Agenda item

The item was introduced by Olivia Cooper (Service Manager, Contract Management and Quality Assurance), who told the Committee that officers were confident they had engaged with the appropriate number of people to produce the strategy, which was scheduled to be considered by Cabinet for approval. She said a good procurement management strategy was fundamental in helping officers who commissioned services from a third party ensure good value for money and quality of service. The intention of the strategy was to help procuring managers understand what was required to ensure things were done in a legally compliant manner that would ensure local and corporate objectives would be delivered, particularly during a time of high inflation rates and market volatility. It would also be for the benefit of suppliers in understanding what was expected and required of them. Olivia Cooper said a draft version of the strategy had been ready in February 2020, but after it was reviewed later in the year the decision was taken to refresh the strategy. External organisations were involved in the review.

Olivia Cooper said the new strategy was supported by three pillars. The first was customer value: this was to ensure the service was provided at the quality needed to meet customer needs in line with the strategic objectives of the Council, and staff had the appropriate skills for procurement and contract management. The second pillar related to commercial value, which was intended to ensure value for money while embracing innovation in delivery of services. The final pillar was ensuring the social value policy that was adopted in 2019 was met in terms of recognising a third party’s contribution to society. This could be in terms of how and when it spent money but also how it met the Council’s objectives, such as those relating to climate change.

Olivia Cooper said the strategy was intended to run for five years, which included a detailed two-year delivery plan. Savings of £947,000 had been identified and anticipated.

Responding to a question from Councillor Piers Daniell regarding how value would be measured, Olivia Cooper said the three factors outlined through the three pillars would be balanced and considered at the tendering stage of any future procurement. A potential supplier’s ability to meet other Council strategies would also be considered, as would ability to improve social value without significantly adding to the overall cost. Olivia Cooper stated her belief that social value done wrongly could potentially cost a lot of money. There would be a move away from focusing on compliance, as there would be an expectation that any procured contract would meet legal compliance. Responding to a question from Councillor Boad, Olivia Cooper said the proposed strategy allowed for flexibility throughout its intended five-year life. She said for example that the public procurement regulations, which were anticipated to be brought in next year, were considered when drawing up the strategy. Responding to a point raised by Councillor Matecki, Olivia Cooper said examples of good practice from the private sector were also considered.

Rob Powell (Strategic Director, Resources) said going forward there would an increased emphasis on social value and it was expected there would be differences in how commercial value was considered. He said currently two thirds of the Council’s budget was spent in collaboration with partners and third parties and it was important to get spending rates right, and ensure partners were delivering what was being asked of them.

Members unanimously resolved to recommend the strategy to Cabinet for approval.