Archived decisions

1. Introduction

    1.1. On 23rd April 2007, the Cabinet received a report of the Head of Corporate and Legal Services and Monitoring Officer, and the County Treasurer and S.151 Officer, regarding the use of consultants by IT Services in connection with the Contact Centre programme. The report stated that, as a result of a complaint forwarded to the County Council by the Audit Commission, the County Treasurer's Internal Audit Team had undertaken a preliminary investigation into the initial letting of consultancy contracts for preparatory work on the project. It appeared likely that significant contracts had been entered into with external consultants which failed to comply with EU Procurement rules and County Council Standing Orders.

    1.2. Cabinet noted the report, and approved action that had been taken to regularise, for the future, the letting of the consultancy contracts, by terminating existing contracts and reletting these through a legally compliant framework contract. Cabinet also resolved that a full investigation be undertaken into the circumstances surrounding the letting of the consultancy contracts referred to in the report, supervised by the District Auditor at the Audit Commission and undertaken by the County Council's Chief Internal Auditor and the Head of Legal Practice, to be completed within three months with a final joint report submitted to the Cabinet for consideration.

    1.3. The Terms of Reference for the investigation were agreed as consideration of all the circumstances relating to the letting of the consultancy contracts for the Contact Centre, concentrating on the following aspects:

    1.3.1. What advice including legal and procurement advice was sought and

        obtained by IT Services leading up to and during the letting of these consultancy contracts, was such advice followed and if not, why not.

    1.3.2. Why normal procurement procedures (including EU and Contracts

    Standing Orders) appear not to have been followed.

    1.3.3. Does this apparent failure to follow appropriate procurement

      procedures result from any defects in the Council's current practices and procedures, and if so, what improvements are required to be made.

    1.3.4. Are there any cultural or attitudinal issues that need to be addressed.

    1.3.5. Are there any apparent failures in the control mechanisms that exist in

      the current procurement regime, and if so, what are they and what recommendations are made for improvement.

    1.3.6. What simply was the root cause of this apparent failure to comply with

    Contracts Standing Orders and EU Procurement Rules.

    1.3.7. An assessment of value for money achieved under these contracts be

    given.

    1.3.8. Does any action, inaction or failure on the part of any staff justify

    disciplinary proceedings.

    1.3.9. Consideration of any personal or business relationships between

    those employees involved in the letting of these contracts and the

    contractors themselves.

    1.3.10. A random review be undertaken of other recently let contracts to

    assess whether all procurement rules have been complied with.

    1.3.11. An indication be given as to the timescale for the Monitoring Officer

      and Section 151 Officer to bring any such similar reports to the attention of the Cabinet, should similar circumstances arise in the future.