Agenda item

To consider a report by the Programme Manager Procurement (copy enclosed) on the Procurement Transformation Programme.

 

A report by the Interim Head of Finance and Assets (IHFO) had been circulated previously.

 

Councillor J. Thompson-Hill introduced the report and explained that in May, 2015 the Interim Head of Finance, Assets and Housing had presented a verbal update on procurement and outlined that to address these, and other short-comings identified in the procurement activity, a wider programme of transformation would be required. 

 

The report outlined the structure and content of the transformation programme to provide reassurance that issues would be addressed and new structures and processes put in place to improve performance in relation to procurement.  It was explained that the main driver of the Procurement Transformation Programme would be the development and delivery of the revised Procurement Strategy. 

 

With the aid of a Powerpoint presentation the Programme Manager Procurement (PMP) provided Members with background details pertaining to:-

 

-                  the importance of procurement.

-                  seeing the big picture.

-                  identification of external an internal challenges.

-                  reasons for the need for change.

-                  transforming Procurement and the Transformation of:-

·       The Procurement Strategy.

·       Effective use of Technology.

·       Local Supplier Development.

·       Up-skilled workforce.

·       Headlines from MMT survey.

·       Organisational Structure.

-                  Priorities for Action – med-term.

-                  NPS: Headlines.

 

As requested at by the Committee in May the IHFA provided information and statistics on the National Procurement Service (NPS) established by WG, and details of the contracts procured through the NPS.

 

The IHFA explained that issues and short-comings previously identified would be addressed and rectified through the delivery of the Procurement Transformation Programme.  New, more robust arrangements had been put in place to ensure the effective delivery of the Procurement Transformation Programme.  This incorporated the appointment of a dedicated Programme Manager to direct the transformational change required in the way the council procures goods, services and works.  The approach was expected to have the key outcomes of:-

 

·                 saving money through more effective and efficient procurement;

·                 delivering more and better community benefits through the procurement process;

·                 providing more and better support to local businesses to improve the quality of bids they submit and improve their chances of winning council contracts.

 

The programme would be organised into 5 distinct projects which would include a Strategy Document, Use of Technology, Local Supplier Development, Upskilling the workforce and Organisational Structure.  It would be directed by a high level transformation board who would monitor and direct the delivery of the programme, and the key roles and membership had been identified.  More comprehensive details of the programme and governance structures had been incorporated in Appendix 1, and key milestones had been highlighted.

 

Confirmation was provided that the knowledge of procurement within the Authority had not previously met expectations, and Councillor P.C. Duffy expressed the view that previous procurement activities and policies could have resulted in significant financial implications on the Authority.

 

During the ensuing discussion the following salient points were raised and responses and information provided:-

 

-                  Details were provided by the WAO Representatives in respect of the national study on procurement being undertaken by the WAO.

-                  The importance of accurate and transparent lines of reporting.

-                  The need and significance of involving Economic Development the process.

-                  An outline of the need to include small businesses in the process and the methods to be adopted to achieve this requirement.  The IHFA referred to the registration of categories incorporated in the new system, which would assist with the local engagement of small businesses.

-                  The duty of the Council to achieve best value, which did not necessarily coincide with best price.

-                  An increase in the need for awareness of the procurement process, and the provision of training for officers in respect of the contract procedure rules.

 

Mr P. Whitham referred to statistics and the impact of timescales pertaining to staff numbers and the provision of training, particular reference being made to the provision of training in relation to the revised CPRs.  He also suggested that consideration might be afforded to the provision of informed training for Elected Members to providing an understanding and knowledge of the process.  In response to a question from Mr Whitham, the PMP outlined the challenges relating to the introduction of technology, and confirmed that consideration had been given to the provision of hard copies of back up documentation.

 

During the ensuing discussion the Chair confirmed his membership of the Transformation Board, and agreed to liaise with the HLHRDS regarding the inclusion of a future progress report on the Committee’s forward work programme.

 

RESOLVED – that, subject to the above, the Corporate Governance Committee:-

 

(a)            receives the report and endorses the recommendations made, and

(b)            agrees that the Chair and HLDS liaise regarding the inclusion of a future progress report on the Committee’s forward work programme.

         (JG, TB, and GW to Action)