Agenda item

Report of Chief Officer (Resources).  

The Chief Officer (Resources) submitted a report that allowed the Panel to consider and scrutinise progress on updating the City Council’s Procurement Strategy, in light of recent and ongoing national and local issues. 

As part of its terms of reference, the Panel had responsibility for scrutinising the City Council’s various arrangements for securing value for money (VFM), and making recommendations as appropriate. The City Council’s procurement framework was one aspect of such VFM measures. 

In recent months it had been reported that a review of the City Council’s Procurement Strategy was underway.

The report provided an update on progress to date and recent key issues arising.  It also provided an opportunity for some pre-scrutiny in order to help to shape the proposals, ahead of Cabinet’s consideration of the final draft of the Strategy.

Appended to the report were the key elements from the City Council’s working draft, the Local Government Association’s published national strategy, the Local Government Association’s response to the Government consultation on EU Procurement Directives and work that had been undertaken to inform how best living wage considerations should be reflected in the Procurement Strategy and associated arrangements.  Work had been undertaken on the final Appendix in view of a motion to Council on 16^th July 2014 with regard to procurement, the Living Wage and the Public Services (Social Value) Act 2013. 

The Panel was also advised of a motion that had links to procurement that had been considered at Council on 22^nd October 2014. 

Members raised a number of issues such as the definition contained within page 10 of the agenda regarding a local supplier, how often the Strategy was updated, the Public Services (Social Value) Act 2013 and the Living Wage. 

The Panel considered the report and appendices and made the following resolutions. 

Resolved:

(1)     That the Panel notes the progress to date and the various issues still to be addressed in completing the Procurement Strategy update. 

(2)     That, in light of the associated national and local issues raised in the report, the Panel’s feedback responses are as follows:-

·                The Panel has no strong views to the City Council’s key elements from the City Council’s working draft or the National Procurement Strategy, as appended to the report.  

·                The Panel accepts the recommendations in Appendix E to the report, as set out below:

The City Council should not apply a standard approach which enforces the payment of the Living Wage by contractors. Contracts should be considered on a case by case basis, in consultation with Legal Services, to avoid the risk of legal challenge in terms of discrimination.

In line with professional guidance, if applied, care should be taken to ensure the Living Wage requirements do not directly, or indirectly, discriminate and should be included as contract performance conditions, rather than award criteria. 

The City Council should demonstrate its commitment to the principles of the Living Wage through encouraging contractors to adopt it, this being reflected in the Procurement Strategy. 

·                That it be noted that the Panel does not wish to give any other specific feedback at this stage. 

(3)     That the Panel wishes to have a further opportunity for fuller pre-scrutiny prior to the updated Procurement Strategy being presented to Cabinet.