Agenda item

Tina Holland introduced item five for members. 

This report provided an update on the LGA’s work and relationship management with key suppliers to local government, working together to develop a more strategic relationship.  Tina stated the report also provides further information in relation to procurement matters for councils following Brexit.  Tina concluded that the LGA had held many meetings with these key suppliers in order to create this relationship, and that the supplemental report that was sent earlier in the day goes into further details of the main key suppliers. 

Following the presentation members discussed the following:

Members raised the issue of in-house council procurement staff, and how many of these skilled workers had been ‘hollowed out’ in recent years, allowing for mistakes to be made.  In response to this, Tina stated that further guidance from government will soon be made available, and the LGA will be meeting with procurement officers to look at what areas need to be considered when outsourcing.  Members welcomed this news, but stated that these meetings should also be made available to elected members and portfolio holders. 

The discussion turned to in-sourcing services for councils, and what advice is available for local authorities to in-source rather than out-source.  Tina responded that CIPHA has previously provided some guidance; some of this may be out of date, and therefore may need updating. 

Members raised concerns that the government advises that the suppliers listed in the reports all seem to be in varying areas of financial concern, yet the government refuses to advise not to invest in out-sourcing with these suppliers.  However, members did note that if the government did advise this, local government would pull their contract from a company which would then go into bankruptcy anyway.  Tina stated that she understood this dilemma, and that she believes that her colleagues within government do try their hardest to mitigate risks for the local government sector.    

The Chairman concluded the discussion with the following actions:

-       Officers to pull together information to have a single point of contact for this work.

-       Further information to be provided for in-sourcing for councils; the Chairman noted that this is one way the sector can control costs, as well as some risks. 

-       The Chairman noted issues the sector was facing when outsourcing; particularly when only two companies bid for a contract, the price does go up rapidly.