaborative Procurement programme was to enable 'transformational procurement' to support delivery of the very highest standard of public services. To support authorities in delivering efficiency, quality, innovation and excellence to service users, contributing to the economic, social and environmental prosperity of the North East and ensure that there is a clear strategic approach to shared demand and supply. Therefore the NE IEP worked collaboratively with local authorities and key partners in the North East to improve the ways in which authorities procured commodities, goods and services by making best use of new and existing procurement intelligence, collective buying power, improved procurement activity, strategic planning, supply chain management and use of the investment in e-procurement.
Maximising Efficiency through Procurement


The Programmes ambitions were to maximise the social, economic and environmental impact of the region's £1.5 billion annual spend on goods, works and services and identify and deliver efficiencies of £100 million over the next three to five years.


Headline Achievements of the Programme

  • Development of, agreement to, and the implementation of a new strategic delivery agent for all Collaborative Procurement within the NE - this was achieved in June 2010 with all 12 NE LA Leaders & Elected Mayor's and Chief Executives adopting the 'Regional CP Governance Business Plan' recommendations. A new Shared Services Agreement and Constitution were adopted at the North Eastern Purchasing Organisation's (NEPO) AGM in October 2010.
  • Governance review of NEPO adopted within the organisation, with the integration of key elements of the NE IEPs CP programme.
  • Launch event of the new strategic NEPO organisation in November 2010 to stakeholders, suppliers, LAs, FRSs, regionally and nationally.
  • NEPO implementing regional Category Management across a number of areas.
  • Development of the NEPO Portal through Capital Investment from the NE IEP to deliver:
  • Reverse e-auction functionality;
  • Online PQQ for suppliers - input once, use many times;
  • Advanced on-line tender evaluation module adopted;
  • On-line suite of e learning packages for both procurers and suppliers;
  • Risk assessment functionality;
  • Sustainability toolkit;
  • Equalities & Diversity toolkit;
  • Additional reporting functionality and ability to view regional data more easily; and,
  • Refresh / re-design of website.
  • A range of Sustainability Procurement (SP) policies developed and adopted across the region, including a SP Timber policy and SP Rapid Appraisal Toolkit. Together with SP training programmes for Officers, Members and Suppliers.
  • An ongoing Document Harmonisation process was adopted, for suppliers and officers, following a comprehensive review and re-launch of the PQQ, Invitation to Tender and Terms & Conditions documentation.
  • Minimum thresholds for advertising opportunities adopted by all 12 LAs. All Quotations advertised at a minimum level of £5,000 and all ITTs advertised at the lowest level of £50,000.
  • Business Continuity supplier self assessment toolkit launched.
  • Highly successful Pilot Supplier training programme delivered in partnership with ONE NorthEast and Compete NE, with an ongoing strategy agreed to deliver through a wholly sustainable funding model.
  • Training programme adopted to ensure commissioning and procurement staff across the region, in LAs, FRSs and NEPO are equipped to deliver strategic regional category management.
  • Regional spend data profile created for all 12 LAs and Data Sharing Protocols entered into by all authorities.
  • Specification created for a strategic analysis solution.
  • CIPFA Value for Money reviews of Procurement across the region, LAs and FRSs undertaken 2009 & 2010.
  • Establishment of a regional approach to category management, and the identification of the first 10 categories of spend to develop, which include service areas such as Adult & Children's Social Care. Savings of circa £26m over the next three years identified.

Management of some continuing projects has been transferred to NEPO (e.g. construction frameworks, community equipment).