Issue - meetings

STOCKTON-ON-TEES BOROUGH COUNCIL

CABINET DECISION

PROFORMA

Cabinet Meeting ........................................................................ 12 December 2024

1. Title of Item/Report

 Procurement Plan / Higher Value Contracts – Finance ERP System

2. Record of the Decision

Consideration was given to a report that sought approval for the award of planned higher value contracts where the value exceeds the limit on officer delegated authority and which were either funded within the approved MTFP / Capital Programme or were subject to a bid for external funding.

The constitution defined a range of decisions that required a specific Cabinet approval, the financial threshold for which was set at a level of £500k or more. Annex 1 of the report listed contracts that exceeded the financial threshold and had not otherwise been delegated to officers. This contract was included on the Annual Procurement Plan approved by Cabinet in March 2024, however due the circumstance set out below, the contract required additional approval.

The constitution included Contract Procedure Rules which lay down the processes for procurement including the requirement to competitively tender for goods / services and works or alternatively access pre-tendered framework agreements. The framework agreement available for this contract referenced on the Annual Procurement Plan did not provide value for money and there was insufficient time to undertake a full tender before the current system becomes ‘unsupported’ by end of 2024. Therefore, officers had entered into a negotiated procedure without a call for competition directly with Unit 4 and achieved a substantially reduced pricing framework.

To comply with the Public Contract Regulations 2015 and for transparency purposes, the Council was required to publish a Voluntary Ex-Ante Transparency Notice (VEAT) which provided the opportunity for the wider market to challenge the proposed decision to award a contract directly to Unit 4. For information, the challenge period was limited to 10 calendar days from the day after the notice is published. The contract could not be concluded until after this period.

RESOLVED that:-

1. The expenditure on the contract listed in Annex 1 be approved.

2. An exception to Contract Procedure Rules to not access a pre-existing framework agreement for the purchase of the contract listed in Annex 1 and instead directly award a contract to Unit 4 through a negotiated procedure without a call for competition.

3. Authority be given to the relevant Director or Assistant Director to finalise detailed terms and conditions and any subsequent contract variation, annual inflationary uplifts (where allowed in the contract terms and conditions) and extension decision in accordance with the delegations listed in Annex 1 of the report.

3. Reasons for the Decision

 To enable Cabinet to exercise its strategic oversight of higher value planned procurement projects, in accordance with the constitution.

4. Alternative Options Considered and Rejected

 None

5. Declared (Cabinet Member) Conflicts of Interest

 None

6. Details of any Dispensations

 None

7. Date and Time by which Call In must be executed

 Midnight Friday 20 December 2024

Proper Officer