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Procurement Strategy

EastendHomes’ vision is:

“To achieve the comprehensive regeneration of our estates and to bring about a sustained improvement in the homes and quality of life for residents”.

EastendHomes appreciates that effective procurement is essential in turning the vision into reality and in achieving best value. Part of this approach requires EastendHomes to maximise fair competition opportunities to secure both efficient and effective services. Procurement is not just about purchasing goods and services, it is part of EastendHomes approach to ensuring continuous improvement. Effective procurement processes can themselves add value by contributing to economic, social and environmental improvements.

Purpose of the Strategy

EastendHomes’ procurement strategy is designed to provide a consistent framework to enable procurement decisions to be taken expeditiously and to assist Board members and staff in that process. The strategy will need to be considered within the context of EastendHomes’ Financial Regulations, Standing Orders, charitable objectives and other relevant policies.

In addition the legal framework established by both national and European law will necessarily apply throughout this process including the need to ensure compliance with all legislation related to the consultation and charging of leaseholders – Appendix 1 Major Works and Services Procurement Procedures and Appendix 2 Weighted Tender Scoring Methodology will assist in the process.

The strategy must be considered within the broader context of EastendHomes’ other strategies including Diversity, Asset Management, Development and Risk Management.

Procurement Objectives

  • To secure goods and services from suppliers that provide best value for money and the most economically advantageous arrangements.
  • To secure goods and services as fast and efficiently as possible.
  • To deliver better quality through sustainable partnerships.
  • To achieve continuous Best Value improvement
  • To demonstrate improvement.
  • To encourage joint procurement initiatives with other stakeholders, where consortium purchasing arrangements can provide economies of scale.
  • To influence employer practice by supporting fair employment terms.
  • To support environmentally sound provisions in contracts.
  • To support small- and medium-sized enterprises, and, all other Best Value considerations being equal, to support local commercial enterprises.
  • To ensure ongoing and future maintenance issues are appropriately addressed in the procurement process.

EastendHomes intends to achieve these objectives by:

  • Reviewing the way existing services are delivered and identifying potential improvements, including Best Value Reviews and Benchmarking for specific areas of work.
  • Considering the best procurement route in each instance.
  • Continuing to identify strategic partners who ‘add value’ in providing goods and services.
  • Incorporating ‘rethinking construction’ principles in the procurement of repairs and improvement works.
  • Considering working with LEOF (London Equal Opportunities Federation) to ensure minority-led organisations are encouraged to compete.
  • Maintaining a high level of resident involvement in the process.
  • Demonstrating Best Value to stakeholders.
  • Working with other organisations to jointly procure appropriate goods and services.

Working with LBTH LLiC (Local Labour in Construction), particularly on major works construction contracts, to seek to ensure that the economic benefits and training opportunities are available to local residents.

  • Continuing to work with PfH (Procurement for Housing) where Best Value can be clearly identified.
  • Establishing and maintaining a select list of providers of goods and services to fast- track smaller scale contracts.
  • Monitoring and reporting on letting of contracts.
  • Following Best Practice on nurturing supplier diversity.
  • Maintaining component supply chain partnerships to ensure ongoing maintenance compatibility in major works contracts.

Good Practice

EastendHomes believe:

  • The procurement process should give EastendHomes sufficient information to form a view of potential service providers’ competence without placing an undue burden on them.
  • Potential service providers should be able to understand from the outset what is expected of them through clear employer briefing.
  • All potential service providers will be subject to the same requirements to ensure fair competition and be treated equally throughout the process.
  • Care should be exercised to avoid to narrow a view being taken of how a service might be provided as this may limit options and deter potential bidders.
  • Bidders should be made fully aware of the basis of evaluation at the outset and at all other stages of the procurement process

Procurement Process

  • Identify the service which EastendHomes wants either provided or to provide.
  • Assess and identify the market.
  • Identify and select the relevant procurement option.

Historically, the favoured procurement method has been to undertake a competitive tendering exercise which includes seeking, via advertisement, an ‘expression of interest’ from relevant organisations. Depending on the size of the contract this may also require compliance with European Union procurement procedures with a Notice in OJEU (Official Journal of the European Union). Subsequently, financial and qualitative assessments are completed to produce a short list of organisations who are then formally invited to tender. This process will continue and will be a requirement in many circumstances, and EastendHomes will assess the most appropriate (Restricted, Negotiated or Open) procedure for purchase of services. It is recognised this approach is not suitable in all circumstances and EastendHomes intends to encourage a flexible approach to procurement to ensure the most economically advantageous balance of quality, cost and delivery is achieved.

Increasingly EastendHomes seeks to build on the relationships it currently enjoys with high-performing contractor partners. EastendHomes will actively consider negotiating partnerships with contractors who have performed consistently well in undertaking works. This will not be suitable for all occasions but a negotiated partnered contract route must be part of the process when considering the best procurement route. All procurement routes, including partnerships established in this way will require appropriate Best Value validation.

EastendHomes will also consider whether or not an existing service can be best provided ‘in house’ or would benefit from being externally tendered. In some instances residents themselves may wish to be considered for undertaking works – for example block cleaning or horticultural maintenance.

Resident involvement

All major procurement decisions will be discussed at the local estate boards before being considered by the appropriate EastendHomes’ Committee or full Board if necessary.

We will ensure all staff, residents and Board members who are involved in the procurement process are suitably trained and qualified appropriately.

Regeneration

EastendHomes understands the positive economic benefit that sensitively managed procurement activities can have in contributing to the wider regeneration agenda. It is our intention to maximise the positive impact of our procurement activities in our local communities.

Future Priorities

  • To use ICT and Electronic Procurement processes to reduce the cost, and improve the efficiency and effectiveness of all aspects of the procurement process for our suppliers and contractors. This may include e-auctions, e-tendering, and e-purchasing where justified.
  • To ensure that risk management continues to be appropriately managed and ensuring that EastendHomes’ procurement activity remains legal, ethical, transparent and embodies EastendHomes’ vision and mission.
  • To ensure that a structured approach to education, training and development for all officers, residents and Board members with procurement responsibilities is implemented
  • To promote efficiency and quality of delivery of construction projects and to review our procurement activity within the national agenda for continuous improvement.
  • To promote the development and use of performance measures and benchmarking targets with appropriate local RSLs.
  • To encourage joint procurement arrangements with partner RSLs and other relevant stakeholders to maximise efficiencies.
  • To promote procurement practices and policies which contribute to our priorities for diversity and sustainability.
  • To encourage the development of a range of suppliers and providers that will contribute to the regeneration of our neighbourhoods.
  • To review our supply chain partnership arrangements and to further develop positive relationships with other interested stakeholders.
  • To continue using Procurement for Housing (PfH) and to consider joining the London Equal Opportunities Federation (LEOF) as part of our community cohesion and Diversity strategies.