Fife Companies Win Less Than 20% Of Council Contracts

Less than a fifth of the multi-million-pound contracts offered by Fife Council last year were awarded to local firms, the Courier newspaper has reported.

Council leader Alex Rowley has signaled a major review after figures revealed that Fife companies secured just 18% of the 220 contracts — worth a massive £52 million — issued by the local authority in 2011-12.

This is a marked drop from the previous year, when 41% of Fife Council contracts were secured locally.

Mr Rowley said: ''I want to make sure that we are doing everything possible to maximise the work coming to Fife companies.


''I am now initiating a review of contracts to find out what is happening and why.''

The first step involves officers looking at whether Fife companies actually bid for the work on offer and, if they did, why they were unsuccessful.

Mr Rowley acknowledged that the council must stay within the law, which states contracts must go to the companies offering best value for money. This takes into account quality and means contracts are not merely awarded to the firms offering the lowest price.

But since last year Fife Council is piloting a system designed to help companies submit competitive tenders.

Companies are being offered training and advice on how to compete effectively through difficult economic conditions.

Mr Rowley concluded: ''In the current economic climate I am making supporting Fife business a priority and I am reviewing all policies to see what more we can do, including this specific area of procurement which we spend millions of pounds on."

(NE)