Council considered a detailed report, presented by the Portfolio Holder for Resources, which sought Members’ approval to a proposed change to the Council’s Contract Procurement Rules.
The Council’s Contract Procurement Rules provided a framework for the procurement of all goods services and works for the Council, and all purchases were required to go through a set process depending on the value of the purchase.
The proposed changes to the Contract Procurement Rules were required to enable the Council to make a direct award to Dragonfly Management (Bolsover) Limited in relation to all contracts subject to it meeting the specific criteria as set out within Regulation 12 of the Regulations.
Dragonfly Management (Bolsover) Limited (DMBL) was a company wholly owned and controlled by the Council and provided over 80% of its services directly to the Council. This meant DMBL was Teckal company, and the Council could make direct contractual awards to it without complying with the statutory requirements set out in The Public Contract Regulations 2015 (‘the Regulations’).
Dragonfly Developments Limited (DDL) was also a company wholly owned by the Council, however, it was not a Teckal company. The threshold for public works contracts was currently £5,372,609 and the Council could award contracts below this threshold provided the Contract Procurement Rules provided for this, which was now proposed in part 4.8.4 at section (5).
The proposed changes were shown as tracked changes in the appendix to the report and clarified the position on signing / awarding contracts.
Councillor Kirkham queried what provisions were in place to ensure the Council still received value for money and the same level of transparency as in open tenders when awarding contracts to Dragonfly.
The Monitoring Officer replied that each case would be considered on its own merits, and if it were in the best interest of the Council or if it were more appropriate to go out to full tender.
Councillor Kirkham noted that a key element of the Service Level Agreement with Dragonfly related to value for money and the performance of Dragonfly and Members had been advised they would receive updates from the Monitoring Officer regarding the Dragonfly Shareholder Board. However, Members had not received these updates nor seen agendas and minutes from the meetings. He added that if the Council was going to award directly to Dragonfly, and as a wholly owned company of the Council, Members were to help steer and direct it to the Council’s priorities and also have more of a say in Dragonfly, then Members needed to see the agendas and Minutes and be able to attend Shareholder Board meetings.
The Monitoring Officer replied that in terms of the decision making route, if an award were going to be given to Dragonfly, a report would go to the Shareholder Board and then to Executive for a formal decision, which would be subject to Scrutiny review. Currently, the makeup of the Shareholder Board was Executive Members, however, this was being looked at along with the roles and responsibilities going forward.
Councillor McGregor acknowledged Councillor Kirkham’s concern and advised that the Shareholder Board Minutes would be shared with Members.
Councillor Moesby added that it was being looked at to add Scrutiny Members onto the Shareholder Board.
Moved by Councillor Duncan McGregor and seconded by Councillor Clive Moesby
RESOLVED that changes to the Contract Procurement Rules as set out in the report be agreed.