Issue - meetings

The Council noted that its expenditure on goods, works, and services was approximately £50 million per annum and the Procurement Strategy adopted by the Executive on 26 May 2020 provided a strategic approach to sourcing in order to demonstrate best value and meet the requirements of the Public Contract Regulations 2015.

A need had been identified to update the Procurement Procedure Rules, which formed part of the Council’s Constitution, in line with the adoption of the Procurement Strategy and subsequent shift to strategic sourcing as the last substantial review of those Rules had been undertaken in 2016.

The Council considered a report which set out the proposed key changes to the Procedure Rules, a summary of which was as follows:

·       Update to threshold for procurement advice

·       Defining the role of Corporate Procurement Board

·       Update to Tendering thresholds

·       Updated exemption grounds

·       Specific inclusion of embedding Social Value

·       Specific inclusion of adopting Modern Slavery

·       Specific inclusion of Climate change considerations

By adopting the updated Procurement Procedure Rules, the Council would bring them in line with current practices and commit to delivering a robust approach to Commissioning and Procurement. Compliance with the Public Contract Regulations 2015 would be achieved, significant savings realised, and commercial opportunity maximised.

Upon the motion of the Leader of the Council, Councillor Joss Bigmore, seconded by the Lead Councillor for Economy, Councillor John Redpath, the Council:

RESOLVED: That the updated Procurement Procedure Rules, as set out in Appendix 1 to the report submitted to the Council, be adopted.

Reason:

The current Procurement Procedure Rules were last subject to a full review in 2016, there are therefore substantial changes and updates required in order to align with the Procurement Strategy adopted by the Executive on 26 May 2020.

The Committee noted that the Council’s expenditure on goods, works, and services was approximately £50 million per annum and the Procurement Strategy adopted by the Executive on 26 May 2020 provided a strategic approach to sourcing in order to demonstrate best value and meet the requirements of the Public Contract Regulations 2015.

As the last substantial review of the Council’s Procurement Procedure Rules had taken place in 2016, a need had been identified to update the Rules in line with the adoption of the Procurement Strategy and subsequent shift to strategic sourcing.

The Committee considered a report setting out the proposed key changes to the Procurement Procedure Rules, which included the following:

·       Update to threshold for procurement advice

·       Defining the role of the Corporate Procurement Board

·       Update to Tendering thresholds

·       Updated exemption grounds

·       Specific inclusion of embedding Social Value

·       Specific inclusion of adopting Modern Slavery

·       Specific inclusion of Climate change considerations

By adopting the updated Procurement Procedure Rules, the Council would bring them in line with current practices and commit to delivering a robust approach to Commissioning and Procurement. In addition, compliance with the Public Contract Regulations 2015 would be achieved, significant savings realised, and commercial opportunity maximised.

The Committee made the following comments/points/requests:

·       In cases where contracts were procured in collaboration with other local authorities where the Council was not the lead authority, a request that not only do we seek assurance that the lead authority acts in compliance with its own contract procedure rules, but also that that authority’s rules were up to the same standards as ours.  

·       Request for an annual report to the Committee on how savings on procurement were being realised and how well the new Procurement Procedure Rules were being adhered to.

·       The addition of the three key changes to the Procurement Procedure Rules: Social Value, Modern Slavery, and Climate Change, were welcomed, but there was a query over the impact of these on the procurement process, and whether it might mean that we required additional resources or attracted fewer tenders.

·       Request for clarification of the application of the specific permitted exemption referred to in the draft Procurement Procedure Rules where “it is in the overall best interests of the Council”.

Having considered the report, the Committee

RECOMMEND: That the full Council adopts the updated Procurement Procedure Rules, as set out in Appendix 1 to the report submitted to the Committee.

Reason:

The current Procurement Procedure Rules were last subject to a full review in 2016, there are therefore substantial changes and updates required in order to align with the Procurement Strategy adopted by the Executive on 26 May 2020.