Procurement Strategy 2025-2030 - Print version

The Procurement Strategy 2025-2030 builds on previous strategies following significant legislative changes with the introduction of the Procurement Act 2023 and Health Care Services (Provider Selection Regime) Regulations 2023, the new legislation which governs the way in which public sector procurement activity is undertaken.

The transition arrangements of the new legislation means that the Council will be managing contracts under five (5) sets of legislation for the next 10+ years.

The overarching purpose of the Strategy is to ensure that the Council’s procurement activities are undertaken consistently and to the highest standard, setting out the Council’s approach to procurement activity through the legislative frameworks and the Council’s own internal governance processes.

The Strategy sets out the focus for Procurement Services for the next five (5) years, aligning through the legislation, National Procurement Policy Statement and the Council’s OneCov Plan [https://intranet.coventry.gov.uk/onecoventryplan] in its areas of focus, whilst mindful of the various individual strategies at directorate and service area level.

Forward

Cllr Richard Brown, Cabinet Member for Finance

There have been a lot of legal changes to the way the public sector manages its procurement activities, and this is part of the reason why we’re refreshing our own procurement strategy. Having a legislative framework and robust internal governance processes is vital but it’s also important to ensure we remind ourselves about, and set out, the way we should involve different businesses in helping deliver the hundreds of services that the Council provides - while maintaining consistent high standards.

I’m very proud of how we, as an organisation, manage public finances and that’s why the way we procure goods and services is a fundamental part of this. People in the city expect this careful approach to the Council’s finances. This applies whether it’s our budget reporting processes, our auditing processes, or in this case, our procurement processes.

This strategy covers a number of key areas, including our contract and supplier management - where we are committed to cost savings and non-financial benefits - and maximising the use of digital tools to improve services; we also want to understanding better the barriers that some organisations face by market testing and meeting the buyers at community events.

We are also committed to ensuring the professional development of our staff in all aspects of good procurement practices, as well as strengthening our social value commitments, and being transparent in the way services are procured.

Importantly for me is that this strategy will also look at ways to carefully monitor how small and medium enterprises are accessing opportunities with the Council and consider how to support them in the tender process. This all means that the Council will actually go above legal requirements and is a positive step to make.

All of our financial planning is based on improving services within the limits of our budget, and we will continue to do this carefully and effectively for all our Coventry residents and businesses. This is all about improving services within the limits of our budget and we will continue to do this carefully and effectively for all our Coventry residents and businesses.

Introduction and background

Introduction

This strategy builds on Coventry City Council’s (“the Council”) previous procurement strategies, following significant legislative change, and sets out the Council’s focus in procurement activity over the next five (5) years. The overarching purpose of this strategy is to ensure that our procurement activities are undertaken consistently to the highest standard, efficiently and economically against a backdrop of legislation and policy whilst helping achieve the priorities of the One Coventry Plan.

Expenditure through our contractual arrangements help to deliver statutory, essential and discretionary services to the citizens of Coventry. Procurement Services sits at the heart of the organisation to deliver these solutions in a compliant manner, working collaboratively with the service areas across the organisation.

Background

The Council has a revenue spend of approximately £277.5m per annum on bought in goods, services and works (2024/25). In addition, the Council has a variable annual Capital programme which adds significantly to the total annual spend per annum. In 2024/25 the Capital spend was circa £157.5m. The Council uses a variety of approaches and contract types to deliver this expenditure in an open, fair, transparent and effective way. This includes the use of simple standard contracts for low value / low risk procurements, frameworks, specific industry contract types and partnership arrangements.

Spending this money well through effective procurement is fundamental to achieving organisational success and for supporting prosperity across Coventry and the wider West Midlands region. The Council’s procurement activity contributes to a wide range of socioeconomic benefits including a successful local economy, a thriving voluntary sector, community empowerment, equality, consideration for the environment and value for money. Hence, whilst making savings is still an important driver for procurement activity, leveraging social value and delivering additional outcomes and sustainability in supply chains, at no extra cost, will be a significant focus of future activity in support of the One Coventry Plan.

One Coventry Plan

The refreshed One Coventry Plan sets out our vision and priorities for the city, based on our commitments to the people of Coventry and the things that residents have told us are most important. It is more focused on the needs and aspirations of our communities than ever before. The Plan builds on the progress that has been made following its last update in 2016, the challenges faced and anticipated, and emerging opportunities.

The priorities and enablers outlined within the Plan align to the priorities within the refreshed National Procurement Strategy and National Procurement Policy Statement and hence create the golden thread between our One Coventry Plan, the objectives and key areas of activity within this strategy and the national context in which we operate.

The vision for Procurement Services is…’to continue to grow strategic Procurement influence across the Council, contributing to realising our ambitions and objectives within the One Coventry Plan, delivering economic, social and environmental benefits that support the needs of Coventry and its citizens’.

It is therefore essential that we procure goods, services and works by the most efficient, effective and sustainable means to ensure that the needs of the community are met, within a clear framework of accountability and responsibility. In doing so, Procurement Services at Coventry City Council will become best in class by adopting excellent procurement practices and techniques.

Delivery of the One Coventry Plan is underpinned by six (6) core values.

• Open and Fair
• Nurture and Develop
• Engage and Empower
• Create and Innovate
• Own and be accountable
• Value and respect

The Action Plan (Appendix A) for this Procurement Strategy aligns all proposed actions to be undertaken by Procurement Services through the core values of the One Coventry Plan, ensuring Procurement Services plays its part in delivering against the ambitious and challenging priorities of the Council.

Our approach to procurement

Legislative Framework

The content of this strategy needs to be delivered within a legislative framework that is both significant and complex. The UK’s exit from the European Union led to the introduction of the Procurement Act 2023 and Statutory Instruments, forms of secondary legislation. The Act and supplementary Regulations came into force on 24 February 2025 and detail how public procurement must be undertaken.

The Council is also subject to the Health Care Services (Provider Selection Regime) Regulations 2023, introduced by the Health Care Act 2022 for the procurement of in-scope health care services and public health services in England.

Furthermore, for contracts entered into prior to the commencement of the Procurement Act 2023, the Council is also subject to the Public Contracts Regulations 2015 in relation to the management of contracts for goods, services and associated works, and the Concession Contracts Regulations 2016 in relation to the management of concession contracts. It is acknowledged that the Council will be managing contracts across multiple sets of regulations well beyond the term of this strategy.

Examples of other legislation that impacts upon public procurement include, but are not limited to:

• Public Services (Social Value) Act 2012
• Competition Act 1998
• Localism Act 2011
• Modern Slavery Act 2015
• Freedom of Information Act 2000
• Equality Act 2010
• General Data Protection Regulations (EU) 2016/679 (GDPR)

For procurements below the relevant thresholds as set out in the Procurement Act 2023, the Council must follow its own internal Contract Procedure Rules as set out in the Constitution.

Contract Procedure Rules

The Contract Procedure Rules (“CPRs”) provide a basis for true and fair competition in contracting activity, by providing clear and auditable procedures, which, if followed, will give confidence that the Council has a procurement regime that is fully accountable and compliant with legislation.

Procurement Services ensures that the CPRs are updated in line with legislative changes and other evidence of best practice, including provisions to support inclusive procurement such as establishment of minimum timescales for below threshold tender and quotation activity.

Furthermore, we ensure compliance with other aspects of the Constitution including Officer schemes of delegation and budgetary control mechanisms.

Governance

The Council has established strong governance arrangements to ensure the appropriate level of scrutiny on procured contracts.

Governance and approval processes are clearly outlined in the Council’s CPRs, establishing additional challenge to procurement activity. Procurement Panel and Procurement Board meetings are held monthly to ensure that any procurement activity in excess of £100,000:

• meets an appropriate need
• aligns to the priorities of the One Coventry Plan
• complies with procurement legislation with an appropriate route to market
• seeks best value
• identifies potential efficiencies
• drives social value commitments
• demonstrates effective contract management

Both Procurement Panel and Procurement Board are made up of a cross-cutting selection of senior officers of the Council.

One Coventry approach

The Council plays a key role in promoting collaboration across public, private and voluntary and community sectors in the city. Through partnership working and collaboration with neighbouring and wider contracting authorities, the Council can deliver services differently and at greater economies of scale and delivering value for money.

Category management

Procurement Services maintain a Category Management approach to procurement. By adopting this approach and providing suitable support and challenge, we will:

• Work with service areas to benchmark and review best practice, consider approaches to demand management and/or alternative models of delivery.
• Undertake market research to understand and influence existing and future demand.
• Seek to ensure that all procurement activity and systems support the One Coventry Plan priorities and drive value for money for every pound spent.
• Utilise management information to identify areas of inefficiency, duplication or lack of standardisation.
• Continue to seek savings where possible and appropriate, working with Finance and other colleagues to implement budget reductions or reallocate savings accordingly.

Professional development

Procurement Services are committed to ensuring that its Category staff are fully qualified procurement professionals. All Category staff are required to be a qualified or working towards becoming a qualified Member of the Chartered Institute of Procurement and Supply (“MCIPS”). The modern role of a procurement professional is a complex one, demanding a wide range of skills and expertise to succeed.

Social Value and Sustainability

Following the publication of the Council’s Social Value and Sustainability Policy [https://www.coventry.gov.uk/strategies-plans-policies/social-value-1], there has been a clear strategic case for the need for social value to be embedded and become a core focus in our procurement.

The aim of the Public Services (Social Value) Act 2012 is not to alter the commissioning and procurement processes, but to ensure that as part of these processes, the Council considers the wider impact of the services delivery. It allows the Council for example, to choose a supplier under a tendering process who provides the most advantageous offer e.g., providing consideration for quality and cost, but one which goes beyond the basic contract terms and secures wider benefits for the community.

The Council uses its existing governance arrangements, through both Procurement Panel and Procurement Board, to ensure scrutiny and control of procurement decisions so that the Council achieves social value outcomes, where appropriate.

The opportunities to secure improvements to social, environmental or economic wellbeing will vary from contract to contract. Consideration of Social Value and Sustainability is built into all the stages of the Council’s procurement & commissioning process - when reviewing service provision; conducting a needs analysis; consulting stakeholders and/or the marketplace; and specifying the goods, services and/or works to be procured - including building in sustainability and climate change action that aligns to the Council’s Climate Change Strategy [https://www.coventry.gov.uk/climate-change/climate-change-strategy].

Through the One Coventry approach to engage residents, businesses and organisations, this provides more genuine opportunities to local Small Medium Enterprises (SMEs), Voluntary, Community and Social Enterprises (VCSEs) and community groups to contract with the Council, delivering supplier diversity, whilst maintaining our focus on the priorities of the One Coventry Plan.

The Council will strengthen Social Value commitments against which tenderers bid back during the tender process, aligning the themes, outcomes and measures committed to by its supply chain and embed these commitments into contract and contractual terms.

The Council will continue to seek the delivery of Social Value outcomes in all contracts above the legislative thresholds, where it can be evidenced that it is relevant to the subject matter of the contract. For contracts that fall below the legislative thresholds, the approach is to maximise these outcomes where possible and practical to do so.

Modern slavery

The Council and suppliers must both comply with all applicable human rights and employment laws in the jurisdictions in which they work. This includes complying with the provisions of the Modern Slavery Act 2015 [https://www.legislation.gov.uk/ukpga/2015/30/contents] and PPN 02/23 [https://www.gov.uk/government/publications/ppn-0223-tackling-modern-slavery-in-government-supply-chains] and PPN 009 [https://assets.publishing.service.gov.uk/media/67af7c93e270ceae39f9e27a/PPN_009_Tackling_modern_Slavery_in_government_supply_chains.pdf] Tackling Modern Slavery in Government Supply Chains. In addition, suppliers must have robust means of ensuring that the subcontractors in their supply chain also comply.

Ethical supply chain

The Council is committed to ensuring an ethical supply chain is in place for its activities. We expect the highest standards of business ethics from suppliers and their agents in the supply of goods, services and works to the Council.  

Equality, diversity and inclusion

Equality, Diversity, and Inclusion (EDI) is a key component in maximising social, economic, and environmental benefits through or as a direct result of awarding contracts.

The Council is committed to recognising and celebrating diversity and ensuring equal opportunity both as a provider and commissioner of services as a large employer. Furthermore, it is committed to developing a culture that embeds the effective management of equality, diversity and inclusion in its day-to-day practices, policies, procedures and through external relationships.

Since 2023, the Council has sought to ensure that equality, diversity and inclusion are embedded within all procurement policies, procedures and activities through the issue of an annual Equality, Diversity and Inclusion survey. The information collected helps to improve future sourcing requirements by seeking to understand what local businesses, in particular micro, small and medium-sized enterprises (SMEs), consider to be the barriers to accessing and tendering for Council contracts. Understanding these barriers to entry is key to unlocking opportunities for SMEs, and how the Council structures its Contract Procedure Rules to support SME involvement and increase the economic prosperity of the city and wider region.

Following the initial Equality, Diversity and Inclusion survey issued to local businesses in 2023, the Council made inclusive procurement changes to its Contract Procedure Rules to provide greater opportunity to prospective suppliers, including increasing the minimum number of quotations or tenders sought and the establishment of minimum timescales for activity below the legislative thresholds.

The Council will continually seek to understand the barriers faced by organisations, review our processes and policies to find the right solution and approach, and to provide support to organisations - in particular SMEs within the boundaries of CV1 to CV6 - prior to, during and after procurement activity through guidance and training.

The promotion and application of equality, diversity and inclusion in procurement activity will help the Council to create a diverse and integrated workforce whilst encouraging external organisations to promote and practice equality and diversity within their own business. For the Council, promoting equality through procurement can improve competition, value for money, the quality of public services, satisfaction among users and community relations.

Contract management

A significant level of the organisation’s budget is spent on external third-party service providers. The reliance and dependency on external market solutions has increased and therefore, the performance of these supply markets is vital to the Council in achieving its strategic aims both in terms of service quality and managing a balanced budget.

Public Sector contracts are increasing in commercial complexity and size. Managing commercial relationships is a vital competence to ensure that quality, service and cost outcomes are met or exceeded.

Contract management can be considered successful when:

• the arrangements for service delivery continue to be satisfactory to both parties, and the expected business benefits and value for money are being achieved or exceeded;
• the supplier is efficient, co-operative and responsive;
• the organisation understands its obligations under the contract;
• there are no surprises;
• there are no disputes;
• professional and objective discussions over changes and issues are straightforward and easily managed; and
• efficiencies are being realised.

Contract management should result in contract procedure and process improvements and should ensure that the contracts and therefore the services/goods/works, are delivered to the required standards, provide value for money, enhances service delivery to end users, proactively identifies and manages any risks e.g., which may impact on a supplier’s service delivery / fulfilment of the contract requirements, improve and develop contract and supplier performance across the Council etc.

A consistent approach will maximise efficiencies and promote added value across the supply base, appropriately influence supplier activity and decisions, improve value for money over and above cost savings, and ensure the contract is effectively administered, supporting change management where necessary.

Procurement Services have developed a Contract Management Framework to support responsible officers charged with managing contracts within their service area. The Framework draws upon existing good practice, national guidance and tailored to meet Coventry City Council’s specific needs.

Furthermore, Procurement Services have developed a central repository for Key Performance Indicator scores across procured contracts to provide oversight of contractual performance and to help inform procurement and contract management decisions through a data-led approach, in addition to the legislative requirements regarding publication of contractual performance.

We recognise the need to continue to improve effectiveness in contract and supplier management to ensure the Council maximises opportunities for additional cost savings and non-financial benefits. Procurement Services is committed to maximising the use of digital tools to provide further improvements to our contract management.

Transparency

Transparency is at the heart of the Procurement Act 2023 and other public sector procurement legislation. From the initial planning phase to contract management and eventual termination, the legislation emphasises open communication and integrity through its notice regime. Transparency is the foundation for building trust, ensuring accountability, offering clear oversight and is key to unlocking better value for money.

Benefits to the Council achieved through increased transparency include:

• Data-driven decisions: Access to richer, more detailed information to make smarter, better informed procurement decisions.
• Collaboration opportunities: Easier connections with other Local Authorities and suppliers to foster partnership working.
• Performance management: Early identification and resolution of poor contract performance.
• Risk awareness: Proactive management of commercial risks.
• Strategic planning: Enhanced forward planning to streamline procurement processes.

Benefits to suppliers through increased transparency include:

• Greater accessibility: Easier access to contracting opportunities, regardless of size or location.
• Increased visibility: Greater transparency in how public contracts are awarded and managed.
• Fair competition: A level playing field where suppliers have equal chances to succeed.
• Transparent decisions: Clear, accountable procurement decisions that foster trust.
• Seamless communications: Consistent efficient data sharing between suppliers and the Council.

Procurement Services is committed to exceeding the legislative requirements set out in the various regulations, providing an enhanced transparent view of our contracting activity with a keen eye on supporting small and medium enterprises in accessing opportunities with the Council.

Outside of the requirements set out in the Procurement Act 2023, the Council is also required to adhere to the Local Government Transparency Code 2015 [https://www.gov.uk/government/publications/local-government-transparency-code-2015/local-government-transparency-code-2015#part-1-introduction]. The Council currently ensures that it publishes [https://www.coventry.gov.uk/transparency] all required information as outlined by the Code, and will seek to expand its transparency publications over the term of this strategy by also publishing information recommended by the Code.