To update the Committee in relation to the Streetscene Root and Branch review following the Cabinet’s decision on 12^th July 2012 regarding the services currently included in the Amey Service Delivery Agreement.

The Committee received a report on the Streetscene Root and Branch review following the Cabinet’s decision on 12th July 2012 regarding the services currently included in the Amey Service Delivery Agreement.  The Head of Highways & Community Services reported that there would be a workshop on the 21st September in which the issues in the report could be explored in more detail, and he encouraged Members to attend.  In the ensuing discussion the following areas were highlighted:

• Concern was expressed that packages in Appendix A of the report seemed to be a list of services currently supplied under the Amey contract, and thereby replicated the existing contractual system.  There appeared to have been little consideration to structuring the contracts in a way that would facilitate tendering by small and medium sized enterprises (SMEs).

• That the appendix was a list of the services that had been included in the prior information notice that had been published in the official journal of the European Union on 25th August. This announced Herefordshire Council’s intention to consider a procurement of the services listed and marked the start of market consultations. The consultation would inform the procurement strategy for the services and was a way of managing the procurement process.  The packages had been listed in this form, as the detail of each service listed ran to 50 pages or more.  The intention had been to engage the local supply chain, and Package D of the Appendix, planned for a later stage of the process, and had been put together with local SME firms in mind.  A programme of workshops and seminars had also been built in to and enable tendering from these companies.

In reply to a question from a Member, the Head of Highways & Community Services said that contractual compliance was built into all contracts let by the Council and that if there were substantial under performance then action was taken to remedy the situation.

A Member said that she looked forward to an improved version of the document that laid out the core of the Root and Branch Reviews and provided a clear view of what the vision was into the future.  It was important that there was a clear understanding of where the problem boundaries where drawn within the contracts, and that it was ensured that the right skills were available to allow the Council to be expert in commissioning services and managing contracts. This approach should be extended to providing a clear framework of how tranches of service were dealt with at Parish, Town, City and County Council level.  Greater creativity was required when considering how local suppliers should work with the Council, and broadening the supplier base by using the purchasing power of the County at a local level would provide a structure to enable those suppliers to work with the Council.

A Member pointed out that the Council only employed three qualified contract managers, and said that this area should be improved.  It was important that a capable procurement team was in place.

RESOLVED:

That:

(a)          the contents of this report be noted; and

(b)          the Committee recommend that a generic approach to the implementation of the Root and Branch Reviews be developed, using the Streetscene Review as a pilot, clearly articulating how the Council’s contracting strategy, approach to commissioning and management of risk are designed to deliver and secure the Council’s role for the County.