Notes taken by HBG member Gerry Reilly at the Procurement workshop on Wednesday 14 July, 9.30am to 12.00pm, at Swindon Borough Council Office, Euclid Street, Swindon

 

Lawrence Bunn, Head of Corporate Procurement says that SBC has to save £4 million in 2010/11. SBC's annual procurement spend is around £100 million which excludes schools, who retain a significant degree of autonomy over how they spend their budgets. There are only six front-line members of the Procurement Team which has been repositioned to directly support the Council's Group Directorates (Adult Social Care, Children's Services, Environment, Regeneration and Community and Business Transformation). 

 

Contracts below £20K are considered 'low value' meaning the full advertising and tendering process does not have to be followed through;  

Purchases above £20K need to be authorized in advance by Lawrence through the Form C process;  

Between £100 and £5K needs at least two written quotes;  

Below £100 only needs a minimum of one oral quote;  

From January 2011 in line with a requirement of the new Coalition Government all local authorities must publish details of spend over £500. 

 

Swindon Commercial Services Ltd. who deal with construction projects, building repairs and maintenance, security, street cleaning, waste collection and disposal etc became a wholly owned subsidiary of SBC from the start of 2010. The aim is to allow them to bid freely for work outside of the council confines, so in time their business should grow. They spend between £25-30 million a year on procurement, much of which is through sub-contracting arrangements with local suppliers.    

 

Lawrence says that the Council will want to avoid additional costs of dealing with lots of smaller suppliers of goods, services and works where these can be aggregated in order to drive better pricing and reducing the administration costs involved in raising orders, paying invoices and contract management, hence the opportunity for smaller suppliers to act as sub-contractors through a larger supplier.

 

Forward Swindon, which provides business services, will be run by Phil Merrick. Phil is on the SSEP Enterprise Group, which comprises SBC, FSB, Chamber, Business Link among others.

 

Gerry raised the idea that the SSEP website could be a forum for small contracts.  This would have the advantages of saving the council time and money while all the groups that comprise the SSEP could be actively involved, and they could help promote the standards required for bidders. Business Link e.g. could run awareness days helping to prepare SMEs to bid.

 

Lawrence says that the council has just been told that they need to start dealing with Business Link, but he does not know yet what that involves. Gerry suggested that the relevant person from his department meets with him and someone from Business Link and possibly the Chamber to find common ground, then take their ideas forward.  

 

In summary, the council's budget challenge could be a timely opportunity for the groups within the SSEP to have some involvement with procurement for contracts below £20K.