Agenda item

Briefing Note by Procurement and Payment Services Manager.

(Copy attached).

4.1       Councillor Cockburn sought advice on whether he should declare an interest in the following item of business in terms of Section 5 of the Councillors' Code of Conduct.  Following discussion, Councillor Cockburn decided that he would not declare such interest at this time.

4.2       With reference to paragraph 5 of the Minute of 28 April 2016, there had been circulated copies of a Briefing Note by the Procurement and Payment Services Manager on the Council’s Commissioning Arrangements with the Voluntary and Third Sector.  The Procurement and Payment Services Manager, Ms Dickson and the Contracting Manager Social Work, Mr Livingston were in attendance to present the briefing note and provide additional information as required.  Ms Dickson advised that Scottish Borders Council had a long standing commitment to support the voluntary and Third Sectors  (referred to as Third Sector) with approximately 23% of the overall procurement spend being on Social Care services that were commissioned by the Council and delivered by the Third Sector.  The briefing explained that ‘Ready for Business’, an LLP funded by the Scottish Government, had published an independent report in July 2014 entitled "Purchasing from the Third Sector in Scotland".  This report explored the level and pattern of procurement with Third Sector suppliers during 2012/13 and provided an analysis of public procurement spending across all Scottish Local Authorities.  Data from that publication had been used in the briefing note and the data showed that, while there was a similar proportion of Third Sector suppliers to the study average, Scottish Borders Council spent a significantly higher proportion (23%) of its overall external third party spend with those suppliers than the 18% average across all local authority.  Figures also demonstrated that Scottish Borders spent over 50% (£13.25m) with local suppliers.  The briefing note provided further statistics in relation to the value of Third Sector contracts and it was noted that during 2014/15, Brothers of Charity (Scotland), Eildon Housing Association, Streets Ahead Borders, Ark Housing Association, Community Integrated Care and the Richmond Fellowship each delivered services in excess of £1m annually.

4.3       Discussion followed and Ms Dickson advised that Third Sector suppliers such as Brothers of Charity had developed and diversified the services they provided within the area of learning disability and were now looking at options in areas such as home care.  Members asked how increasing budgetary pressures affected contracts with the Third Sector and Ms Dickson confirmed that efficiencies were considered and built into contract values.  Ms Dickson also explained that it was not always possible to procure all required services from locally based suppliers and noted that the differential between private and public provision continued to decrease.  Further examples of Third Sector engagement were detailed.  Live Borders was an Integrated Trust that provided culture, sport and leisure services across the Scottish Borders on behalf of the Council and a contract spanning 20 years had recently been awarded at a value of circa £121m.  The Borders Green Team was a social enterprise which provided employment and training for adults with learning disabilities in the Scottish Borders and the value of this contract during 2014/15 was £128k.  Further details relating to the Green Team and supported businesses in general would be provided to the Committee in due course.  In addition, as services were developed for Health and Social Care, consideration would be given to Third Sector provision in these areas.  The Chairman thanked Ms Dickson and Mr Livingston for their attendance.

4.4       The Clerk to the Council explained that this review was in response to a request by Greenlaw and Hume Community Council and advised that following the publication of the Agenda for today's meeting, the Community Council's Chairman, Mr McCann had intimated that the Briefing did not fully cover all aspects of the original request.  Ms Wilkinson advised Members that the original request had called for the Committee to look at outsourcing success stories elsewhere in Scotland, in particular where a service had been outsourced to the Third Sector.  The Scrutiny Committee had agreed at its meeting on 24 March 2016 that, in the first instance it would receive a report on the Commissioning arrangements the Council currently had with the voluntary and third sector and Members would then make a decision on whether they considered a full review was appropriate.  Members discussed the matter and agreed that a link to the report referred to in paragraph 4.2 of this Minute entitled "Purchasing from the Third Sector in Scotland" would be forwarded to Mr McCann for information and, given the level of outsourcing the Council currently had with the Third Sector, not to pursue the full review at this time. 

            DECISION

            (a)        NOTED the presentation.

            (b)       AGREED that:

(i)      a link to the report “Purchasing from the Third Sector in Scotland” would be forwarded to Greenlaw and Hume Community Council for their information and advise them that the Committee was not inclined to pursue a full review of outsourcing success stories elsewhere in Scotland at the moment, given the current level of Council outsourcing to the Third Sector; and

(ii)     further information relating to the Green Team and supported businesses in general be presented at a future meeting of the Scrutiny Committee.