Agenda item

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance and Assets (copy enclosed) presenting the final business cases for the merger of Denbighshire and Flintshire Corporate Procurement Units as well as the Three Counties Procurement project for approval.

RESOLVED that –

(a)       Cabinet endorse the final business case for the merger of Flintshire and Denbighshire procurement teams into a single Corporate Procurement Unit hosted by Denbighshire;

(b)       the development and agreement of the Service Level Agreement for the joint Unit be delegated to appropriate officers (Head of Finance and Assets, Head of Legal and Democratic Services and Strategic Procurement Manager) in consultation with the Cabinet Member for Finance and Assets;

(c)        Cabinet endorse the final business case of the Three Counties Procurement Project, and

(d)       that a report be submitted to a relevant Scrutiny Committee or the Corporate Governance Committee on operation of the new arrangements after the first twelve months of implementation.

Councillor Julian Thompson-Hill presented the final businesses case for the merger of Denbighshire and Flintshire Corporate Procurement Units as well as the Three Counties Procurement project for approval.

The need for change in the way procurement and commissioning was carried out had been highlighted in the report together with background to the development of the business cases.  Councillor Thompson-Hill elaborated upon the material considerations and benefits of each project together with implementation of the collaborative arrangements.  Particular reference was made to the introduction of category management principles; the need for buy in by individual service areas, and the tension between obtaining best value and supporting local business.

The following matters were discussed –

·        the procurement process for street lighting was highlighted as an example of best practice and successful category management to be replicated in other procurement areas and assurances were provided that this model would not be affected by the changes

·        the risk of individual services failing to engage in the process was raised and officers confirmed that a culture change was required and explained how the project would be rolled out across the authority over a two year period

·        a key element in the Economic & Community Ambition Strategy focused on developing the local economy and whilst there was a need to balance best value and efficiency with supporting business, measures could be taken to make it easier for local business to compete in the market.

·        local spend and community benefits were an important consideration and the Leader hoped that this element could be expanded through the Economic & Community Ambition Board to provide a clearer understanding and process for engaging with the private sector on procurement issues

·        the complexities of the collaborative arrangements were recognised together with the potential impact of local government re-organisation and it was hoped that the Three Counties Procurement Project could expand to become a regional project across the six North Wales local authorities

·        officers responded to questions regarding cost implications associated with the Denbighshire/Flintshire merger including salary costs and staffing of the joint unit and reported that a £1m bid to the Regional Collaboration Fund to implement the changes had been successful.

Cabinet welcomed the collaborative projects as a means of improving the way procurement was carried out whilst delivering greater value for money with less cost.  Councillor Eryl Williams felt it would be beneficial for the projects to be monitored in approximately twelve months’ time to assess and ensure their effectiveness.

RESOLVED that –

(a)       Cabinet endorse the final business case for the merger of Flintshire and Denbighshire procurement teams into a single Corporate Procurement Unit hosted by Denbighshire;

(b)       the development and agreement of the Service Level Agreement for the joint Unit be delegated to appropriate officers (Head of Finance and Assets, Head of Legal and Democratic Services and Strategic Procurement Manager) in consultation with the Cabinet Member for Finance and Assets;

(c)        Cabinet endorse the final business case of the Three Counties Procurement Project, and

(d)       a report be submitted to a relevant Scrutiny Committee or the Corporate Governance Committee on operation of the new arrangements after the first twelve months of implementation.