Agenda item

The Director of Corporate Services presented the report.  The current Procurement Strategy covered the period 2018-2021.  This was approved in May 2018 and attached to the report as appendix 1.  It was noted that a new Procurement Strategy would usually be produced for 2022-2025 however, the Government had published a green paper ‘Transforming Public Sector Procurement’ in December last year.  The proposals within the Green Paper were intended to shape the future of public procurement in this country for many years to come.

The Government’s goal was to speed up and simplify procurement processes, place value for money at their heart, and unleash opportunities for small businesses, charities and social enterprises to innovate in public service delivery. The current regimes for awarding public contracts were too restrictive with too much red tape for buyers and suppliers alike, which resulted in attention being focused on the wrong activities rather than value and transparency. It was now felt that a progressive, modern regime was required which could adapt to the fast-moving environment in which business operated. Markets and commercial practice were constantly evolving and the need to ensure that the new regulatory framework could drive a culture of continuous improvement to support more resilient, diverse and innovative supply chains.

The Government proposed to comprehensively streamline and simplify the complex framework of regulations that currently governed public procurement. Rationalising and clarifying the parallel rules in the Public Contracts Regulations 2015, the Utilities Contracts Regulations 2016, the Concession Contracts Regulations 2016 and the Defence and Security Public Contracts Regulations 2011, replacing them all with a single, uniform set of rules for all contract awards. This would be supplemented with sector-specific parts or sections where different rules were required for effective operation or to protect our national interest, for example in the defence or utilities sectors.

The Government’s stated aim was to provide the UK with a modern, fit-for-purpose set of rules, to minimise the bureaucratic burden for contracting authorities and businesses, facilitate innovation and the participation of small and medium sized enterprises and improve the process of challenging decisions in the courts.  If the proposals were implemented, they would have a significant and long-term impact on public sector contracting. 

The consultation closed on 10 March 2021.  It was suggested that reforms were unlikely to be in place before the end of 2021 and some had suggested not until 2022/2023 but at this stage no guidance or outcomes of the consultation had been shared.  Hence until such time as this was received it was proposed to extend the existing Strategy.

County Councillor O’Toole commented that some years ago the North West Fire Forum was set up (which included Greater Manchester, Cheshire, Merseyside, Cumbria and Lancashire Fire and Rescue Authorities).  This worked well for continuity of procurement across the North West with the procurement of inter-changeable equipment.  County Councillor O’Toole queried whether this procurement collaboration continued.  In response, the Director of Corporate Services confirmed that Fire Services in the North West did continue to collaborate.  He advised that consideration of national and regional frameworks would be given when commencing a procurement exercise but, collaboration was not always feasible due to timing and compatibility considerations.

In relation to Section 4 on Applicability (on page 78 of the agenda pack), County Councillor Mirfin queried whether the sector advised the Government of its thoughts on how the procurement process should change in relation to the threshold values of goods and how this should be advertised to the general public.  In response, the Director of Corporate Services advised that discussions were held nationally across all sectors and there were responses to the green paper from the fire sector as a whole. 

County Councillor Mirfin commented that part of the levelling up agenda was a greater focus on local businesses within the economy.  He asked whether there would be an impact on the procurement process going forward.  In response, the Director of Corporate Services advised that any procurement would need to comply with the eventual rules and it was hoped therefore, that the government would provide more flexibility, but that there was a limited supplier market for many of the items procured for the fire sector which also limited the scope for this.

RESOLVED: - That the Resources Committee extend the current Procurement Strategy to cover the period 2022/23.