NOT PROTECTIVELY MARKED. NOT PROTECTIVELY MARKED SME Friendly Procurement Policy Page 1 of 6 V1.2 9 th Sept 2013

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1 TITLE OF POLICY SME-FRIENDLY PROCUREMENT in while or in part without express written permission SME Friendly Procurement Policy Page 1 of 6

2 Table of Contents SECTION 1 - VERSION CONTROL...2 SECTION 2 - BACKGROUND...2 SECTION 3 - AIMS / OBJECTIVES...3 SECTION 4 - DETAILS...3 Strategy and Policy...3 Communication...4 Pre-procurement...4 Procurement Process...5 Procurer Awareness and Capability...6 SECTION 1 - VERSION CONTROL Version Date No th Sept 2013 Review Date 9 th Sept 2014 SECTION 2 - BACKGROUND Document Owner Graeme Unwin (Procurement Policy Manager) SME" stands for Small and Medium-Sized Enterprises. Document Author Graeme Unwin (Procurement Policy Manager) Reason for Issue New Policy The main factors determining whether a company is an SME are the number of employees. Company category Employees Medium-sized < 250 Small < 50 Micro < 10 SMEs are a major cornerstone of the UK economy, and the Government wants to ensure SMEs can compete on an equal footing with larger corporate enterprises for public sector contracts. The Public Services (Social Value) Act 2012 was brought fully into force by commencement order on 31 January From that date, commissioners and procurers must at the pre-procurement stage consider how what is to be procured may improve social, environmental and economic well being of the relevant area, how they might secure any such improvement and to consider the need to consult. The Act only applies to public in while or in part without express written permission SME Friendly Procurement Policy Page 2 of 6

3 services contracts and framework agreements to which the Public Contracts Regulations 2006 apply. The Act does not apply to services contracts awarded by calling off from a framework. Contracts for goods and works are not covered by the Act. SMEs contribute to the local economy and are critical to the economy and promoting growth. There are other numerous benefits of SMEs, of which some include: i) An SME can offer innovative supply solutions ii) They can be very customer focussed iii) They are the larger corporate enterprises of the future In 2011 the Government announced it would change the way Government departments do business so that SMEs, charities and voluntary sector organisations could more easily compete for Government contracts. Other public authorities and bodies were advised to follow this lead. The Government also set the target of 25% of public sector third party spend going to SMEs by March SMEs should no longer be disadvantaged during the procurement process because of excessive bureaucracy. SECTION 3 - AIMS / OBJECTIVES This Policy identifies five areas of procurement activity where interaction with SMEs will be targeted by the EMSCU and specific actions applied to make the process more accessible and SME friendly. These areas are as follows:- i) Strategy and Policy ii) Communication iii) Pre-Procurement iv) Procurement Process V) Procurer awareness and capability SECTION 4 - DETAILS Strategy and Policy In recognising the value of SMEs as suppliers, EMSCU has developed this explicit SME policy which outlines the strategy for making its procurement processes as accessible as possible to SMEs. in while or in part without express written permission EMSCU will also define and document its member Forces respective key social values, in agreement with the Police and Crime Commissioners, then develop procedures and SME Friendly Procurement Policy Page 3 of 6

4 guidance that ensure that these social values are fully considered as part of the preprocurement stage. Communication EMSCU pledge to do the following when communicating with the supply market and advertising contract opportunities to ensure that we engage with SMEs as far as possible. We will:- Regularly present the way we do business / procure (including where we advertise contract opportunities) at events and forums involving SMEs, for example at Meet the Buyer events. Ensure that all contracts with a total value of over 25k are advertised in at least one of the following places:- i) EMSCU s e-procurement portal (Crystal) ii) Respective member Forces website iii) Bluelight iii) Source East Midlands iv) Contracts Finder v) Trade magazines/websites as appropriate Explain the way EMSCU does business / procures on our website. Publicise our member Force s respective key social values to which they would want their suppliers to contribute, at buyer events and forums involving SMEs and on EMSCU s website. Publish a forward plan of potential forthcoming contract opportunities on EMSCU s website. Publish a list of our Forces contracts allowing SMEs to identify potential subcontracting opportunities. Pre-procurement EMSCU develop a strategy for each procurement project and exercise. When formulating individual procurement strategies, we will:- Consider using local neighbourhood frameworks for specific services where potential suppliers will already have pre-qualified to do business. An example of such a framework could be for the supply of building maintenance services. Due to being pre-qualified by the EMSCU, work could be competed for and awarded to suppliers by Force facilities departments without having to undertake a lengthy procurement process. This would permit SMEs on the framework to engage and do business with Forces quicker and more efficiently via the Crystal electronic e-procurement portal. SME Friendly Procurement Policy Page 4 of 6 in while or in part without express written permission

5 Consider breaking any framework into lots, where SMEs may be more likely to submit a tender for specific lots. For example, breaking a minor works framework agreement into lots for works valued up to 250k, between 250k and 500k, and over 500k. Consult potential suppliers on specifications, including where social value may be generated, before commencing the procurement process, wherever appropriate. Consider the social value that could be delivered by the contract and then build into the specification, for example the creation of jobs and skills training opportunities. EMSCU s Procurement Business Partners should prompt this consideration when supporting the End User to develop the Statement of Requirement / specification. Procurement Process EMSCU will ensure that its procurement processes are not excessively bureaucratic and allow SMEs to play to their strengths. We will:- Ensure that contract specifications are written on an outcome-basis, wherever possible and appropriate. Allow variant bids unless deemed inappropriate for a specific procurement exercise. Consider reducing payment terms or allowing stage payments to assist suppliers with their cash flow or assist them in making the initial investment required to deliver the contract. These actions will only be undertaken on a case by case basis and only with full agreement from Finance department(s). Changes to payment terms will also need to be aligned to increased performance or added value offered by the SME. Ensure that payment terms agreed with any supplier are mapped with those agreed between the supplier and their subcontractor. Ensure that the financial vetting of tenderers at the pre-contract award stage is proportionate to the financial risk presented by the contract and allows tenderers to evidence their financial stability by a number of means. Ensure that the insurance levels required of tenderers/suppliers are proportionate to the risk presented by the contract. Ensure that our tender documentations are as lean and SME-friendly as possible, for example removing any non-essential requirements/questions. Require potential tenderers to declare their organisational type, including whether they are an SME. in while or in part without express written permission Where appropriate, hold tenderers conferences following the issuing of tender documentation to allow potential tenderers to ask clarification questions, especially where there are a significant number of SMEs in the supply market and/or the requirement has SME Friendly Procurement Policy Page 5 of 6

6 not previously been competitively tendered. Use an e-procurement portal which allows organisations to register their details (which it then stores), and can alert them of any relevant future contract opportunities. Procurer Awareness and Capability EMSCU will provide regular commercial awareness training and guidance for its own staff and relevant officers/staff of its member Forces which covers:- i) The benefits of working with local SMEs ii) Member Forces respective key social values as defined by their Police and Crime Commissioners iii) The potential difficulties experienced by SMEs when tendering for public authority contracts iv) The steps that can be taken to minimise these difficulties as far as possible in while or in part without express written permission SME Friendly Procurement Policy Page 6 of 6