Wednesday, 7 May 2008

Ken's procurement legacy

This angle might be a bit obscure when you consider the range of issues that Ken Livingstone, London's erstwhile Mayor, passionately promoted. But he has left a procurement legacy. Ken saw procurement as one of the many means of implementing equality. It was a means to expand pubic sector supply chains to include more SMEs (Small and Medium Enterprises), particularly those led by women and/or ethnic minorities.

I can almost hear you saying yes but the procurement process itself is too bureaucratic - all I can say to that is - in business, as in life, little is handed to you on a plate, it has to be worked for.

Ken's influence included ensuring that specific clauses are included in the contracts awarded to prime contractors responsible for delivering the Olympic infrastructure, requiring them to advertise their subcontracting opportunities, whenever they are seeking new suppliers.

He also focused on ensuring that there are more opportunities for SMEs to deliver work for the GLA group (Greater London Authority (GLA), Transport for London (TfL), London Development Agency (LDA) etc.). This included a number of projects funded under the LDA such as Supply London and Diversity Works for London.

The legal team in TfL also worked on including new clauses in their major contracts, to help ensure some workforce development took place to diversify their prime sub-contractors' workforces. They aimed to promote change through use of contractual incentives linked to, for example, encouraging local labour and skills development initiatives.

It's a slow process to secure changes but at least the vision, motivation and desire was there.

It will be interesting to see where things go now, under a new regime.

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