Issue - meetings

To give the Scrutiny Committee the opportunity to consider the Procurement Strategy’s content and provide comments.

DECISION

1.     Accept the report and note the observations.

2.     Ask the Cabinet Member for Corporate and Legal Services and the Welsh Language to ensure that everything possible, within the limitations, is done to keep the benefit local, to promote small companies, create social value and support the Welsh language.

The report was presented by the Cabinet Member for Corporate and Legal Services and the Welsh Language. It was explained that new legislation in the field of procurement came into force in February this year. It was noted that the report outlined the Council's response to the Act, together with the strategy itself and the consequences of using the social value methodology in the evaluation of contracts.

It was stressed that public sector procurement was subject to a legal framework to ensure fair and open competition, value for money, and to comply with national and international obligations. It was noted that the Social Partnership and Public Procurement Act 2023 was likely to come into force next year, and that preparatory work was underway to respond to these changes.

It was explained that the Council spent around £200 million a year on procurement and therefore needed to deliver the best value in terms of price, quality and social benefits, including a contribution to decarbonisation. It was noted that the strategy sets out the direction for achieving these objectives and includes seven priority areas: local benefits, zero carbon, value for money, social value, technology, governance arrangements and the Welsh language.

It was reminded that the social value evaluation methodology reflected the seven aims of the Well-being of Future Generations and the Welsh Language Act, and that the Council would pilot a new system to ensure positive outcomes for Gwynedd, such as creating employment opportunities for local residents, spending in the local supply chain, and financial contributions to charities and community clubs. It was noted that companies had already offered social benefits of over £4 million since the introduction of the new approach.

It was explained that the next steps were outlined in the report, with a view to submitting the strategy to Cabinet in November. It was emphasised that the Council was a pioneer in the field of social value and that this strategy would underpin procurement over the coming years.

During the discussion, the following observations were made: 

A question was asked about the main challenges facing the Council in implementing the Strategy, particularly in terms of achieving the net zero target and keeping the benefits local. In response, it was noted that there were challenges across several sectors, including the environment, Welsh language and the social elements, and that the change in legislation and the need to understand the new arrangements were currently posing the main challenges.

The additional cost of implementing decarbonisation policies, such as the purchase of electric vehicles instead of diesel vehicles, was questioned and what financial impact this had on the Council. In response, it was noted that the main challenge was to calculate the environmental impact when comparing an old contract with a new one, and that this work was continuing at a national level. It was noted that there was currently no sophisticated method to measure carbon in detail, but that the hope remained that energy consumption would decrease over time and that this  ...  view the full minutes text for item 7