{meta} Decision - Request for Approval - Contract Award - Islington Park Improvement Scheme - Anene Chiegboka

Decision details

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes

Decision:

Salford City Council - Record of Decision

 

Councillor Hinds, 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:

 

The award of the Contract forIslington Park Improvement Scheme to Horticon Limited subject to:

a)    Securing delivery funding through the Department for Transport’s (DfT’s) Active Travel Fund tranche 3 (ATF3) award; and

 

b)    Greater Manchester Combined Authority (GMCA) approval of a full business case and the signing of a delivery agreement for the Islington Park Improvement scheme.

 

Detail required

Answers

Title/Description of Contracted Service/Supply/Project

City Centre Bee Network – Islington Park

Name of Successful Contractor

Horticon Limited

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 (£)

£          552,269.68 full project

Contract Duration

Approx. 4 months

Contract Start Date

10/01/2022

Contract End Date

06/05/2022

Optional Extension Period 1

N/A

Optional Extension Period 2

N/A

Who will approve each Extension Period?

Choose an item.

Contact Officer (Name & number)

Dan Sterry

Lead Service Group

Place

How the contract was procured?

(to be supplied by procurement)

Mini Competition

Framework Details (where applicable)

(procurement body, framework reference & title, start/ end date

SCC Landscape Framework

Funding Source

Choose an item.

Ethical Contractor (EC): Mayor’s Employment Charter

 

EC: Committed to sign Charter

 

EC: Accredited Living Wage Employer


 

The Reasons are

Islington park is in urgent need of improvement to create an outdoor place for the community to play and relax. The area has seen significant investment in residential properties and needs to be brought up to date into a vibrant and engaging green space. Horticon Limited have provided the best value for money for the proposed improvement works.

 

Options considered and rejected were

None

 

Assessment of Risk

Low risk:

o   Developers can seek to legally challenge the city council to claim back Section 106 monies if not used on a scheme that mitigates the impacts of that development and/or spent in line with the requirements of the Section 106 agreement.

 

o   The contractors on the landscape framework have a successful track record of delivering schemes on behalf of the City Council.

 

The source of funding is via £771,000 of DfT Active Travel Fund 3 (ATF3) grant awarded to Salford City Council. There is also an allocation of £91,124.55 Section 106 local match funding that can be secured by the City Council.

 

Legal Advice obtained

Supplied by Tony Hatton, Principal Solicitor, tel. 219 6323

Date: 13.10.21

 

When commissioning contracts for the procurement of goods, services or the execution of works, the Council must comply with the requirements of the Public Contracts Regulations 2015 (PCR) and its own Contractual Standing Orders (CSO’s), failing which any subsequent award of a contract may be subject to legal challenge from an aggrieved provider. CSO’s apply to every contract, including temporary ones, for the procurement of supplies, services and the execution of works undertaken by or on behalf of the Council, subject to certain exceptions listed in the Orders.

 

CSO’s stipulate that where a suitable framework exists, this must be used unless there is an auditable reason not to do so. The proposed award of the contract follows a call off exercise in accordance with the Council’s Landscape and Associated Services Framework referred to in the body of the report.

 

The Framework Agreement was procured in accordance with the PCR following an open competitive OJEU process, and set up to allow the Council to set up an arrangement whereby suppliers can be preselected to supply a defined scope of works or services under an agreed set of terms and conditions. When 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 to be on the framework and this may be through any number of ways depending on the circumstances. The terms and conditions established under the framework agreement govern the contracts let under the framework although each contract will inevitably have some differences to reflect the agreement struck between the parties to the contract.

 

Once awarded, a contract will then be formed between the Council and the chosen contractor. The Council will need to have followed the procedure set out in the framework agreement to ensure the procurement process is compliant and bids were evaluated in accordance with published criteria.

 

In this instance submissions were evaluated on the most economically advantageous tender basis in line with the published criteria resulting in the proposed award of the contract to Horticon Ltd. The procurement procedures therefore appear robust and compliant with the requirements of the Council’s CSO’s and public procurement legislation.

 

It is important that the Council complies with the terms of the Active Travel Fund 3 grant funding agreement (in particular ensuring that the fund is only used for eligible expenditure and any timescales around expenditure and reporting) are adhered to, otherwise the Council may be at risk of Evergreen seeking clawback of the funding for failure to comply.

The report also refers to a proportion of the funding for the works coming from s106 funds. The expenditure must be in accordance with the terms of the relevant planning obligations. Should the Council allocate S106 funding outside of the conditions within the agreements, or outside the timescales, or in breach of applicable Regulations, a developer may challenge that decision and claim back contributions.

 

Financial Advice obtained

Submitted by Natalie Birchall, Finance Officer

Date: 14.10.2021

This report seeks approval to appoint Horticon to deliver Phase 3, Islington park, which is part of the bee network delivery programme, with a target delivery cost of £522,269.68.

The funding for phase 3, will be met from the DfT active travel fund round 3 awarded to SCC, £771,000 and S106 local match, £91,124.55.

The scheme delivery is subject to GMCA approval of a full business case and signing of a delivery agreement for Islington park improvement phase.

Procurement Advice obtained

Supplied by Deborah Derbyshire, Category Manager

Date: 13th October 2021

The project was procured through Salford’s own Landscaping and Associated Services Framework and all companies selected on the framework were invited by means of the mini competition.  The framework is compliant with the Procurement Contract Regulations and the Council’s Contractual Standing Orders.

 

HR Advice obtained

Not applicable

 

Climate Change Implications obtained

Supplied by Mike Hemingway, Principal Officer

Date: 14.10.2021

 

The Salford City Centre Bee Network scheme proposal will create an interconnected walking and cycling network which will encourage active travel, reducing reliance on motorised vehicles and consequently reducing carbon emissions and improving air quality.

 

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

·       Briefing report of the Strategic Director for Place to Procurement Board on 7 July 2021

·       City Centre Bee Network Overview Plan

·       City Centre Bee Network Delivery Strategy

·       Islington Park Improvement Consultation Plan


Contact Officer: Anene Chiegboka, Project Manager

 

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

 

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

 

Signed:    BILL HINDS           Dated:  24th November 2021

            Lead Member

 

*           This decision was published on 24th November 2021

*           This decision will come in force at 4.00 p.m. on 1st December 2021 unless it is called-in in accordance with the Decision Making Process Rules.

 

Publication date: 24/11/2021

Date of decision: 24/11/2021

Decided at meeting: 24/11/2021 - Procurement Board

Effective from: 02/12/2021

Accompanying Documents: