{meta} Decision - Salford Bolton Network Improvements (SBNI) - Delivery Package 3 (DP3) Increase in Purchase Order Value

Decision details

Salford Bolton Network Improvements (SBNI) - Delivery Package 3 (DP3) Increase in Purchase Order Value

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes

Decision:

Executive Decision

 

Executive Decision

Request to a Scrutiny Chair that an Executive Decision be exempt from Call-In for Scrutiny:

 

Decision maker

 

Procurement Board

Nature of the decision

 

Approval to raise value of purchase order and make overdue payment to contractor.

 

Non-confidential reports – Can be made available to the public

 

Part 1

Confidential reports - Containing confidential or exempt information

 

Part 2

Reason for confidentiality

 

Information in respect of which a claim to legal professional privilege could be maintained in legal proceedings

 

Intended date of decision

 

23 November 2022

Officer contact details

 

For any further information

Name:

 

Email:

Opu Anwar

 

opu.anwar@salford.gov.uk

 

Has the decision been published in a Forward Plan?

 

Yes

Reasons for special urgency such that this cannot be published in a Forward Plan

 

n/a

Is exemption from call-in for scrutiny needed?

 

Yes

Advice as to how any delay will seriously prejudice the legal or financial position of the Council

 

The City are already owing the contractor a substantial amount of money as invoices from May 2022 onwards have not been paid

Scrutiny Chair

 

Who has agreed the decision is reasonable and urgent

 

Name:

Cllr Rob Sharpe (Growth and Prosperity Scrutiny Panel)

Signed:

Rob Sharpe

Date:

18 November 2022

 

Request prepared by:

Opu Anwar – Infrastructure Team SCC

 

 

 

 

Salford City Council - Record of Decision

I Paul Dennett, City Mayor, in exercise of the powers contained within the Council Constitution do hereby approve:

 

·      an exception to Contractual Standing Orders as permitted within the City Council Constitution for the reason(s) highlighted in the table below and the increase in Purchase Order Value as detailed in the table below:

 

Detail required

Answers

Title/Description of Contracted Service/Supply/Project

SBNI DP3 Increase in Value of Purchase Order

Name of Successful Contractor

Eurovia

Supplier Registration Number

(to be supplied by Corporate Procurement)

Type of organisation

(to be supplied by Corporate Procurement)

Private Limited Company

Status of Organisation

(to be supplied by Corporate Procurement)

SME

Contract Value (£)

£2,500,000 – Increase in PO Value

Contract Duration

TBC

Contract Start Date

Click here to enter a date.

Contract End Date

Click here to enter a date.

Optional Extension Period 1

months

Optional Extension Period 2

months

Who will approve each Extension Period?

Choose an item.

Contact Officer (Name & number)

Lead Service Group

Choose an item.

Reason for CSO Exception: The goods / services / works are only obtainable from one provider and there is no other provider available to allow genuine competition

Tick if it applies

Reason for CSO Exception: The execution of works or the supply of goods or services is controlled by a statutory body

Tick if it applies

Reason for CSO Exception: Delivers Best Value to the Council

Tick if it applies

Reason for CSO Exception: Special education, health or social care contracts, if it is considered in the Council’s best interests and to meet the Council’s obligations under relevant legislation

Tick if it applies

Reason for CSO Exception: The execution of works or the supply of goods and services is required so urgently as not to permit compliance with the requirements of competition

Tick if it applies

Reason for CSO Exception: Security works where the publication of documents or details in the tendering process could prejudice the security of SCC and Salford residents

Tick if it applies

Reason for CSO Exception: Procurements made through, or on behalf of, any consortium, local authority, statutory or similar body, provided that tenders or quotations are invited and contracts placed in accordance with national or EU legislation.

Tick if it applies

Funding Source

Choose an item.

Ethical Contractor (EC): Mayor’s Employment Charter

 

EC: Committed to sign up to the Charter

EC: Accredited Living Wage Employer

 

The reasons are: To enable payments to the contractor for works on SBNI DP3

 

Reasons for cost increases have been:

·      Additional costs as a result of delayed access/ prolongation/ other issues associated with utilities diversion process;

·      Additional costs as a result of underground obstructions/ unchartered services and utilities diversion delays;

·      Additional costs as a result of residual design issues from the tendered design.

 

The reasons for the cost increases can be attributed the following factors:

·      Mismanagement of the utilities diversion process by consultant resulting in prolongation and delay costs;

·      Design errors resulting in others needing to amend the design, once the contract had been awarded;

·      Delays caused by utilities companies once the utilities diversion process had been undertaken.

·      Unforeseen ground conditions

·      Uncharted utilities.

 

Options considered and rejected were: n/a

 

Assessment of risk: At this time the Council needs to underwrite the payment of funds due under contract whilst works are completed. A final account needs to be established and funding options confirmed.

 

The source of funding is Place Capital Programme 2022/23

 

Legal advice obtained: The Shared Legal Service

 

Financial advice obtained: Alison Woods

 

Procurement advice obtained: The Corporate Procurement Team

 

HR advice obtained: N/A

 

Climate change implications obtained: N/A

 

Documents used

The following documents have been used to assist the decision process:

Report to the City Mayor’s Regeneration Briefing – 13 July 2015

Salford Bus Lanes – An Overview (Urban Vision) - 6th November 2015

TfGM OBC Draft Appendix B – Schematic Plan from OBC - November 2015

Urban Vision – Regeneration Panel Presentation – July 2016

Report to Lead Member for Planning & Sustainable Development – 9th May 2017

Report to Lead Member for Planning & Sustainable Development – 18th June 2019

Report to Lead Member for Planning & Sustainable Development – 19th Sep 2019

Report to Procurement Board – 27th November 2019

Report to Procurement Board – 9th December 2020

 

(if the documents disclose exempt or confidential information, they should not be listed, but the following wording shall be inserted: "(The relevant documents contain exempt or confidential information and are not available for public inspection)":
Contact details

Contact Officer:  Opu Anwar         

Contact: opu.anwar@salford.gov.uk

 

Please delete from the bullets below any which are not relevant

·      The Lead Member has been consulted and is supportive of the proposed contract.

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

·      This decision is urgent and is not subject to call-in, in accordance with the Decision Making Procedure Rules.

 

Signed:      Paul Dennett                Dated:       24 November 2022.

                    City Mayor

 

FOR DEMOCRATIC SERVICES USE ONLY

 

*           This decision was published on 25 November 2022

*           This decision will come in force at 4.00 p.m. on 2 December 2022 unless it is called-in in accordance with the Decision Making Process Rules.

 

Publication date: 25/11/2022

Date of decision: 23/11/2022

Decided at meeting: 23/11/2022 - Procurement Board

Effective from: 03/12/2022

Accompanying Documents: