Agenda item

(a)       That the Procurement Annual Report for 2021/22 be noted; and

(b)       That progress with the FastTrack and Free Pay initiatives be noted.

The Chief Officer (Governance) introduced the annual report of the Joint Procurement Service with Denbighshire County Council on its regulated procurement activities during 2021/22.  An update was also given on the benefits of the ‘FastTrack’ early payment option for suppliers and the ‘Free Pay’ initiative which benefitted eligible small businesses and suppliers.

The Revenues & Procurement Manager provided background on the role of the service and key areas of the report.  The overview of activities during 2021/22 reflected progress with the rollout of FastTrack and the number of contracts awarded, which included an increasing number incorporating social value benefits.  On key performance indicators, whilst the number of procurements awarded collaboratively was identified as an area for further improvement, it was noted that no legal challenges had been made by unsuccessful service providers which was a significant achievement.  The report highlighted challenges to the service such as public sector procurement resources and future legislative changes including decarbonisation.

Councillor Alasdair Ibbotson welcomed focus on carbon reduction linked to procurement spend and the ambition to build upon opportunities to embed social value into procurement activities to make a real difference to communities.

His comments were welcomed by Councillor Paul Johnson who paid tribute to the commitment of the Social Value team.

In response to a question from Councillor Allan Marshall, the Chief Officer (Governance) provided clarification on FastTrack eligibility criteria.

Councillor Sam Swash raised concerns about the rationale for the decision taken to increase the threshold for goods and services set out in paragraph 1.05.  On that basis, he proposed that the Committee note rather than endorse the annual report and that a recommendation be added to request that the Constitution & Democratic Services Committee revisit its decision.

The Chief Officer (Governance) advised that the decisions of the Constitution & Democratic Services Committee were not within the remit of this Committee.

The Chairman spoke in support of the points raised by Councillor Swash which he said should be referred to Cabinet.  On the performance statistics, he voiced concerns that on CPS3 and CPS4, only half of the contracts had delivered the anticipated savings.  On the annual report, he sought more information on reference to some contract variations being due to poor contract management which was devolved to service areas.  He also questioned the benefits for Flintshire given its level of contributions to the collaborative service.

The Committee was introduced to Lee Evans, Procurement Team Leader of Denbighshire County Council, who explained that a significant degree of work was involved in the procurement process, regardless of the value of those contracts.  On performance, only a few procurement contracts could be best delivered collaboratively as many were for specific works within Denbighshire or Flintshire, for example schools, or due to some council services having different ways of working.  Where collaborative procurement could not be progressed, information was shared with Chief Officers.  The delivery of anticipated savings was mainly impacted by rising inflation costs and service areas providing incorrect estimates.

On the latter, the Revenues & Procurement Manager said that CPS3 was a complex area due to the need for services to provide a best estimate of the contract outcome based on market conditions at the time.  On the split in contributions, he advised that although there had been variations in different years, an amicable agreement had been reached over a set period.

In response to the comments made by Councillor Swash, the Chairman proposed an amendment in the recommendations so that the Committee note the annual report.  He was seconded by Councillor Bill Crease.  The amendment was put to the vote and carried.

RESOLVED:

(a)       That the Procurement Annual Report for 2021/22 be noted; and

(b)       That progress with the FastTrack and Free Pay initiatives be noted.