Agenda item

Report of Director of Commissioning and Procurement

This item does not contain any decisions that are eligible for call-in.

Steve Oakley, Head of Contracting and Procurement, presented the report and stated the following:

·  The Nottingham City Council Procurement Strategy 2018-2023 drives the use of the Council’s spending power to drive the key strategic objectives of:

o  Citizens at the heart;

o  Securing economic, social and environmental benefits;

o  Commercial efficiency.

·  The report presents the outcomes and achievements delivered under the Strategy in its fourth year 2021-22, (detailed in appendix 1) and over the four years of the Strategy 2018-21 (detailed in appendix 2). During 2021-22, procurement activity delivered:

o  367 contracts awarded - representing a total value of £128.8m;

o  £68.29m invested in the local economy – 53% of total contract value awarded to City suppliers, of which £27.8m was awarded to local SMEs. Over the four years of the Strategy 2018-2022, a total of £1.16bn has been invested in the local economy – an average of 60.51% of total contract value awarded to City suppliers;

o  54.55% of the total contract value awarded (£70.29m) retained within Nottinghamshire; 74.52% within the East Midlands area overall (£96.02m);

o  105 environmental measures and benefits secured through contracts awarded;

o  35 new entry level jobs and apprenticeships created;

o  Cashable savings of £0.515m per annum on recurring contracts – representing 10.74% of total contract value (recurring contracts only);

o  Anticipated income generation of £1.375m from concession contracts awarded and approximately £0.205m external income raised from procurement and contracting activities;

o  70 contracts awarded subject to the 1% levy rebate. Actual levy income is dependent on expenditure incurred during the lifetime of contracts and based on expenditure on relevant contracts during 2022-23, the income generated for employment and skills activity was £90,000.

Resolved

(1)  to note the outcomes delivered:

(a)  under the Nottingham City Council Procurement Strategy 2018-23 in its fourth year (2021-22), as detailed in appendix 1;

(b)  during the four years of the Procurement Strategy 2018-22, as detailed at appendix 2;

(2)  to note that the Nottingham City Council Procurement Plan was to be refreshed during 2022-23 as part of the procurement transformation programme, and the updated Plan would be reported to a future meeting of this Committee once complete.

Reasons for recommendations

(1)  The Procurement Strategy 2018-23 provides a robust framework for the procurement of all goods, works and services to drive the delivery of the Council’s strategic priorities within a challenging financial context. It sets out how procurement will use the Council’s spending power to pursue our key objectives of citizens at the heart; securing economic, social and environmental benefits; and commercial efficiency. Delivery of the Council’s strategic priorities depends on the efficient, strategic use of our purchasing power, and the Strategy promotes a commercial approach to support the Council in addressing significant financial challenges now and in the longer term.

(2)  The Strategy drives the delivery of social value for the City by addressing economic, social and environmental considerations at all stages of the procurement cycle, through the framework of the Public Services (Social Value) Act 2012. It sets out the key actions to be taken to maximise the economic, social and environmental benefits to be secured through all our purchasing activity.

(3)  Implementation of the Strategy during 2021-22 has continued the focus on the core principles of:

·  Commercial efficiency – a commercial approach and securing best value for money;

·  Citizens at the heart – providing great services that are right for all citizens and customers;

·  Partnerships and collaboration – maximising opportunities for joint working;

·  Governance, fairness and transparency – to ensure a level playing field and legal compliance;

·  Ethical standards – promoting the well-being and protection of work forces throughout the supply chain;

·  Innovation and improvement – developing our processes and working innovatively to secure improved outcomes.

Other options considered

None as the report is for noting only.