{meta} Agenda for Procurement Board on Wednesday, 10 July 2019, 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 26 June 2019 pdf icon PDF 63 KB

4.

Matters arising

5.

Decision items - Part 1 (open to the public)

5a

Request for Approval - Contract Extension - Postal Services pdf icon PDF 111 KB

Additional documents:

Decision:

Salford City Council - Record of Decision

 

I, Councillor Bill 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 extension of the contract for Postal Services – Collaborative tender process with Yorkshire, Humber and AGMA councils, as outlined in the table below:

 

Detail required

Contract Reference

tbc

Title/Description of Contracted Service/Supply/Project

Postal Services

Name of Contractor

Whistl UK Limited

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

£350,000

Per annum (estimated average)

Existing Contract Term

01/09/2018

to

31/08/2019.

Extension Period Requested

01/09/2019.

to

31/08/2020

Contact Officer (Name & number)

Peter Cowling (4996)

Lead Service Group

Service Reform & Development

Funding Source

Revenue Budget

Details: There is provision within the current contract to extend the agreement for a further period of 12 months from 01/09/2019 to 31/08/2020. Current postal volumes will continually be monitored and transition to digital communication methods in line with transformation of the service will seek to reduce volumes further.

 

The Reasons are: Following notification of extension by framework partners Yorkshire &Humberside for a further 12month period the authority has secured better commercial terms than would be possibly individually, One of the major strengths of the Whistl agreement is Volume related discounts (VRD) to all participants based on combined volumes.

Options considered and rejected were: To procure the service individually. However, we would be unable to match the savings applied from volume based discounts achieved by the collaborative offer. This contract was procured via a competitive tender process therefore ensuring the best value supplier was appointed.

 

Assessment of Risk: Low.

The source of funding is: Revenue Budget.

Legal Advice obtained: When the contract was originally procured by way of a fully compliant process it was made clear in the documentation that the original two year term would be subject to two potential extensions of twelve months each, 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.

Financial Advice obtained: Postage charges are recharged out to individual directorates on a monthly basis.  If volumes remain static, there is sufficient budget within the Council to fund these costs.  As highlighted within the report and associated appendices, the current contract offers value both financially and socially, with the current contract experiencing a 2% saving due to volumes, saving the Council approx.£18k .  However, we must continue to monitor volumes closely as the push towards digital transformation will inevitably drive down volumes which could impact upon the VRD and may make the contract no longer financially beneficial in the future.

 

Procurement Advice obtained: As outlined in the body of the report, the recommendation to extend the existing contract is both compliant with the terms of the original procurement process and ensures the  ...  view the full decision text for item 5a

5b

A5063 Trafford Road Corridor - Growth Deal 3 pdf icon PDF 146 KB

Additional documents:

Decision:

Salford City Council - Record of Decision

 

I, Councillor Bill Hinds, as chair of the Procurement Board, in exercise of the powers contained within the Council Constitution do hereby approve the proposed procurement route for the Trafford Road Corridor project.

The reasons are to enable the invitation to tender (ITT) to be issued in order to obtain prices for the enabling works and main works.

The detailed design of the project is on-going with the ITT to be issued in August 2019.

 

Assessment of Risk – Low

 

A robust risk management process has been implemented, commencing at project inception stage.  A risk register has been established and this is being maintained as a live document which is reviewed periodically and updated following any noteworthy changes to the situation.

 

An expert in Risk Management has been engaged via TfGM to assist in the assessment, mitigation and control of risks to the project.

 

As discussed in Section 4.2 of the report, there is a risk that any expenditure prior to FBC approval, including the enabling works would have to be repaid to Growth Deal if approval for the scheme to go ahead is not granted. This scenario is considered to be unlikely given the continued engagement with TfGM governance for the arrangements for this funding and the risk is rated as very low.

 

The sources of funding are: £10.5m Growth Deal 3, £4.835m MCF and £4.5m Salford City Council

Legal Advice obtained – supplied by Tony Hatton, Principal Solicitor (0161 219 6323)

Financial Advice obtained. – supplied by Natalie Birchall, Finance Officer (0161 925 2316

Procurement Advice obtained. – supplied by Jennifer Hilton, Category Manager (0161 686 6241)

 

 

Contact Officer:  Stephen Hands                       Tel No: 0161 779 4931

 

 

 

 

 

*         This decision 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:    COUNCILLOR BILL HINDS               Dated:  10 JULY 2019                                                

                     Lead Member

 

FOR DEMOCRATIC SERVICES USE ONLY

 

*         This decision was published on 10 July 2019.         

                                   

*         This decision will come in force at 4.00 p.m. on 17 July 2019 unless it is called-in in accordance with the Decision Making Process Rules.

 

5c

Swinton Transformation - Local Partnerships pdf icon PDF 100 KB

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 contained within the Council Constitution do hereby:

(1)    Approve the extension of Contract for Local Partnerships as detailed in the table below:

Detail required

Contract Reference

Title/Description of Contracted Service/Supply/Project

Swinton Transformation

Name of Contractor

Local Partnerships

Type of organisation

(to be supplied by Corporate Procurement)

Limited Liability Partnership

Status of Organisation

(to be supplied by Corporate Procurement)

SME

Value of Contract Extension

£92,000

Full Project

Existing Contract Term

24/09/2018

to

31/07/2019

Extension Period Requested

01/08/2019

to

31/12/2019

Contact Officer (Name & number)

Kurt Partington

Lead Service Group

Place

Funding Source

Capital Programme

 

The Reasons are:    To enable the completion of a Business Case for Swinton Town Centre.

Options considered and rejected were:    Not to approve the extension.

Assessment of Risk.          LOW

The source of funding is     Capital Programme

Legal Advice obtained.                 Supplied by: Tony Hatton, Principal Solicitor

Financial Advice obtained.            Supplied by:  Natalie Birchall, Finance Officer

Procurement Advice obtained.      Supplied by:  Jennifer Hilton, Category Manager

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



Contact Officer:  Kurt Partington                       Tel No. 779 4913

 

 

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

 

*         The appropriate scrutiny committee to call-in the decision is the            Growth and Scrutiny Panel.

 

 

 

Signed:    COUNCILLOR BILL HINDS               Dated:  10 JULY 2019                                                

                     Lead Member

 

FOR DEMOCRATIC SERVICES USE ONLY

 

*         This decision was published on 10 July 2019.         

                                   

*         This decision will come in force at 4.00 p.m. on 17 July 2019 unless it is called-in in accordance with the Decision Making Process Rules.

 

5d

Junction 13 Highway Improvement Works pdf icon PDF 136 KB

Decision:

 

Salford City Council - Record of Decision

 

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

 

1.    Approve the appointment of Eric Wright Civil Engineering Ltd at a target cost of £1,194,262.27 to deliver the junction 13 highway improvement works. 

 

Detail required

Title/Description of Contracted Service/Supply/Project

Junction 13 highway improvement works

Name of Successful Contractor

Eric Wright Civil Engineering Ltd

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)

Non-SME

Contract Value

 £1,194,262.27

Full Project

Contract Duration

6 months 

Contract Start Date

17/07/2019

Contract End Date

20/12/2019

Optional Extension Period 1

Optional Extension Period 2

Who will approve each Extension Period?

Procurement Board (extension > £100k)

Contact Officer (Name & number)

Paul Gill, 0161 793 2207

Lead Service Group

Other (please identify below)

Regeneration

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.)

Bolton Highway Framework

Funding Source

Combination of Above (please detail below)

SCC capital programme & Growth Deal 3

 

 

The Reasons are: Approving this scheme will enable the delivery of the RHS off-site highway works in accordance with the SCC-RHS development agreement and will provide capacity enhancements at the city’s most congested junction.

 

Assessment of Risk: Low – SCC has secured Growth Deal funding to deliver this scheme. The Growth Deal funding needs to be spent by March 2021.

The source of funding is Growth Deal 3 grant funding (64%) and Salford City Council capital programme monies (36%).

 

 

Legal Advice obtained Yes – Tony Hatton, Principal Solicitor

 

Financial Advice obtained Yes – Natalie Birchall, Finance Officer Level 2

 

Procurement Comments Yes – Jennifer Hilton, Category Manager Level 2

 

Contact Officer:  Paul Gill, Senior Development Manager, Ext: 2207

 

*         This decision 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:    PAUL DENNETT          Dated:  10 JULY 2019                                                 

                     City Mayor

 

FOR DEMOCRATIC SERVICES USE ONLY

 

*         This decision was published on 10 July 2019.         

                                   

*         This decision will come in force at 4.00 p.m. on 17 July 2019 unless it is called-in in accordance with the Decision Making Process Rules.

 

5e

Salford Bolton Network Improvements (SBNI) - Delivery Package 4 (DP4) pdf icon PDF 184 KB

Decision:

Salford City Council - Record of Decision

 

I, Paul Dennett, City Mayor, in exercise of its powers contained within the Council constitution, do herby:

 

·       Approve the award of Salford Bolton Network Improvement Delivery Package 4 (DP4) construction contract to Eurovia Infrastructure Ltd with a contract value of £2,748,253.38.

 

·       Approve the diversion requests in relation to the DP4 works with BT (£75,098.48) and Electricity North West Ltd (£34,858.40) which totals to a value of £109,956.88

 

·       Approve the issue of any task orders / instructions required to implement the contract utilising the Bolton Council Framework.

Options considered and rejected were not to award the contract.

Assessment of Risk: The risk to the Council is assessed as low.

The source of funding is Greater Manchester Combined Authority (GMCA).

Legal Advice obtained: Tony Hatton Tel 0161 219 6323

Financial Advice obtained: Natalie Birchall Ext 2316

Procurement Advice obtained from Jennifer Hilton Ext 6241

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

·        Report to the City Mayor’s Regeneration Briefing – 13July 2015

·        Urban Vision – Regeneration Panel Presentation – July 2016

·        Report to Lead Member for Planning & Sustainable Development – 9th May 2017

Contact Officers: Opu Anwar Tel No: Ext 4880 / Simon Cook Tel No: 07927563462

*         This decision 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:    PAUL DENNETT          Dated:  10 JULY 2019                                                

                     City Mayor

 

FOR DEMOCRATIC SERVICES USE ONLY

*         This decision was published on 10 July 2019.

                         

*         This decision will come in force at 4.00 p.m. on 17 July 2019 unless it is called-in in accordance with the Decision Making Process Rules.

 

5f

Chapel Street Remedial Works pdf icon PDF 115 KB

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 contained within the Council Constitution do hereby approve:

 

·       The proposal to procure AE Yates to provide Design and Construction works for remedial works on Chapel Street through a Direct Award.

 

·       An exception to Contractual Standing Orders due to urgency to procure the works and carry out the works on site in the time available prior to major highway works commencing within the regional centre. In accordance with Paragraph 3.1 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.

-      There are value for money reasons justifying an exception.

 

·       The award of the Contract for Chapel Street Remedial Worksas detailed in the table below:

 

Detail required

Title/Description of Contracted Service/Supply/Project

Chapel Street Remedial Works

Name of Successful Contractor

A E Yates

Supplier Registration Number

(to be supplied by Corporate Procurement)

00415632

Type of organisation

(to be supplied by Corporate Procurement)

Private Limited Company

Status of Organisation

(to be supplied by Corporate Procurement)

SME

Contract Value

£490,000

Full Project

Contract Duration

8 months

Contract Start Date

05/08/2019

Contract End Date

27/03/2020

Optional Extension Period 1

months

Optional Extension Period 2

months

Who will approve each Extension Period?

Choose an item.

Contact Officer (Name & number)

Lead Service Group

Place

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

Specialist services/supplies which are available only from one supplier. For example, specialist niche consultants or suppliers where there is a sole supplier of patented or proprietary articles, materials or services exclusively provided by a statutory undertaker or other bodies

For reasons of compatibility with existing services/products – for example, equipment that needs parts from its own manufacturer

Where any of the standing orders are inconsistent with any legislative requirements, in which instance the provisions of the appropriate legislation shall prevail

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

There are value for money reasons justifying a CSO Exception

School Governors: in relation to the Local Management of Schools (LMS), where schools have adopted their own standing orders

The shared legal service, in respect of the appointment of counsel

Strategic Director of CHSC: contracts for the provision of personal care services or facilities pursuant to the National Health Service and Community Care Act 1990

Funding Source

External Funding Source (please identify below)

 

Financial Settlement

 

The Reasons are to carry out works to repair Chapel Street within constrained timescales  ...  view the full decision text for item 5f

6.

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

7.

Exclusion of the public

8.

Decision items - Part 2 (closed to the public) - No items

9.

Date and time of next meeting

10:00 a.m. on Wednesday 24 July 2019 in the Boardroom, Salford City Council, Civic Centre, Chorley Road, Swinton, M27 5DA.