{meta} Decision - Request for Approval - Contract Award - Banking Services - Tony Thompstone

Decision details

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes

Decision:

Salford City Council - Record of Decision

 

I Councillor Hinds, Lead Member for Finance and Support Services and chairman of the Procurement Board, in exercise of the powers contained within the Council Constitution do hereby approve the award of the contract as outlined in the table below:

 

Detail required

Answers

Title/Description of Contracted Service/Supply/Project

Banking services

Name of Successful Contractor

Barclays Bank plc

Supplier Registration Number

(to be supplied by Corporate Procurement)

01026167

Type of organisation

(to be supplied by Corporate Procurement)

Public Limited Company

Status of Organisation

(to be supplied by Corporate Procurement)

Non-SME

Contract Value (£)

£44,000           per annum estimated average

Contract Duration

5 years with an option for a further 5 years

Contract Start Date

01/02/2022

Contract End Date

31/01/2027

Optional Extension Period 1

60 months

Optional Extension Period 2

months

Who will approve each Extension Period?

Procurement Board (extension > £150k)

Contact Officer (Name & number)

Tony Thompstone 2016

Lead Service Group

Finance & Corporate Business

How the contract was procured?

(to be supplied by procurement)

Tender (Open)

Framework Details (where applicable)

(procurement body, framework reference & title, start/ end date

Bury MBC Banking services

Funding Source

Revenue Budget

Ethical Contractor (EC): Mayor’s Employment Charter

 

EC: Committed to sign Charter

Barclays have committed to delivering social value in Salford >20% of the banking contract value, this work will be measured via the Social Value Portal and focussed in line with the Salford Toms and Salford Mayor’s Charter

 

EC: Accredited Living Wage Employer

Y


 

The Reasons are

Bury council ran a procurement competition on behalf of authorities in  the AGMA region. Barclays won the tender.

 

Options considered and rejected were

The council needs a banking services provider in order to be able to receive and pay money in the course of its day to day business.

 

Assessment of Risk

The council needs a banking service to receive income or to make payments.

As the proposed contract is with the existing provider there would be minimal operational list in entering the contract. The council’s council tax base for 22/23 is forecast to be 71,905, a change in the banking service would involve a project to move those households over to the new bank provider.

The estimated contract value is for £44k a year, over the course of a year the council has 1.7m transactions with the bank.

 

The source of funding is

The existing revenue budget, the cost of banking service under the new contract is forecast to be £6k a year cheaper than the current contract at £44k a year as opposed to £50k.

 

Legal Advice obtained The Shared Legal Service

When commissioning contracts for the procurement of goods, services or the execution of works, the Council must comply with the Public Contracts Regulations 2015 (PCR) and its own Contractual Standing Orders (CSOs), failing which a contract may be subject to legal challenge from an aggrieved provider. CSO’s stipulate that where a suitable framework exists, this must be used unless there is an auditable reason not to do so.

 

The procurement of Barclays as sole provider on the framework has been by way of a tender exercise undertaken by Bury MBC in accordance with PCR using an OJEU process, and will therefore ensure that the risk of challenge to the award of any contract is minimal and that any challenge, should it materialise, is extremely unlikely to be successful.

 

Submissions were evaluated on the most economically advantageous tender basis in line with published procedures resulting in the proposed award of the contract to Barclays for a five year period. The procurement procedures therefore appear robust and compliant with the requirements of the Council’s CSO’s and PCR.

 

 

 

Financial Advice obtained :  Tony Thompstone – Finance Manager

The cost of banking service under the new contract is forecast to be £6k a year cheaper than the current contract at £44k a year as opposed to £50k. It is recommended that the council opt for the 5 year contract with the option to extend for a further 5 years after that dependent upon the contract costings at that time.

Procurement Advice obtained Emma Heyes, Category Manager, The Corporate Procurement Team 

Bury Council acted as Lead Authority for this collaborative procurement.  They have put in place the framework following a robust and compliant tendering process that also complies with the Salford Contractual Standing Orders.

The Call-Off agreement will need to be completed to form the contract between the Council and Barclays.

 

HR Advice obtained

n/a

 

Climate Change Implications obtained

n/a

 

Contact Officer: Tony Thompstone

Telephone number:      0161 793 2016

 

This matter is not subject to consideration by another Lead Member.

 

The appropriate Scrutiny Committee to call-in the decision is the Overview and scrutiny board.

 

Signed: BILL HINDS                    Dated: 13th January 2022

          Lead Member

 

*         This decision was published on 13th January 2022

*         This decision will come in force at 4.00 p.m. on 20th January unless it is called-in in accordance with the Decision Making Process Rules.

 

Publication date: 13/01/2022

Date of decision: 12/01/2022

Decided at meeting: 12/01/2022 - Procurement Board

Effective from: 21/01/2022

Accompanying Documents: