Agenda item

The Committee will receive a report which provides an update on the work being undertaken to deliver the refreshed Procurement Strategy, with a particular focus on the following areas:

·            Supplier engagement.

·            Contract management and strengthening governance procedures.

·            Forthcoming procurement legislation.

·            Procurement planning.

·            Procurement best practice.

Contact:

Jane Lockwood – Head of Procurement

A report giving an update in respect of procurement was considered by the Committee.

Councillor Davies, the Cabinet Member for Corporate, provided an introduction, explaining that:

·       There were huge pressures in terms of costs, relating to both large and small contracts.

·       The Procurement Team played a vital role in ensuring the achievement of best value for money, maximising social value and securing quality contactors.

·       The team was working to deliver the refreshed strategy and this report focused on supplier engagement, contract management, strengthening government procedures, the forthcoming procurement legislation, and procurement planning and best practice.

Jane Lockwood, Head of Procurement, explained that. in November 2022, Cabinet had approved the new Procurement Strategy for Kirklees, which focused on five strategic themes;

·       Delivering Social Value.

·       Promoting Inclusive Procurement.

·       Continuing to Develop the Category-Led Approach

·       Striving for Innovation and Improvement in all Areas.

·       Good Governance.

Since that point the team had focused upon delivery of the new strategy, alongside normal business activity, the detail of which was set out in the report. There was a detailed action plan (which had previously been shared with the Corporate Scrutiny Panel). There had also been a focus on activity in anticipation of new procurement legislation.

Questions and comments were invited from Committee Members, with the following issues being covered:

·       Timescales for the process, from business case through to delivery, were dependent on the size and complexity of the contract in question. Indicative timescales for a standard procurement had been shared with services. New processes had also been introduced to assist managers in planning and governance, improving visibility and obtaining sign-off at appropriate points.

·       In terms of demonstrating outcomes in respect of delivery of the five strategic themes, data would be gathered, for example in relation to the numbers of SMEs (Small to Medium Enterprises) or the social value delivered through an individual procurement.

·       Although one of the stated aims of the Health Care Services Provider Selection Regime was to reduce bureaucracy a whole range of checks and balances/ scrutiny and challenge would still be in place.  This legislation would not have a significant impact on the Council due to the limited number of services that fell within this remit.

·       Significant work had been undertaken in respect of social value and inclusivity.  An award had been won by the team in 2023 for its approach to social value. Feedback had also been received which indicated that Kirklees’ record in respect of how much was being delivered was strong in comparison to others. Local spend was monitored and the level had been maintained or improved year-on-year. Work was also being pursued in respect of the development of an inclusive economy, community wealth- building and a resilient approach for communities.

·       Collaboration, such as with other local authorities, was explored and pursued where appropriate.

·       It was noted that the market, at the current point in time, was very challenging.

·       In terms of preparation for implementation of the new legislation and introduction of new Key Performance Indicators (KPIs), it was explained that contracts that were currently being let would be governed by existing legislation.

·       One of the key areas of focus within the new legislation was transparency. The authority had already introduced improvements and was continuing to work on ensuring transparency.

·       A considerable amount of activity had also been undertaken/was continuing in respect of contract management; including the establishment of a Contract Assurance and Resilience Board; participation in the Commercial Continuous Assessment Framework, which had helped to provide a good baseline to assist in identifying areas for improvement; and the sharing of information and good practice with other Local Authorities and providers. It was considered that the authority was in a strong position.

·       At the present time the completion of the foundation contract management training by managers was a recommendation rather than a requirement. Feedback would be sought to ascertain its benefits and used to guide the approach for the future. This was just part of an approach to establish the right kind of culture and strengthen contract management within the organisation.

Resolved –

That another report be presented to the Committee, further to the implementation of the Procurement Act 2023, to provide an update in respect of how the work is progressing and an assessment of its impact.