Agenda item

Procurement Strategy

(Cabinet Member with Special Responsibility Councillor Reynolds)

 

Report of the Director of Corporate Services (report published on 7 July 2020)

Minutes:

(Cabinet Member with Special Responsibility Councillor Reynolds)

 

Cabinet received a report from the Director of Corporate Services which sought approval of a revised strategy and action plan for procurement to cover the next four years. Whilst the strategy maintained a focus on value for money in procurement decisions, it also set out the importance of the Council’s procurement to the local economy and an ambition to maximise expenditure with local organisations, enhance community wealth building and seek increased social value from spending decisions.

 

The Cabinet member with responsibility confirmed that consideration would be given to involving and updating the Budget & Performance Panel in relation to the process and procedure.

 

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

 

Option 1: Cabinet endorse the Procurement Strategy and action plan.

 

Advantages: This will allow early adoption and completion of the action plan which will enable more pro-active procurement which supports the delivery of wider community benefits which address the climate emergency and community wealth building aspirations.

 

Disadvantages: None identified.  

 

Risks: Potential for sub-optimal procurement decisions if processes for incorporating social value are not clear and consistent.  

 

Option 2: Do not agree the Procurement Strategy and action plan.  

 

Advantages: No changes to existing processes which are well established which focus on cost and quality (but not social value) and make use of national frameworks to deliver a combination of low cost and quality.

 

Disadvantages: Council will miss out on opportunity to address key corporate themes including climate emergency and community wealth building in procurement decisions and the wider social, economic and environmental benefits which would accrue from their incorporation in the assessment process.

 

Risks: Council may be assessed as not meeting its own corporate priorities and those set out in the National Procurement Strategy.

 

The officer preferred option is Option 1. Approval of the Procurement Strategy will allow for the action plan to be implemented which will deliver a more proactive approach to procurement and demonstrable improvements in social value arising from expenditure decisions.

 

Councillor Reynolds proposed, seconded by Councillor Hamilton-Cox:-

 

“That the recommendation, as set out in the report, be approved.”

 

Councillors then voted:-

 

Resolved unanimously:

 

(1)             That the Procurement Strategy and action plan for 2020-2024 be adopted.

 

Officer responsible for effecting the decision:

 

Director of Corporate Services

 

Reasons for making the decision:

 

The Procurement Strategy will assist in the delivery of the Council’s recently adopted priorities:

 

An Inclusive and Prosperous Local Economy

 advocating for fair employment and just labour markets that increase prosperity and reduce income inequality

  supporting new and existing enterprises in sustainable innovation and the strengthening of local supply networks 

 

The objectives set out in the Procurement Strategy cover the maximisation of social value benefits. This will include incorporating adoption of fair work charter in the evaluation criteria. The objectives also set out how the Council will support local businesses and this will include developing local frameworks and supply chains.

 

A Sustainable District

  net zero carbon by 2030 while supporting other individuals, businesses and organisations across the district to reach the same goal

 

Minimisation of environmental impact will be incorporated into evaluation criteria.

 

A Co-operative, Kind and Responsible Council

  providing value for money and ensuring that we are financially resilient and sustainable 

 

The objectives set out in the Procurement Strategy cover maximising value for money as well as delivering wider economic, environmental and social outcomes. In addition to assisting the delivery of priorities, the Procurement Strategy will focus on the key corporate themes of Climate Emergency and Community Wealth Building via the adoption of relevant measures to be included in evaluation criteria.

 

Supporting documents: