Meetings

Commissioners considered options for the future provision of catering services, noting the Executive Board’s reasons for being unable to recommend bringing the catering service in house, following their detailed review and analysis of that option.

Commissioners discussed contracted services more widely than the current catering contract requirements. They all agreed a preference in principle for direct provision of services, and that a piece of work should be undertaken with the ambition of ‘insourcing’ all externally contracted services over the longer term, taking account of Senedd Reform, changes to the estate and justifiable use of public resources.

Commissioners discussed the need for engagement with Members and unions about this approach.

They agreed that the current contract with ESS be extended for one year to allow for future service requirements for the Seventh Senedd to become clearer.

It was also agreed that, in the short term, a note be provided for Commissioners to inform them of the enhanced package provided to the catering contract staff on the Senedd estate and confirmation that the technical consultant engaged to assist with the catering contract options had reviewed the internal staffing costs set out in the paper.

Commissioners considered options for the Catering Contract, and agreed to retender a shorter length contract. They emphasised the significance of a parity of paygrade for contracted staff with those employed by the commission, and reflected that the decision taken would enable work to be done in order that future provision options would also reflect the Commission’s desire to support opportunities within Wales.

Commissioners discussed information relating to the minimum hourly pay for contract staff, who are paid the current Living Wage Foundation rate.

They agreed in principle to link the minimum rate of pay for contractors to that of directly employed staff and asked for budget implications to be investigated for consideration as part of the ongoing budget strategy deliberations.

Commissioners had requested information about ways to increase the proportion of Commission procurement spend with Welsh and Wales-based suppliers. They considered a paper which set out a strategy for increasing the proportion of procurement spend with Welsh and Wales-based suppliers. The detail also encompassed a new corporate KPI on Welsh supplier spend to give focus to formally monitoring progress.

Commissioners noted the information provided and supported the direction of travel.

Commissioners returned to the matter, initially considered at their June meeting, of the options for the renewal of the existing cleaning services contract, in particular linked to issues around contract staff terms and conditions.

Commissioners agreed to extend the current contract for one year in order to fully map out the requirements for the contract and tender the contract through the next issue of the NPS framework.

The current cleaning contract is due to expire towards the end of this year. Commissioners were provided with options for the future provision of cleaning services. They continued to explore their on-going interest in issues around Terms and Conditions for staff employed through Commission contracts and working with contractors on shared values.

Commissioners agreed to return to this matter at their next meeting, in order that a decision can be made on the preferred option for the cleaning contract in advance of the current contract extension expiring in November 2018.

Paper 3

Jan Koziel, Head of Procurement, presented an overview of the purpose, role and responsibilities of the procurement service.

Commissioners explored issues around Terms and Conditions in Commission contracts, sustainability for SMEs, and working with contractors on shared values.

Earlier in the year Commissioners had asked questions relating to any impact of Brexit on our procurement - the paper provided an initial assessment of this. Commissioners indicated that they would like consideration to begin in relation to their desire to support local markets within Wales as changes linked to Brexit and the EU increase opportunities.

Jan Koziel was welcomed to the meeting and provided the Board with an outline of a paper to be presented to the Commission on 5 December to inform Commissioners of the Assembly’s strategic approach to procurement. This included having the right procurement structure; contract delivery and procurement savings; the Assembly’s engagement with Small to Medium Enterprises [SMEs]; the National Procurement Service [NPS]; and the impact of Brexit on public sector procurement. The Commission had expressed an interest in knowing whether the Assembly had contracts with companies outside the United Kingdom.

Reflecting on the previous item on Equalities, the Board was reassured that the Procurement team worked closely with contractors in sharing Commission values, including assessing their equalities and diversity policies and ensuring equalities were embedded into contractors’ Terms and Conditions. The Procurement team were encouraged to work collaboratively with the Diversity and Inclusion team.

It was noted that the NPS did not always meet the Assembly’s needs and, although the Assembly used many of the frameworks, contractors that had worked well for the Assembly were not always successful in getting onto the service. The principle of giving opportunities to Welsh suppliers had been reiterated.

The Board made some recommendations to enhance the information provided in the paper, including asking for more examples of procurement savings.

The Commission considered a paper which gave them an overview of the progress made on procurement, three years after the service was centralised.

The Procurement team’s efforts are focussed on ensuring that the Commission procures goods and services in an efficient, sustainable and environmentally and socially responsible manner.  The emphasis is also on sourcing goods and services that deliver the quality and value for money that Assembly Members and the public have the right to expect. Particular support and encouragement is provided to potential suppliers that are small and are based in Wales.

Commission members were interested in plans to introduce a supplier development programme for those key suppliers who have staff working alongside Commission staff on our estate. The aim is to drive better efficiency and value for money from these contracts, encourage innovation and promote our organisational values, so that suppliers support our core values especially in the areas of equality, diversity and sustainability. The contracts identified are:

•        Broadcasting;

•        Facilities management;

•        Cleaning; and

•        Catering

Commissioners asked a number of questions about the opportunities local SMEs have to win Commission business, and discussed the possibility that the National Procurement Service framework contracts might not always be right for the Commission. The procurement team are aiming to be more proactive in engaging with the local supply base. Plans are in place to conduct a Wales-wide market analysis for what we buy and to alert potential suppliers to opportunities when they arise.

The procurement team has been strengthened and now takes a more centralised approach to managing the procurement process, particularly with contracts worth more than £25k. 

This work is developing in line with the Commission’s aspirations, specifically the need for procurement to be efficient; to support the development of a diverse supply chain that helps small suppliers to compete; and to focus on value for money.

Commissioners welcomed the approach being developed, which ensures that appropriate strategies can be adopted for different markets.

This item was deferred until the meeting on 14 July.