Agenda item

(A report by John Medler, Assistant Director – Governance and Monitoring Officer)

At the request of the Chairman, this item was brought forward in the meeting.

The Committee received a detailed report on proposed amendments to the Council’s Contract Procedure Rules (CPRs), presented by the Head of Procurement & Contracts, PSPSL. The review had been undertaken to ensure compliance with the Procurement Act 2023, reflected best practice, and addressed practical challenges identified since the last update three years ago. The amendments aimed to strengthen governance, improve flexibility, and support local suppliers while maintaining transparency and value for money. The Proposed Contract Procedure Rules – Clean Version was attached at Appendix 1a, the Proposed Contract Procedure Rules – Tracked Changes was attached as Appendix 1b, the Revised Delegations to Officers were attached as Appendix 2 and the Key Changes were attached as Appendix 3 within the report.

Key changes included:

·         Updated procurement thresholds to align with legislative changes and benchmarking across other authorities.

·         Reduction in minimum quotations from five to three for mid-value contracts (£50,000–£100,000) to reflect market feedback and practical sourcing challenges.

·         New sections on conflict of interest and pre-market engagement to provide clearer guidance for officers.

·         Additional exemption for short-term continuity arrangements where delays in re-procurement occur, capped at six months.

·         Integration of frameworks and dynamic markets in line with the Procurement Act 2023.

·         Removal of duplication by transferring asset disposal provisions to the Finance Procedure Rules.

·         Enhanced contract management requirements, including monitoring, reporting, and post-contract evaluation.

The Committee was advised that Contract Management Standards would be implemented across the partnership within the following month, introducing tiered monitoring based on contract value and risk.

Members welcomed the clarity of the report and raised several points for further explanation:

·         Members queried the rationale for increasing the threshold for written contract performance reports from £85,000 to £1,000,000. Officers explained that the change focussed on strategic, high-value contracts while ensuring operational contracts remain subject to robust monitoring through the new standards. A detailed written response would be provided following the meeting.

·         Members expressed concern that the In-Tend portal could be a barrier for local suppliers and asked how contractors could access it. Officers confirmed that support was available, including one-to-one assistance and simplified processes for certain thresholds. A written response would be provided to outline the steps taken to improve accessibility.

·         Concerns were raised about reducing the requirement for five written quotations to three. Officers advised that this change reflected practical difficulties in sourcing five quotes in certain sectors and feedback from local suppliers who found the process burdensome. The revised approach maintained competitiveness while improving accessibility. A written response would provide further detail on measures to prevent recurrence.

·         A Member queried whether the Council operated an approved contractor list. Officers confirmed that no formal list existed, as it was no longer considered best practice, but suppliers could register on the portal to receive notifications of opportunities.

·         Members expressed concern about upfront payments and asked whether payment terms would be reviewed. Officers confirmed that guidance on payment mechanisms was included within the revised standards and would be reinforced through training to minimise financial risk.

·         Members sought assurance that high-value contracts would be closely monitored. Officers confirmed that bi-monthly review meetings would be held for strategic contracts, supported by escalation procedures and a contract management network to share best practice.

The Committee noted the importance of balancing flexibility with strong governance and welcomed the introduction of Contract Management Standards as a key improvement.

Resolved:

That the Proposed Amendments to the Council’s Contract Procedure Rules be recommended for approval by Cabinet and Council.