Resources Committee: terms of reference

Report: 4
Date: 16 January 2009
By: Treasurer

Summary

Consideration is given to suggested delegation limits for approval of procurement activity and an amendment is proposed to an item in the terms of reference.

A. Recommendations

That members

1. Consider the financial limits which the Sub-committee will take decisions on procurement activity, and recommend any such limits to the Finance and Resources Committee; and
2. Consider the proposed amendment to the terms of reference (paragraph 4 below) and recommend such changes to the Finance and Resources Committee.

B. Supporting information

Financial limits for delegation of procurement matters to the Sub-committee

1. The terms of reference for the Sub-committee are attached at Appendix 1. It is proposed that the Sub-committee be able to agree procurement activity without further reference to the Finance and Resources Committee. There will need to be exceptions to the general application of this delegation – contracts of high value, or those contracts that raise questions of principle or financial policy, possess unusual features or involve particular risks or might arouse particular public interest or publicity need consideration by the full Finance and Resources Committee.

2. In order that members of the Sub-committee can consider where the financial threshold for delegation should be set, an anlalysis of the current 12 month rolling contract programme (December 08 - November 09) has been undertaken for known contracts that need retendering, or reviewing to take up an extension.

3. This analysis shows that the contract values fall into the following financial bands:

It will be clearly a matter of judgement where the threshold is drawn, but based on the expected value of forthcoming contracts and the smaller number of very high value contracts it would not be unreasonable for the delegation threshold to be drawn at a Total Value of £30M [1]. It is therefore proposed that members consider whether they wish to support this figure and recommend it to the Finance and Resources Committee.

Amendment to terms of reference

4. The present terms of reference for the Sub-committee include at item 4… ”To develop compliance and governance frameworks for procurement activity throughout the MPS”. Following further discussion with the MPS it will be helpful to clarify the strategic role of the Authority, as opposed to the role the MPS undertake under delegated authority for procurement activity, which involves developing the compliance framework. Accordingly it is proposed that an amendment is made and that the following replaces the existing item 4 …”To provide strategic oversight that the MPS develop compliance and governance frameworks for procurement activity throughout the service.”

C. Race and equality impact

None resulting directly from this report.

D. Financial implications

None resulting directly from this report.

E. Background papers

None

F. Contact details

Report author: Ken Hunt, MPA

For more information contact:

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

Appendix 1

Resources Sub-committee

1. In relation to procurement exercises, to consider and make recommendations to the Finance & Resources Committee on business cases and the subsequent award of contract following tendering when the total value is greater than £5M.

2. To consider and make recommendations to the Finance & Resources Committee in respect of proposed land and property transactions (acquisition and disposal) above £1m in value.

3. To monitor, scrutinise and review (on a programme board basis if required):

• The estates strategy and supporting documents
• Whether the planned disposal programme is generating receipts in line with approved budget
• Progress of the capital programme, including Property Services and Department of Information, and the development of MPS performance management frameworks
• The procurement strategy, including the implementation of responsible procurement
• The IS/IT Strategy and major IS/IT projects
• The MPS Service Improvement Programme

4. To develop compliance and governance frameworks for procurement activity throughout the MPS.

5. To review and scrutinise any annual budget growth and reduction proposals.

6. To receive and review the MPS Treasury Management report on a quarterly basis.

7. To ensure efficient communication of appropriate resource issues within and across the MPA/MPS

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