Minutes for Cabinet Procurement Committee meeting, Feb 9 2010, 5.00PM official page

Apologies for absence were received from Councillor Linden.

There were no declarations of interest. 

3.1  Committee Work Programme – Forward Procurement Plan Briefing Note with Appendix 1

Contact Juliet Okwuraiwe – 020 8356 3675

3.2  Hackney Procurement Board – Notes of Meeting held on 1 December 2009

3.1  Committee work programme – Forward Procurement Plan briefing note with Appendix 1

3.1.1  Noted that the following item was on the Forward Procurement Plan as a red item and that it had become an amber item since the agenda papers had been distributed

Dalston Library Fit Out

Noted that this item was on track and that a report would be presented to Cabinet Procurement Committee on 16 March 2010..

3.2  Hackney Procurement Board

3.2.1 Notes of the meeting held on 1 December 2009 were noted.

3.2.2  Referral from Hackney Procurement Board meeting 2 February 2010 Murray Grove Post Office

Hackney Procurement Board took the decision on 2^nd February to refer the Murray Grove Post Office Review Point 4 report to Cabinet Procurement Committee to seek Members advice regarding the award of contract for the Post Office services at Murray Grove.  An update report was tabled at the meeting that provided supplementary information to that contained in the Review Point 4 report. This set out the position of the tender procedure for the appointment of a Post Office operator.

Following the publication of an advert for an operator of the Murray Grove Post Office one bid had been received by the Council. Certain matters were outstanding and required clarification.  Since the presentation of the Review Point 4 Report to HPB further clarification had been sought from the bidder, and Officers were satisfied that the sole bid was robust enough to recommend award of contract, subject to the confirmation of:

a.  The bidder securing a Bank Guarantee

b.  The bidder accepting the offer made by Property Services regarding rent reduction and conversion

c.  Post Office Ltd approval of the applicant

There would appear to be limited scope to run the Post Office at a profit.  Therefore the Council had proposed to offer an annual subsidy to the operator.  Such subsidy would be within the limits set out in Commission Regulation (EC) No 1998/2006, which allowed a public authority to give financial assistance to undertakings provided that the value of the assistance did not exceed 200,000 Euros in any consecutive three year period. 

Officers confirmed that it was a 5 year contract with a 2 year break clause.

  The Cabinet Procurement Committee endorsed the proposed decision which would be taken by the Assistant Director of Procurement under delegated authority.

RECEIVED a presentation from Kim Wright, Corporate Director of Community Services on Procurement Forward Planning review for the Culture Division (a copy of which is available from Democratic Services upon request).

The following question and answer session took place.

1.  Kim Wright confirmed that the list of capital procurement projects within Culture, on the 3^rd slid, was not the full list of current projects; these were some of the major projects that were currently taking up the majority of officer time and resources.

2.  Café operators for Hackney Marshes and Clissold Park/House were being sought as a package to achieve economies of scale.  They were also being marketed as separate packages.

3.  Officers stated with regard to lessons learnt that each project, as it closed, had a project closesure report detailing the lessons learnt.  Kim Wright confirmed that mechanisms were in placed to improve projects going forward.

4.  Officers explained that Hackney was part of a consortium of 12 Authorities across London which looked at effectiveness and good practice across London.  with regard to library services.  This approach was being looked at for other services to ensure value for money.  Officers confirmed that the procurement approach used by Hackney was a standard approach used by other Authorities and that the prevention and well being agenda may influence the procurement strategy in the future.

This report relates to the development of the Primary Capital Programme in Hackney and specifically the refurbishment and expansion of Southwold Primary School in the Leabridge Ward of Hackney and recommends the procurement of contractors via the publication of an Official Journal of the European Union notice.

RESOLVED

1  That a Review Point 2A report will be presented to Cabinet Procurement Committee in June 2010 to allow consideration of the Local Education Partnership (LEP) as a potential vehicle for delivery for the project.

2  To approve the overall Procurement Strategy contained within the document and subject to the outcome of Review Point 2A, issue an Official Journal of the European Union (OJEU) notice in June to undertake the tendering process of appointing a single contractor through a Single Stage Tender action as set out in Paragraph 10 of the report (Options Appraisal), or alternatively to utilise the LEP.

3  To note the project risks, avoidance and mitigating actions set out in paragraph 9.4 of the report.

Sue Miller, from the Learning Trust introduced the report as set out.  The Chair stated that consideration should be given to the Local Education Partnership (LEP) as a potential vehicle for delivery the project and stated that a Review Point 2A report should be presented to Cabinet Procurement Committee in June 2010 when this had been done.  Members advised officers that 10% contingency may not be enough considering the contingency amounts previous capital projects had had.  The Chair noted the project risks as detailed in paragraph 9.4 of the report and stated that these seemed unusual.

In reply to a question from Councillor Laing officers confirmed that Planning permission and an application to the Government Office for London (due to the school being a listed building) would have been submitted and hopefully approved by June 2010. 

RESOLVED

1  That a Review Point 2A report will be presented to Cabinet Procurement Committee in June 2010 to allow consideration of the Local Education Partnership (LEP) as a potential vehicle for delivery for the project.

2  To approve the overall Procurement Strategy contained within the document and subject to the outcome of Review Point 2A, issue an Official Journal of the European Union (OJEU) notice in June to undertake the tendering process of appointing a single contractor through a Single Stage Tender action as set out in Paragraph 10 of the report (Options Appraisal), or alternatively to utilise the LEP.

3  To note the project risks, avoidance and mitigating actions set out in paragraph 9.4 of the report.

This report is a briefing note to report on the progress of projects being delivered by the Council through the Partnership for Schools (PfS) Academies National Contractors Framework

Sue Miller introduced the report as set out.  She confirmed that the management team at the school were pleased with the works and that they had been completed and delivered on budget.

Councillor Laing asked that the Review Point 5 report, due to be presented to Cabinet Procurement Committee Autumn/Winter 2010, include information on how an excellent BREEAM (BRE Environmental Assessment Method) rating could have been achieved.

ACTION: SUE MILLER

RESOLVED to note the contents of this report

This Reports sets out details of the progress of the Skinners’ Academy Project

Sue Miller introduced the report as set out.  It was noted that the project was on time and on budget.  With regard to the BREEAM Sue Miller confirmed that the rating would not be confirmed until the school was completely up and running.

RESOLVED to note the contents of the report

The Direct Payment Support Service was brought back in house on 1^st November 2008.  This report provides an update to Members on the success of the replacement in house service and advises on future procurement strategy.

Deirdre Worrell, Assistant Director Finance, introduced the report as set out.  She stated that the in house service was performing well and had delivered £100k of savings.  Officers were asking that the service remain in house for the medium term (2-3 years) whilst the Council’s approach to Personalisation and Individual Budgets was developed.

RESOLVED

1.  Noted the performance of the in house Direct Payment Support Service.

2.  Agreed that the Direct Payment Support Service would remain in house, over the medium term, whilst developments in personalisation were finalised to enable personalisation to be incorporated into future procurement plans.

This report advises Cabinet Procurement Committee of the results of the “risk managed flexible procurement” contract, entered into in April 2009, with an Energy Services Provider to purchase the Council’s Energy requirements in chunks over multiple trades and over a longer period of time.