A national 4 year programme commissioned by Department of Communities and Local Government in 2005 to identify and develop social housing procurement consortia to realise efficiencies in their major capital work streams. The programme has been extended for a further two years and is now commissioned by Homes and Communities Agency.
NCA Housing has a remit to introduce and drive genuine change across the social housing sector that will lead to tangible improvements in capital works procurement worth some £4billion by 2010/11. Our particular focus is on facilitating the establishment of sub-regional procurement consortia. It has been recognised that through collective procurement and planning, consortia are able to achieve significant savings beyond those available to individual social landlords.
To date, 14 regional procurement consortia have been established, representing some 156 social landlords with an aggregated 1.3 million dwellings in England. The total turnover on capital improvement works across the consortia is just under £5 billion by 2010. NCA are now targeting to develop a further four regional consortia to be up an running by 2011/12.
Consortia have achieved average cash savings of 20% in comparison to costs in their baseline year. These have been realised through product standardisation, work smoothing and improved supply chain management.
In addition to financial gains, NCA consortia have gained award winning recognition for their contribution to local community re-investment via employment and training initiatives and increased resident engagement. They have also been acknowledged for supporting SMEs via strategic project planning.