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Efficiency Gains from Collaborative Roads Procurement: A Consultation

Foreword and From the industry

Thank you for taking part in our work to develop greater efficiencies in roads procurement.

I am grateful to members of individual Local Authorities and suppliers, the Institution of Highways and Transportation (IHT), the County Surveyors' Society, the Technical Advisors' Group, Highways Agency staff and other stakeholders for their support to the collaboration and efficiency team. This document seeks to advance the consultation by setting out our new role, clarifying the proposals developed so far and inviting your views on the best way we can move forward together to achieve the efficiency gains targeted in the 'Gershon' Efficiency Review.

The public Spending Review 2004 (SR2004) has set targets of 2.5% efficiency gains year on year in the public sector. This is not about Whitehall telling us how to do things, but is about supporting existing efforts within central and local government and executive agencies to develop and apply best practice. One of the priority areas identified in the 'Gershon' Efficiency Review, which informed SR04, is 'to look at how better value for money could be achieved by more collective and professionalised purchasing across the public sector'.

I recognise there are already many examples of innovative working in the Local Authority environment, which are delivering improved value and we are keen to build on these successes. The National Audit Office and Office of Government Commerce have noted the Agency's achievements in implementing new ways of working with our suppliers following our Procurement Strategy published in 2001. I am also aware of the enormous improvements made by Local Authorities in recent years. But there is still further work for us all to do and scope for greater gains. Together, we can explore new and better ways of procuring and delivering services that could include collaboration, greater standardisation and coordinated planning to make more effective use of resources. In taking this work forward we are establishing a cross-industry advisory group to ensure everyone continues to be involved and represented.

I look forward to receiving your views and ideas in response to this consultation document, and to working with you to deliver the efficiencies we know can be achieved.

Steve Rowsell
Procurement Director, Highways Agency

From the industry...

The County Surveyors' Society and the Institution of Highways and Transportation are joining forces with the Highways Agency to investigate efficiency gains in roads procurement. This collaboration represents an opportunity for chief technical officers in Local Government to engage with the Highways Agency and to share best practice. It will also allow public sector clients to investigate the potential to improve procurement practices leading to a better service for the public. Both Local Authorities and the Highways Agency have made great strides in modernising procurement methods in recent years. These are already providing efficiency savings. We have the opportunity to build on this. A successful collaboration of this kind will undoubtedly contribute to the efficiency challenges laid down by the 'Gershon' Review.

Alastair Jefford
President, County Surveyors' Society

Mike Sharpe
President, Institution of Highways and Transportation