Agenda item

This report provides an update on the developments following the Procurement Peer Review and the established Procurement Improvement Programme, emerging Procurement Strategy and opportunities arising from adopting a new definition of “local” suppliers and engagement of Brent businesses.

Councillor Rubin (Cabinet Member for Climate Action and Community Power) was invited to introduce the report relating to the Procurement Improvement Programme and Emerging Procurement Strategy, which he advised provided an update on the developments following the Procurement Peer Review and the established Procurement Improvement Programme, emerging Procurement Strategy and opportunities arising from adopting a new definition of “local” suppliers and engagement of Brent businesses.

Having thanked Councillor Rubin (Cabinet Member for Climate Action and Community Power) for introducing the report, the Chair then moved on to invite questions and comments from the Committee in relation to the Procurement Improvement Programme and Emerging Procurement Strategy, with the following comments and issues discussed:

·       As an initial query, members enquired what tangible improvements had been delivered under the Procurement Improvement Programme to date and requested clarification on measurable impacts or key successes achieved. In response, Rhodri Rowlands (Director of Strategic Commissioning Capacity Building and Engagement) reported that the recommendations underpinning the Procurement Improvement Programme were extensive and wide-ranging, forming a substantial programme of work over an extended period. It was confirmed that positive progress had been made. One of the core recommendations was to strengthen the capacity of the procurement function by appointing individuals with the required skills to contribute effectively to the Council’s objectives. This had previously been a significant challenge. New management had been appointed and three new roles established, which had begun to promote improved relationships and enhanced support for services, particularly in relation to key procurements currently underway.

In continuing the response, members were further advised that the programme had prioritised early opportunities to achieve savings and efficiencies. A notable example was the collaboration with Oxygen Finance on the fast-track payments initiative, which encouraged suppliers to adopt early payment terms to support their cash flow. The Council benefitted through discounted invoices, generating income. Since April 2025, this initiative had achieved growth of 111%, contributing approximately £250,000 in income and savings that would not otherwise have been realised. Additional practical improvements included the introduction of tools and resources to support procurement delivery and social value objectives. The “Match My Project” initiative was highlighted as an intentional intervention designed to facilitate engagement between suppliers and community groups by providing a mechanism for suppliers to identify local needs and projects they could support. Members also heard that contract management was identified as a major focus area. 15 key contract managers had completed initial training delivered by a sector best practice organisation. It was emphasised that substantial work remained to improve the contract register and implement segmentation of contracts to enable better resource alignment to those requiring the greatest attention. This approach aimed to strengthen performance, quality, delivery, value for money and social value contributions. A new model had been adopted, and 57 contracts had been processed through an initial pilot, with expansion planned for the new year.

·       Members referred to paragraph 4.9 of the committee report and sought clarification on the relationship between the emerging Procurement Strategy and the Procurement Improvement Programme, including the systems or processes that ensured alignment between the two. In response, Rhodri Rowlands (Director of Strategic Commissioning Capacity Building and Engagement) acknowledged that refreshing the Council’s procurement strategy was overdue, noting that the existing strategy was outdated and that the procurement landscape had changed significantly. It was confirmed that developing a new Procurement Strategy was a key recommendation arising from the procurement review. The Procurement Improvement Programme was designed to implement improvements that would enable delivery of the priorities and aspirations set out in the upcoming strategy. For example, without sufficient staffing capacity, the strategy could not be implemented effectively. Similarly, improvements in contract management were essential to achieving best value. Enhanced engagement with suppliers, including pre-market engagement, was also critical to enabling suppliers to bid successfully for Council contracts. In concluding the response, Rhodri Rowlands conveyed that the improvement programme provided the foundational capacity and processes necessary to deliver the new Procurement Strategy.

Councillor Rubin (Cabinet Member for Climate Action and Community Power) further emphasised that the tangible improvements achieved through the Procurement Improvement Programme were significant. It was noted that when preparing budget proposals for the current year, the Council had identified substantial efficiency savings attributable to the programme. These savings were crucial in mitigating the level of reductions to frontline services that would otherwise have been necessary. Satisfaction was expressed that the programme had delivered meaningful financial benefits.

·       The Chair enquired whether any recent procurements had involved robust negotiations resulting in improved contractual efficiencies and enhanced value. In response, Rachel Crossley (Corporate Director Service Reform and Strategy) confirmed that negotiations had taken place in relation to several digital contracts. These negotiations had secured longer contract periods for the same cost and increased social value commitments. It was noted that the Council had successfully challenged initial pricing proposals to achieve discounted rates and extended terms, thereby delivering improved value for money.

·       The Chair sought clarification regarding concerns previously expressed about the number of companies currently paying business rates within Brent that could meet the Council’s procurement requirements. The Chair further enquired what analysis had been undertaken to assess commissioning needs over the next 1 to 3 years and whether suitable companies already existed within Brent that paid business rates locally. In response, Rhodri Rowlands (Director of Strategic Commissioning Capacity Building and Engagement) advised that spend analysis was being undertaken to establish a clearer baseline of organisations currently delivering services under Council contracts, as well as those operating in other sectors, and to understand the associated expenditure. This analysis had been incorporated into the review being conducted by the Centre for Local Economic Strategies, the report from which was expected imminently. It was further explained that the next stage of work related to engagement with commissioning teams to identify future service requirements, which was generally undertaken on a service-by-service basis. For the upcoming 12 to 18 months, the procurement team had developed a procurement pipeline outlining contract opportunities scheduled for extension or recommissioning. Collaborative work with commissioners was focused on exploring potential delivery models, considering alternative approaches, and identifying ways to prepare small and medium-sized enterprises for participation in these opportunities. This work was integral to achieving the ambitions set out in the emerging procurement strategy, and further development in this area was required.

·       Members considered that the definition of “localism” should include the organisations that pay business rates to Brent. It was noted that such an approach could potentially incentivise new business establishments within the borough and strengthen the local economy. In response, Councillor Rubin (Cabinet Member for Climate Action and Community Power) confirmed that this criteria was incorporated within Option Definition 1, Table 2 of the committee report and noted the Committee’s endorsement of Option Definition 1 as the preferred definition of “localism”. Rhodri Rowlands (Director of Strategic Commissioning Capacity Building and Engagement) also clarified that the proposed options for defining localism did not advocate an exclusive ‘buy local’ approach and emphasised that broader considerations, including quality and value for money, would remain fundamental elements of the procurement process at all times.

In seeking to bring consideration of the item to a close, the Chair thanked officers and members for their contributions towards scrutiny of the Procurement Improvement Programme and Emerging Procurement Strategy. As a result of the outcome of the discussion, the following suggestions for improvement identified were AGREED:

SUGGESTIONS FOR IMPROVEMENT

(1)  Continue strengthening support for SMEs by reducing barriers and streamlining council procurement processes, ensuring easier access to contracts and opportunities.

(2)  Adopt a tiered definition of ‘local’ in procurement, prioritising:

a)    Suppliers that operate and pay business rates within the borough, while ensuring value for money; followed by

b)    Suppliers that deliver significant social and economic benefits to Brent, such as employing a substantial number of local residents

(3)  Explore introducing a threshold for certain higher-value contracts to ensure that businesses the Council engage with pay the London Living Wage.

(4)  Require all businesses the Council regardless of contact value to recognise trade unions as a standard condition of engagement, where possible.

Please note that the specific wording of the suggestions for improvements were subject to refinement following the meeting, with the agreement of the Chair.