Issue - decisions

The Audit Committee received the update on reviews of contract management report.

The Strategic Manager Commercial and Procurement, Gary Coleman, presented the report highlighting, the findings of the three external contract management reviews from SWAP contract management audit,  DLUHC - Procurement Improvement Planning Support and Contract Management Pioneer Programme; summarised the general findings and contract management activity, responses  and actions to the review recommendations, including, an update on the appointment of a Senior Responsible Officer and the implementation of  a new governance structure – dependent on the current council re-structure, the increased engagement with contract management across the Council, the tiering of contracts,  establishment and activity of spend control boards, the development and work on a new procurement strategy and the  implementation of changes of the Procurement Act 2023, the move to a single contract register and training for contract managers and updating the Councils approach to securing social value through contracts, will be supported by a new system, LOOP, currently being implemented to record, monitor, and report Somerset Council social value progress, in partnership with our local NHS colleagues to allow bespoke reporting of social value enabling tracking and reporting of achievements.

The Audit Committee asked a number of questions and made a number of comments which were responded to at the meeting, as follows:

• The welcome single contract register and future insight to show pressure in relation to simultaneous work on multiple large contracts.
• The welcome new Loop system to record, monitor and report social value and the action should social values agreed not be delivered.
• The contract manager list and register currency – The Strategic Manager Commercial and Procurement advised the Audit Committee of the ongoing upkeep and continual review of the list, and the challenges faced and due to the current transition of personnel.
• The helpful procurement and contract management training and guidance available for Members.
• The proposal of mandatory contract manager training, contract management briefing sessions bookings, delivery and attendance – The Strategic Manager Commercial and Procurement undertook to circulate Government Commercial College contract management training numbers to the Audit Committee members.
• The results of the SWAP Contract Management Audit Survey January 2023 and re-run of the survey to benchmark position – The Assistant Director SWAP Internal Audit Services confirmed an audit for contract management is scheduled in the Audit Plan for 2024/25 and a rerun of the survey to be included in the scope of the audit, with a view to report to Audit Committee May 2025. The Clerk, Audit Committee undertook to add contract management audit survey results to the Audit Committee workplan for May 2025.
• The impact and recommendations of the Procurement Control Board on savings and Council behaviours and cashflows, including level of savings, the review of format through transformation and change.
• SWAP survey results of inconsistency in contract management activity, including the resilience checklist, increased contract manager engagement to deliver performance monitoring and contingency planning for contracts and the use of Creditsafe to track contracts.

The Chair proposed, and Cllr Mandy Chilcott seconded, the following recommendation:

That the contract management framework document be updated to reflect that contract management training is mandatory for all individuals managing contracts, including: 

·       Contract managers within the organisation to undergo the organisation contract management training within three months of taking up the post. 

·       that existing contract managers to complete the organisation contract management training. 

Following consideration of the officer report, appendices and discussion, the Audit Committee noted the report and agreed:

·       The contract management framework document be updated to reflect that contract management training is mandatory for all individuals managing contracts, including: 

·       Contract managers within the organisation to undergo the organisation contract management training within three months of taking up the post. 

·       that existing contract managers to complete the organisation contract management training.