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 by the corrective decree No. 56/2017).
The use of sub-contracts
With regard to sub-contracting, the procedure introduced was further up-dated and consolidated in 2018, with full compliance of AcegasApsAmga as well.
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, as well as the request of the Criminal Records Office. All the documentation regarding the request, check and authorisation has been further standardised at Group level and reviewed for up-dates with the reference legislation, by the Group Regulations and Tender function. 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 been further consolidated (supplier monitoring check list), together with the obligations for permitting facilitated, correct and accurate monthly administrative reporting, inclusive of the accurate checking of the payments to employees used in the execution of the sub-contracting.
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 administration function 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 2018 approximately Euro 36 million was sub-contracted out, equal to 5.7% of the amount of work and services outsourced by the Group (excluding Marche Multiservizi), while the amounts disclosed for the sub-contracting handled came to Euro 14 million.
Times of payment as per contract
The contractual average payment times of the supplies decreased progressively standing at the end of 2018 at 79 days (excluding Marche Multiservizi), further to the contractual standardisation which defines average payment times of 60 days for 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)||634.6||727.5||745.2|
|Value ordered from suppliers under monitoring (in millions of Euro)||634.6||637.1||482.6|
|Value ordered from suppliers under monitoring (%)||100%||88%||88%|
|Value commissioned from suppliers who have forwarded the monitoring||450.6||467.7||491.5|
|Value ordered from suppliers who have forwarded the monitoring on the value commissioned from suppliers involved in the monitoring (%)||71%||73%||75%|
Excluding Marche Multiservizi
With respect to the previous years, a selection of suppliers was made with commodities groups relating to activities with little significance from the standpoint of safety, the related amounts were excluded from that consumed and therefore from the calculation base for the objective fixed at 70%. The contractual obligation for the forwarding of the accident data does not lapse for these suppliers.
833 suppliers answered the survey in 2018 (696 in 2017) for a total of Euro 492 million in terms of value of contracts (Euro 468 million in 2017). 75% of suppliers involved in the monitoring were monitored in 2018.
Overall, 336 accidents were monitored, the calculation of the data identified an average frequency index of 24.05 and a severity index of 0.58, up with respect to the previous year (the 2017 values were 15.2 and 0.42 respectively).
Analysing the commodity groups of two significant commodities from an accident standpoint (work of the “general works” and environmental services categories), it can be observed that the values of the frequency index are equal to 19.6 and 45.9 respectively, while the severity index stands at 0.66 and 1.07.