Decision details

The Commercial Director, Craig Cooper, introduced the item by outlining the four key relationships that would be managed through the Commercial Team: New Support and Customer Services Organisation (NSCSO); Development and Regulatory Services (DRS); The Barnet Group Ltd; and the Joint Legal Service (HB Public Law).

The Head of Commercial, Kari Manovitch, presented a report which detailed the new model for managing the Council’s major commercial partnerships and the information that would be reported to the Committee. Members were advised that detailed contract management arrangements for the NCSCO and DRS contracts would be put into place following the outcome of the Judicial Review appeal.  It was noted that prototype arrangements were in place for NCSCO and DRS and contract management arrangements in place for the Barnet Group and HB Public Law.

Responding to a question regarding management agreements, the Head of Commercial outlined how these set out key deliverables, key performance indicators (KPIs), budgets and risks associated with partnerships over the next 12 months.

In discussing KPI measures for the proposed NCSCO contract, Members requested that detailed information on the KPIs that the Council would be measuring Capita’s performance against be provided to the Committee so that the methodology could be understood.  The Commercial Director reported that a price-performance mechanism was in place for KPIs.  KPIs were weighted and failure to meet targets in some areas would result in financial penalties.      

Responding to a question, the Commercial Director reported that KPIs with a red or amber status would be reported to the Committee.  Members requested that consideration be given to how the Committee would access the full set of KPIs to monitor the overall performance of major commercial relationships. 

The Committee noted a correction to Section 4.2 of the report.  The word ‘appropriate’ should be replaced with ‘respective’ as each contract had its own partnership governance board.

Members were advised that the full risk register associated with each contract would be reported to them as part of the quarterly performance monitoring reporting to this Committee.  Officers were requested to consider how the Chairman and Vice-Chairman could be involved in more regular performance monitoring arrangements to ensure that they had an appropriate level of oversight.

Following a question on the availability of personnel to attend Committee, officers confirmed that the relevant officer from the Commercial Team would be available to attend future meetings and the expectation was that the Cabinet Member, Operations Director for the partner (Capita/Capita Symonds Partnership Directors) and the Council’s Partnership Manager would also be reporting regularly to Committee to give account on contract performance. 

At the request of the Committee, the Commercial Director confirmed that the HB Public Law was being contract managed by the Commercial Team and not the Assurance Group.

The Committee expressed concern that the terms of reference of the Committee were limited to NSCSO, DRS, The Barnet Group Ltd, HB Public Law and NSL (Parking) and requested that the terms of reference be widened to include other major contracts such as the street lighting PFI contact and the Kier PFI contract.  Members agreed that the Chairman, Councillor Harper and Councillor Moore should develop proposals outside of the meeting for reporting to the Constitution, Ethics and Probity Committee on 8 July 2013.

RESOLVED that:

1.             The Committee note the report on Managing the Council’s Major Commercial Partnerships;

2.             The quarterly performance report to the next meeting of the Committee provides details on the resources dedicated to managing each key contract (including finances, staffing and structure); and,

3.             The Chairman, Councillor Moore and Councillor Harper be delegated authority to agree a proposed amendment to the Terms of Reference of the Committee with a view to expanding the remit of the Committee to include other key contracts and that this proposal be reported to the Constitution, Ethics and Probity Committee on 8 July 2013