{meta} Agenda for Procurement Board on Wednesday, 22 January 2020, 10.00 am

Agenda and decisions

Venue: The Boardroom, Salford Civic Centre, Chorley Road, Swinton

Contact: Carol Eddleston, Senior Democratic Services Advisor 

Items
No. Item

1.

Apologies for absence

2.

Declarations of interest

3.

To approve, as a correct record, the minutes of the meeting held on 9 January 2020 pdf icon PDF 68 KB

4.

Matters arising

5.

Decision items - Part 1 (open to the public)

5a

Request for Approval - Contract Extension - 0-19 Integrated Children's Health Service pdf icon PDF 135 KB

Additional documents:

Decision:

Salford City Council - Record of Decision

 

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

(1)    Approve the extension of Contract for Contract for 0-19 Integrated Children’s Health Service as detailed in the table below:

Detail required

Contract Reference

Title/Description of Contracted Service/Supply/Project

0-19 Integrated Children’s Health Service

Name of Contractor

Salford Royal Foundation Trust

Type of organisation

(to be supplied by Corporate Procurement)

Other

Status of Organisation

(to be supplied by Corporate Procurement)

Non-SME

Value of Contract Extension

£5,270,472

Per Annum (estimated average)

Existing Contract Term

01/04/2017

to

31/03/2020

Extension Period Requested

01/04/2020

to

31/03/2022

Contact Officer (Name & number)

Michelle Whittaker 0161 793 3531

Lead Service Group

People Services

Funding Source

Choose an item.

Children’s Integrated fund

 

The Reasons are.

 

This integrated service approach offered a number of benefits for the City Council including the integration and alignment of services and the combined management structure with financial saving and social value.  The service delivers the mandated elements of the healthy child programme and delivers on strategic priority areas for the 0-25 children and young people.

 

The services are monitored at 6 weekly contract review meetings with the commissioner and provide quarterly and annual updates against the KPIs and outcomes.  This includes a combination of data request, service user feedback, case studies and audits.  The services has consistently had good performance against KPI through the length of the contract, if any KPI are not at threshold they would be added to the risk register and a recovery plan requested. 

 

 

Options considered and rejected were:

Not to extend the Contract

 

Assessment of Risk:  High – The service has mandatory duties and any potential delay would have an impact on these being delivered.

 

The source of funding is: Children’s Integrated fund

 

Legal Advice obtained. 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 children’s health services described in the report were procured in 2017 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 where contract extensions may be made.

 

When the contract was originally procured and 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,  ...  view the full decision text for item 5a

5b

Request for Approval - Contract Extension - AGMA Agency Staffing Managed Service pdf icon PDF 105 KB

Additional documents:

Decision:

Salford City Council - Record of Decision

 

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

 

(1)   Approve the extension of Contract for the Managed Service for Temporary Agency Recruitment (Greater Manchester Collaboration) as detailed in the table below:

 

Detail required

Contract Reference

00669854

Title/Description of Contracted Service/Supply/Project

Managed Service for Temporary Agency Recruitment (Greater Manchester Collaboration)

Name of Contractor

Reed

Type of organisation

(to be supplied by Corporate Procurement)

Public Limited Company

Status of Organisation

(to be supplied by Corporate Procurement)

Non-SME

Value of Contract Extension

£2.5M

Per Annum (estimated average)

Existing Contract Term

29/01/2017

to

28/01/2020

Extension Period Requested

29/01/2020

to

28/01/2021

Contact Officer (Name & number)

Frank O’Sullivan 0161 607 7178

Lead Service Group

Service Reform

Funding Source

Revenue Budget

 

The reasons are in November 2016 Procurement Board approved the contract for the AGMA (Greater Manchester Collaboration) Managed Service for Agency Staffing. This approval contained an optional extension period of 12-months.

 

A robust procurement approach was undertaken for the original contract using a mini competition process through the YPO HR Services and Solutions framework agreement with the contract being awarded to the provider Reed PLC.

 

Overall, the collaborative approach and contract performance to date has been sucessful and it is the recommendation of the collaborative board to extend the contract for its full term.

 

Options considered and rejected were not approving the extension, leading to a risk of the Council being charged higher rates for agency workers, and that we would not meet the shared standards in compliance/ safeguarding/ insurance etc.

The source of funding is Revenue Budget.

Legal advice obtained: When commissioning contracts for the provision of goods, services or the execution of works, the Council must comply with the provisions of the Public Contracts Regulations 2015 (PCR) and its own Contractual Standing Orders (CSO’s) as set out in the Constitution, failing which the award of a contract may be subject to legal challenge.

 

 

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), and CSO’s also allow for contract extensions to be made, where the parties agree and where the original contract makes provision for such an extension of the original term. In accordance with CSO’s, in view of the potential value of the extension (over £150k) the approval should be made by Procurement Board.

When the contract was originally procured by way of a fully compliant process by a mini competition exercise called off the YPO HR Services and Solutions Framework in January 2017, it was made clear in the documentation that the original three year term would be subject to a potential twelve month extension, hence any risk that the proposed extension would be subject to realistic challenge is extremely low, and the option to extend within the contract is now being properly exercised.

Once approved the extension will commit the Council to the twelve-month  ...  view the full decision text for item 5b

5c

Request for Approval - Exception to Contractual Standing Orders - Homeless Supported Accommodation Projects pdf icon PDF 117 KB

Decision:

SALFORD CITY COUNCIL - RECORD OF DECISION

 

I Bill Hinds, Lead Member for Finance and Support Services and chair of the Procurement Board, in exercise of the powers contained within the City Council constitution do hereby approve:

 

(1)   an exception to Contractual Standing Orders in accordance with Paragraph 3.1, from procurement board, as follows :-

 

The need for the goods, services or works is so urgent that the time needed to comply with the rules would be prejudicial to the council’s interests.

 

     (2)   the award of contracts as detailed in the tables below relating to:

·       The spend to save pilot – Reduced Temporary Accommodation Costs: SASH Project, and

·       Abbott Lodge Supported Accommodation Project

 

Detail required

Title/Description of Contracted Service/Supply/Project

A spend to save pilot – Sash Temporary Accommodation Project

Name of Successful Contractor

The Riverside Group Ltd

Supplier Registration Number

30938R

Type of organisation

Industrial & Provident Society

Status of Organisation

(to be supplied by Corporate Procurement)

Non-SME

Contract Value

£ 65,000

Per Annum (estimated average)

Contract Duration 

April 2017

to

March 2018

Approved Contract extension

01/04/2018

to

31/03/2019

Approved Contract extension

31/03/2019

to

31/03/2020

Approved Optional Extension

01/04/2020

to

31/10/2020

Optional Extension requested

01/11/2020

To

30/11/2021

Who will approve each Extension Period?

Strategic Director (People)

Contact Officer (Name & number)

Julie Craik x 2143

Lead Service Group

Regeneration

Reason for CSO Exception

(select all that apply)

The need for the goods, services or works is so urgent that the time needed to comply with the rules would be prejudicial to the council’s interests

x

There are value for money reasons justifying a CSO Exception

x

 

Where the Council can demonstrate that an integrated or strategic approach to procurement is being implemented and there is a requirement to align services or contracts to co-terminus end dates

 

X

Funding Source

Revenue Budget

 

 

 

Detail required

Title/Description of Contracted Service/Supply/Project

Salvation Army, Abbott Lodge

Name of Successful Contractor

Salvation Army

Supplier Registration Number

 

Type of organisation

Registered Charity

Status of Organisation

(to be supplied by Corporate Procurement)

SME

Contract Value

£ 160,382

Per Annum (estimated average)

Existing Contract Term

01/11/2015

to

30/10/2018

Approved Contract extension

31/10/2018

to

30/10/2020

Optional Extension requested

 01/11/2020

To

30/11/2021

Who will approve each Extension Period?

Strategic Director (People)

Contact Officer (Name & number)

Julie Craik x 2143

Lead Service Group

Regeneration

Reason for CSO Exception

(select all that apply)

The need for the goods, services or works is so urgent that the time needed to comply with the rules would be prejudicial to the council’s interests

x

There are value for money reasons justifying a CSO Exception

x

 

Where the Council can demonstrate that an integrated or strategic approach to procurement is being implemented and there is a requirement to align services or contracts to co-terminus end dates

 

X

Funding Source

Revenue Budget

 

The reasons are:

 

1.     challenges to the future procurement of these services exist in relation to the building ownership/leasing arrangements, where Salford City Council have no stake in the current arrangements and it  ...  view the full decision text for item 5c

5d

Request for Approval - Contract Award - Supply of Aggregate, Hire of Plant and Specialist Vehicles and the Provision of Consultancy Services in relation to the Transition of UV services pdf icon PDF 244 KB

Decision:

Salford City Council - Record of Decision

 

I Councillor Bill Hinds, as Lead Member for Finance and Support Services and Chair of the Procurement Board, in exercise of the powers contained within the Council Constitution do hereby approve:

The award of the Contract forsupply of aggregate,hire of plant and specialist vehicles and the provision of consultancy servicesas detailed in the tables below:

 

Detail required

Title/Description of Contracted Service/Supply/Project

Supply of Aggregate

Name of Successful Contractor

CEMEX

Supplier Registration Number

(to be supplied by Corporate Procurement)

658390

Type of organisation

(to be supplied by Corporate Procurement)

Private Limited Company

Status of Organisation

(to be supplied by Corporate Procurement)

Non-SME

Contract Value

£135,000

Per Annum (estimated average)

Contract Duration

24 Months

Contract Start Date

31/01/2020

Contract End Date

30/01/2022

Optional Extension Period 1

12 months

Optional Extension Period 2

N/A

Who will approve each Extension Period?

Procurement Board (extension > £150k)

Contact Officer (Name & number)

Shoaib Mohammad

Lead Service Group

Place

How the contract was procured?

(to be supplied by Corporate Procurement)

Framework Call-off (Mini Competition)

Framework Details (where applicable)

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

YPO 694 - Aggregates, Asphalt, Ready-mix Concrete and Topsoil

Funding Source

Combination of Above (please detail below)

 

 

 

Detail required

Title/Description of Contracted Service/Supply/Project

Plant Hire for Swinton Hall Road Depot

Name of Successful Contractor

Lot 18 – Hire Station

Lot 19 – Chippindale

Lot 22 - Chippindale

Supplier Registration Number

(to be supplied by Corporate Procurement)

Hire Station –

Chippindale -

Type of organisation

(to be supplied by Corporate Procurement)

Private Limited Company

Status of Organisation

(to be supplied by Corporate Procurement)

Non-SME

Contract Value

£50,000

Per Annum (estimated average)

Contract Duration

12 Months

Contract Start Date

01/02/2020

Contract End Date

31/01/2021

Optional Extension Period 1

12 months

Optional Extension Period 2

months

Who will approve each Extension Period?

Strategic Director (extension < £150k)

Contact Officer (Name & number)

Shoaib Mohammad

Lead Service Group

Place

How the contract was procured?

(to be supplied by Corporate Procurement)

Framework Call-off (Mini Competition)

Framework Details (where applicable)

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

YPO 651 -  Plant Machinery, Site Equipment & Plant & Tools

Funding Source

Combination of Above (please detail below)

 

Detail required

Title/Description of Contracted Service/Supply/Project

Specialist Vehicle Hire

Name of Successful Contractor

Leeds Commercial Vehicle

Supplier Registration Number

(to be supplied by Corporate Procurement)

0587618

Type of organisation

(to be supplied by Corporate Procurement)

Private Limited Company

Status of Organisation

(to be supplied by Corporate Procurement)

Non-SME

Contract Value

£180,000

Per Annum (estimated average)

Contract Duration

13 Months

Contract Start Date

01/02/2020

Contract End Date

28/02/2021

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)

Shoaib Mohammad

Lead Service Group

Place

How the contract was procured?

(to be supplied by Corporate Procurement)

Tender (Open)

Framework Details (where applicable)

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

N/A

Funding Source

Combination of Above (please detail below)

 

 

Detail  ...  view the full decision text for item 5d

6.

Any other business - Part 1 (open to the public)

7.

Exclusion of the public

8.

Decision items - Part 2 (closed to the public)

9.

Date and time of next meeting

10:00am on Wednesday 5 February 2020 in the Boardroom, Salford City Council, Civic Centre, Chorley Road, Swinton, M27 5DA.