Sir Ronnie Flanagan’s report into the award of the contracts to Impact Plus

Report: 17
Date: 22 March 2010
By: Chief Executive

Summary

This report contains the response to the recommendations made by Sir Ronnie Flanagan following his investigation into the award of contracts to the company Impact Plus.

A. Recommendation

Members are asked to:

1. Note the response to each of the recommendations made by Sir Ronnie Flanagan following his investigation into the award of contracts to Impact Plus and agree that appropriate action has been taken or is being taken to address the points raised.
2. Agree that progress on contract compliance and improvements to the MPA/MPS procurement framework continue to be monitored by this Committee through the quarterly reports of the Director of Resources and Director of Audit, Risk and Assurance.

B. Supporting information

1. The December meeting of this Committee was told that the Professional Standards Cases Sub-Committee had finalised its consideration of Sir Ronnie Flanagan’s report into the award of the contracts to Impact Plus. The Sub-Committee determined that Sir Ronnie Flanagan’s report and supporting evidence did not demonstrate any evidence of dishonesty. It also concluded that there was no evidence that any criminal offence had been committed. The Sub-Committee was not required to determine whether disciplinary proceedings should be brought against Sir Ian Blair as he was no longer serving with the MPS.

2. In completing his report Sir Ronnie also considered whether there was any individual or organisational learning for the MPS arising from the matters investigated. He made twelve recommendations to improve processes and practices and the Professional Standards Cases Sub-Committee resolved to refer responsibility for monitoring their implementation to the Corporate Governance Committee.

3. The attached Appendix 1 contains the MPA and MPS response to the recommendations. It is unusual to consider recommendations without seeing the argumentation on which they are based, but in this case the recommendations are free standing. The report itself is very detailed and focuses on the actions of individuals rather than process. The recommendations Corporate Governance Committee is asked to consider are essentially limited to procurement process. Members may, if they wish obtain the full report from Member Services but it is entirely possible to consider the response to the recommendations without having read the report.

4. The focus of Sir Ronnie’s report was upon the material facts at the time they occurred. The report and recommendations do not therefore reflect the changes that have taken place to improve the procurement process in recent times. Since 2008 a more rigorous and structured public procurement process has been introduced under which decisions are taken by the MPA, a MPS Contracts Board or by MPS officials according to the nature and value of the contract to be awarded. This is in line with a clearly defined and published scheme of delegation. Legal advice is also now routinely provided for all procurements of a value requiring approval by Contracts Board or the MPA and for any particularly complex procurement.

5. Members will also be aware of the recent exercise completed to identify non-compliant and potentially non-compliant procurements, the results of which have been reported to the full Authority. Action is underway to achieve full compliance as soon as is practically possible and progress is being monitored by the Resources and Productivity Sub Committee and reported to Corporate Governance Committee.

6. Initiatives and actions taken in recent years to develop and strengthen the MPS procurement function and MPA oversight of procurement activity also include:

• Developing a revised MPA/MPS Procurement Strategy and supporting implementation plan.
• MPA Resources and Productivity sub committee oversight of procurement activity and delivery of the agreed Procurement Strategy. Including monitoring contract compliance and the level and nature of single tender action.
• Delivering the Developing Resource Management programme which supports the move to contract compliance and robust procurement systems across the MPS. Key work streams of the programme addressing contract compliance include: P2P promoting and ensuring compliant purchasing through an approved purchasing route and establishing a contracts database providing greater transparency and accountability to contract management.
• Professional development of Procurement Services – recruiting professionals qualified in the procurement field with 26 new recruits in the last twelve months. Establishing category management specialists and the supply chain management approach in line with recognised best practice.
• Delivering a training and awareness programme around MPA contract regulations and compliance with procurement policy and procedures.

C. Race and equality impact

The award of future contracts by an open and transparent procedure will enable all communities to tender equally for MPA contracts.

D. Financial implications

This report has no direct financial implications.

E. Background papers

• Appendix 1

F. Contact details

Report author: Julie Norgrove, Director of Audit, Risk and Assurance, MPA

For information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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