Issue - meetings

To introduce a new updated version of the Contract Procedure Rules and an amendment to the Financial Procedure Rules (report of the Assistant Director – Finance (Deputy S151 Officer) and the Assistant Director – Governance and Monitoring Officer enclosed). 

Consideration was given to the report of the Assistant Director – Finance (Deputy S151 Officer) and the Assistant Director – Governance (Monitoring Officer) which introduced a new updated version of the Contract Procedure Rules and an amendment to the Financial Procedure Rules.      

Following an audit recommendation to review the Contract Procedure Rules, as well as the setting up of the PSPS Procurement and Contracts service, a review of the Contract Procedure Rules was undertaken to update them, and to align them with the rest of the South and East Lincolnshire Councils Partnership.

The report and its appendices had been presented to the Governance and Audit Committee where the proposed amendments were considered, with recommendations to be presented to Council for consideration.  In addition, the Leader and Deputy Leaders had been briefed on the proposed amendments.

The purpose of the report was to introduce a new, updated version of the Contract Procedure Rules and an amendment to the Financial Procedure Rules.  The Cabinet was asked to consider and approve the Delegations to Officers, that set out the authorisation for decision making in relation to the proposed Contract Procedure Rules.  The main changes proposed related to the exemptions process, and the procurement thresholds (as detailed in Appendix 3 to the report).

DECISION:

1)    That the draft revised Contract Procedure Rules at Appendix 1 to the report be noted;

2)    That the suggestion that the Monitoring Officer be authorised to make the necessary changes to update the Council’s Constitution, accordingly, including delegation to amend where inconsistencies arise, noting that the CPR will take primacy, be noted.

3)    That the Delegations to Officers, that sets out the authorisation for decision making in relation to Contract Procedure Rules at Appendix 2 to the report, be approved. This approval would be subject to a Council decision to amend the Contract Procedure Rules.

RECOMMENDATIONS TO COUNCIL:

1)    That it be agreed to adopt the revised Contract Procedure Rules at Appendix 1 to this report, without amendment, as the Contract Procedure Rules (CPR).

2)    That it be agreed that the Monitoring Officer be authorised to make the necessary changes to update the Council’s Constitution, accordingly, including delegation to amend where inconsistencies arise, noting that the CPR will take primacy.

3)    That the revised financial procedure rule for Banking arrangement and cheques as detailed in Paragraph 1.12 of the report be approved

(Other options considered:

·         To do nothing – this would result in the retention of the existing Contract Procedure Rules;

Reasons for decision:

·         To ensure that the Council has robust, up-to-date Contract Procedure Rules that provide clarity to officers, members, and potential contractors;

·         In addition to the above, to ensure compliance with audit requirements as some of the Partner Councils have had audit recommendations to update their Contract Procedure Rules;

·         To ensure a clear and consistent approach in the award of contracts and safeguard the public’s trust and confidence and promote public accountability and good procurement practice;

·         To help avoid governance failures in the Council’s procurement activity.)

To introduce a new updated version of the Contract Procedure Rules and an amendment to the Financial Procedure Rules (report of the Assistant Director - Finance and Deputy S151 Officer, and the Interim Assistant Director – Governance (Monitoring Officer) enclosed).

Consideration was given to the report of the Assistant Director for Finance and Deputy S151 Officer, and the Interim Assistant Director for Governance and Monitoring Officer, to introduce a new updated version of the Contract Procedure Rules and an amendment to the Financial Procedure Rules.

The Head of Procurement and Contracts introduced the report by referring to the amendments which applied to South Holland District Council, and outlined in Appendix 1A as follows: 

• the single change to the exemption clauses were outlined at point 3.3.9 of the report. The proposed change allowed for a reasonable exemption to assist with the development of housing, where this was considered appropriate; and
• revised thresholds were outlined at point 9 of the report.

The Head of Procurement and Contracts presented the following case study which demonstrated how the exemption stated at point 3.3.9 of Appendix 1A could be utilised:

“The Council could pursue the purchase of housing through a ‘package deal’ which would incorporate planning consent, land purchase and build. Initially, a third party obtained the planning consent, secured the legal interest in the land, and secured a work contractor to build for a fixed price. On the date that planning consent was granted, the Council would enter into a simultaneous agreement to purchase the land and enter into a Joint Contracts Tribunal (JCT) contract with the works contractor at an agreed price. Should a package deal be pursued, the benefits to the Council included:

• engagement in the project from an early stage; and
• the undertaking of a quality and value-for-money assessment prior to involvement.

The inclusion of the exemption clause enabled different housing delivery routes to be pursued/explored by the Council. If the authority were to pursue a package deal, formal approval for each specific scheme would always be required from either the Executive or the Council”.

Members considered the report and made the following comments:

• Members asked how Cabinet members obtained specialist knowledge when making such decisions.
  • The Assistant Director – Finance stated that the exemption resulted from legal advice which had been sought for a new type of housing delivery option.  External advisers provided technical advice where this was not available within the skillset of officers.

• Members queried the process that would be followed for the purchasing of properties should the proposed exemption not have been brought forward as an amendment.
  • The Head of Procurement and Contracts stated that the purchase of a housing package would not be possible, and the Council would need to source land in the traditional way, or procure completed properties direct from developers. The exemption enabled Council involvement from commencement of a scheme and therefore control over the quality of the build.
  • The Assistant Director – Finance stated that whereas previously a builder may have approached the council directly, the exemption enabled a builder to work with a partner, such as a Housing Association, to put forward a package deal to the Council.

• Members asked whether the Council had considered utilising framework agreements, such as those  ...  view the full minutes text for item 26