Corporate procurement plan

Transcription

1 Corporate procurement plan Document history Version Created by Approval Issue date (Unit and person) (or comments) 1.0 OPs C Holahan Approved by the SMT 20 February 2018 Page 1 of 10

2 Table of contents 1 Introduction Objective of the plan Procurement expenditure analysis Implementation of the plan... 4 Appendix 1 Procurement legislation and guidance... 6 Appendix 2 Analysis of expenditure... 8 Appendix 3 - Procurement action plan Page 2 of 10

3 1. Introduction The Code of Practice for the Governance of State Bodies 2016 requires state bodies to prepare a Corporate Procurement Plan as set out in section 8.20 of the code Corporate Procurement Plan The OGP policy framework requires that all non-commercial State bodies complete a Corporate Procurement Plan. This plan is underpinned by analysis of expenditure on procurement and the procurement and purchasing structures in the organisation. The plan should set practical and strategic aims, objectives for improved procurement outcomes and appropriate measures to achieve these aims should be implemented. The Chairperson should affirm adherence to the relevant procurement policy and procedures and the development and implementation of the Corporate Procurement Plan in the comprehensive report to the Minister. The Authority s Statement of Strategy 2016 to 2020 identifies good corporate governance and controls as a key enabler for achievement of the organisation s strategic objectives and that a key outcome is to ensure full compliance with the code of practice for State bodies. This plans sets out how the Authority undertakes its procurement functions in compliance with section 8.20 of the codes of practice. This plan will be reviewed annually by the Senior Management Team (SMT). 2. Objective of the plan The objective of this plan is to ensure the Authority s ongoing compliance with EU and national procurement legislation, circulars and guidelines (see Appendix 1). 3. Procurement expenditure analysis Annual expenditure and budgets are set by the SMT and reviewed by the Audit and Risk Committee who in turn recommend them to the board of the Authority for approval. Over the period there will be an increase in expenditure primarily in staff costs and IT resulting in increased procurement activity. This expected increase will be on foot of the implementation of the EU IORPs II directive resulting in a new risk based supervisory regime being introduced. A significant IT project will be the EIOPA pensions data project. Page 3 of 10

4 Appendix 2 provides an analysis of the Authority s expenditure which is subject to, and not subject to, procurement (based on 2016 annual accounts). Expenditure that is subject to procurement is then categorised in more detail. The Authority publishes a full set of accounts in its annual report. 4. Implementation of the plan An overview of the implementation of this plan is set out under the headings below. Management of procurement The Operations Unit has responsibility for the procurement functions in the Authority which includes: ensuring that all procurement meets EU and national directives, legislation, circulars and guidance requirements management of the procurement plan, policy, procedures and associated documents management of finance and purchase management systems and processes training to staff on procurement policies and procedures support to staff on procurement including assistance with: identifying appropriate procurement methods; the preparation of RFTs and contracts; conducting evaluations; providing feedback final approval for payment of all expenditure. Procurement policy and procedures The Authority s procurement policy and procedures comprise the following elements: Procurement policy: this outlines the principles that govern the Authority s procurement activities and is published on the Authority s website. Procurement procedures manual: this provides guidance on approval processes, threshold levels, use of frameworks templates and contracts, and instructions on using the purchase management system. Corporate procurement register: this records the Authority s procurement activity. Page 4 of 10

5 Oversight of the Authority s procurement To ensure appropriate oversight of the Authority s procurement, the following corporate governance is in place: annual expenditure and budgets are set by the SMT and reviewed by the Audit and Risk Committee who in turn recommend them to the board of the Authority for approval approval by the board of the Authority is required for any one contract or purchase over 100,000 (ex VAT) Ministerial approval is required for any expenditure above 55,000 (ex VAT) on consultants or advisers in accordance with Section 12 of the Pensions Act annual independent internal and Comptroller and Auditor General audits are conducted end of year draft accounts are submitted to the Department of Employment Affairs and Social Protection and the Department of Finance appropriate prior approval is required for all procurement and purchasing activities. Procurement templates Where an Office of Government Procurement (OGP) framework is not available, the Authority will procure goods and services in accordance with OGP guidelines. For the procurement of services the Authority will use its own suite of templates for RFTs (requests for tender) and contracts that are based on OGP templates. For the procurement of ICT goods and services, the Authority will prepare RFTs and contracts on a case-by-case basis as recommended by the OGP. Procurement action plan 2018 to 2020 The Procurement action plan sets out practical, time limited measures the Authority will undertake to improve routine procurement processes. The Procurement action plan is set out in Appendix 3. Page 5 of 10

6 Appendix 1 Procurement legislation and guidance Included here is a list of relevant legislation and guidance that applies to procurement by the Authority. Name Source Description Directive 2014/24/EU EU Directive Current EU directive on public procurement (goods, services and works) implemented in Ireland via S.I. 284/2016 National Public Procurement Policy Framework (January 2018) Public Procurement Guidelines for Goods and Services (July 2017) Code of Practice for the Governance of State Bodies (August 2016) Freedom of Information Model Publication Scheme (July 2016) OGP OGP DPER DPER FOI Central Policy Unit Sets out the overarching poilcy framework for public procurement in Ireland. Comprehensive guidance on procurement processes for frameworks and above and below EU thresholds. Includes the requirement to publish a Corporate Procurement Plan. Includes the requirement to publish procurement information under FOI Act, Circular 02/16 DPER Arrangements for digital and ICT-related expenditure in the Civil and Public Service Circular 10/14 DPER Initiatives to assist SMEs in public procurement Circular 16/13 DPER Revision of arrangements concerning the use of central contracts put in place by the OGP. Circular 13/13 DPER The public spending code: expenditure planning, appraisal and evaluation in the Irish Public Service standard rules and procedures Circular 05/13 DPER Procurement of legal services and managing legal costs Circular 02/11 DOF Additional ICT requirements Page 6 of 10

7 Name Source Description Circular 01/11 DOF Model tender and contract documents for Public Service and supplies Contracts The OGP provide detailed information on all EU and national legislation, guidance and circulars relevant to procurement in the National Public Procurement Policy Framework Page 7 of 10

8 Appendix 2 Analysis of expenditure Table 1 - Income and expenditure 2016 Item Total Description Income 6,329,123 Authority income comes from occupational pension scheme and PRSA fees Expenditure 5,796,674 Salaries, rent, professional fees, capital expenditure, etc. Further details in tables 2 and 3. Table 2 - Expenditure 2016 identified by expenditure not subject, and subject, to procurement Item Total Percentage Description Expenditure not subject to procurement 4,308,285 74% Predominantly relates to salaries and general recurring office administration costs. Expenditure subject to procurement 1,488,389 26% Further details in table 3. TOTAL expenditure ,796, % Table expenditure subject to procurement segmented into categories Item Total Percentage Description General administration 508, % Support and maintenance contracts, insurance, stationery, phones, travel. Professional fees 497, % IT, legal, research and project work. Information and publicity 221, % Advertising, printing and website Training, education and 139, % Staff training in-house staff related expenses Depreciation on capital expenditure Total expenditure subject to procurement and external 121, % Leasehold improvements, computer equipment, office furniture and equipment. 1,488, % Page 8 of 10

9 Appendix 3 Procurement action plan The Procurement action plan sets out practical, time limited measures the Authority will undertake to improve routine procurement processes. No. Action Output/result Timeframe 1 Review the Corporate Contracts are extended or retendered in a timely manner Monthly procurement register on a monthly basis to ensure: plans are in place for any upcoming contract renewals expenditure under contracts are in line with estimates. 2 Prepare an annual procurement activity plan 3 Publish a list of all contracts awarded with a value over 25,000 on website with associated details 4 Publish a list of all purchase orders over 20,000 on website with associated details 5 Develop templates for low to medium value ICT goods and services RFTs and contracts Expenditure under a contract does not exceed the estimated value of the contract or breach thresholds Identify: planned tendering requirements for the next twelve months identification of estimated costs and proposed procurement methods actions required (e.g. decisions re extensions or procurement) person(s) responsible for each tendering requirement. Increased transparency and compliance with the Freedom of Information Model Publication Scheme Increased transparency and compliance with the Public Sector Reform Plan RFT and contract templates for low to medium value ICT goods and services. RFTs and contracts for higher value procurements will be considered on a case by case basis Q1 End Q and quarterly thereafter End Q and quarterly thereafter Q Page 9 of 10

10 No. Action Output/result Timeframe 6 Publish award notices for Authority tenders on etenders Publication of award notices for all Authority tenders are up to date Ongoing Tenders are closed as appropriate 7 Ensure compliance with GDPR 8 Review the Corporate procurement plan 9 Review the Authority s Procurement policy 10 Review the Authority s Procurement procedures manual Procurement documents are in accordance with GDPR requirements. An up to date Corporate procurement plan published to the Authority s website An up to date policy published to the Authority s website that outlines the principles that underpin the Authority s procurement activities An up to date procurement procedures manual published to the Authority s Intranet that provides guidance to staff on procurement. May 2018 End February 2018 and annually thereafter Review annually in Q1 Review annually in Q1 Page 10 of 10