Issue - meetings

Report of the Interim Monitoring Officer

Councillor Ogilvie presented the outcome of the Governance Committee’s review of the contract procedure rules within the Council’s constitution, including the financial threshold of key decisions undertaken by the Cabinet. 

Resolved: that the draft Contract Procedure Rules at Appendix A and increases to the proposed low value procurement threshold to £20,000 and the proposed increase to the current financial threshold of £100,000 for key decisions undertaken by the Cabinet be approved.

Report and appendices enclosed.

The Committee received a report following recommendation from the Governance Working Group that provided Members with the opportunity to comment on proposals to amend the Council’s Contract Procedure Rules, together with the financial threshold for key decisions undertaken by the Cabinet, prior to their submission to Council for approval at its meeting in September 2017.

The Council’s Contract Procedure Rules are a key part of the Council’s Constitution and deal with the rules, processes and procedures for the procurement of contracts on behalf of the Council with a diverse range of suppliers and contractors. The rules are designed to protect the public purse by demonstrating value for money together with appropriate safeguards to ensure objectivity in the awarding of contracts and a copy of the proposed amended rules were appended to the report.

Members were asked in particular to note the proposed change to procurement thresholds that would bring them in line with a number of neighbouring authorities including Chorley, Lancaster, Wyre and Fylde with respect to the £100k threshold being raised from £75k,

Less than £20,000 – low value procurement

£20,000 to £100,000– Intermediate value

Over £100,000 – high value

Members shared the view by officers for the higher threshold to be increased to £100,000, however, they asked for further reasoning to be given on why the lower threshold had also been raised from £10,000 to £20,000 and asked for this to be clarified ahead of a decision by Council.

The Committee also asked for clarification of the arrangements associated with the payments of invoices that did not match the original purchase order and what measures were in place to prevent officers for payments of additional unauthorised work above the order value.

RESOLVED: That the Governance Committee recommends full Council to agree to the amendments in the Constitution relating to Contract Procedure Rules and Key Decisions subject to the provision of further comparators for the proposed increase of the low value threshold from £10,000 to £20,000.