Agenda item

Report of the Director of Commissioning and Procurement

Jo Pettifor, Category Manager Strategy and People, presented a report to the Sub Committee on the Procurement Plan 2016-2021.

The Procurement Plan is a 6-monthly report to the Sub Committee, with the plans (People, Places and Products) contained within the appendices. The plan for the next 5 years, along with the approach that will be taken, is set out. So far this year, £64,000,000 of contracts have been awarded, with 71% of those going to local suppliers.

RESOLVED to:

(1)  note the Nottingham City Council Procurement Plan 2016 – 2021;

(2)  note that the Procurement Plan is indicative of planned procurement activity and timescales, which may be subject to change dependent on the outcomes of the strategic commissioning process, service budgets and priorities and the full consideration of procurement options for each requirement;

(3)  note that the outcomes of procurement activity undertaken in accordance with the Plan during 2016/17 will be reported at the end of the financial year.

Reasons for decision

(1)  The Procurement Plan supports compliance with the Public Procurement Regulations and the Contract Procedure Rules of the Council’s Financial Regulations by enabling procurement activity to be planned and undertaken within the duration of existing contracts. This minimises the need for dispensation from the Financial Regulations to be sought to extend contracts beyond their expiry date without formal tendering being undertaken, other than in genuinely exceptional circumstances. This is particularly important in relation to goods and services that are subject to the full application of the European Procurement Directives.

(2)  The Procurement Plan is a key mechanism in the implementation of the Nottingham City Council Procurement Strategy 2014-17, enabling the planning of procurement activity to deliver the Council’s strategic priorities:

•  Grow the local economy

•  Drive increased local job opportunities for local people

•  Deliver effective value for money for our citizens

•  Lead as an Early Intervention City

•  Lead as a Green City.

(3)  The Procurement Plan supports compliance with the Public Procurement Regulations and the Contract Procedure Rules of the Council’s Financial Regulations by enabling procurement activity to be planned and undertaken within the duration of existing contracts. This minimises the need for dispensation from the Financial Regulations to be sought to extend contracts beyond their expiry date without formal tendering being undertaken, other than in genuinely exceptional circumstances. This is particularly important in relation to goods and services that are subject to the full application of the European Procurement Directives.

(4)  The Procurement Plan provides information for internal and external stakeholders about planned procurement activity and presents a clear, transparent and robust process of procurement planning. It facilitates joint working with partner organisations and collaboration in procurement activity. It allows other service departments (such as Legal Services) to include support for procurement activity in their work plans.

(5)  The Procurement Plan supports the Council’s commercialisation agenda by enabling potential ‘Make or Buy’ opportunities to be identified in a timely way in advance of existing contracts being due for renewal. It facilitates the forward planning of ‘Make or Buy’ considerations by the Make or Buy Panel.

(6)  The Procurement Plan informs provider markets about forthcoming opportunities to bid for contracts with the Council; enabling potential suppliers to prepare for these and enabling market development support to be offered.

Other options considered

Do nothing. This would impact on the planning of the Council’s procurement activity across all goods, works and services. It would risk non-compliance with the Council’s Contract Procedure Rules and Financial Regulations through contracts needing to be extended beyond their expiry date due to procurement activity not being undertaken in a timely way. In relation to commissioned services it would impact on the alignment of procurement activity with the programme of Commissioning Reviews undertaken within the Strategy and Commissioning Directorate. For these reasons, this option was rejected.