99 Approval for Procurement of Contractors to Undertake Reactive and Planned Maintenance
To consider and receive the report of the Director (Business, Development and Growth).
Decision:
1. Approval to tender for the appointment of four contractors to undertake general building repairs, electrical works, gas/heating works and alarms system maintenance for both reactive and planned works. Each independent contract to commence on 6th May 2019 for an initial one-year period, with an option to extend for a further two years to 31st March 2022.
2. Approval for the contracts to be awarded by the Executive Member (Resources) by means of an Executive Member Decision.
Minutes:
Councillor Peter Wilson, Executive Member (Resources), presented the confidential report of the Director (Business, Development & Growth) which seeks approval for the procurement approach including the award procedure, evaluation methodology and criteria for the engagement of contractors to undertake reactive and planned maintenance on council property assets.
Decision:
1. Approval to tender for the appointment of four contractors to undertake general building repairs, electrical works, gas/heating works and alarms system maintenance for both reactive and planned works. Each independent contract to commence on 6th May 2019 for an initial one-year period, with an option to extend for a further two years to 31st March 2022.
2. Approval for the contracts to be awarded by the Executive Member (Resources) by means of an Executive Member Decision.
Reasons for Recommendation(s):
1. The Council has statutory obligations to provide quarterly, bi annual and annual service and testing requirements to comply with health and safety and statutory requirements. The Council has a contractual obligation with its tenants to provide reactive and planned maintenance in a timely manner, providing emergency repairs as necessary. This proposed tender exercise ensures that these services will enable the Council to fulfil its obligations.
2. The Councils Contract Procurement Rules stipulate that Executive Cabinet approval is required for all contracts over £100,000. Tendering the services separately is likely to encourage smaller local enterprises to submit tenders, the prospects of which would reduce if the services were tendered as a combined package.
Alternative options considered and rejected:
1. The option of seeking a waiver to extend the existing delivery arrangements for the Reactive and Planned Maintenance services was explored but rejected on the basis that there was no reasonable justification for doing this any longer.
2. The option of bringing the services in-house was considered but ruled out due to lack of capacity within the present staffing structure to deliver the service. In addition there are concerns that insufficient skilled trade’s persons could be recruited to provide adequate 24 hour cover. Also it was deemed that overhead cost would significantly inflate the delivery cost.
3. The option of tendering the services in a combined tender was also considered but rejected. The Council’s research and past experience in tendering repairs and maintenance services has shown that a limited number of contractors would express an interest. Usually larger contractors are attracted which have the diverse skill base to cover all work categories. This would therefore, likely to deter local companies from expressing an interest in these tender opportunities.