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Efficiency Savings through Smarter Procurement: The Roots Review

Efficiencies sought from Local Government during the Comprehensive Spending Review in 2007 require Local Government to achieve £4.9bn cash-releasing efficiency gains. Delivering Value for Money in Local Government set an expectation that nearly 60 per cent of this total (£2.8bn) would arise through smarter procurement.

An Independent Report by Bill Roots published in February 2009 highlights that substantial actions are under way by the Regional Improvement and Efficiency Partnerships (RIEPs) and others to enhance procurement efficiency. RIEPs play a key role in supporting councils to deliver priority outcomes for their communities, tackling key challenges across the region, improving the quality and efficiency of their public services. The Report sets out a number of practical recommendations for action.

The Report identifies that a number of initiatives are underway across a wide range of services. The Report made 26 recommendations; below we highlight the key recommendations identified in the Report.

	Appointing a national champion for Procurement. The lack of a champion was identified as a key omission. The champion would play a key role on a national front by driving, shaping, influencing and directing the local government procurement efficiency agenda.
	RIEP’s must be central in delivering procurement support. RIEP’s should work with key players to work the ‘best deals’ by either themselves providing procurement services or making available the use of a ‘pool of excellence’ within local government or the wider public sector.
	There should be a review of the current work programmes by RIEPs to ensure that the right balance of attention and resources is given to efficiency issues including procurement matters.
	RIEP’s should provide online advice on model contracts, EU procurement rules, market intelligence and best practice.
	The Procurement champion should:-
	- promote a 'horses for courses' approach that removes the tendering barriers for smaller suppliers; and
	- assist with the creation of a contracts database by RIEP’s, integrated with the work already undertaken by the Office of Government Commerce (OGC).
	Press for greater engagement of SME’s, Social Enterprises and the Voluntary and Community Sector by the implementation of good practice across OGC, RIEP’s, Councils and other organisations.
	Local Authorities should formally review their procurement arrangements and practices annually.
In the current economic climate local authorities want to ensure they are acting in a more efficient way than ever before, and giving council taxpayers greater value for money. To achieve the 60 per cent efficiency reduction through smarter procurement as identified in the Comprehensive Spending Review 2007, local authorities should take account of the recommendations in the Report to find ways of smarter procurement and delivering greater value for money.
The Roots Review: Review of arrangements for efficiencies from smarter procurement in local government is available at: http://www.communities.gov.uk.

For More Information Contact:
Anjli Bhatt
TPP Law Limited
53 Great Suffolk Street
London SE1 ODB

t 020 7620 0888
f 020 7620 0778
e info@tpplaw.co.uk

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