Agenda item - Worcestershire Regulatory Services Growth Potential - Strategic Partnership

Agenda item

Worcestershire Regulatory Services Growth Potential - Strategic Partnership

Minutes:

Members were asked to consider a report which detailed further work undertaken to develop the growth potential of Worcestershire Regulatory Services.

 

The Head of Worcestershire Regulatory Services (WRS) provided Members with a brief presentation on WRS Growth Potential – Strategic Partnership.

 

The presentation covered:-

 

·         Why pursue WRS growth?

·         Benefits of WRS growth

·         Implications of not growing

·         What have we done so far?

·         Strategic Partnering

·         Issues to consider

·         Time scales (indicative)

·         Questions?

 

Following on from the presentation the Head of Worcestershire Regulatory Services (WRS) introduced the report and in doing so informed Members that WRS were seeking approval for the commencement of a procurement process to test the market for interest from commercial organisations in developing a strategic partnership for delivery of regulatory services.  The Head of WRS highlighted that he would not be asking the Joint Committee for approval to test the market unless there was an interest.

 

A strategic partnership would provide a means of reducing the net cost of WRS to Joint Committee partner authorities whilst securing the capacity and resilience of WRS in an uncertain future climate.  This would in turn directly support delivery of current WRS priorities.

 

The Head of WRS drew Members’ attention to the costs involved in procuring a strategic partnership.  These related to specialist legal advice and project management; and were estimated in the region of £20,000.  These costs would be contained within the balance of funding available from WRS set up and ICT costs.  There would also be significant staff resources required from the host authority.

 

The value of such a contract would require it to be procured by competitive dialogue under EU procurement rules.  This process was likely to take approximately nine months from formal advertising of WRS requirements.  WRS Management Board had therefore advised that this procurement process began at the earliest opportunity.  The Head of WRS highlighted the timescales as detailed below:-

 

•         Nov 2013 – Joint Committee agree to procurement exercise

•         Dec 2013 – procurement process begins

•         June 2014 – Joint Committee receive results of procurement process and proposal

•         July-Sept 2014 – partners approve proposal and governance arrangements

•         Oct 2014 – If approved, Implementation Plan starts

 

The Head of WRS responded to Members’ questions with regard to the meetings with Counties and Districts, in the immediate vicinity, who had expressed an interest and why WRS had not been able to successfully close a deal.

 

The Chairman, WRS Management Board informed Members that the Management Board had reached the conclusion as the Head of WRS had implied, to seize the opportunity to develop a strategic partnership and take WRS skills to the open market by offering a blended package of WRS skills to other public sector organisations and commercial companies; this would benefit Joint Committee partner authorities.  The right strategic partnership would help maintain WRS.

 

The Chairman, WRS Management Board further responded to Members concerns with the risks involved and in doing so, referred to page 34 of the report, that the adoption of a structured project management approach would balance these risks and ensure that the project was halted if the likelihood of successful procurement became unrealistic.

 

The Head of WRS suggested that an evaluation framework used to assess potential partners be developed and the agreed framework be brought back to the Joint Committee.

 

The Executive Director, Finance & Corporate Resources, Bromsgrove District Council informed Members that Joint Committee Members would be kept fully informed, with any final decisions resting with each partner authority.  Any changes to the governance arrangements for the Joint Committee, as a result of successful procurement, would have to go back to each respective partner authority for consideration.

 

Having been put to the vote with a majority agreement it was

 

RESOLVED:

(a)  that the further work undertaken to develop the growth potential of Worcestershire Regulatory Services be noted;

(b)  that the commencement of a procurement process to test the market for interest from commercial organisations in developing a strategic partnership for delivery of regulatory services, be approved.  With the proviso that should the costs involved exceed the agreed amount of £20,000 it be brought back to the Joint Committee; and

(c)    that, as requested, partner councils to identify, by 1st March 2014, additional regulatory functions to include within the scope of procurement of a strategic partnership.

Supporting documents: