Agenda item

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 function seemed well suited for closer working between Guildford and Waverley Councils.  The Lead Councillor for Climate Change and Organisational Development indicated that the development and approval of business cases for joint working between Guildford and Waverley Councils would not be possible before the May elections.

The Lead Councillor for Customer and Commercial Services suggested action to encourage local businesses and retailers to bid for Council contracts.  The Deputy Leader of the Council and Lead Council for Finance and Planning Policy indicated that local supplier was a factor in the scoring of tenders and welcomed the suggestion of a workshop for local businesses to encourage bidding for Council contracts.

The Chair thanked officers and the Deputy Leader of the Council and Lead Council for Finance and Planning Policy for attending and answering questions. 

RESOLVED:  That the Annual Procurement Report submitted for the financial year ending March 2022 be welcomed by the Committee.