Minutes

Minutes of the Resources and Productivity Sub-committee of the Metropolitan Police Authority held on 3 December 2009 at 10 Dean Farrar Street, London SW1H 0NY.

Present

Members

• Faith Boardman (Chairman)
• Valerie Brasse
• Graham Speed (Vice Chairman)

MPA officers

• Catherine Crawford (Chief Executive)
• Annabel Adams (Acting Treasurer)
• Julie Norgrove (Director of Audit, Risk and Assurance)
• John Crompton (Committee Services)

MPS officers

• Paul Daly (Director of Exchequer Services)
• Chris Gibson (Director of Supplier Performance, Procurement Services)
• Anne McMeel (Director of Resources)
• Chris Nason (Head of Strategic Analysis, DoI)
• David Rowell (Director of Category Management, Procurement Services)

50. Apologies for absence

(Agenda item 1)

An apology for absence was submitted on behalf of John Biggs.

51. Declarations of interests

(Agenda item 2)

There were none.

52. Minutes of the meting held on 5 November 2009

(Agenda item 3)

Resolved That the minutes of the Resources Sub-committee held on 5 November 2009 be agreed and signed as a correct record.

It was noted that there were no outstanding actions from this meeting.

53. Implementation of early payment initiatives to small and medium enterprises (SMEs)

(Agenda item 4)

This report updates members of the status of the previously approved actions in support of the Mayor’s Early Payment to Small and Medium Enterprises (SMEs) Initiative and the current payment profile for such suppliers.

Resolved - That the actions taken to date to improve the time to make payment on undisputed invoices to SMEs and the current payment profile be noted and that it be noted that the ultimate aim is payment within 10 working days of the receipt of a valid invoice.

54. Review of productivity measures

(Agenda item 5)

A report was provided on an overview of the work being undertaken within the MPS as part of the productivity agenda.

Following a detailed presentation of the report by the Director of Resources the Chairman said that the scope of this work was clearly far reaching. There were several pointers in the report to specific areas which the Sub-committee might wish to examine in more detail in the coming year in the context of the wider remit of the Sub-committee following its merger with the former Productivity and Performance Sub-committee . It was agreed that members would meet informally to discuss areas which they wished to receive further reports on in the coming year.

In response to points from members the Director of Resources said that the MPS would be looking at Area Commanders in TP to drive home the changes which were being made in the productivity field. Members also raised the question of committee reports containing specific information on productivity and value for money aspects. The Director of Resources said that this would be looked at and it was already the intention to look at expanding the scope of the information appearing in the Financial Implications section. It was intended to submit a report to a future meeting on benchmarking on the current pay and pensions contract. The information appearing in business cases was another area which was being considered.

Resolved - That

1. the work being undertaken within the MPS be noted; and
2. the Sub-committee receive reports on specific areas in the coming year; such topics to be identified by members.

55. Implications of Office of Fair Trading reports on bid rigging in the property and recruitment industries

(Agenda item 6)

The Office of Fair Trading (OFT) has recently completed two investigations into bid rigging in a series of public and private tenders for Property/Construction Services and Recruitment services to support Construction Projects. As a result of these investigations, a number of companies have been named, and fined for a breach of competition law. Some of those suppliers fined by the OFT are current MPA/MPS suppliers. The report discussed how the MPS and other public bodies should treat these offences as part of the qualification process for any future tenders where suppliers in general, in addition to those fined by the OFT in particular, bid for work.

Members asked for more information regarding the appeal process – for example, when this was likely to be completed and the arrangements for publicising the results of the appeal. The Director of Supplier Performance undertook to ascertain the position from the OFT and the Office of Government Commerce.

Members also raised points concerning risk and reputational aspects such as how the public might react if a large high profile organisation such as the MPS was to award a contract to a company which had recently been fined, and the continued need to be able to demonstrate achieving value for money when letting contracts. The Director of Supplier Performance indicated that the proposals in the report aimed to provide an appropriate balance on these issues.

The Chairman said that given the areas of uncertainty which members had raised that it would not be appropriate for decisions to be made at this stage and the report should only be noted at this meeting. The Sub-committee requested that a report be submitted to the next meeting and that this should have a greater emphasis on the risk aspects. The Director, Supplier Performance confirmed that a check would be made on whether any contracts were due to be let in the period before the next meeting, but given the intervention of Christmas the likelihood was that these would not be numerous. It was not felt that any special arrangements needs be put in hand as contracts above £5M. would need Committee authorisation in any case and any under that figure could be submitted to Authority under the existing delegated arrangement for dealing with those contracts which appeared to be novel or contentious.

Resolved - That

1. the report be noted and;
2. a further report be submitted at the next meeting of the Sub-committee containing recommendations for consideration by the Finance and Resources Committee.

6 Procurement strategy action plan

(Agenda item 7)

This report set out the quarterly update to the action plan for the Procurement Strategy which was approved in June 2009.

The Chairman requested that future reports contain more information on the items with an amber and red status –to include, for example time lines. She said it would also be useful if arrows could be included in the amber items in the action plan to denote the direction of travel –that is, whether the item was leaning towards either red or green status.

Resolved –That

1. the update on the progress be noted and it be noted that further updates will be provided to the Sub-committee on a quarterly basis; and
2. There be a refinement to the information provided in future reports.

57. Exclusion of press and public

(Agenda item 8)

Resolved - That under section 100A(4) of the Local Government Act 1972 the press and public be excluded from the meeting for the following items of business on the grounds that they involved disclosure of exempt information as detailed in paragraph 3 of Schedule 12A to the above Act.

Summary of decisions made on exempt items

58. Exempt to appendix to procurement strategy action plan

(Agenda item 9)

Information noted.

59. Exempt appendix to implications of Office of Fair Trading reports on bid rigging in the property and recruitment industries

(Agenda item 10)

Information noted.

60. Increasing contract compliance

(Agenda item 11)

The position was noted and recommendations were adopted.

61. Exempt minutes of the meeting held on 5 November 2009

(Agenda item 12)

Agreed and signed.

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