Issue - meetings

The Interim Senior Specialist Procurement introduced and summarised the report submitted to the Committee.  He indicated that the Procurement Service Strategy had been adopted in 2020 and was due for a revisit in 2023.  The meeting was advised that the Strategy would be affected by the Council’s collaboration with Waverley Borough Council, the adoption of the Procurement Act in 2024, and encouraging engagement with the local supply market.  The Interim Senior Specialist Procurement summarised the progress of the Procurement Savings Strategy, including the savings achieved and the approach to future savings. 

During the ensuing discussion a number of points were raised and responses offered:

·       In reply to a question from a Committee member about ensuring the maintenance of standards for service users, the Interim Senior Specialist Procurement referred to checks undertaken as part of the annual audit of procurement and the role of the Corporate Procurement Board on higher value contracts.  In response to the member of the Committee suggesting the value of customer feedback and complaints directly informing the procurement process, the Lead Councillor for Finance and Property indicated that such information could be used to inform the delivery of services rather than the initial procurement process. 

·       In response to a question on the development of spend control processes, the Committee was advised by the Interim Senior Specialist Procurement of mechanisms being introduced to improve the linking and tracking of spend on individual contracts. 

·       With reference to the high value risks identified within the audit of the Council’s Procurement (attached as appendix 1 to the report submitted to the Committee), a member of the Committee questioned the controls and actions taken to manage or mitigate any such issues.  In response, the Interim Senior Specialist Procurement advised that progress against such targets was reported to the Corporate Procurement Board.  The Joint Executive Head of Finance indicated that such concerns would be added to the Council’s financial risk register if appropriate.  In addition, he advised the meeting of his duty to prepare a Section 25 report when the Council agrees its annual budget.

·       In reply to a query, the Interim Senior Specialist Procurement advised that the Council’s Procurement Procedure Rules provided a framework to capture procurement improvements and that the Rules were currently being reviewed due to the changes from the Procurement Act 2023 and the desire to harmonise with Waverley Borough Council.  The Joint Executive Head of Finance indicated that the Financial Procedure Rules and the Procurement Procedure Rules within the Council’s Constitution did reference and link to other internal documents that detailed relevant processes. 

·       A Councillor questioned why savings achieved through procurement were attributed to the procurement service rather than the individual Council service undertaking each procurement.  In response, the Joint Executive Head of Finance advised that he viewed procurement as an enabling service and the existence of a savings target for the Council’s procurement service was historical.

The Chairman asked when the full Procurement Report for 2023-24 would be completed and was advised late June 2024.

RESOLVED:  (I)  ...  view the full minutes text for item 20

The Interim Senior Specialist Procurement introduced the item.  He advised that the report submitted to the Committee provided an update on the Procurement Service Strategy, the Procurement Savings Strategy, and the Modern Slavery Charter.  The meeting was informed that the savings reported to the Committee were solely from procurement activity and did not include service redesign or efficiency savings. 

The Interim Senior Specialist Procurement indicated that approximately thirty-six percent of the procurement savings target had been achieved.  He explained that the report identified both vired savings, that is to say, savings moved to other budgets, and other savings that were yet to be audited or vired.  The Interim Senior Specialist Procurement advised that more than £2 million of non-General Fund savings were listed within an appendix.  He confirmed that the report covered the period until 31 March 2022.

The Deputy Leader of the Council and Lead Council for Finance and Planning Policy indicated that the delivery of procurement savings was on track.  He outlined the complexity of identifying procurement savings in a period of high inflation, noted the difficulties of the transition to a centralised model of procurement, and referred to the opportunities from collaboration with Waverley.

In reply to questions, the Interim Senior Specialist Procurement confirmed the difference within the report between savings achieved and moved to another budget and total savings identified and awaiting financial approval.  In addition, he explained the projected procurement savings in the report.

A member of the Committee asked for evidence on the effectiveness of the Council’s No PO No Pay policy initiative.  In reply, the meeting was advised that the No PO No Pay function was promoted but not controlled by procurement officers.  The Lead Specialist Finance advised that there was an additional staff cost saving associated with the change in purchasing policy and that suppliers were paid quicker than previously. 

In response to a question about modern slavery and whether the Council had received any abnormally low tenders, the Interim Senior Specialist Procurement advised that the Council always challenged such tenders in line with the Public Contract Regulations 2015 and asked bidders to justify such bids.  He indicated that bidders not able to justify an abnormally low price were rejected from the tender process. 

In reply to concerns raised about rising costs for suppliers and their difficulties in delivering at an agreed price, the Interim Senior Specialist Procurement indicated that the Council did engage with contractors experiencing such issues.

In response to questions, the Interim Senior Specialist Procurement undertook to investigate the measures taken to address the recommendations and risks identified within the internal audit report attached as Appendix 1 to the report submitted to the Committee.  In addition, he suggested the value of future joint procurement collaboration activity with Waverley. 

In reply to a question, the Deputy Leader of the Council and Lead Council for Finance and Planning Policy advised the meeting that, although the business case for each proposal would need to be developed and assessed, the procurement  ...  view the full minutes text for item 38