Annex E: Better Quality Services/Procurement
- The Department's Public Service Agreement[7] states
that the Department seeks to improve efficiency and effectiveness through
improved procurement, standardisation and aggregation of requirements.
It has set a target of a 5% reduction each year in general procurement
expenditure. Annual programmes identify major areas of expenditure for
review and the scope for delivering savings. The Government Procurement
Card will be introduced in one service area by April 1999, and the scope
for its use elsewhere assessed in 1999/00. Electronic commerce will be
used where there are clear cost benefits, and its implementation is being
taken forward through the development of systems required for the introduction
of RAB. Similarly, by December 2000, all invoices will be paid by BACS
where this achieves value for money. Procurement performance measurement
will be introduced in 1999/00.
- Procurement activity has been directed at a programme to review major
areas of expenditure. As a result, improved arrangements for the provision
of goods and services have resulted in savings. Early in the year a single
contract for the provision of office supplies, was awarded. This replaced
numerous local arrangements and has enabled the Department to realise
savings in the order of £800,000 per annum through aggregation and standardisation.
Further savings are being made through the introduction of more efficient
ordering and payment procedures.
- A new contract for the provision of forms also came into effect at around
the same time. New arrangements, which have been developed with the supplier,
are expected to deliver savings in the order of £800,000 and increase
value for money by removing the cost of high stock levels and obsolescence.
- Work on the implementation of new catering contracts is nearing completion,
during the year further reductions in subsidy expenditure have been achieved
through the introduction of a scheme to attract jurors to use court catering
facilities. Savings from the new contract strategy are in the order of
£750,000 per annum, and it is expected that this figure will increase
as changes become fully effective.
- The review of the procurement of official cars has also been completed
and is being implemented. Through the use of inter-departmental contracts,
it is expected that the costs will be reduced by at least £400,000 per
year.
- The Department will continue to develop procurement practice, and the
main priority for procurement staff will be to deliver value for money
improvements through further reviews focused on high value areas of expenditure.
The Department supports the aims of the recent report Efficiency in
Civil Government Procurement and has developed an action plan to take
forward its recommendations in conjunction with other procurement priorities.
Payment of bills
- The Department complies with the British Standard for Achieving Good
Payment Performance in Commercial Transactions (BS 7890). The Department's
policy is to pay bills in accordance with contractual conditions or, where
no such conditions exist, within 30 days of receipt of goods and services
or the presentation of a valid invoice, whichever is the later. Procedures
have been established and made known to contractors for them to follow
if full payment is not made within the agreed terms. Eight surveys have
been carried out within the Department over the last 7 years. The first
showed 82.5% of invoices were paid in accordance with Departmental policy.
Following this, the Department introduced measures to improve performance.
The survey conducted for the period 1 June 1996 to 31 March 1997 showed
that 91% of invoices were paid on time. The most recent survey, for the
financial year 1997/1998, showed a significant improvement to 96% against
a target of 95%.[8]
7 The Department's PSA states that it will regularly and
systematically review services and activities over a 5-year period in line
with the stated Government policy as set out in the handbook Better Quality
Services. The Department is developing its review programme and by September
1999, will have indicated those services that will be reviewed each year with
the intention to review at least 60% of services by March 2003.
8 The Department's PSA promises to increase the proportion
of undisputed invoices paid within 30 days.
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