Agenda item

[John Thompson, Head of Procurement ,and Parvinder Uppal, Head of Commercial,to present report]

The Chair invited John Thompson, Head of Procurement, to present the report.

The Head of Procurement gave an overview of the background to the Procurement Bill. The Head of Procurement advised the panel that the proposed changes to public procurement regime is expected to be introduced in early 2023, following a six-month transition period.

The Head of Procurement commented on the key changes the procurement arrangements and welcomed the proposal to give the Council new discretionary powers in the Bill to exclude suppliers for poor performance but is awaiting further national guidance on how this change will work.

The Head of Procurement commented on the work done to prepare for the implementation of the Bill and highlighted a recent peer review exercise to assess the level of readiness for the changes. The Head of Procurement advised the panel that Wolverhampton scored the highest among the cohort for the Pipeline work being undertaken.

The Head of Procurement commented on the significant resource implications of the changes in the Procurement Bill and advised the panel that when they have been approved by Parliament then meetings will be held with colleagues in audit and legal to review the Councils Constitution, policies, and procedures to ensure that they are compliant with the requirements of the Act.

The Head of Procurement briefed the panel about the progress of implementing recommendations from the Wolverhampton Pound review which relate to work of procurement service.

The Head of Procurement introduced Parvinder Uppal, Head of Commercial, to comment on progress against the contract management project objectives previously presented to the panel.

The Head of Commercial commented on the link between this work and the new Procurement Bill, the strategic priorities of the Council and the work being done to improve capabilities of employees with contract management responsibilities. The Head of Commercial briefed the panel on training of employees and the development of templates as part of a complete overview of the contract management process.

The Head of Commercial advised the panel that 176 employees had completed the mandatory foundation training and currently 74 per cent of employees have successfully completed the training. The Council has accepted the offer of 10 places for Practioner level training, the next level of training, which has been funded through DLUC and CCS. A request has been made for extra places in response to requests from colleagues.

The Head of Commercial briefed the panel on the initial findings from the contract lifecycle management review from a sample of 346 contracts in the database as part of efforts to improve performance.

The Head of Commercial updated the panel on joint work with colleagues in legal and HR to consider changes as part of efforts to develop a streamlined contract process.

The Head of Commercial added that work had been done to procure a contract management system that would a provide a strategic overview of contracts and performance monitoring but unfortunately, the submissions received did not meet this aim. A business analyst has been recruited to help develop other options for an online tendering and contract management system and to support work being done to meet the requirements of the Procurement Bill, for example, reviewing the roles of employees with contract management responsibilities.

The Head of Commercial invited the Head of Procurement to continue with the presentation.

The Head of Procurement briefed the panel on the background to Council’s involvement and other public sector bodies in the development of the Commercial Standards and Continuous Improvement Framework as part of the peer review exercise.  The Head of Procurement commented on the assessment rating overall for Wolverhampton against the nine framework themes was either ‘good’ or ‘better’.

The Head of Procurement commented on further action planned against the themes to further improve performance as part of an ongoing continuous improvement programme.

The panel were invited to comment on the report and presentation.

The panel thanked the presenters for the report and congratulated them on the performance of the service. The panel commented on the reference in the presentation to working with Wolverhampton University to encourage students to study for a career in procurement and to provide professional training for the Chartered Institute of Procurement and Supply.

The panel were concerned that the University is looking to reduce the number of courses offered and suggested that an update on progress of this idea be reported to a future meeting.

The Head of Procurement agreed to update the panel on progress of discussions with the University.

The panel queried the creation of the post Head of Wolverhampton Pound and the grade for the role and added this was not a recommendation from the review. The Head of Procurement confirmed that this is a new post, and that the salary grade has not yet been agreed. The Head of Procurement agreed to provide the information requested when available.

The panel commented on the findings from the Wolverhampton Pound review which highlighted the challenges facing local businesses when bidding for Council contracts and queried the support offered to support them.

The Head of Procurement accepted the challenges facing local suppliers and outlined the action being taken to support them. The Head of Procurement commented on changes made to the procurement process in response to comments at a recent meet the supplier event at the Molineux. The Head of Procurement highlighted that a recent change has been the reduction in level of employer liability insurance for business wanting to bid for contracts from £10 million to £5 million, which is the industry standard level of cover.

The panel thanked the presenters again for the report.

Resolved:

1.       The panel comments on the report and presentation to be noted.

2.       The panel agreed to receive updates on actions agreed to be presented to a future meeting.