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Procurement Strategy

Introduction

This document sets out a new procurement strategy for the Highways Agency (HA). It has been developed in support of the HA's Corporate Plan which provides a strategic framework to modernise the HA over the next three to five years to deliver its role as the operator of England's network of motorway and trunk roads. It will also provide the procurement framework to deliver the spending plans and the outcomes included in Transport 2010: the 10 Year Plan which was published by the Government in 2000. It applies to all areas of procurement carried out by the HA but it focuses mainly on the purchase of roads related activities as this covers the bulk of the HA's expenditure.

The 10 Year Plan increases investment in the network

The HA currently has an annual expenditure of over £1.5 billion and it purchases 95% of its work from external suppliers. The 10 Year Plan increases the level of investment in the trunk road and motorway network to over £21 billion over the 10 year period. Under the traditional asset management role, procurement in the HA has focused on buying an output such as a new length of road. In future, the HA will have to purchase a level of service from its suppliers to deliver both asset management and the management of traffic to fulfil the new network operator role.

The HA will continue to deliver the overwhelming proportion of its services through third parties. Contracting-out puts a premium on the HA developing its intelligent client role to focus on service outcomes and to set the right technical and performance standards in contracts. This means being at the forefront of best procurement practice, developing better and more effective ways of working in partnership with suppliers.

The HA has made significant progress since it launched its first procurement strategy in 1997 which introduced the partnership approach to project delivery. The new strategy sets out how the HA will develop longer-term partnering arrangements to achieve best value in the delivery of the 10 Year Plan. It also sets out how best procurement practice will contribute to improved health and safety performance, the achievement of sustainable development and working practices and also how potential skills shortages in the construction industry will be addressed.