Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: Yes

Date of Decision: November 25, 2024

Purpose:

Content: Salford City Council – Record of Decision   I Councillor Youd, Lead Member for Finance and Support Services and chairman of the Procurement Board, in exercise of the powers contained within the Council Constitution do hereby approve:   1.  Approve the procurement of resources, for up to 4 roles from consultancy companies to support the delivery of the Infrastructure programme in the Place Directorate.   2.  Approve the procurement of resources through a mini competition via the Stockport Metropolitan Borough Council Professional Services Framework or alternative compliant route.   3.  Approve the allocation of up to £600,000 from the Place Revenue Reserves programme to fund the resource over the period of 1 year.   4.  Delegate the approval to commission the preferred supplier for each role following the procurement exercise to the Executive Director of Place on the condition that the submitted price is less than £150,000 for each role.     The Reasons are: Salford’s programme of Infrastructure work is a key component of delivering the City Council’s ambitions for growth and our aims to reduce the carbon impact of travel across the city. To progress this pipeline, additional staff are needed across the technical teams in the Place Directorate develop and deliver projects, business cases and strategy documents that are essential to the programme and bidding for grant funding to maximise its impact.   Options considered and rejected were: A major recruitment exercise to try and fill vacant posts in the Infrastructure and Engineering Design teams was undertaken in April 2024. This involved advertising vacant posts and included more targeted advertising of the posts compared to an exercise to advertise for the same posts which was unsuccessful in 2023. However, despite an extensive advertising campaign and interviews no suitable experienced candidates were appointed to these roles.   Across Technical Services, the Council continues to face challenges of recruiting suitably experienced technical officers, driven to a large extent by external market forces. This growing volume of outsourcing without a long term strategy does not always represent good value for money. Over the last 18 months, the Council has been exploring future service delivery models for Technical Services, to remedy the recruitment issues it faces. Further feasibility work is now underway around the preferred option, along with detailed business planning, before a decision is made by the Council on the appropriate way forward.   Until a decision is reached on a future service delivery model, the pressures to deliver mean it is recommended that support is procured from third party consultants.   Assessment of Risk: High. If the roles are not covered by consultant resource the Council does not have the ability to progress/deliver the Infrastructure programme against which it has already secured funding or support the submission of funding bids to secure new projects that benefit the City and our residents.   The source of funding is: The funding for these roles will be underwritten using Place Revenue Reserves drawing on a £600,000 allocation of funding covering the four roles set out in the report. The aim would be to recover these costs where eligible from future grant awards as projects are developed and put forwards for grant funding opportunities. This will then reduce the pressure on the reserves allocation wherever possible. Elements of the work, such as the Local Implementation Plan update, won’t be recoverable from grant but will enable Salford’s needs to be updated as part of the Greater Manchester Transport Strategy ensuring that our priorities are articulated to government for funding.   Legal Advice obtained – Supplied by: Tony Hatton, Principal Solicitor: When commissioning contracts for the procurement of goods, services or the execution of works, the Council must comply with the public procurement regulations and its own Contractual Standing Orders (CSO’s), failing which a contract may be subject to legal challenge from an aggrieved provider. CSO’s apply to every contract, including temporary ones, for the procurement of supplies, services and the execution of works undertaken by or on behalf of the Council, subject to certain exceptions listed in the Orders. CSO’s stipulate that where a suitable framework agreement exists, this must be used unless there is an auditable reason not to.   In awarding the consultancy appointments using the call-off procedure under the Stockport Framework Agreement – Lots 1 and 2 (or other compliant route to market using a consultancy framework), the Council will need to have followed the procedure set out in the framework agreement for mini competition to ensure the procurement process is compliant. Bids should be evaluated on the most economically advantageous tender basis in line with published procedures. The procurement procedures therefore appear robust and compliant with the requirements of the Council’s CSO’s and public procurement legislation.   The terms and conditions established under the framework agreement govern the contracts let under the framework although each contract will inevitably have some differences to reflect the agreement struck between the parties to the contract.   Financial Advice obtained – Supplied by: Hollie Faulkner, Finance Manager: This procurement board report details the requirements for additional resources within the Infrastructure and Highways team to develop the pipeline programme of works. The development and delivery of this pipeline and the associated business cases will enable the team to bid for and secure grant funding. Whilst a future service delivery model is under review, this report seeks to utilise third party consultants across four roles at a maximum cost of £600,000 over the next 12-months. This cost can be funded from Place revenue reserves in the first instance. For transparency the consultants will be required to complete timesheets detailing each scheme. Wherever possible costs will be recovered from any grant funding which becomes available and the ask on reserves reduced.   Procurement Advice obtained – Supplied by: Emma Heyes, Category Manager: Whilst the appointment of external consultants does not represent the best value for money for the Council, the further competitions between the suppliers on the SMBC Professional Services framework should elicit competitive market rates for these appointments.   The Professional Services framework was procured by STAR Procurement on behalf of Stockport Metropolitan Borough Council as the Lead Contracting Authority. The procurement process was conducted via a full OJEU restricted procedure and is therefore complaint with the Public Contract Regulations 2015.   The Procurement team will assist with the publishing of the further competitions via the Council’s Chest portal and will offer advice and guidance on the procurement process.   HR Advice obtained – Supplied by: Neelum Mahmood, HR & OD Business Partner: While the delivery of the infrastructure programme may not represent the best value for the Council in the long run, it will provide short-term relief for immediate project demands.   There have been challenges in previous recruitment campaigns which sought to attract highly specialised individuals from a small talent pool. In the longer term, HR will work with the service by adjusting the recruitment strategy to target a higher level of expertise. This approach would provide a more sustainable solution and aim to build internal capacity to manage projects without continuous reliance on external consultants.   In the longer term, it is essential to reduce the Council’s over-reliance on external consultancy firms. While there may be a need for specialist support in some areas, developing and retaining project management capabilities internally will strengthen the Council’s ability to deliver complex infrastructure projects in the future. This is particularly important in the context of Salford’s growth ambitions, where the Council will continue to face high demand for skilled technical staff.   Outsourcing entire schemes to third-party consultancy firms should be considered when necessary and not as a default approach to overcoming recruitment challenges.   Climate Change Implications obtained – Supplied by: Chris Smith, Head of Infrastructure: The Infrastructure work programme supports the delivery of aspirations in the Greater Manchester 2040 Transport Strategy which seeks to deliver a step change in how people travel across Greater Manchester with the aspiration for 50% of all journeys to be made by walking, cycling and public transport. These roles contribute towards the delivery of Salford’s Infrastructure programme which seeks to promote sustainable modes as part of Salford’s commitment reducing the carbon impacts associated with travel in our City.   Contact Officer: Chris Smith Telephone number: 0161 7944893   ·      This matter is not subject to consideration by another Lead Member.   ·      The appropriate Scrutiny Committee to call-in the decision is the Growth and Prosperity Scrutiny Panel.     Signed:    Cllr J Youd          Dated:    25 November 2024.                Lead Member   FOR DEMOCRATIC SERVICES USE ONLY   *           This decision was published on 25 November 2024. *           This decision will come in force at 4.00 p.m. on 2 December 2024 unless it is called-in in accordance with the Decision Making Process Rules.