Agenda item

Purpose: This paper proposes changes for a future model of strategic commissioning and procurement, its application in the Council and presents a supporting Procurement Strategy for approval.    

Resolved that:

·         The proposed changes and the Procurement Strategy for implementation across the Council be approved.

·         The implementation plan as set out in this report, to start in 2020/21 for the tenders in the service areas identified, be approved.

This decision is eligible to be ‘called-in’.  However, if the decision has not been ‘called-in’ by 5.00pm on 7 May 2020, then it will be implemented.

The Executive considered a report (Agenda Item 10) which proposed changes for a future model of strategic commissioning and procurement, its application in the Council and presented a supporting Procurement Strategy for approval.

Councillor Ross Mackinnon in introducing the report explained that currently, the Council operated a mixed model of commissioning with those services more familiar with this approach leading the way in terms of identifying commissioning outcomes in strategies.

This proposed Strategy would provide an overarching model for all service areas to follow alongside support from the Commissioning Service. This would seek to maximise quality and achieve value for money.

An annual plan of commissioning activity would be produced which would include all procurement in excess of £100k. However, the Commissioning Service would still offer support for procurement of services at a lower cost than £100k.

Implementation of the Procurement Strategy would require the recruitment of two additional Procurement Officers.

An implementation plan was provided at Appendix D, Councillor Mackinnon explained that it might be necessary to review some of the target dates.

Councillor Jeff Brooks agreed that a clearer strategy was needed. However, he felt that some sections of the report required more detail when it came to implementing this new approach in practice.

Councillor Brooks felt that a clear business case was needed to support the recruitment of two additional officers. The return from this needed to be considered and how it would be measured. How did this extra cost compare with existing spend?

Councillor Brooks also noted from the report that commissioning was shown as separate from procurement but the report lacked a clear definition on that.

In response to these points, Councillor Mackinnon acknowledged that the report was heavy going in some areas. However, he did point out that definitions were included early on in the report, including an attempt to define commissioning and procurement, and show the difference between the two.

Councillor Mackinnon did not have to hand the existing spend and offered to provide that at a later date. However, it was felt that a more efficient and joined up approach would result in the two new officers paying for themselves through their work.

As a strategy, this would not contain all the detail to support implementation of the new model.

Councillor Brooks was pleased to hear there would be additional resources, but the outcome this achieved needed to be monitored. The professional input to service areas was important, but services were clear on their requirements and Councillor Brooks felt that there should not be too much reliance on centralisation.

Councillor Mackinnon acknowledged the point made on centralisation. He explained that the new approach would not be a one size fits all. The Commissioning Service would aim to work in partnership with service areas, but the progress of this would be closely monitored.

Councillor Erik Pattenden referred to the difficulties experienced with the tendering process for the school meals and school cleaning contracts. He questioned whether this Strategy would avoid such issues in future.

Councillor Mackinnon explained that it was the clear intention for the new model to made procurement more efficient and successful at all levels.

Councillor Dominic Boeck added that a key piece of learning from this process was for the Commissioning Service and service areas to work more closely together. The learning from this experience would feed into the new Procurement Strategy.

Councillor Pattenden also referred to Appendix A, specifically the Family Hub Strategy which stated that the requirements to deliver this particular strategy were unclear. He queried when this would be understood.

Councillor Mackinnon advised that some areas did need further detail. Much work had gone into producing the Strategy and areas identified as ‘not clear’ would be updated in due course.

RESOLVED to:

·         Approve the proposed changes and the Procurement Strategy for implementation across the Council.

·         Approve the implementation plan as set out in this report to start in 2020/21 for the tenders in the service areas identified.

Other options considered: Do nothing and maintain current arrangements. Developing the commissioning function within the Council has been a recommendation from LGA Peer review and identified as a corporate priority in the Corporate Programme.  In the current devolved model opportunities are being missed to improve on a range of outcomes including commercial social value, green agenda and for a clearer strategic direction.  Do nothing is not a realistic option if the Council wishes to progress in line with other local authorities to achieve a more strategic approach to commissioning.