Issue - meetings

To consider a new Procurement Strategy for 2023 – 2026 (report of the Head of Procurement and Contracts enclosed).

Consideration was given to the report of the Head of Procurement and Contracts which asked Cabinet to consider a new Procurement Strategy for 2023 – 2026.

The Portfolio Holder – Finance, Commercialisation, UKSPF and Levelling Up presented the report, after which the following points were raised:

·       The Governance and Audit Committee had considered the document which was very welcome.  Procurement was being dealt with by PSPS – it was important to ensure that appropriate management controls were in place.  In addition, was there a procedure in place for officers within PSPS to declare any interests?

o   Officers explained their process for declarations of interest and confirmed that procedures were in place.

·       Members commented that scrutiny was mentioned but not defined – how would scrutiny take place, and how would success be measured?  It was again stated that there was a great reliance on IT and this must be a priority.  Additionally, the question of affordability was a concern to be noted.  Finally, were there any added costs to the authority for PSPS taking on the responsibility for procurement?

o   Officers responded that an Action Plan with timescales would be produced and this would be shared on an annual basis with all that wished to scrutinise it.  The action plan would focus on articulating the main areas of focus for the services being provided. With regard to the cost of the service, this had already been incorporated into the budget.  The service was already identifying savings and areas where price increases could be avoided through smarter procurement. 

DECISION:

1)    That the Procurement Strategy at Appendix 1 be approved;

2)    That the feedback from Policy Development Panel be noted

(Other options considered:

·       To do nothing – this would result I the Council continuing to have no formal Procurement Strategy in place.

Reasons for decision:

·       To ensure that the Council had a clear Procurement Strategy for the next 3 years;

·       To agree a single approach to procurement across the Partnership that maximised the savings opportunities for the Councils;

·       To ensure compliance with audit requirements as some of the Partner Councils have had audit recommendations to update their Procurement Strategies.

·       To help support key Council priorities, such as sourcing local suppliers, procuring sustainably and ethically.)

To note the Procurement Strategy and allow members to provide feedback (Procurement Strategy and presentation enclosed). 

Consideration was given to the Procurement Strategy 2023-2026.

The Chief Finance Officer (PSPS) introduced the report on behalf of the Head of Procurement and Contracts, and the following points were highlighted:

• The political journey of the strategy was outlined:
  • The strategy had been presented to the Policy Development Panel for scrutiny on 25 July 2023;
  • Subject to feedback from members at the current Governance and Audit Committee meeting, the strategy would move forward to a meeting of Informal Cabinet on 16 October 2023 and thereafter to a meeting of the Cabinet on 7 November 2023.
• The Procurement Strategy defined how the Council ran its procurement function and focused on the following key themes identified within the National Procurement Strategy:
  • Showing leadership;
  • Behaving commercially; and
  • Achieving community benefits.
• The key themes were embedded throughout the strategy to improve and enhance the procurement service. Examples included:
  • The provision of training for members and officers by PSPS to assist with procurement processes;
  • Increased collaboration between PSPS and client councils to increase value for money and efficiencies;
  • The provision of a framework for contract review meetings and assistance with contractual queries; and
  • The provision of efficient and effective information for small and medium-sized enterprises who were interested in providing services to the Council.

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Members considered the draft strategy document and made the following comments:

• As the procurement function was outsourced to PSPS, it was important that the strategy reflected the philosophy of the Council;
• Members noted the new recommendation from the 2021/2022 Audit Results Report, at agenda item 6, and stated that, in the interests of transparency, the requirement for members to complete their Declaration of Interests be stated within the Procurement Strategy 2023-2026;
• Members asked whether the Strategy would be introduced across all three authorities of the S&ELCP.
  • The Chief Finance Officer (PSPS) confirmed this to be the case. The strategy complemented the Contract and Procedure Rules which had been aligned across the partnership and ensured a consistent approach was taken; and
  • That local suppliers were preferred where possible. The term ‘local’ had been defined within the strategy and was subject to the boundary of individual contract requirements; and
• Members supported any process which encouraged innovation. Engagement with the Federation of Small Businesses was fundamental to the localism approach.

AGREED:

That the Procurement Strategy 2023-2023 be noted.

To seek member views on a new Procurement Strategy for 2023-2026 (report of the Head of Procurement and Contracts (PSPS) enclosed).

Consideration was given to the report of the Head of Procurements and Contracts (PSPS) which sought members’ views on a new Procurement Strategy.

The Head of Procurement and Contracts (PSPS) presented the report to the Panel by relaying the following points:

• The draft Procurement Strategy 2023-2026 was detailed within the report at Appendix 1;
• Two minor amendments were recommended by members of Boston Borough Council and East Lindsey District Council as part of the scrutiny process;
• The Procurement Strategy documented how the Council delivered its procurement function and provided a clear direction on procurement activity for the following three years. The strategy could be reviewed;
• The reasons for the adoption of a Procurement Strategy were outlined, which included that:
  • best practice for local authorities was followed; this included the adoption and implementation of a Procurement Strategy;
  • The new strategy would ensure that the Council had a clear Procurement Strategy in place for the next three years;
  • An agreed approach to procurement existed which maximised savings opportunities for the Council;
  • Compliance with audit requirements; SHDC had received an audit recommendation to update its procurement strategies; and
  • Key Council priorities were supported; that local suppliers were sourced and procurement was both sustainable and ethical.
• The proposed Procurement Strategy focussed on the following key themes from the National Procurement Strategy:
  • ‘Showing leadership’;
  • ‘Behaving Commercially’; and
  • ‘Achieving Community Benefits’.
• The themes were further divided into sections which served to improve and enhance the procurement service, which included:
  • The development and rollout of a basic procurement training programme for members which assisted with the understanding of the procurement process; and
  • That efficient and effective information be provided to local small and medium-sized enterprises (SMEs) and micro-businesses who were interested in supplying goods and services to the Council.
• The interpretation of ‘local’ had been split into the following three areas:
  • The first represented the boundary of each respective Council;
  • The second represented the boundary of the Partnership; and
  • The third represented the boundary of Lincolnshire, or 60 miles from the boundary of one of the Councils.

The Head of Procurement and Contracts (PSPS) outlined the following two minor amendments that had been recommended by Boston and East Lindsey scrutiny Panels:

• In respect of point 3.3 Managing Strategic Risk; the wording ‘Carrying out due diligence checks (financial, insurances, and H&S (where relevant)) on preferred providers prior to Contracts being entered into’, was replaced by ‘Following a procurement process, we shall carry out due diligence checks (financial, insurances, and H&S (where relevant)) on the supplier that we intend to award the contract to.’ The amend clarified that the Council did not have preferred providers and that due diligence checks were undertaken following a procurement process; and
• In respect of point 4.1 Creating Social Value; the wording ‘Reviewing the possibility of using the Social Value Portal..’, was replaced with ‘Reviewing the possibility of using a social value IT system..’

Members considered the report and made the following comments:

• Members  ...  view the full minutes text for item 10