The Director of Strategic Resources submitted a report that sought support for the annual exemption to Standing Orders in relation to the use of NEPO (North East Procurement Organisation), Tees Valley Local Authorities (including Cleveland Police) and other Local Authorities, Pro5 Group (a collaborative buying arrangement with Central Buying Consortium (CBC), Eastern Shires Purchasing Organisation (ESPO), West Mercia Supplies (WMS), Yorkshire Purchasing Organisation (YPO) plus NEPO), Government Procurement Service (GPS) an executive agency of the Cabinet Office and other Public Purchasing Organisation contracts.
In support of the Councils drive to achieve efficiency savings and best use of resources, work was on going to minimise purchases that were being made outside of existing contracts. When any gaps in the current range of corporate contracts were identified these would be addressed by new contracts with a view to locking down purchases to contracted suppliers.
In a number of cases the corporate contracts were a result of joint tender procurements carried out by NEPO, Tees Valley Local Authorities and Other Local Authorities, GPS, Pro5 and other Public Purchasing Organisations using the economies of scale to deliver reduced prices.
By buying from existing contracts enabled savings to be made on the direct cost of products as well as the costs associated with implementing the tender process.
In compliance with Standing Orders, where services had hit the financial threshold or wished to use a contract previously tendered by another approved body they were required to carry out the quotation / tender process or to have sought an exemption. The aim the report was ensuring value for money and reduction in the unnecessary burden on services. By covering the requirement centrally it would have removed the technical need for services to have made individual requests when using NEPO, Tees Valley Local Authorities and Other Local Authorities, GPS, Pro5 and other Public Purchasing Organisation contracts.
The report outlined that there were eight options available:
Extend current contract;
Merge with another MBC contract;
Undertake new MBC tender process;
Participate in an existing Tees Valley or other local authority contract;
Undertake a new Joint tender with other local authorities; and
Use existing open or framework contracts from NEPO, GPS, Pro5 and other Public Purchasing Organisations.
That the request for an annual exemption to standing orders for contracts procured by NEPO, Tees Valley Local Authorities and Other Local Authorities, GPS, Pro5 and other Public Purchasing Organisations be approved.
The decision was supported by the following reason:
By using appropriate NEPO, Tees Valley Local Authorities and Other Local Authorities, GPS, Pro5 and other Public Purchasing Organisation contracts the Council can take advantage of savings on the purchasing of goods and services without having to incur the additional cost of tendering.