Agenda item

[Report of the Director for Environment and Neighbourhoods. To be introduced by the Cabinet Member for Local Investments and Economic Growth.]

This report sets out a refreshed Procurement Strategy for the Council which covers the period 2020 – 2025.

The Cabinet Member for Local Investment and Economic Growth introduced this report which set out an up-to-date Procurement Strategy for the Council.

The Cabinet Member highlighted the following:

• Paragraph 1.4 of the report was not in order of importance.
• There was specific weighting within the procurement strategy for the promotion of social values and also community wealth building.
• The Council was looking to increase its contract expenditure with local businesses from circa 25% to 30% per annum.
• London Living Wage was a key feature of the Procurement Strategy.
• Encouraging that suppliers be based in the Borough, wherever possible.

In response to questions from Councillor Conner, the following information was provided:

• Officers confirmed there was an insourcing sub group and a number of governance boards that reviewed proposals and so there was no potential for conflict of interest between procurement interacting with insourcing decisions. A decision to insource would be made prior to a decision to go out to market.
• Officers informed there were requirements within Council contracts to comply with the Freedom of Information Act and any other statutory obligations. The Council would encourage suppliers to be as transparent as possible, insofar as commercial confidentiality allowed.
• Regarding quality weightings to be introduced, Officers noted this would be done on a case by case basis and was dependent on what the Council was looking for.

RESOLVED

1. To approve the 2020 – 2025 Procurement Strategy, as set out in Appendix 1;

2. To note the progress made to date in relation to Strategic Procurement and its achievements in supporting Community Wealth Building, small businesses and promoting social value;

3. To note the links with the Council’s Commissioning framework, Insourcing Policy and Community Wealth Building approach;

4. To note compliance with the Social Value Act, Public Contract Regulations and National Procurement Strategy.

Reasons for decision

The Council’s current outdated Procurement Strategy was established in 2010. Since then, the Public Contract Regulations have changed, we have seen the introduction of the Social Value Act, both of which have significantly altered the way in which we are able to procure works, goods and services. The emergence of the Borough Plan and the changes to the Council’s priorities have meant we need to adopt a new Procurement Strategy that reflects these changes.

A revised Procurement Strategy is a deliverable of the Borough Plan (outcome 13) and supports many of the priorities within the Borough Plan.

In 2018 a new National Procurement Strategy was released; the Strategy presented to Cabinet (Appendix 1) is aligned to the National Procurement Strategy, which the Council is required to submit returns to central government.

The Strategy provides a Delivery Framework and key considerations in how we structure our procurement activity. Applying this structure and consistency across our commissioning and procurement activity will assist deliver the Council’s priorities?

This strategy sets out the ambition for the Council’s use of Procurement to positively impact on our economy and communities in recognising the commercial, social, economic and environmental benefits to be gained from taking a sophisticated intelligent approach to our Procurement activity.

Adopting the Strategy will enable significant social, economic and environmental benefits to be delivered to our local businesses, residents, community groups.

Alternative options considered

Do nothing

This is not a realistic option as the 2010 Procurement Strategy is not aligned to the current Regulations, Borough Plan, Council Priorities or National Procurement Strategy.