Decision details

RESOLVED:

That Cabinet recommend that Council approve the Contract Standing Orders as set out in Appendices 1 and 2.

KEY DECISION:

Report to Cabinet and Council

PORTFOLIO:

Finance and Corporate

ALTERNATIVE OPTIONS CONSIDERED/REJECTED:

As set out in the report.

DECLARATIONS OF INTEREST:

None.

DISCUSSION:

The Portfolio Holder for Finance and Corporate introduced the report recognising that there was a need to update the contract standing orders.  The report had been considered by the Resources and Transformation Overview and Scrutiny Panel.  The contract standing orders would continue to be support to local businesses when going out to tender to include at least one local supplier wherever possible.

The Strategic Procurement Manager reported members had noted the report and provided feedback through the scrutiny panel.  One member felt that further governance was required over contract modifications to reduce the risk of the contract value rising exponentially.  As a result, changes had been made to the report in paragraphs 25 and 26 and in Appendix 2, section 19.5, to set out that if the modification were to result in the total contract value reaching the next threshold, authorisation would be required by the relevant officer, as per the Financial Regulations.  Contract modifications were minimal, but when they do occur, they were recorded, justified and authorised, and reported to EMT and members, as appropriate.

A non Cabinet member questioned the fact that a formal risk assessment was deemed not to be required as set out in paragraph 32 of the report and whether there should be some recognition that with the greater amounts involved, the potential risks would increase.  The Strategic Procurement Manager reported that a risk register was maintained as part of the developing service plan to assess the risks and controls, however one had not been raised in relation to this specific change.  Although the financial limits were being raised, they were in line with that for the signing of contracts.