5:05 - 5:30pm
Minutes:
The Transformation Programme Manager attended to provide members with a progress update on the shared Procurement service. The Joint Cabinet and Employment and General Committee resolved in November, 2015 that Chesterfield Borough Council (CBC) join the NHS Procurement consortium for a period of three years at an annual fee of £39,000 with the condition that a comprehensive Service Level Agreement (SLA) be developed. CBC joined the shared service in January, 2016. The Transformation Programme Manager advised Members that in the first 8 months of the partnership, 46 procurements had commenced, 12 procurements had been completed and a total of £54,000 savings had been achieved.
There had been two internal audits of the procurement service since entering into the partnership and though improvements had been made, work was still needed in some areas. The Transformation Programme Manager highlighted the progress on the recommendations by internal audit which included drafting the Procurement strategy and submitting it to CMT for review, arranging essential training to be provided from October, 2016 and incorporating flowcharts and supporting forms into the SLA to address issues raised by the audit.
Through the shared Procurement service CBC was currently achieving £33k savings per annum on service delivery costs. The Transformation Programme Manager informed Members that further savings had been achieved from the Procurement Client role which was currently vacant and under review by the Customer, Commissioning and Change Manager who was investigating an option that could see the Customer, Commissioning and Change team collectively absorbing the work.
The move to the shared service with the NHS had been monitored closely and teething problems had been resolved. The Transformation Programme Manager presented the draft Sustainable Commissioning and Procurement Strategy to Members and highlighted that the performance indicators in section 10 of the strategy focussed on local performance.
Members asked if any of the projects completed so far were considered to be major projects. The Transformation Programme Manager replied that there had been significant projects completed but these were not considered to be major projects. However there were some major projects currently in progress including one for the Operational Services Division.
Members asked if the procurement training could be offered to Scrutiny Members as they felt it would be useful for Members of the Forum to have an understanding of the whole procurement process so that they could carry out procurement scrutiny effectively. The Transformation Programme Manager advised that she would be happy to have a Scrutiny Member attend the officer training however the training would be in depth and consideration was needed as to who would attend. Members were also informed that there would be training for Members which would focus on the procurement strategy. The Transformation Programme Manager advised that for scrutiny to look at a procurement project early on they would need to be involved at the specification stage and the NHS procurement team would be happy to arrange a training session with a small group of Members to explain this process.
Members asked if there was an indication as to the financial position of the shared service at the end of the first year. The Transformation Programme Manager advised that due to the variations in the market, it was difficult to estimate a figure for the end of year one however it was looking positive.
Members asked if there were different standards in the way the NHS worked compared to CBC, and if other councils had an Equalities Impact Assessment (EIA) with the NHS. The Transformation Programme Manager replied that the standards generally are similar and the NHS are comfortable with CBC’s measures. In addition, there were aspirations to create a joint strategy to include Bolsover DC, North East Derbyshire DC and Derbyshire Dales DC as there would be benefits from working with other councils when there are similar contracts up for renewal. There had been concerns that the EIA from other councils was not up to CBC’s standard however this had been addressed and the standard raised.
Members asked when a review would be carried out to see how effective the strategy is. The Transformation Programme Manager advised that the strategy would be reviewed a full 12 months after its implementation and benchmarking would be carried out in the next quarter.
Members thanked the Transformation Programme Manager for attending and providing the progress report.
RESOLVED –
1) That the report be noted.
2) That training on the Procurement process be arranged for Scrutiny Members and consideration be given as to who should attend.
3) That further progress be reported to the Overview and Performance Scrutiny Forum in 2017, and consideration be given to advice from the Transformation Programme Manager that a report in July rather than March would contain end of year results.