Liverpool Council is to create two new roles at the heart of its procurement and finances briefs after a series of contract failures.
Following an expensive energy contract debacle that could impact the city’s schools and fire service, and 13 costly contract agreements either expiring or in danger of running out, the local authority is moving to set up a position to oversee its contract handling process. A report to its appointments and disciplinary panel has outlined how the position of chief procurement officer is to be set up, earning up to £101,000 a year.
Following the resignation of Mel Creighton, former deputy chief executive and director of finance, a new role is to be created in its stead - Strategic Director of Finance and Resources - earning up to £150,000 a year. According to reports circulated relating to the new positions, securing individuals to fill the roles will cost £27,000, through the appointment of an executive search agency support at the cost of £25,000 and an additional £2,000 to advertise the role externally.
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The handling of contracts and lack of central log of agreements was a source of consternation for lead commissioner Mike Cunningham, who is said to have told a meeting of the finance and resources select committee, that further failings were “conceivable, if not likely.” In a report to go to cabinet tomorrow, the authority’s failure to extend 13 “have value” and “high impact” contracts ahead of time marked a “low point” for the council according to Mr Cunningham and his team.
The chair of governors at Northcote Primary School in Walton today warned of job losses and 'grave consequences' of the energy contract mistakes for city schools. Last week, Mayor of Liverpool Joanne Anderson said the contract situation was something the council needed to “get a grip of” and it needed to “get its house in order”.
The report on the creation of the new procurement role said: “It has been identified the need to strengthen and build capacity and capability with the strategic and operational management of the council’s procurement and contract management function."
The new contract chief role will “lead the development and oversee the delivery of a procurement improvement plan reflecting the findings of an external diagnostic which has recently been commissioned, internal and commissioner assessments of procurement and aligned to the Strategic Improvement Plan, Council Plan and Finance Improvement Plan.” The document added the role “will design the future procurement strategy for the council ensuring the delivery of robust procurement activity that maximise opportunities presented by the market”.
The role will also include a review of the council’s current and longer-term procurement strategies, putting forward planning, accountability, and transparency within streamlined processes, while taking account of complex factors and relationships including financial constraints, elected member accountability, new legislation and government policy, council priorities, social value, partnership opportunities and other strategic considerations. It is expected that both new posts would be operational around November this year.
