Issue - meetings

To receive and consider the report of the Director of Finance.

1.         To approve the procurement strategy as outlined in the report.

2.         To approve the proposed evaluation criteria for the contract.

3.         To delegate authority to the Executive Member (Resources) to enter into a contract with the successful bidder identified through the procurement process.

Councillor Peter Wilson, Executive Member for Resources, presented the report of the Director of Finance which set out agreement to enter a joint procurement exercise with South Ribble Borough Council and Preston City Council, supported by an external specialist consultant in the area to procure Merchant Acquiring Services.

Merchant Acquiring services were the means by which the council processed credit and debit card payments from customers. They allowed card transactions to be processed securely and ensure that customers were offered a choice of payment channels for council services. Council income collected via credit/debit cards equated to approximately £5.5m per year, and over 45,000 transactions.

Members discussed the criteria, noting the quality, social value and price for the contract. 

Resolved:

1.         To approve the procurement strategy as outlined in the report.

2.         To approve the proposed evaluation criteria for the contract.

3.         To delegate authority to the Executive Member (Resources) to enter into a contract with the successful bidder identified through the procurement process.

Reasons for recommendations

The nature of the service to be procured is specialised so the advice and input of an expert, who can undertake the necessary research and analysis of bids is considered prudent.

A joint procurement with two other councils should present an attractive proposition to potential suppliers and should secure a competitive price and value for money.

The current cost to Chorley Council for these services is approximately £65,000 per year, and the contract proposed is for three years, plus an option to extend for a further two years. It is anticipated that the savings can be secured through the procurement exercise.

The proposal is for BRC Consulting Services Limited (BRC) to manage a full market tender on behalf of the three councils. The tender will be undertaken as a joint exercise with a view to selecting one merchant acquirer who will deliver the same core service model to each Council but with separate contracts recognising that there will also be specific differences in requirements. Core service requirements, as well as service requirements specific to each council, will be incorporated into a single tender document.

Other options considered and rejected

An alternative option would be for the Council to enter a procurement exercise as a single organisation, and without external support. However, as a joint procurement exercise, the council should benefit from more competitive prices, and through the advice and expertise of a specialist, will be able to undertake a more effective evaluation of the bids submitted.