{meta} Decision - Request for Approval - Acceptance of the Tender for the Gas and Oil Boiler SLA Contract

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 Bill Hinds in exercise of the powers conferred on me by the Scheme of Delegation of the Council do hereby approve the award of the following contract for a project approved under the current Corporate Revenue Funding:-

 

 

Detail required

Title/Description of Contracted Service/Supply/Project

     Gas and Oil Boiler Repair and Servicing SLA

Name of Successful Contractor

J Fletcher Engineers Limited

Supplier Registration Number

(to be supplied by Corporate Procurement)

                                01828722

Type of organisation

(to be supplied by Corporate Procurement)

Private Limited Company

                      Status of Organisation                   

(to be supplied by Corporate Procurement)

SME

Contract Award Price

£57,156.25 per annum split between £16,263.25 for schools and £40,893.00 for corporate properties

Per Annum (estimated average)

Contract Value Including Fees and approved QRA

(if applicable )

£171,468.75 over 3 years plus the option for a two year extension.

Full Project costs of £285,781.25 if the options for the extensions are exercised

Contract Duration

3 years

Contract Start Date

01/06/2020

Contract End Date

31/05/2023

Optional Extension Period 1

12 months

Optional Extension Period 2

12 months

Who will approve each Extension Period?

Strategic Director (extension < £100k)

Contact Officer (Name & number)

Gregory Durkin 0161 779 4942

Lead Service Group

Place Directorate 

How the contract was procured?

(to be supplied by Corporate Procurement)

        Open tender arrangement via The Chest

                                (Ref DN462847)

Framework Details (where applicable)

(Procurement Body, Framework Reference & Title, Start/End Dates, Hyperlink, etc.)

Open Tender arrangement 

Funding Source

SCC Corporate Revenue Budget and Third Party ((Schools) Direct Payments

Ethical Contractor

Mayor’s Employment Charter

Committed to sign up to charter

 

 

 

 

Accredited Living Wage Employer

 

 

The Reasons are:   To enable the service contract to progress as programmed and be commissioned to start for June 2020. 

 

Options considered and rejected were:None.  All procedures are in accordance with normal Standing Orders.

 

Assessment of Risk:  High. It is a statutory requirement that the Council comply with the Gas Safety (Installation and Use) Regulations 1998(GSIUR) as amended on 6 April 2018. The existing service contract has expired and a new contract is required to be in place from June 2020.

 

The source of funding is: The funding sources available for the corporate property gas and oil boiler plant heating systems service and maintenance are those under the 2020/21 Corporate Revenue Budget and are detailed in reports previously submitted to Cabinet for approval. Third party (schools) costs will be paid directly by themselves.

 

Legal Implications: Supplied by: Tony Hatton, Principal Solicitor, tel. 0161 219 6323.

 

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 (CSO’s), failing which a contract may be subject to legal challenge from an aggrieved provider. The proposed award of the contract follows a tender exercise by competition under an Open Tender arrangement via The Chest (ref DN462847).

 

The purpose of this arrangement is to select through a procurement/ evaluation process a number of providers who can meet the service requirements of the Council, as and when those services are required. If they are required then the Council will undertake an exercise to call off the services from one or more of the providers who have been selected and this may be through any number of ways e.g. open competition, mini-competition, direct allocation etc. depending on the circumstances. A contract will then be formed between the Council and the chosen provider/s.

 

The Council will need to have followed the procedure set under CSO’s open competition to ensure the procurement process is compliant. Eighteen tenders were received from framework suppliers for this project, which have been evaluated on the most economically advantageous tender basis in line with procurement procedures resulting in the proposed award of the contract to J Fletcher(Engineers) Limited. The procurement procedures therefore appear robust and compliant with the requirements of the Council’s CSO’s and public procurement legislation.

 

The Council has a statutory responsibility under the Gas Safety (Installation and Use) Regulations 1988 (as amended) to prevent misuse, undue consumption and adherence to safety requirements contained within the regulations and as such enters into arrangements with specialist companies to provide servicing, testing, repairs etc in its corporate buildings as required to comply with the legislation.

 

Legal Services will assist with preparing any contractual documentation upon receipt of instructions to ensure the Council’s position and interest are protected.

 

 

 

Financial Implications: Supplied by Gemma Singleton (Finance Officer – Level 2)  Tel: 0161 793 2578.

 

There is funding available under the approved Corporate Revenue Budget to meet the annual scheme costs for corporate boiler plant and heating system repairs - (£40,893.00 per annum for three years totalling £122,679.00). Third party (schools) costs estimated at £16,623.25 per annum will be paid directly by themselves.

 

 

Procurement Implications: Heather Stanton (Category Manager - Corporate Procurement Team) Tel 0161 686 6241

 

The project has been competitively tendered under the Council’s Constitution governing contract procurement in accordance with a competition under an Open Tender arrangement via The Chest. The winning tenderer has submitted the most economically advantageous offer which also supports the Council’s objectives of delivering social value on this contract.

 

Contact Officer:

 

Les Woolhouse – Building Surveying Manager

 

Tel. 0161 779 4961            

 

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

The appropriate Scrutiny Committees to call-in the decision are Growth and Prosperity Scrutiny Panel and the Overview and Scrutiny Board.

 

 

Signed:          BILL HINDS                          Dated: 13 May 2020

                        Lead Member

 

FOR DEMOCRATIC SERVICES USE ONLY

 

*           This decision was published on 14 May 2020

*           This decision will come in force at 4.00 p.m. on 21 May 2020 unless it is called-in in accordance with the Decision Making Process Rules.

 

 

Publication date: 14/05/2020

Date of decision: 13/05/2020

Decided at meeting: 13/05/2020 - Procurement Board

Effective from: 22/05/2020

Accompanying Documents: