Report of the Head of Integrated Commissioning and Procurement.

This report provides an overview of the work of the Major Contracts Review Board and the development of the Delivery Model Assessment Policy which will set out the issues to be considered in deciding on the approach to future major contracts.

The committee considered a report of the Head of Integrated Commissioning and Procurement which provided an overview of the work of the Major Contracts Review Board and the development of the Delivery Model Assessment Policy which will set out the issues to be considered in deciding on the approach to future major contracts. 

Key themes and points within the report included:

·         The establishment of the Major Contracts Review Board was recommended by this committee in July 2022 to evaluate all major contracts;

·         The main aims and terms of reference of the Board;

·         The work of the Board to date; and 

·         A clear policy framework had been created to guide decision-making on the appropriate delivery model options for major contracts, which was of heightened profile following the adoption of a recent Council motion that advocated insourcing as the default option for services.

Key points and queries that arose from the committee’s discussions included:

·         Welcoming the update; 

·         If and how the Board considered potential future contracts and the possibility of insourcing in the future; 

·         Why works were considered out-of-scope of the policy framework for major service delivery model decisions; 

·         The need for greater clarity in the policy as to the criteria for a contract being awarded through a key decision; 

·         Suggesting that the work of the Association for Public Service Excellence, which the Council subscribed to, be highlighted in the policy’s scope; 

·         Noting that trade unions were not mentioned in the discussion paper, and querying how the Council would liaise with trade unions where it was considering bringing a service in-house; 

·         The need to reflect the democratic will and electoral mandates; 

·         The number of silver and bronze contracts and the process for awarding these; and

·         How Members could find information on the Council’s contracts. 

In introducing the item, the Deputy Chief Executive and City Treasurer stated that the Board had oversight of those contracts which were of significant reputational, financial or strategic importance to the Council but did not have oversight of major capital contracts and those between the Council and other public bodies. She stated that the Board had met three times since its establishment in November 2022 and there had been a focus around delivery models. 

The Deputy Chief Executive and City Treasurer stated that the report aimed to highlight the importance of the lead-in time for deciding the approach to future major contracts and it was important to understand and have capacity within these services, which was a key objective of the Board. The Strategic Lead – Commissioning also explained that the draft Delivery Model Options Discussion Paper would introduce new practice and require officers to consider insourcing when assessing all contracts rated gold.

The Deputy Chief Executive and City Treasurer clarified that works listed as out-of-scope referred to major capital construction and not lower-level maintenance and the wording of this would be revised for clarity. 

She confirmed that she was the statutory officer for contract decisions and that these needed to be transparent and account for value-for-money and policy direction. It was also stated that the Council was a democratic local authority and would be mindful the mandate of elected members. 

In response to discussions around trade unions, the committee was advised that these were referenced as part of the engagement consultation, and this was included on the agenda of the next Corporate Joint Consultative Committee (JCC) meeting.  

The Strategic Lead – Commissioning stated that there were currently over 1000 lines in the contract registers, although these included Framework Agreements and low-level contracts. Members were also advised that the contract for a new contract management system had recently been awarded with the new system being implemented soon. 

He also explained that all formally procured and awarded contracts over £25,000 were uploaded to The Chest, which was the Council’s procurement portal and was available for public inspection through the website. The Council also had to publish spend data for all expenditure over £500 monthly, which was also available on the website. It was clarified that some social care spending was not included due to data protection regulations around personal information.

The Executive Member for Finance and Resources commented that the Delivery Model Options Discussion Paper and Policy were in the early stages of development and assured members that this would reinforce the Council’s commitment to insourcing where appropriate. He acknowledged that residents wanted value-for-money and the best use of public funds to deliver high-standard services. He stated that the policy would provide the Council with the capacity to progress and deliver on the commitment to insourcing whilst also continuing to provide important services for residents. 

Decision:

That the Committee

1.    notes the report;

2.    recommends that the works listed as out-of-scope of the policy be clarified to reflect that this did not include maintenance; and 

3.    recommends that the work of the Association for Public Service Excellence be highlighted in the policy’s scope.