Decision details

Approval to Award energy supply contract for over 100kW electricity

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Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes

Decision:

Salford City Council – Record of Decision

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

· the award of a 12-month Contract for over 100kW electricity supply,as detailed in the table below:

Detail required	Answers
Title/Description of Contracted Service/Supply/Project	Over 100kW electricity supply contract
Name of Successful Contractor	Drax Energy Solutions Ltd
Supplier Registration Number (to be supplied by Corporate Procurement)	05893966
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 (£)	£4,676,038 Per annum (estimated average)
Contract Duration	12 months
Contract Start Date	01/10/2023
Contract End Date	30/09/2024
Optional Extension Period 1	12 months
Optional Extension Period 2	months
Who will approve each Extension Period?	Procurement Board (extension > £150k)
Contact Officer (Name & number)	Majid Maqbool
Lead Service Group	Place
How the contract was procured? (to be supplied by procurement)	Framework
Framework Details (where applicable) (procurement body, framework reference & title, start/ end date	TC970 – Supply of electricity and electricity related services
Funding Source	Revenue Budget
Ethical Contractor (EC): Mayor’s Employment Charter
EC: Committed to sign Charter
EC: Accredited Living Wage Employer

The Reasons are:

Following the procurement of over 100kW electricity contract via a fully compliant Manchester Framework, prices were obtained from the direct award supplier, Drax Energy Solutions for both 12 and 24-month contract durations. The 12-month contract provides best value and will result in a total cost of £4,676,038. This amounts to a reduction in costs of £3,413,199 (42.2%) for the term of the contract.

Options considered and rejected were: a 24-month contract which would have limited the cost reductions to 39%. The 12-month contract therefore provides best value and an overall cost reduction that will help in easing budget pressures over the course of the next year.

Assessment of Risk: Low.

The source of funding is: Revenue budgets and schools’ budgets.

Legal Advice obtained from: Tony Hatton, Principal Solicitor.

Financial Advice obtained from: Grace Rogerson, Senior Accountant.

Procurement Advice obtained from: Heather Stanton, Category Manager.

HR Advice obtained: N/A

Climate Change Implications obtained from: Majid Maqbool, Energy Manager.

Contact Officer: Majid Maqbool

Telephone number: 0161 607 6987

The appropriate Scrutiny Committee to call-in the decision is the Growth and Prosperity Panel and overview Scrutiny Panel.

Signed: Dated: 13^th September 2023