MERTHYR TYDFIL COUNTY BOROUGH COUNCIL

DATE WRITTEN

October 1st 2009

REPORT AUTHOR

Ceri Lewis

HEAD OF SERVICE

Hugh O’Sullivan

COMMITTEE DIVISION

Portfolio

COMMITTEE

Cabinet

COMMITTEE DATE

October 16th 2009

TO: Chairman, Ladies and Gentlemen

EXTENSION OF THE WELSH PURCHASING CONSORTIUM ARRANGEMENTS.

PURPOSE OF REPORT: To seek Cabinet approval to extend its commitment to the Welsh Purchasing Consortium (WPC).

1.0 INTRODUCTION AND BACKGROUND 1.1 In December 2007 Cabinet agreed to the recommendation to join the expanded

Welsh Purchasing Consortium (WPC) which now comprises of sixteen Local Authorities in the South, Mid and West Wales area. It is strongly believed that all Members benefit from the greater purchasing power obtained by acting as a consortium. This collaborative procurement approach also significantly reduces the need for individual Councils to spend time and energy in placing tenders. A request has now been received from the WPC to all Members authorities to review and extend their commitment.

2.0 CURRENT POSITION 2.1 The attached letter from the WPC highlights the problem of staff recruitment, due to the

short term nature of the appointments procurement posts (one remains vacant) are fixed term to terminate on 31st March 2011. (See attached letter)

2.2 At the recent WPC Board meeting it was held that it was preferable to be looking to appoint all procurement staff for a longer period in order to attract staff and enable the consortium to establish itself. This could be achieved by utilising the financial balance held, together with seeking an extension to the existing commitment beyond 2011.

2.3 In summary therefore all Member authorities are being requested to endorse the

decision of the WPC Management Board by extending their support for a further two years until the 31st March 2013 in order to enable staff contracts to run to this date.

3.0 FINANCIAL IMPLICATIONS 3.1 The fixed financial cost to the Council will be £14,892 per annum for the next year

with this figure being reduced by up to approximately £4,982 per annum for 2011/12 and 2012/13 depending on the level of Reserves accrued at the beginning of each of the years.

3.2 There is no additional cost to the Council on agreeing to this report. 4.0 RECOMMENDATION that

4.1 Cabinet approves the extension of the Welsh Purchasing Consortium Arrangements

for a further two year period until 31st March 2013. HUGH O’SULLIVAN DIRECTOR OF FINANCE, AUDIT & RISK MANAGEMENT INTERNAL REPORT CONSULTATION: The following officers have been consulted in respect of the proposals and recommendations set out in this report.

Chief Executive

Deputy Chief Executive / Director of Customer Corporate Services

Director of Customer Community Services

Director of Integrated Children’s Services

Director of Integrated Adult Services

Director of Corporate Centre

BACKGROUND PAPERS:

Title of Document(s) Document(s) Date Document Location Cabinet Report Welsh Purchasing Consortium Letter Rhondda Cynon Taff Draft Cabinet Report

16 November 2007 9 September 2009 September 2009

Room 212 Civic Centre Attached Room 212 Civic Centre