Agenda item

AUDIT COMMITTEE TRAINING - HOW THE COUNCIL PROCURES ITS GOODS AND SERVICES

Sarah Janusz, Head of Procurement will give a presentation at the meeting.

Minutes:

Sarah Janusz, Head of Strategic Procurement attended the meeting to give the Members of the Committee an overview of the way in which the Council procures its goods and services.

 

The presentation set out the Procurement Strategy 2013 – 2015: Buying into Bury, the key spend categories, how the Council engages with the Bury Business Community and how the Council works in collaboration with other Councils and partners.

 

It was explained that it was a good time to look at procurement due to a number of different factors including:-

 

  • Reductions in funding
  • Increasing demand for services
  • The requirement to get more for less
  • Demonstrating best value for money, and;
  • Ensuring procurement is embedded in governance arrangements

 

It was explained that the procurement strategy 2013 – 2015 was entitled ‘Buying into Bury’ and set out how the Council would:

 

  • Ensure best value
  • Deliver local economic benefit

 

The Strategy contributes to corporate vision, values and outcomes, sets out key performance indicators, Procurement structure, tools and techniques as well as external influences and challenges.

 

It was reported that contracts would usually fall into one of four categories:

 

  • Routine - Low value, low risk – minimise acquisition costs, use frameworks, efficient order processes (Furniture, Highways materials, cleaning materials, etc)
  • Bottleneck - Low value, high risk – Strategies include multiple suppliers, back-up contractors and partnering (mail services, traffic management, housing management etc)
  • Leverage – High value, low risk – maximise economies of scale through collaboration (utilities, ICT, Agency Staffing, catering etc)
  • Strategic – High value, high risk – use procurement expertise, ensure adequate resourcing and strong project management (Adults Social Care, Children’s Social Care, Construction – properties, Construction – Highways)

 

The top ten contracts were:

  • Utilities                                             £2.7m
  • Capital project                                    £2.7m
  • Care contract                                      £2.4m
  • Repairs/Maintenance Contracts                      £1.7m
  • Utilities                                             £1.7m
  • Capital project                                    £1.4m
  • Capital project                                    £1.4m
  • Care contract                                      £1.3m
  • Care contract                                      £1.2m

 

Sarah explained that the Council had established a relationship with the local Chamber of Commerce and had put a number of different initiatives in place including the use of ‘The Chest’ which allowed local companies to view and tender for Council opportunities, the use of PQQs (pre qualification questionnaires), meet the buyer events, supplier feedback and payment terms for subcontractors.

 

The Council was also working in collaboration with AGMA and the Yorkshire Purchasing Organisation.

 

Members of the Committee were given the opportunity to ask questions and make comments and the following points were raised:-

 

  • Councillor Bury asked whether the Council had set terms and conditions in relation to contractors employment of staff. Councillor Bury referred to the use of zero contract hours and agency staff.

 

Members of the Committee were given the opportunity to ask questions and make comments and the following points were raised:-

 

  • Councillor Bury asked whether the Council had set terms and conditions in relation to contractors employment of staff. Councillor Bury referred to the use of zero contract hours and agency staff.

 

Sarah explained that there was a list of social criteria that would be considered when developing the strategy for a particular procurement project.  Relevant criteria could be incorporated into the contract requirements and these would then form part of the awarded contract

 

It was agreed:

 

1.                 That Sarah be thanked for her presentation.

 

2.                 That the KPIs and Social Criteria/Guidance list are circulated to the Audit Committee.