Issue - meetings

Shared Procurement Future Delivery Model - to consider recommendations for the future delivery model for the procurement shared service

Meeting: 25/01/2018 - Cabinet (Item 73)

73 Shared Procurement Future Delivery Model - to consider recommendations for the future delivery model for the procurement shared service pdf icon PDF 145 KB

To receive the report of the Cabinet Member for Finance and Assets

Decision:

            RESOLVED

 

(i)         That the delegation of the provision of Horsham District Council’s procurement services to Crawley Borough Council from 1st April 2018 be approved under Section 101 of the Local Government Act 1972.

 

(ii)        That the provision of services under an Inter-Authority Agreement for a minimum period of four years from 1st April 2018 to 31st March 2022 be agreed.

 

(iii)       That the Legal Services Manager be authorised to agree the terms of the Inter-Authority Agreement, reflecting the principles outlined in the report.

 

(iv)       That the staffing arrangements, including the TUPE transfer of staff, be noted.

 

REASON

 

The current joint working arrangement is due for renewal on 31st March 2018 and therefore there is a need for Members to agree how procurement services will be provided in the future.  The recommended approach assists in delivering process efficiencies, creates equality in staff terms and conditions and makes the management of the team less complex.

Minutes:

The Cabinet Member for Finance and Assets reported that the existing procurement service had been established in 2010 and operated as a joint working arrangement with Horsham, Crawley and Mid Sussex Councils combining resources into one team working across the three authorities.  This arrangement was due for renewal on 31st March 2018 and, therefore, a review of how best to deliver procurement in the future had been undertaken.

 

The recommended future arrangement was for Horsham and Mid Sussex Councils to delegate the provision of procurement services to Crawley Borough Council.  Both Horsham and Mid Sussex would pay an agreed annual contract sum to Crawley for the provision of services and an Inter-Authority Agreement would be drawn up to ensure that any potential risks were shared.

 

The operational governance arrangements would remain as at present, with a senior officer from each of the authorities forming a Joint Procurement Board to oversee the work programme and monitor progress. 

 

The budget would continue to be calculated on the current percentage split of the total cost of the service between each of the authorities, with a review after two years.

 

The proposal would result in the management of the service becoming less complex and would ensure that performance management, appraisals, and training and development were consistent across the team.  Budget management and monitoring would also be easier, avoiding duplication and requiring less input from each of the authorities’ finance teams in working out recharges and rebates.

 

The Finance and Assets Policy Development Advisory Group had considered and supported the proposal.

 

            RESOLVED

 

(i)         That the delegation of the provision of Horsham District Council’s procurement services to Crawley Borough Council from 1st April 2018 be approved under Section 101 of the Local Government Act 1972.

 

(ii)        That the provision of services under an Inter-Authority Agreement for a minimum period of four years from 1st April 2018 to 31st March 2022 be agreed.

 

(iii)       That the Legal Services Manager be authorised to agree the terms of the Inter-Authority Agreement, reflecting the principles outlined in the report.

 

(iv)       That the staffing arrangements, including the TUPE transfer of staff, be noted.

 

REASON

 

The current joint working arrangement is due for renewal on 31st March 2018 and therefore there is a need for Members to agree how procurement services will be provided in the future.  The recommended approach assists in delivering process efficiencies, creates equality in staff terms and conditions and makes the management of the team less complex.