Report of the Head of Integrated Commissioning and Procurement and the Strategic Lead – Commissioning.

This report provides an update on the Council’s key contracts, the Council’s approach to procurement of these contracts and assessments of how to source contracts due for renewal and / or extension.

The committee received a report of the Head of Integrated Commissioning and Procurement and the Strategic Lead – Commissioning which provided an update on the Council’s key contracts, the approach to procurement of these contracts and assessments of how to source contracts due for renewal and/or extension.

Key points and themes within the report included:

• An introduction to major contracts, how they are classified as major contracts and a summary of oversight arrangements;
• Background to the Major Contracts Board;
• An overview of the procurement pipeline and recommissioning status of the major contracts; and
• Next steps for the work on major contracts and the contract management programme of work more generally.

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

• Noting the brevity of the report;
• Requesting that milestones be built into the Board’s work programme to enable the Resources and Governance Scrutiny Committee to comment on the procurement of contracts;
• Whether progress updates on the Housing Repairs Contract could be provided to the Resources and Governance Scrutiny Committee at 12- and 24-month points;
• Requesting that a report on the Housing Repairs Contract be provided to the Scrutiny Committee;
• How many contracts had plans to be insourced;
• Emphasising the democratic will of the Council to insource services, and querying what obstacles there were to this;
• Requesting that a future report includes an appendix with more detailed information on each contract;
• Whether trade union consultation had been considered by the Joint Consultative Committee (JCC); and
• Noting that the implications of the new Procurement Act could fall within the remit of the Audit Committee and requesting that both the Chair of Resources and Governance Scrutiny Committee and the Chair of Audit Committee are kept informed.

In introducing the item, the Deputy Chief Executive and City Treasurer apologised for the lateness of the report, advising that there was currently limited capacity within the Procurement team and that lessons would be learnt. She explained that the work of the Major Contracts Oversight Board work aligned with the developing insourcing policy. It ensured that the Council worked ahead of schedule on the contracts pipeline and had sufficient lead-in time to consider all options and undertake feasibility studies in advance of contracts expiring. It also focused on ensuring that the appropriate contract monitoring mechanisms were in place.She provided assurances that the Biffa waste service contract was within the remit of the board and had been considered recently.

In response to a member’s request, the Strategic Lead – Commissioning stated that the Board would meet the week after and would ensure that the work programme aligned with that of the Scrutiny Committee. He also stated that the Board was examining general updates on the performance of major contracts in addition to future procurement.

In response to a request for 12- and 24-month progress updates on the Housing Repairs Contract, the Deputy Chief Executive and City Treasurer stated that she would discuss with the Executive Member what the appropriate mechanism would be for sharing this information with the committee.

The Strategic Lead – Commissioning explained that there were delivery assessment models being progressed or shortly being progressed for all contracts soon to be procured or recommissioned. He recognised that there were time pressures impacting some contracts and that some were unsuitable to be insourced, such as where there are only single providers within the sector.

The Executive Member for Finance and Resources reiterated that the viability of insourcing was a key part of the delivery model assessment of contracts and clarified that there was no resistance to insourcing amongst officers. The Executive Member for Housing and Development stated that the Executive and officers recognised the motion on insourcing passed at Full Council in February 2023 and cited bringing Northwards housing stock under the Council’s control as an example of the commitment to insourcing.

In response to a request for a report on the Housing Repairs Contract, the Strategic Lead – Commissioning stated that he would consult with the Director of Housing Services and the Executive Member for Housing and Development on this.

It was also confirmed that the Joint Consultative Committee had discussed consultation with trade unions and that the draft policy had been shared with them. Further detailed conversations would be held over the summer.

Decision:

That the Committee

1. notes the report, and

2. requests that a more substantial report be provided at the next update and includes an appendix with more detailed information on each major contract and whether insourcing would be viable.