{meta} Agenda item - Request for Approval - Exception to Contractual Standing Orders - Contract Award - ‘Vital and Viable Places’

Agenda item

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:

 

(1)       An exception to Contractual Standing Orders in accordance with Paragraph 3.1 as follows:

·        *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, or materials or services exclusively provided by a statutory undertaker or other bodies.

 

(2)       The award of the Contract for Vital and Viable Places as detailed in the table below:

Detail required

Title/Description of Contracted Service/Supply/Project

Vital and Viable Places

Name of Successful Contractor

Institute of Place Management

Supplier Registration Number

(to be supplied by Corporate Procurement)

Type of organisation

(to be supplied by Corporate Procurement)

Other

Status of Organisation

(to be supplied by Corporate Procurement)

Non-SME

Contract Value

£50,000

Full Project

Contract Duration

24 months

Contract Start Date

02/09/2019

Contract End Date

02/09/2021

Optional Extension Period 1

N/A

Optional Extension Period 2

N/A

Who will approve each Extension Period?

Strategic Director (extension < £150k)

Contact Officer (Name & number)

Jacquie Russell x3577

Lead Service Group

Service Reform & Development

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

x

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

Revenue Budget

 

The Reasons are that the project seeks to establish a programme of work between Salford City Council and the Institute of Place Management (IPM) to develop a robust, evidence-based, and measurable approach to identifying potential place-based interventions that can help to strengthen our district centres. The approach is built on the IPM’s prior experience in developing and applying the Vital and Viable Programme in a number of local districts nationally, and in Greater Manchester.  The approach includes a strong emphasis on local stakeholder engagement, importantly including local ward councillors.

IPM have developed the Vital and Viable Programme.  They have also developed a track record in applying this model in places across the UK, including current work in a number of other GM Districts.   IPM also brings with them a strong partnership working with the national Springboard Research programme, long recognised as the national lead in retail footfall analysis.

 

Options considered and rejected were:  IPM have designed this programme and have applied this model in various places across the UK.  We are not aware of alternatives that offer the same value for money.

 

Assessment of Risk: Low.

 

The source of funding is: earmarked reserve to support Transformation.

 

Legal Advice obtained:  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.

 

Whilst exceptions to CSO’s may be authorised by a decision notice from Procurement Board, as detailed in section 3 of Part 5 of the Constitution there is still a risk of challenge from aggrieved providers if the usual tender process has not been followed. The risk of challenge increases in tandem with the value and proposed length of the extension. In this instance, as noted in the report, the value of the proposed extension is low and for a short period. However the Council is not commissioning a service which may be readily provided by a number of suppliers in the marketplace and the provider appears to be in a unique position to provide the services to the Council to realise the benefits set out in the report.

 

Whilst the value of the proposed award is below threshold, for information, direct awards of contracts may be made in limited circumstances, set out at regulation 32 of the PCR (“Negotiated procedure without prior publication”) such that reg 32 (2)(b)(ii) confirms use of the procedure:

 

“…where the works, supplies or services can be supplied only by a particular economic operator for any of the following reasons:—

 (ii)  competition is absent for technical reasons,

 but only….where no reasonable alternative or substitute exists and the absence of competition is not the result of an artificial narrowing down of the parameters of the procurement;”

 

Accordingly the risk of any challenge being successful may be regarded as extremely low.


Financial Advice obtained: The cost of this contract (£50k) will be met in full from the transformation fund over the planned 2 year contract period.

 

Procurement Advice obtained: There are always risks associated with applying an exception to the Council’s Contractual Standing Orders as this could potentially lead to a challenge from an aggrieved supplier if the contract opportunity was not sufficiently advertised in accordance with the Public Contract Regulations 2015. The risk increases in tandem with the value and length of the proposed contract, and would be on the principle that there are possibly other suppliers within the EU member states who could offer similar services.

 

The Council’s Procurement Board has the authority to grant a waiver to Contractual

Standing Orders for any contract valued below the OJEU threshold.

 

After reviewing the content of the report, it would appear that there would be no other organisations able to deliver the Vital and Viable Programme, due to the IPM having already delivered this in a number of local districts nationally, and this would be an extension of that work within Greater Manchester through the partnership between Salford CC and IPM.

 

Therefore the risk of a procurement challenge can be deemed as low in this instance.



Contact Officer:       Jacquie Russell                  Tel No 0161 793 3577

 

 

*         This matter is also subject to consideration by the Lead Member for Housing & Neighbourhoods who has been briefed on these proposals.

 

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

 

 

Signed:    BILL HINDS                            Dated:     28 August 2019                                                   

                     Lead Member

 

 

This decision was published on 28 August 2019.

This decision will come in force at 4.00 p.m. on 4 September 2019 unless it is called-in in accordance with the Decision Making Process Rules.

 

Supporting documents: