Minister urges councils to be bold in procurement

Local Government Minister Bob Neill told delegates at the Local Government Association (LGA) conference to be bold in their procurement strategies, as the UKs first waste services framework was launched yesterday (June 27).

The Minister was speaking at a session titled Procurement excellence: an essential how-to for councils which saw the official unveiling of Improvement and Efficiency South Easts (iESE) waste services framework, which aims to reduce waste procurement costs for councils.

Mr Neill urged local authorities to look at ways of procuring services more cleverly in the face of tougher financial constraints and said that the government would look at simplifying rules around procurement to reduce the administrative burden for councils.

Addressing delegates, the minister said: Local government commissions more than any other part of the public sector, with a procurement budget of around 62 billion. But we do have to try to do things more cleverly. My message to councils is not be afraid to be bold when making decisions.

The session followed the release of a detailed financial projection by the LGA, which warned that the rising cost of services such as waste collection, as well as social services and concessionary travel could soak up almost all of council spending by 2020.

iESE

The Ministers speech was followed by the launch of iESE waste services framework by the groups chairman Cllr Paul Bettison, who described it is as a tremendous step forward. The first council signed up to the scheme is expected to begin procurement shortly.

The framework has been developed on behalf of 141 local authorities in central London, the South East and West Midlands allowing them to choose from a list of approved suppliers for services including recycling and waste collection and street cleansing – without having to carry out a full procurement process. iESE believes this could save councils up to 85 million in procurement costs.

Cllr Bettison, who is also leader of Bracknell Forest council, said: The waste framework is the first of its kind in the waste sector. Waste collection is one of the key services provided to residents, and in these challenging times, new ideas are needed.

The framework will reduce the time it takes to procure contracts for local authorities. The 141 local authorities and companies from the waste sector who are going to use the scheme understand that working together will bring the best solution and bring the best deals that can only improve the services we provide to residents.

We think the framework is a tremendous step forward and we are delighted to have got to this stage.

He also revealed that the final two waste contractors to agree to join the scheme will be unveiled in the coming weeks, with contract negotiations at an advanced stage. Once contracts are formally agreed the contractors will join AmeyCespa, Cory Environmental Management, Enterprise Managed Services, FCC Environment, London Re-Use Network, Quadron Services, SITA UK, Urbaser and Veolia Environmental Services on the framework.

Veolia

Also speaking at the event was Mark Stanley, the director of commercial & industrial markets development for Veolia Environmental Services, one of the contractors already announced on the framework.

He said: I think that the iESE waste framework is a path finding initiative. There are costs that are incurred when tendering for contracts – such as putting together a pre qualification questionnaire -which lead to additional costs that could be used to provide services. Any way we can innovate to reduce costs has got to be good.

Explaining why Veolia ES had taken the decision to join the waste framework, Mr Stanley said: We looked in simple terms at the framework, and with 141 local authorities signed up we see it as a good initiative to be involved with.