Agenda item

Members of the Committee then heard from the S151 Officer, who introduced the Contract Procedure Rules report, and summarised its journey to full Council in January 2025. The S151 Officer provided an update on the Contract Procedure Rules, outlining the changes necessitated by the new Procurement Act, which had received Royal Assent in 2023. It was explained that the provisions of the Act came into effect on 28 October 2024, with implementation required by the end of February 2025. The S151 Officer confirmed that the changes required an update to the Council's Constitution, which needed to be recommended by the Governance and Audit Committee and approved by Council.

It was explained that the main changes were based around large procurements; the Officer confirmed that the Council had five contracts which upon retendering would have amendments under the new Procurement Act. The attached contract regulations and procedure rules, it was stated, provided a number of revisions outlined in the report. It was noted that a summary of changes made since the last Contract Procedure Rules and Procurement Act had been outlined and included new procurement objectives in section 1.5 of the report. Other changes included updates to the section on conflicts of interest; the introduction of a competitive flexible procedure; changes in contract award criteria; and references to the central debarment list. Regarding the central debarment list, the S151 Officer added that the list was available on the Cabinet website and included a number of suppliers which must be excluded from the Council’s procurement procedures.

The S151 Officer stated it was also required that all contracts over £5,000 be recorded on the contract register, including those awarded via exception. It was highlighted that additional housekeeping improvements had been made, including linking conflict of interest wording to Members' and Officers' codes of conduct; making reference to Councillor involvement in commercial transactions; and clarifying reporting requirements. The S151 Officer added that all of the Council’s Procurement Officers must be involved in all procurement activity.

In recognition of questions raised by a Member of the Committee at the November 2024 meeting, the S151 Officer explained that significant training had been carried out for Officers by qualified Chartered Institute of Procurement and Supply (CIPS) professionals. It was highlighted that an internal audit of procurement had commenced, and an assurance report would be provided at the next meeting in March 2025.

The Chairman commented that reassurance had been provided regarding the provision of Officer procurement training, which had previously been a source of consternation for Members.

The Chairman requested that a further report from Internal Audit be presented to the Committee in a year’s time reporting the progress made in implementing the new procurement rules and regulations.

In response to the Chairman’s enquiry regarding the meaning of advantageous tender, the S151 Officer explained the concept behind the term, emphasising the importance of quality as opposed to simply the cheapest price when making procurement decisions. Responding to a question from the Chairman, the S151 Officer noted that efforts would be made to engage with the local market and encourage quality tenders.

The Chairman reiterated the S151 Officer’s comments and highlighted the importance of building the local economy.

A Member of the Committee enquired about exceptions to the procurement process, it was confirmed by the S151 Officer that exceptions were to be examined later in the meeting as an exempt report. It was emphasised that in the event of an exception, detail had to be provided in justification of the exemption. The S151 Officer clarified that their position was subject to ongoing declarations of interest, alongside declarations of interest within the exception process.

The Chairman added that all future procurement exceptions would be brought to the Governance and Audit Committee on a regular basis for scrutiny.

With no further comments or questions, and having been moved, seconded and voted upon, it was unanimously

RESOLVED that the adoption of the revised Contract Procedure Rules be recommended to Full Council for approval.