{meta} Agenda item - Request for Approval - Contract Award - Provision of Six Sheet Digital Advertising Units within the City of Salford

Agenda item

Decision:

Salford City Council - Record of Decision

 

I Paula Boshell, Statutory Deputy City Mayor, in exercise of the powers contained within the Council Constitution do hereby approve the award the six sheet advertising contract to Clear Channel UK Limited.

 

Detail required

Title/Description of Contracted Service/Supply/Project

The development of digital six sheet advertising units (FSU) within the City of Salford, to be located on Council owned land.

Name of Successful Contractor

Clear Channel UK Limited

Supplier Registration Number

(to be supplied by Corporate Procurement)

00950526

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

Full Project

Contract Duration

7 years

Contract Start Date

01/09/2019

Contract End Date

01/09/2029

Optional Extension Period 1

1 Year

Optional Extension Period 2

1 Year

Optional Extension Period 3

1 Year

Who will approve each Extension Period?

Procurement Board (extension > £150k)

Contact Officer (Name & number)

Jonathan Till x 6133

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.)

Flexible Procurement Solution for advertising development (1st August  2018 to 31st July 2023)

On the CHEST-Renewal of the expired advertising DPS-ref DN350512

Funding Source

Income generation-Revenue Budget

 


 

The existing six sheet advertising contract, an eighteen year contract with Clear Channel UK, expired in February, 2019; therefore a mini-completion was undertaken using the principals outlined within the FPS. All of the advert developers that had been appointed to LOT 1 (Development of digital advert screens) were invited to apply for the new six sheet concession.

The six sheet advertising concession was published on the chest and fourteen advertising developers expressed an interest in the six sheet advertising opportunity. Only four of these advert developers were eligible to apply, however only Clear Channel UK Ltd, the existing provider, submitted a tender for the six sheet advertising opportunity in Salford.

As only one tender was returned a benchmarking exercise has taken place to provide the re-assurance that by accepting the one submission that this would not place the Council at a disadvantage. 

 

Assessment of Risk

There is a low level of risk for the Council; this is an income generating initiative.

 

The source of funding

This is an income generating initiative; there are no cost implications for the Council

 

Legal Advice obtained

 

Tony Hatton-Shared legal Service.; There is no statutory authority within the Highways Act to place sponsorship signs on highway assets, however legal advice was taken ten years ago when the previous sponsorship contracts were let and no concerns were raised at this time.  This type of sponsorship initiative is common place across Local Authorities and indeed the Audit Commission has encouraged Council’s to make the most out of their assets.

When commissioning goods, services or works the Council must comply with the public procurement regulations and its own Contractual Standing Orders. In that regard, this report confirms that it is proposed that a new Framework Agreement is procured. This will need to be procured in accordance with the Council’s Contractual Standing Orders and the European Public Procurement Directives to ensure that the Council achieves Best Value. This will ensure that the risk of challenge to the award to the successful contractors is minimal and that any challenge, should it materialise, is unlikely to be successful

 

Financial Advice obtained

Martin Anglesey. This is an income generating initiative. Whilst advertising has consistently performed well against budget in recent years, this budget must be closely monitored as a reduction in income will have a detrimental impact upon the bottom line position for the Place service group.  Finance are working with the service area to ensure that a realistic and fair yet challenging income target is built into budgets going forward.

 

Procurement Advice obtained

Christine Flisk. The Dynamic Purchasing System (DPS) for the provision of advertising billboards across the City expired in July 2018; accordingly a new flexible procurement solution (FPS) has been developed by the procurement team to replace this commissioning model.

A mini-completion was developed through the FPS for the re-procurement of the free standing six sheet advertising contract that expired in February, 2019.

All of the advert developers appointed to LOT 1, large format and digital development were invited to tender.

 

Contact Officer:       Jonathan Till            Tel No 0161 779 6133

 

 

*         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:     PAULA BOSHELL                 Dated:     29 August 2019                                           

                     Statutory Deputy City Mayor

 

FOR DEMOCRATIC SERVICES USE ONLY

 

*         This decision was published on 29 August 2019.

*         This decision will come in force at 4.00 p.m. on 5 September 2019 unless it is called-in in accordance with the Decision Making Process Rules.

 

Supporting documents: