The pressing need to find savings means many councils are exploring new ways of commissioning and delivering services. Councils need effective contract management to ensure they maximise both the opportunities and the potential savings these bring.
The pressing need to find savings means many councils are exploring new ways of commissioning and delivering services. Councils need effective contract management to ensure they maximise both the opportunities and the potential savings these bring. LGA has been working with Newcomen Consultancy to produce the following resources on Contract Management.
Published by DCLG, the Local Government Transparency Code meets the Government's desire to place more power into citizens' hands to increase democratic accountability and make it easier for local people to contribute to the local decision making process and help shape public services.
Household Waste Collection Savings
Many councils are looking for procurement savings opportunities from their waste collection service. See below for LGA's 2013 report on how councils were saving money on bins, bags and refuse vehicles.
Colleagues from Local Partnerships developed a report on how procurement savings can be made through collaboration on household waste services. The report collates findings from a short study of both the public and private sectors and information from experts in this field. It finds that savings of up to 10 per cent on vehicles and 35 per cent on wheeled bins can be achieved through clearer specification and procuring in larger volumes in partnership with other councils. It estimates that the scale of these opportunities total over £70m per year.
Waste and Recycling Programme
There are approximately 23 million dwellings in England most of which require a weekly or fortnightly refuse and recycling collection. Councils spend £852m per year on waste collection, and given that many contracts were negotiated several years ago and are ready for renewal, even a small efficiency saving of say 5% would equate to a £42.6m reduction in spend in this area.
Further information about the Coventry, Solihull and Warwickshire shared service and their work in Children's Services -
Managing the risk of Procurement fraud
It has been estimated that fraud costs local government in the region of £2.2 billion per year, of this £876 million a year can be attributed to procurement fraud making it the largest single area of financial loss to fraud in local government. LGA and the CIPFA Counter Fraud Centre have worked together to bring you this practical guide on recognising and dealing with procurement fraud.