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Andrew Weavers, Monitoring Officer, introduced the Review of contract management arrangements, which requests that the committee note the contents of the report.
Andrew Weavers stated that this report has come to the Committee following a request for further information at its meeting on 28 June 2016.
Alison Shaw, Business Partner (Procurement), provided the Panel with a presentation on contract management within the Council. The presentation outlined the procurement rules and regulations that the Council adheres to. It was outlined to the Committee that the over-riding procurement policy is that all procurement must be based on value for money. Procurement at Colchester Borough Council is governed by three sets of rules and regulations, this includes an EU directive, UK legislation and the Council’s constitution.
Alison Shaw highlighted that public procurement is subject to principles from both the EU Treaty as well as those principles that have emerged from case law. In addition to the principles there are thresholds for the value of the procurement which require slightly different approaches. There are those values set within the Colchester Borough Council constitution, and thresholds set by the EU; if higher than the EU thresholds the procurement is subject to EU tender.
Alison Shaw informed the committee of the procurement process, the framework agreements and the use of electronic tendering software. An update on the impact of the EU referendum result on procurement was also provided to Committee members, Alison Shaw outlined that it was likely that public procurement rules more generally will remain in place as they have been implemented via UK law. Committee members were also provided with information on contract management lifecycle and the responsibilities of the contract management team.
Hayley McGrath, Corporate Governance Manager, provided further information on the management of the Audit and Insurance contracts. Hayley McGrath stated that the two contracts have different styles of service delivery, with the audit contract being an onsite service delivery, whereas the insurance contract is provided by offsite advisors. Due to the cost associated with the insurance contract this was tendered through the Official Journal of the European Union (OJEU), whereas the audit contract used the central government framework. Hayley McGrath also highlighted the management of the contracts and how they differ. With regard to internal audit a good working relationship with the manager is required due to frequent meetings, in addition the contract contains a number of key performance indicators to enable performance to be monitored. In terms of insurance, due to its reactive nature a significant amount of information had to be provided by the Council in advance of the tender, with key performance indicators measuring performance against previous years.
In response to a question regarding the Essex Procurement Hub, Alison Shaw stated that the hub consist of six councils, Colchester Borough Council, Braintree District Council, Epping Forest District Council, Castle Point District Council, Maldon District Council and Rochford District Council. The hub provides a small rebate back to the partners when a contract is awarded through that system, an example of a contract awarded through this is the playground landscaping contract.
In response to a query regarding different views of procurement between senior management teams and frontline staff members, Hayley McGrath stated that getting information from staff members about current contracts forms part of the tender exercise. In addition if there are issues during a contract this should be picked up by the contract manager and fed through to management.
The Committee thanked the officers for the presentation and requested that a copy of the presentation be made available through the online members’ library on CMIS.
RESOLVED that Colchester Borough Council’s contract management arrangements be noted.