Agenda item

Report of the Head of Procurement. To be introduced by the Cabinet Member for Finance & Corporate Services.

The report seeks approval to establish multiple Pan London Dynamic Purchasing Systems (DPS) and to approve LB Haringey being the lead Authority on a pan London Legal Alliance Framework.

The Cabinet Member for Finance and Corporate Services introduced the report which sought approval of a three-month extension of a number of DPS categories associated with the provision of Adult Services, SEND, fostering, legal professional services and minor works up to the maximum period permitted under the Procurement Act 2023.

This decision was sought in advance of February 2025 when the new Procurement Act 2023 (Act) would come into force. The Act would abandon the establishment of DPS’s and replace DPS’s with Dynamic Markets; however, the Act prohibited any form of pre-selection criteria. The services outlined in the recommendations were service-related categories and were not able to use the Dynamic Markets. If the outlined decisions were not taken this would have significant impact on operations when procuring low value services, as services would need to undertake a process which was either open to the entire market and then undertake a highly administrative and complex assessment of capability, financial standing and any accreditation requirements at the point of tender or establish a framework agreement.

A significant advantage of using a DPS (or Dynamic Market) compared to a framework agreement was that suppliers could join at any time throughout the term of the DPS, whereas a framework agreement was generally closed to new suppliers.

This decision was urgently needed to meet the current borough priority of supporting businesses and local businesses as 90% of contracts were let through the Council’s DPS categories and awarded to small, medium sized enterprises (SMEs).

In addition, the report sought approval to procure a pan London legal alliance framework for the provision of legal services. Haringey was part of a consortia with other London boroughs who have agreed to jointly establish a legal alliance framework agreement for the provision of legal services. The procurement and establishment of a legal alliance framework agreement had been running for some years and members of the consortia take turns in being the lead authority to establish the framework agreement and act as the contracting authority. Haringey had been asked to be the lead authority for the next iteration of the framework agreement which was due to be advertised at the beginning of 2025.There was no financial impact when acting as the contracting authority

In response to questions from Cllr Hakata and Cllr Connor, the following information was noted.

-           Important to have a procurement system that was designed to protect SME’s. It was noted that the DPS was not just used in Haringey but a London wide system and used by public authorities. This also provided income to the borough as well as wider economy benefits. This decision protected low level contracts and meant suppliers could join at any time and the Council would not need to recreate the accreditation requirement when they apply for contract opportunities. If the decision was not taken forward, this would mean a significant administration burden on the Procurement department and supply chain, noting that over 90% contracts let through DPS go to SMEs, and 40% of which are within the borough and the rest is within neighbouring boroughs and outside of that.

-           Noted that the Cabinet Office were looking at potentially amending the legislation on dynamic markets due to the feedback that they had from organisations with the same issues.

-           Noted that due to this decision and past Cabinet decision on related DPS provision, care related contracts were protected, even if there were no changes in the planned procurement legislation they could still continue for the foreseeable future. Although, it was noted that provision through a DPS process, that sits outside of care, would have a deadline date of October 2028.

-           Assurance was provided of the work being done in procurement to ensure the Council had an effective cost management and contract management process in place. There was an internal piece of work considering the procurement costs and spend being completed by the Director for Finance in anticipation of the Procurement Act’s focus on value for money and as a prudent exercise to respond to budget pressures.

-           Regarding the capacity resources in the procurement team to support the decision on London Legal Alliance Framework, the impact was minimal as the Council only act as the contractor authority and have cost recovery policy in place which compensates the local authority. This comes from the levy that is supplied to each of the commissions from the framework.

-           There would be consultation with services around the best category strategies to put in place when the Procurement Act comes into force. This will enable much more transparency and accountability within the contract procurement process and the Council were putting in place the policies and the procedures to ensure the Council align with the new Procurement Act when it comes forward in February 2025.

RESOLVED:

1.         In accordance with CSO 10.02.1(b) and Regulation 72 (5) of the Public Contract Regulations 2015 to approve a three-month extension to the following DPS categories until 31 March 2025:

i. Home Support;

ii. Semi-Independent Living;

iii. Supported Living;

2.         In accordance with CSO 7.04 (a) and Regulation 34 of the PCR’s, the

establishment of the following pan London DPS categories, along with any relevant sub-categories:

i. Home Support;

ii. Semi-Independent Living;

iii. Supported Living;

iv. Residential Care

v. Independent Fostering Agencies

vi. SEND Transport

3.         In accordance with CSO 10.02.1(b) approves the enactment of the extensions for the LCP professional services and minor works DPS up to the maximum period permitted under the Procurement Act 2023 Commencement No.3 and Transitional and Savings) Regulations 2024 (as amended from time to time), currently 27 October 2028.

In accordance with CSO 7.04 (a) and Regulation 33 of the PCR’s, the

establishment of a pan London legal services framework agreement.

4.         To delegate authority to the Chief Procurement Officer to admit suppliers to the DPSs stated 3.2 above and to approve the award of the legal services framework agreement stated in 3.4 above to the successful suppliers following the completion of a compliant procurement exercises conducted in accordance with the Public Contracts Regulations 2015.