Agenda item

To consider the report of the Interim Director of Resources, (copy enclosed).

The Committee considered the report of the Interim Director of Resources outlining some of the steps the Council could take to improve its procurement practice and more importantly contract management once the contract had been awarded.  The report sought Members’ comments regarding implementing a culture of consistency, good procurement and contract management once the contract had been awarded.

The report provided detailed information regarding contract procurement and management including good practice.  Members noted that operational arrangements were in place in respect of the oversight on procurement activity and to ensure the observance of the Council’s Financial and Contract Procedure rules.  The Council's current arrangements with the Essex Procurement Hub had also been reviewed.

The Interim Director of Resources pointed out that there had been a duplication of paragraph 3.7.2 in the report.  The Director advised how he had drawn good contract practices and policies from various sources.  Members were advised of the need to put in place arrangements to ensure clear monitoring of the capital programme in terms of its finances, physical works and spending against budgets.

Councillor D M Sismey suggested that in the interim the Council put a higher level of scrutiny on procurements with a budget of over £50,000.

Concern was raised regarding the use of Contracts Finder and it was felt that its use stopped more local businesses bidding for contracts with the Council.  In response, the Interim Director of Resources advised that Contracts Finder was a Government service and system which the Council was required to use.  The Director advised that when approached a number of local businesses had expressed a reluctance to spend the time and effort to bid for work through Contracts Finder and there was therefore a need for the Council to encourage them.  He highlighted some of the work that could be done by the Council's Economic Development Service to support local businesses, part of which could include a guide on 'How to do business with the Council'.

In response to other questions the Interim Director of Resources explained that Prince2 practices whilst good for a large project proved onerous for smaller projects and therefore any recognised methodology would need to be adapted to the requirements of the project under consideration..  The Head of Legal Services is involved at the time of procuring contracts.  The Director supported the suggestion for escalation of checking projects over £50,000 and advised that this could be brought in.  He suggested that the Corporate Leadership Team could be the final approver and sign off of a contract to go ahead and monitored through quarterly arrangements.

Councillor Sismey proposed that for contracts over £50,000 that as an interim arrangement until the new Director of Resources came back with a new approach that the Corporate Leadership Team sign off all key stages of such contracts and contractual terms.  This proposal was duly seconded and agreed.

At this point in the meeting the Chairman welcomed Ms Carrie Cox, Finance Manager to the meeting and the Council.  He also expressed his thanks and those of the Committee to Mr Kamal Mehta, Interim Director of Resources for the fantastic job he had done for the authority over the last five months.

RESOLVED

(i)              that the contents of the report be noted;

(ii)            that for contracts over £50,000 that as an interim arrangement until the new Director of Resources came back with a new approach that the Corporate Leadership Team sign off all key stages of such contracts and contractual terms.