Issue - meetings

Since the current version of Contract Standing Orders (CSOs) was approved at Full Council

in December 2019, the following changes had been recommended by the Council’s Internal Auditors (Southern Internal Audit Partnership (SIAP)) following their review of the procurement process:

• the inclusion of a reference to pre-tender estimates and how contract awards over the original estimate are approved

• the inclusion of a reference to the treatment of ‘abnormally low tenders’

• clarification that the confidentiality of quotations, tenders and the identity of contractors must be preserved

SIAP had also recommended other actions to enhance the procurement process, including measures to ensure compliance with CSOs, a more robust procurement card policy, revisions to the procurement strategy to clearly define roles and responsibilities, and the adoption of performance indicators.

A report was presented in light of both SIAP’s review and the implications of Brexit on the Council’s procurement processes. Proposed revisions to CSO’s were considered (these would require amendments to the Constitution and, therefore, would need to be ratified by Full Council) together with a procurement improvement plan and a set of procurement related performance indicators to measure the following:

 (i)        savings achieved due to a procurement process (methodology to be agreed with the       finance team)

(ii)        % of procurement transactions greater than £5,000 captured on ‘in-tend’ (target of 95%   in year 1, 100% thereafter)

(iii)       % of spend with 100 top suppliers currently compliant with CSOs (80% in year 1,

            100% thereafter)

(iv)       number of contract values awarded to within 10% of pre-contract estimated value             (target of 95% in year 1, 100% thereafter)

(v)        number/value of current CSO waivers in force

(vi)       number of contracts awarded to local SMEs

The report also informed Members about the role of the Corporate Procurement (Officer) Board.

In response to Members’ questions, the Performance Specialist explained the approach to ‘abnormally low tenders’; his role in leading the procurement process within the Council in liaison with contract managers; the intention to define a target in respect of KPI (i) above; and the fact that carbon emissions formed part of the ‘social value’ element of the tender scoring process. He also confirmed that SIAP had been made aware of the report and were content that it addressed the recommendations arising from its audit.   

          R E S O L V E D – that:

          A       the set of standard procurement Key Performance Indicators detailed in Appendix B to the report be agreed; and

          B.      the Procurement Improvement Plan as detailed in Appendix C to the report be           noted.

COUNCIL DECISION

(subject to ratification by Council)

R E C O M M E N D E D - that amendments be made to Contract Standing Orders in accordance with the summary at Appendix B to these minutes.