Issue - meetings

To consider an alternative option for the future delivery of procurement and contract services across the Partnership (report of the Assistant Director – Finance enclosed).

(Please note that the appendix to this report is not for publication by virtue of Paragraph 3 (Information relating to the financial or business affairs of any particular person (including the authority holding that information)) in Part 1 of Schedule 12A of the Local Government Act 1972, and is therefore attached to this agenda as item 17).

Consideration was given to the report of the Assistant Director – Finance which requested consideration to an alternative option for the future delivery of procurement and contract services across the Partnership.

The Portfolio Holder – Finance, Commercialisation and Partnership presented the report

Members advised that there was no requirement for discussion of the information within the exempt appendix, and there was therefore no need for the meeting to go into private session for discussion of this item.

The following points were raised:

·       Members questioned whether moving to a centralised procurement solution would result in specific requirements of departments wishing to procure goods or services not being met?

o   It was clarified that the Procurement and Contract function would not operate in isolation.  They would work very closely with all departments to ensure that it was clear what was required.  Portfolio Holders and Senior Managers would not be divorced from the process.

·       It was felt that PSPS was a suitable vehicle to provide this function, and that providing the Procurement and Contract function across all three councils within the Partnership would result in savings through economies of scale/purchasing larger quantities at a better price.  It was important to achieve the correct balance between value for money/purchasing the correct product or service/planning ahead for the purchase of products or services/buying better across the three authorities.    

DECISION:

1)    That the transfer of procurement and contract services to PSPS Ltd be approved, as set out in the business case at Appendix A; and

2)    That the ability to approve the necessary deed of variation (which supported changes to the Joint Venture Agreement) and amend any contract documentation resulting from the inclusion of Procurement into PSPS Ltd be delegated to the Deputy Chief Executive (S151 Officer) in consultation with the Portfolio Holder for Finance, Commercialisation and Partnerships.

(Other options considered:

·       To do nothing, which would result in the partnership having 3 different solutions for procurement and contract work);

Reasons for decision:

The business case set out a clear proposal for the future provision of procurement and contract services across the three Councils, as well as being a financially positive proposition).