Agenda item

Report of the Chamberlain

The Sub-Committee noted that with the exception of payment targets, performance indicators were being met/exceeded.  It was also suggested that time should not be spent tendering for software maintenance suppliers when it was known that only one supplier could do this task as they possessed the source codes.  It was felt that this time could be better spent negotiating with a sole supplier to get the most economically advantage terms.

In response officers stated that there was limited leverage on negotiations owing to public contract regulations and in addition, many products were single sourced such as the current HR software with which there had been longstanding issues.  There was potential for longer length contracts outside the framework and the issue of the CoL establishing its own framework was a consideration for the IT Category Board.

Officers also flagged up their concerns in respect of contracts which City Procurement were not aware of and the budgetary challenges of end of contract spending.  Members echoes the concerns officers and recommended that in view of the reputational and finance risk, this matter should be included in departmental risk registers.

RESOLVED – That progress on the following key strategic improvement projects and performance for Q1 of 2019/20 financial year (FY 19/20) be noted:

(1)        Procurement savings at end of June 2019 of £1.9m, made up of £235k Commercial Contract Management savings and £1.69m Sourcing & Category Management savings.

(2)        Purchase order compliance of 98% (target 97%).

(3)        95% of all supplier invoices were paid within 30 days (target of 97%)

(4)        86% of SME invoices were paid within 10 days (target of 88%).

(5)        80% of invoices are currently received in True PDF format (target of 75%)

(6)        Waiver trends:

a)      Total number of waivers has reduced by 11% compared to same period during the previous financial year.

b)      Non-compliant waivers have decreased by 33% comparing the same period during the last financial year.

c)       A total of 8 Procurement Breach waivers have been recorded in Q1 2019/20 with a value of £272k.