The guidelines with regard to procurement, in accordance with the Group’s Code of Ethics and the organisational model pursuant to Italian Legislative Decree No. 231/2001 and the related “procurement” protocol determine the underlying principles of the Group’s procurement activities in the event of acquisition of goods, services and work necessary for the performance of activities carried out under free market conditions and subject to public works contracts (Code of the public contracts Italian Legislative Decree No. 50/2016 as amended and added to).
Furthermore, during 2017 and further to the issuance of the decree correcting the Code of public contracts, amendments and updates were made both to the Guidelines and the Procurement Procedure.
The process for the progressive alignment of AcegasApsAmga with the contract management formalities envisaged for the Hera Group was consolidated further in 2017, with an increase in the number of procedures carried out to satisfy the mutual needs of Hera Spa and AcegasApsAmga. The most significant procedures include those regarding the tenders for the supply of smart gas meters, the supply of odorising materials, the printing, folding, envelope stuffing and forwarding service for the documents processed for the services managed by the Hera Group companies, the cess pit emptying service for the maintenance cleaning of sewage networks and plants, pits, road grids, the ordinary and extraordinary mechanical maintenance care of the waste-to-energy and other waste treatment plants, the bill, document and registered letter sorting, delivery and distribution service for the customers of the Hera Group companies, the service certifying and checking the periodic maintenance of management systems compliant with national and international standards (ISO, UNI, EMAS, OHSAS, SA), the service for the processing of the payslips using the ASP (Application Service Provider) method and all the tax-related, social security and legislative fulfilments relating to the personnel of the Hera Group , the entrusting of the insurance services of the Hera Group, the supply of containers with metallic basins for separate and non-separate waste collection, the IT services to be activated on the applications system in use care of the Hera Group, the call center services for the handling of the information and instruction requests of the end customers of the Hera Group.
The monitoring of work accidents at suppliers
So as to have a complete picture of the accident/injury impact relating to the activities carried out directly and indirectly, as from 2009 Hera has set itself the objective of monitoring the accident and injury indexes for the main suppliers of work and services. Their specifications and tender contracts envisage the forwarding of the “Annual summary of the accidents or injuries occurring care of the contracting companies during the performance of activities on behalf of Hera” form, via which each supplier is required to communicate its accident/injury indexes annually or at the end of the contractual period. As from 2015, this phase for the collation and analysis of the data was computerised using the SAP SRM platform.
|Value of supplies of services and work (in millions of Euro)||495.0||634.6||727.5|
|Value ordered from suppliers under monitoring (in millions of Euro)||495.0||634.6||637.1|
|Value ordered from suppliers under monitoring (%)||100%||100%||88%|
|Amount ordered during the year from suppliers who have forwarded the monitoring||392.0||450.6||467.7|
|Value ordered from suppliers who have forwarded the monitoring on the value commissioned from suppliers involved in the monitoring (%)||79%||71%||73%|
Excluding Marche Multiservizi
*Excluding AcegasApsAmga and Marche Multiservizi.
During 2017, the IT platform achieved satisfactory levels both in the use by the suppliers and in the handling of the company contacts, with consequent greater efficiency in terms of fewer days involved for performing the activities.
With respect to the previous years, a selection of supplier was made aimed at excluding from the basis of the calculation of the target fixed at 70% those commodities groups relating to activities with little significance from the standpoint of security, in relation to which however the contractual obligations to send the accident and injury data still applies. The amount to monitor is in this way decreased by around 12%.
696 suppliers answered the survey in 2017 (720 in 2016) for a total of Euro 468 million in terms of value of contracts (Euro 451 million in 2016). 73% of suppliers involved in the monitoring were monitored in 2017.
Overall, 358 accidents were monitored, the calculation of the data identified an average frequency index of 15.2 and a severity index of 0.42, both down with respect to 2016 (the 2016 values were 22.7 and 0.44 respectively).
A campaign was launched in 2017 which involved all the company contact individuals for making them more aware of the monitoring of the accident and injury figures on the contracts entrusted to them. Specific training for the “Supplier Accident” process was included in the catalogue of training requirements.
Constant monitoring over the entire year with regard to the implementation of the system is envisaged for 2018. Each company contact will also be informed of the results obtained in terms of accident/injury indexes and the percentage of response of the suppliers, providing feedback on the quality of the work carried out.
The use of sub-contracts
With regard to sub-contracting, the procedure introduced in the last quarter was further consolidated in 2017 partly by means of the full compliance of AcegasApsAmga. The authorisation to sub-contract makes the Works Directors and the company Contacts responsible for documental check activities, and Vendor Rating and Hera Assurance responsible for the validation of the process, the checking of the social security contribution regularity, the control of the list of qualified suppliers and their rating, the search of the Anac electronic records and, if necessary, the request for prefectural anti-mafia information. All the documentation regarding the request, check and authorisation has been standardised at Group level and reviewed for up-dates, by the Group Regulations and Tender Unit, with the reference legislation. All the documentation is made available in the documental area of the supplier portal, to the companies and via the Company Information Portal, to all the employees.
The fulfilments necessary for monitoring the activities of the sub-contractor companies at the worksite have also been reviewed and up-dated (supplier monitoring check list), together with the obligations for permitting facilitated, correct and accurate monthly administrative reporting.
The Group standard specifications, on a consistent basis with the reference legislation, envisage that the contractor pays the sub-contractors and that the former provides the Works Director with suitable proof within 20 days after payment by the Hera Group of each Progress Report (SAL) and/or Performance Certification Form (MAP). In the absence of proof, the Works Director/company contact informs the competent unit of the suspension of the payment of the subsequent SALs/MAPs until payments are up-to-date. This method is alternative to the direct payment of the sub-contractors which can be activated during the course of the work.
In 2017 approximately Euro 35 million was sub-contracted out, equal to 5.5% of the amount of work and services outsourced by the Group (excluding Marche Multiservizi), while the amounts accounted for the sub-contracting handled came to almost Euro 18 million.
Times of payment as per contract
The payment times for the supplies during 2017 came to 102 days (excluding Marche Multiservizi).