Stockton-on-Tees Borough Council

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Cabinet Decision: 15th January 2014
Title of Item/Report
Corporate and Social Inclusion Select Committee Review of North East Procurement Organisation
Record of the Decision
Consideration was given to a report that presented the Corporate and Social Inclusion Select Committee’s comments following the external independent review of the North East Procurement Organisation (NEPO). NEPO provided a collaborative procurement shared service across the twelve North East local authorities, governed by a Joint Committee of which each member had two seats. The organisation underwent a major review and change in direction in 2010 and, as it was timely to consider the success of those changes and whether further change was necessary, the NEPO Joint Committee and regional chief executives appointed an independent consultant to review the operating structure in late 2012/13.

Stockton’s Corporate & Social Inclusion Committee had considered the report from the external, independent review and evidence in regards to Stockton’s needs for procurement.


1. The Select Committee supports and endorses the decision made by Leaders and Mayors and the NEPO Joint Committee to create a smaller and re-focused NEPO that reports through ANEC.

2. The Select Committee supports and endorses the need to develop and implement a revised structure for a re-focussed NEPO with appropriate number and grade of posts and management structure given the changed accountability arrangements with ANEC.

3. Following the work of the committee in reviewing the areas of external third party expenditure that should be procured at a regional level, the Select Committee recommends the following list is put forward to feed into the NEPO transition process.

• Clothing & Uniforms
• Mail Services
• Office, Commercial & Domestic Furniture
• Stationery
• Fuel
• Vehicle Leasing, Hire and Purchase (but to include flexibility to procure at both local and national level depending on the particular requirement and situation)
• Vehicle Parts - tyres and tubes
• Playgrounds & Horticultural Equipment & Materials (but to include flexibility to procure at both local and national depending on the particular requirement and situation)
• School & Library Books
• Electricity, Gas and Water
• Cleaning & Janitorial Services
• Arts & Craft, Toys, Audio Visual & Sports Equipment Supplies
• Financial Services (but limited to banking and audit)
• Temporary, Interim and Agency Staff (except for trade and manual workers which is done at local level)
• Social Care - Equipment and Adaptations

4. The Select Committee recommends that a further report is presented to the Select Committee when the details of the revised NEPO scope and structure has been developed.
Reasons for the Decision
To ensure that regional and local procurement procedures maintain service quality whilst securing efficiency savings and value for money.
Alternative Options Considered and Rejected
Declared (Cabinet Member) Conflicts of Interest
Details of any Dispensations
Date and Time by which Call In must be executed
Midnight on Thursday, 23rd January 2014

Date of Publication: 17 January 2014

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