Issue - items at meetings - Contract Procedure Rules

This report presents a set of draft revised Contract Procedure Rules (CPRs) and asks the Executive to recommend the draft CPRs to Council for approval.

RECOMMENDED:(i) That Council approve the revised draft Contract Procedure Rules at Annex A to the report, subject to the inclusion of the following table setting out delegation and recording arrangements for the award of contracts:

Delegation Thresholds

Decision	Approval	Delegated Powers	Thresholds	Record
To award a contract based on VFM	Officer	To approve contracts £ £5k or delegated limit in scheme of financial delegation whichever is the lower.	> £0 and £ £5K	CR
To award a contract based upon written quotation > £5K and £ £139K or EU threshold whichever is the lower based upon lowest cost or MEAT.	Officer	To approve contracts £ £139k or EU Threshold up to delegated limit in scheme of financial delegation whichever is the lower.	> £5K and £ £139K or EU Threshold	CR
To award a contract based upon tender ³139K or EU threshold and < £500K based on lowest cost or MEAT.	Officer	To approve contracts ³ £139k or EU Threshold and < £500K up to delegated limit in scheme of financial delegation whichever is the lower.	³ £139k or EU Threshold and < £500K	CR
To award a contract based upon tender ³ £500K and classed as ‘Routine’	CFO/MO	Contract Procedure Rules	³ £500K and classed as ‘Routine’	CR/DL
To award a contract based upon tender ³ £500K and not classed as ‘Routine’	Executive	Constitution Key Decision limit	³ £500K and not classed as ‘Routine’	CP
To award a contract > £5K and £ £139K or EU threshold not on lowest cost or MEAT	Local Chief Officer	Contract Procedure Rules		WR
To award a contract > £139K or EU threshold not on lowest cost or MEAT	CFO	Contract Procedure Rules		DL
Exceptional circumstances above Key Decision limit non-routine	CFO/MO	Contract Procedure Rules		DL

Key

CR	-	Contract Register
DL	-	Officer Decision Log
CP	-	Committee Paper
WR	-	Waiver Register
Officer	-	Officers with delegated powers to approve expenditure
CRO	-	Chief Finance Officer (Section 151 Officer) Director of Resources
MO	-	Monitoring Officer

REASON: To ensure that the revised CPRs are appropriate in maintaining the integrity of the Council’s procurement arrangement and to provide clarify and transparency to the process for the awarding of contracts.

(ii) That Council approve the delegation of routine procurements (defined in Annex B to the report) to the Chief Finance Officer in consultation with the Monitoring Officer, as set out in paragraphs 6-8 of the report.

REASON: To ensure that the Council can continue to deliver business as usual and that only non-routine procurements are referred to the Executive for approval.

Members considered a report which presented a set of draft revised Contract Procedure Rules for comment and onward referral to Full Council.

The draft revised CPRs, attached at Annex A to the report, were intended to provide a more flexible set of rules and reflect the more devolved decision-making framework adopted by the Council in April 2009, whilst maintaining the key principles of the current procurement regulations. Unlike the current regulations, which formed part of the Financial Regulations, they would be maintained as a separate document. One major change contained in the revised CPRs was that ‘routine’ procurements over £500k (as defined in Annex B to the report) would no longer need to go to the Executive for approval. Other substantial and minor changes were listed in paragraph 10 of the report.

The draft CPRs had been issued to finance managers and other key Officers for consultation. Member consultation had been undertaken at the Audit & Governance Committee meeting on 4 November and changes recommended at that meeting were highlighted in italics in Annex A, for consideration.

Officers at the meeting suggested some amendments to the draft CPRs and the accompanying guidance to address Members’ concerns in relation to the delegation of decision-making in awarding a contract or waiver and the financial evaluation of contractors prior to their appointment.

RECOMMENDED:(i) That Council approve the revised draft Contract Procedure Rules at Annex A to the report, subject to the inclusion of the following table setting out delegation and recording arrangements for the award of contracts:

Delegation Thresholds

Decision	Approval	Delegated Powers	Thresholds	Record
To award a contract based on VFM	Officer	To approve contracts £ £5k or delegated limit in scheme of financial delegation whichever is the lower.	> £0 and £ £5K	CR
To award a contract based upon written quotation > £5K and £ £139K or EU threshold whichever is the lower based upon lowest cost or MEAT.	Officer	To approve contracts £ £139k or EU Threshold up to delegated limit in scheme of financial delegation whichever is the lower.	> £5K and £ £139K or EU Threshold	CR
To award a contract based upon tender ³139K or EU threshold and < £500K based on lowest cost or MEAT.	Officer	To approve contracts ³ £139k or EU Threshold and < £500K up to delegated limit in scheme of financial delegation whichever is the lower.	³ £139k or EU Threshold and < £500K	CR
To award a contract based upon tender ³ £500K and classed as ‘Routine’	CFO/MO	Contract Procedure Rules	³ £500K and classed as ‘Routine’	CR/DL
To award a contract based upon tender ³ £500K and not classed as ‘Routine’	Executive	Constitution Key Decision limit	³ £500K and not classed as ‘Routine’	CP
To award a contract > £5K and £ £139K or EU threshold not on lowest cost or MEAT	Local Chief Officer	Contract Procedure Rules		WR
To award a contract > £139K or EU threshold not on lowest cost or MEAT	CFO	Contract Procedure Rules		DL
Exceptional circumstances above Key Decision limit non-routine ... view the full minutes text for item 112

Issue - meetings

Contract Procedure Rules

Meeting: 17/11/2009 - Executive - for meetings from 03/06/00 to 26/04/11 (Item 112)