Verbal Update from the Director of Technical Services

Further to minute 31 (28 September, 2010) the Director of Technical Services gave an update to the Committee and submitted the Action Plan in relation to the Parks and Countryside Services Procurement Exercise (PACSPE).

A Member commented on the lateness of this report and the fact that he had only just received a copy that evening

The Action Plan listed the lessons learnt from theHESPE/PIDA along with the key actions, owners, timescale and progress.

Responding to Members’ comments, the Interim Head of Technical Services explained the use of the RAG (Red/Amber/Green) status system. Actions were ‘green’ if they were work in progress and still on target, they became ‘amber’ if there was slippage on timescale.

With the permission of the Chair, the Leader of the Council addressed the Committee and commented that the Committee could take comfort from the lessons learnt and key actions which were now in place to address these lessons with the responsibilities and accountabilities built in. Better project management was now being carried out on a corporate basis.

The Director commented that the Action Plan gave officers the security of knowing that they were following best practice and focused the whole organisation on delivering.

Resolved – That the Action Plan be noted.

The District Auditor presented the Audit Commission report in relation to an investigation into concerns raised by a group of staff under the Public Interest Disclosure Act 1998 (PIDA), in relation to governance arrangements that operated during the Highways and Engineering Services Procurement Exercise (HESPE), undertaken in 2008. He outlined the concerns raised under the PIDA and commented that they had initially been raised under the Council’s “Whistleblowing” procedures.

The investigation concluded that overall the Council set up proper processes for the procurement exercise for highways and engineering services and there were many areas of good practice. There was evidence that the tender evaluation, information provided for decision making and contract awarded were sound. There was no evidence of impropriety by any officers or members and the winning bid was clearly better value for money than the others in terms of both cost and quality. He commented that this was a significant achievement considering the size, complexity, uniqueness and nature of the tender exercise which brought together a number of previous contracts and also involved an in-house bid.

Although at no time was there any allegation or evidence of fraud or corruption, he commented that the concerns were genuine and outlined a number of weaknesses that were highlighted in the review, which potentially left the Council and individuals open to external challenge.

In response to concerns expressed by Members with regard to the weaknesses in control identified in the review, the District Auditor confirmed that in spite of the weaknesses in documentation, his view was that the tender evaluation, information provided for decision making and contract awarded were sound. An action plan had been presented with the report and a response to it was awaited.

Resolved –

(1)  That the Action Plan associated with the HESPE PIDA be completed and submitted to the Cabinet for approval.

(2)  That the Director of Technical Services be invited to attend the next meeting of the Committee, to present an update on progress with the Action Plan.