Issue - meetings

Approval for the procurement of liquid fuels for both Chorley Council and South Ribble Borough Council

 

 

Meeting: 20/03/2025 - Executive Cabinet (Item 75)

75 Approval for the Procurement of Liquid Fuels pdf icon PDF 76 KB

To receive and consider the report of the Director of Customer and Digital.

Decision:

1.      Approval to enter a further competition exercise through either a compliant framework, or an open tender through procurement portal, The Chest, to procure liquid fuels.

2.      That the award of these contracts be delegated to the Executive Member for Resources for approval.

Minutes:

Councillor Adrian Lowe, Executive Member for Customer, Streetscene and Environment presented the report of the Director of Customer and Digital which sought approval for the joint contract award procedure and evaluation criteria for the supply of liquid fuels.

 

Members were advised that Chorley had historically placed orders on The Chest when requiring a fuel delivery, based on the volumes required at that time. This process was undertaken ahead of each delivery and it was therefore unlikely to provide best value to the council.

 

The implementation of a shared contract would enable the Council to achieve more favourable per-litre costs. By leveraging the increased purchase volumes associated with the overarching contract, the Council would stand to benefit from enhanced cost efficiencies.

 

Members welcomed the proposals and supported not entering the contract with a fixed price due to prices fluctuating significantly dependant on the global fuel costs.

 

Resolved:

  1. Approval to enter a further competition exercise through either a compliant framework, or an open tender through procurement portal, The Chest, to procure liquid fuels.
  2. That the award of these contracts be delegated to the Executive Member for Resources for approval.

 

Reasons for recommendations:

  1. Under the Council’s contract procedure rules approval by the Executive Cabinet of contract award procedures and evaluation criteria for tenders greater than £100,000 in value is required.
  2. The procurement exercise will identify the best supplier for both councils. with regards to cost and service delivery.
  3. Having a contract in place will ensure the continued supply of liquid fuel for both Councils and potentially for Chorley’s waste partner, FCC Environment.

 

Other options considered and rejected:

  1. Non-approval may lead to an interruption in fuel supply for the Council’s Streetscene and Waste fleet, which would entail the fleet having to use commercial fuel stations at an additional cost.
  2. Not having a contract in place will make it difficult for the Council to ensure best value and remain complaint with the PCR’s.</AI9>

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