{meta} Decision - Request for Approval - Contract Extension - Provision of Enforcement Services and Request for Approval to Initiate a Competitive Tender Process for the Provision of Enforcement Services

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 conferred on me by the Scheme of Delegation of the Council do hereby approve:

(a)    the extension of the Contract for the Provision of Enforcement Services by 1 year as detailed in the table below, and

 

(b)  the initiation of a competitive tender process for the provision of a new Enforcement Services contract with effect from the 1st April 2023.

 

Detail required

Answers

Contract Reference

S1013

Title/Description of Contracted Service/Supply/Project

Provision of Enforcement Services

Name of Contractor

NSL Services Ltd

Type of organisation

(to be supplied by Corporate Procurement)

Private Limited Company

Status of Organisation

(to be supplied by Corporate Procurement)

Non-SME

Value of Contract Extension

£977,271

Per Annum (estimated average)

Existing Contract Term

01/04/2018

to

31/03/2022

Extension Period

01/04/2022

to

31/03/2023

Contact Officer (Name & number)

Andy Devine 07717431738

Lead Service Group

Place

Funding Source

Revenue Budget

Ethical Contractor (EC): Mayor’s Employment Charter

EC: Committed to sign the Charter

EC: Accredited Living Wage Employer

 

 

The reasons are -

 

A tender process for the provision of this service was awarded to one contractor, NSL Parking Services Ltd in April 2018 for a period of three years following an OJEU tendering process.

 

When the contract was originally awarded, it was made clear that the initial term would be subject to a potential extension of two years and the option to extend for the final 12 month period within the agreement is now being properly exercised, the final period being from 01/04/2022 to 31/03/2023.

 

A benchmarking exercise has taken place to determine the implications of bringing Enforcement Services back in-house and the comparison has been made against the arrangement at Sheffield City Council who currently run their Enforcement Service in-house. As a result of this benchmarking exercise combined with the additional Operational concerns the decision to bring in-house has not been pursued.

 

Due to the uncertainty and supressed market in terms of Civil Enforcement operations during the period affected by Covid the market is only just starting to recover with the easing of lockdown restrictions. This report therefore recommends that approval be given to the final year of the contract and that authorisation be given to start the procurement exercise which will see the delivery of Enforcement Services opened out to the tender process, giving ample time to complete a robust procurement exercise.

 

Having regard to the 1 year extension, NSL have worked hard to create an environment where staff feel supported and valued by senior officers. In addition it was important that staff receive the Salford Real Living Wage and all of these factors have resulted in a marked improvement in their staff retention rates.

 

In terms of revenue the income from Penalty Charge Notices is used to fund all contractor costs. Before March 2020 the level of income being generated by parking enforcement had risen year on year. The impact of the Covid 19 pandemic had reduced the initial level of enforcement to minimal cover and staff were deployed to assist in other vital areas such as marshalling Covid test centres, and recycling centres.

 

In the previous years the revenue from enforcement covered the cost of the Enforcement contract and made a surplus which has been increasing year on year. As lockdown eases then indications from the last 3-4 months are that revenues are increasing to a level greater than pre-Covid.

 

Having regard to the Environmental Enforcement NSL have continued to provide a good standard of support to the authority. Their performance levels have remained in line with the contract requirement, and in normal times (i.e. non Covid Lockdown) the amount of littering Fixed Penalty Notices served, offset the costs for this contract element of service delivery. The communication interaction, between Salford and NSL, provides flexibility in service delivery, that enables the authority to dictate their area of deployment to meet customer and service demand, which NSL willingly agree to undertake on Salford City Council's behalf.

 

The NSL commitment to their Social Value aspirations has included –

 

·       recruiting locally with 100% of the team living within Greater Manchester of which 31% are Salford residents

·       attending local job fairs organised by Salford Council

·       ensuring their staff are paid the Salford Living Wage

·       providing training to staff including BTEC, cycle proficiency and Dementia Awareness

·       rolling out the operation of Body Cam technology. This has assisted colleagues when they are on their beats and it has been demonstrated that the presence of the equipment has helped in reducing the threat level when enforcing.

·       sponsorship locally with contributions to local groups and sponsorship of a grassroots football team

·       allowing members of their team to volunteer to help with local projects

·       supporting various Salford COVID related projects during lockdown

·       spending locally to support Salford businesses

·       ensuring they contribute to the drive in reducing their CO2 fleet emission targets

 

ASSESSMENT OF RISK:  High - as any interruption of parking enforcement, could have a severe adverse effect on traffic movement in the City.


SOURCE OF FUNDING: £888,740 for parking enforcement services to be paid from the Parking Services Revenue Budgetand £88,531 from theEnvironmental Enforcement revenue budget.


 

LEGAL IMPLICATIONS: Submitted by: Tony Hatton, Principal Solicitor, tel. 219 6323

When commissioning goods, services or works the Council must comply with the Public Contract Regulations 2015 (PCR) and its own Contractual Standing Orders (CSO’s) failing which the award of a contract may be subject to legal challenge. In that regard, the Enforcement Services described in the report were procured in 2018 for a 3 year period with the option to extend for up to 2 further years.   

 

It is an established principle that an existing public contract is capable of being extended (or modified providing any modification does not affect the overall nature of the contract), where the original agreement makes provision for the extension. CSO’s also set out circumstances such as these where contract extensions may be made.

 

When the contract was originally awarded, it was made clear that the initial term would be subject to a potential extension of two years, hence any risk that any extension granted could be subject to realistic challenge by an aggrieved provider, on the basis that it ought to have been put out again to tender and advertised in accordance with PCR and CSO’s, is extremely low, and the option to extend for the final 12 month period within the agreement is now being properly exercised.

 

Also in accordance with CSO’s, where provision is made within an existing contract for an extension to the term, and the value is over £150,000 approval should be made by Procurement Board.

 

Once approved the extension will commit the Council to the period outlined in the report.

 

The report also requests Procurement Board approves the initiation of a compliant, competitive tender process for the provision of Enforcement Services to be undertaken during the final extension of the current contract. Undertaking a compliant tender exercise will give some comfort to the Council in ensuring that value for money is being obtained and tested, with open competition maintained, and at the same time ensure that the risk of challenge to the appointment of a contractor is minimal and that any challenge, should it materialise, is unlikely to be successful.

 


FINANCIAL IMPLICATIONS: Submitted by: Janet Cross, Finance Manager 0161 793 2858.

The contract cost will be met from the Parking Services and Environmental Enforcement revenue budget.  Cost Centre D0584 5751.


PROCUREMENT IMPLICATIONS: Submitted by: The Corporate Procurement Team

In 2017 the Council went out to tender for the services for Parking Enforcement through the OJEU and the Northwest Portal. The original award was in April 2018 made for a period of three years with the option to extend for 24 months renewed annually.

The Council is exercising its option to extend the contract for the final 12 months to 31st March 2023, this is compliant with the Procurement Contract Regulations and the Contractual Standing Orders.


CLIMATE CHANGE IMPLICATIONS:  Supplied by: Michael Hemingway, Principal Officer Climate Change Tel 0161 793 3209

NSL provide CO2 fleet emission data successfully targeting an annual 5% reduction across the business, mainly through reducing fuel consumption.  They also promote environmental sustainability by deploying 3 cyclists daily reducing CO2 emissions.


 

BACKGROUND DOCUMENTS:  Procurement Board report to award and approve a contract to appoint the winning contractor following a competitive tender process for the provision of Enforcement Services – presented to Procurement Board on 24th January 2018.

Procurement Board report to approve a one year extension to existing contract for the provision of Enforcement Services – to Procurement Board on 3rd March 2021.


CONTACT OFFICER:  Andy Devine                       TEL. NO. 07717431738

 

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 & ProsperityPanel.

 

Signed:      BILL HINDS                         Dated: 13th October 2021

                    Lead Member

 

*         This decision was published on 13th October 2021

*         This decision will come in force at 4.00 p.m. on 20th October 2021 unless it is called-in in accordance with the Decision Making Process Rules.

Publication date: 13/10/2021

Date of decision: 13/10/2021

Decided at meeting: 13/10/2021 - Procurement Board

Effective from: 21/10/2021

Current call-in Count: 0

Accompanying Documents: