Agenda item

To consider a report by the Head of Procurement and Commercial Services which provides an update as to progress made in relation to the P2P review (including dovetailing the P2P review with recommendations from the LGA Peer Review and seeking to deliver greater strategic value from procurement activity).

(Report attached)

The Head of Procurement and Commercial Services submitted a report which provided an update as to progress made in relation to the P2P review which included recommendations from the LGA Peer Review.

Addressing the report, the Head of Procurement and Commercial Services said the report provided an update as to progress made in relation to the P2P review (including dovetailing the P2P review with recommendations from the LGA Peer Review while seeking to deliver greater strategic value from procurement activity).

The report informed Members that in accordance with the Corporate Governance Code and Framework, the P2P review sought to review the efficiency and effectiveness of all P2P related processes in order to ensure compliant procurement activity, to deliver value for money in relation to external spend, and to have the capacity/capability to be effective.

It was also reported that whilst consulting with Internal Audit on the proposed changes to CPRs it came to light that there was an anomaly between Finance, Contract and Legal Matters) and Article 13 of the Constitution (Decision Making). Extending the existing simplified contract signing processes under Article 14 by 1p to include contracts valued at exactly £100K, would align with the simplified decision-making processes in relation to Administrative Decisions under Article 13, ensuring clarity and efficiency.

Commenting on Social Value, Members asked whether there was intention to extend the current 10% weighting in favour of social value on procurement activity, as some other Local Authorities do.

In responding, the Head of Procurement and Commercial Services said of the initial 10% weighting would be reviewed over the first year. The intention was to get social value properly embedded, to receive and understand the data via a monitoring report, before considering increased weighting toward social value.

Members sought further details about the role of a new Commercial Finance Manager to explore income generation and trading opportunities.

Members were informed that the Commercial Finance Manager started in post on 6th September, from a private sector commercial finance background. It was reported that an initial review of current fees and charges levels, and commercial activity across the Council had commenced with a view to ensuring costs were fully recovered and to seek to maximise income generation.

Members made reference to the LGA Bespoke Remote Peer Support (Document) - Key Reflections, noting Recommendation No.7 that:

“Elected Members should be engaged with the strategic decision making for procurement and contract management. There should also be Member representation on the social value and climate change boards”.

The Head of Procurement and Commercial Services noted in responding that the Social Value board reports to Scrutiny in relation to social value matters, and that the Corporate Governance and Audit Committee receive annual assurance reports in relation to procurement arrangements.  However, Member engagement and oversight could be reviewed should Members wish.

The Chair thanked the Head of Procurement and Commercial Services for his attendance and contribution.

RESOLVED –

(i)  That the contents of the report be noted

(ii)  To support the proposal to extend the existing the simplified contract signing process under Article 14 of the Constitution to also apply to contracts valued at exactly £100K, and thereby align with the Administrative Decision-Making process values under Article 13 of the Constitution.