H.M. TREASURY

CABINET OFFICE HM Treasury

146/99

14 September 1999

GOVERNMENT LAUNCHES GOOD PRACTICE GUIDE FOR PUBLIC SECTOR PROCUREMENT ORGANISATIONS

Help is at hand for public sector procurement officers as a new guide to help public sector improvement in procurement standards was launched jointly today by Chief Secretary to the Treasury Alan Milburn and Minister of State at the Cabinet Office Ian McCartney.

The Procurement Excellence Guide will be applied across the public sector to test the effectiveness of their procurement activities by measuring performance and achieving continuous improvement in their operations.

The guide will provide the basis for measuring the effectiveness of the recently announced Office for Government Commerce and Departments in pursuing savings of up to £1 billion over the next three years.

Chief Secretary to the Treasury Alan Milburn said:

"Procurement plays a key role in the efficient and cost effective delivery of goods and services of any organisation. It is only right that we strive to deliver a well run public sector organisation that gives the taxpayer value for money. This Excellence guide gives us the means to measure procurement performance, a key factor in improving delivery of the services the public sector provides.

"Public sector organisations now have the chance to demonstrate their ability to be at the leading edge of procurement development. This will allow for a cohesive approach across all areas of the public sector including central government, local government and the National Health Service and to improve best practice and delivery functions."

Minister of State at the Cabinet Office Ian McCartney said:

"This publication of the guide is an important part of the Modernising Government agenda, which commits us to delivering responsive and high quality public services. The guide gives public sector organisations the means to measure procurement performance, a key factor in improving the delivery of services.

"The guide shows how the European Foundation for Quality Management's Excellence Model® can be applied to particular functions as well as to particular organisations. I am sure it will encourage procurement staff throughout the public sector to use this Model to improve procurement practices."

The Procurement Excellence Guide has been tailored for public sector procurement and emphasises the key role that procurement plays in the efficient and cost effective delivery of goods and services that public sector organisations need.

The Procurement Excellence Guide builds on expanding use of the European Foundation for Quality Management Excellence Model® by public sector organisations, as a means of measuring performance and achieving continuous improvement in their operation.

The European Foundation for Quality Management's Excellence Model® is an important part of the Modernising Government agenda. The Model was revised in April 1999 and is wholly applicable to the public sector. Over 90 per cent of public sector users of the Model report that their performance improvement rate increased as a result of using the Model.

NOTES TO EDITORS

The Procurement Excellence Guide is a step change in the way that procurement performance is measured. It replaces the traditional 'targets and savings' approach with a holistic assessment of not only the results achieved but the 'precursors' or 'enablers' of future excellent performance.

2. The Procurement Excellence Guide has been produced in two parts. The first is an entry level 'Procurement Excellence pilot' which is designed for use by organisations who have very little knowledge of the European Foundation for Quality Management Excellence Model® but allows them to start the procurement performance measurement process and identify areas of strength on which to build and those where improvement is needed. The second part is more sophisticated. 'The guide to use the European Foundation for Quality Management Excellence Model in Procurement' is designed for those organisations that are already familiar with the European Foundation for Quality Management Excellence Model® and will supplement their existing activities and provide the specific emphasis and support to government procurement initiatives.

3. Copies of the Excellence Guide are available from the Treasury Public Enquires on 0171 270 4558. Media enquiries and requests for press copies of the Guide should be addressed to Malcolm Graves on 0171 270 5192.

4. If you have access to the Internet, you can find this news release and other Treasury information at www.hm-treasury.gov.uk