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 Youd, 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:
· an exception to Contractual Standing Orders as permitted within the City Council Constitution for the reason(s) highlighted in the table below and the award of the Contracts for the installation of domestic meters to the Duchy Caravan Park as detailed in the table below:
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Detail required |
Answers |
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Title/Description of Contracted Service/Supply/Project |
Final electrical connection works - Duchy Caravan Park domestic meters |
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Name of Successful Contractor |
G. Jones |
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Supplier Registration Number (to be supplied by Corporate Procurement) |
04928174 |
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Type of organisation (to be supplied by Corporate Procurement) |
Private Limited Company |
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Status of Organisation (to be supplied by Corporate Procurement) |
SME |
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Contract Value (£) |
£28,459 full project (plus VAT) |
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Contract Duration |
6 months |
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Contract Start Date |
Click here to enter a date. |
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Contract End Date |
Click here to enter a date. |
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Optional Extension Period 1 |
months |
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Optional Extension Period 2 |
months |
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Who will approve each Extension Period? |
Choose an item. |
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Contact Officer (Name & number) |
Jane Barlow |
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Lead Service Group |
Place |
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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 Yes |
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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 |
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Reason for CSO Exception: Delivers Best Value to the Council |
Tick if it applies |
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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 |
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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 |
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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 |
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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 |
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Funding Source |
Capital Programme |
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Ethical Contractor (EC): Mayor’s Employment Charter |
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EC: Committed to sign up to the Charter |
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EC: Accredited Living Wage Employer |
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Detail required |
Answers |
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Title/Description of Contracted Service/Supply/Project |
Low voltage infrastructure and main ducting – Duchy Caravan Park domestic meters |
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Name of Successful Contractor |
Electricity North West Ltd |
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Supplier Registration Number (to be supplied by Corporate Procurement) |
02366949 |
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Type of organisation (to be supplied by Corporate Procurement) |
Private Limited Company |
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Status of Organisation (to be supplied by Corporate Procurement) |
Non-SME |
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Contract Value (£) |
£183,958.22 full project (plus VAT) |
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Contract Duration |
6 months |
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Contract Start Date |
Click here to enter a date. |
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Contract End Date |
Click here to enter a date. |
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Optional Extension Period 1 |
N/A |
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Optional Extension Period 2 |
N/A |
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Who will approve each Extension Period? |
Choose an item. |
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Contact Officer (Name & number) |
Jane Barlow 0161 793 2372 |
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Lead Service Group |
Place |
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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 |
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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 Yes |
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Reason for CSO Exception: Delivers Best Value to the Council |
Tick if it applies |
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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 |
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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 |
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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 |
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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 |
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Funding Source |
Capital Programme |
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Ethical Contractor (EC): Mayor’s Employment Charter |
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EC: Committed to sign up to the Charter |
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EC: Accredited Living Wage Employer |
The City Council owns and manages the Duchy Rd Caravan Park which is operated as a permanent residential site comprising 25 permanent pitches. The electricity supply to the site is non-domestic fed from a main site meter to individual pitch sub meters.
Recent turmoil in the energy market has caused costs to increase significantly, with non-domestic rates now significantly higher that domestic rates. Investment in the infrastructure will enable each pitch to have its own domestic meter and will also give residents the flexibility to make choices around who their supplier is.
Options considered and rejected were:
§ Do nothing.
§ Temporary subsidy of tariff rates.
High – Residents are being supported by the Irish Community Care and local ward councillors who have raised concerns from the community about not being on a domestic tariff, an inability to choose their own tariff and a lack of access to government support measures.
The delivery of this work will ensure residents in mobile homes / caravan parks are in a no worse position than residents on domestic tariffs. This work will facilitate the same access to domestic tariffs and the benefit of protection currently afforded by the energy price cap for domestic customers.
The source of funding is: Capital Programme
The Council is proposing to award the contracts for the works to ENWL Ltd for the LV infrastructure works and to G Jones for the final electrical installation works at the Duchy Caravan Park, the values for each of which are below threshold for Public Contracts Regulations to apply.
As set out in the Council’s Constitution the Council may waiver its own Contractual Standing Orders in certain circumstances and award contracts direct to suppliers in various circumstances as is the case here.
In any event the ENWL works are statutory works which may only be carried out by them as statutory undertaker, or their appointed agents/ contractors.
There is an approved total general unsupported borrowing allocation of £212k to fund the award of the aforementioned contracts, for installation of electric meters at Duchy Caravan Park.
· £150k 2023/24 Housing Strategy Capital Programme - Duchy Travellers Site.
· £62,417k 2022/23 c/f Housing Strategy Capital Programme – Housing development fund.
Implications in respect of the Innovate programme have been fully considered.
Procurement advice obtained:
There is always a risk of challenge from an aggrieved provider if the opportunity is not put out to competition but in this case the risk is low. Electricity North West is the statutory body to undertake this work. Three companies were approached for the installation of the single meters but only one contractor returned a quotation. The installation of new meters is also of an urgent nature where regulation 32 applies, this will ensure residents receive domestic rates and also provides the option to change providers, therefore this complies with the contractual standing orders.
HR advice obtained: N/A
Climate change implications obtained:
The change from a non-domestic to domestic electricity supply to site will have no material change once works are complete.
However, the change will give residents the ability to shift to green energy suppliers through schemes such as clean switch and motivation to take energy efficiency measures as they will directly benefit.
Documents used:
The following documents have been used to assist the decision process: N/A
Telephone number: 0161 793 2372
Please delete from the bullets below any which are not relevant:
· The Lead Member has been consulted and is supportive of the proposed contract.
· The appropriate Scrutiny Committee to call-in the decision is the Growth & Prosperity Scrutiny Panel
FOR DEMOCRATIC SERVICES USE ONLY
* This decision was published on 25 May 2023
* This decision will come in force at 4.00 p.m. on 1 June 2023 unless it is called-in in accordance with the Decision Making Process Rules.
Publication date: 25/05/2023
Date of decision: 24/05/2023
Decided at meeting: 24/05/2023 - Procurement Board
Effective from: 02/06/2023
Current call-in Count: 0
Accompanying Documents:
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