Issue - meetings

(Housing Portfolio Holder) To consider the attached report (C-053-2016/17).

(1)        That Gracelands CMS Ltd and Mears PLC be awarded the contracts for the inspection, maintenance and improvements works to void properties based on a one-year contract, renewable annually for up to a maximum of three years; and

(2)        That this contract be designated as a serial contract to facilitate the annual adjustment to the tendered rates in accordance with The Department of Business, Innovation & Skills Building Cost Indices.

The Housing Portfolio Holder presented a report on the procurement of a replacement Void Works Contract.

The Portfolio Holder reported that tenders were sought for the inspection, maintenance and improvements works to Council owned void properties. The tender exercise was undertaken in accordance with the Council’s Procurement Rules, and was based on an assessment of both quality and price with a 30% weighting on quality and a 70% weighting on price (Most Economically Advantageous Tender or MEAT). The most economically advantageous tenders received were submitted by Gracelands CMS Ltd and Mears PLC with a score of 87.02% and 75.55% respectively.

The Assistant Director of Communities (Housing Property) added that there was a number of void properties which would require inspection, maintenance and improvement over the coming months, hence two contractors had been appointed which was highlighted as part of the procurement process. It was acknowledged that Gracelands CMS Ltd and Mears PLC had been the successful contractors during the last tender exercise and had demonstrated their experience in this competitive tender exercise through their price and quality submission. Both Contractors had a good track record working with the Council and had provided both a quality service and value for money on a consistent basis. But it was reiterated that both contractors were selected solely on the basis of being the most economically advantageous tenders.

Decision:

(1)        That Gracelands CMS Ltd and Mears PLC be awarded the contracts for the inspection, maintenance and improvements works to void properties based on a one-year contract, renewable annually for up to a maximum of three years; and

(2)        That this contract be designated as a serial contract to facilitate the annual adjustment to the tendered rates in accordance with The Department of Business, Innovation & Skills Building Cost Indices.

Reasons for Decision:

The existing contracts for the inspection, maintenance and improvements works to Council-owned void properties expired in September 2017; therefore it was necessary to re-tender the contract to satisfy the Council’s Procurement Rules.

Other Options Considered and Rejected:

(i)         To re-tender the contract on an annual basis; however, this would be time consuming and inefficient, and re-tendering would not guarantee more competitive tenders.

(ii)        To re-tender based on price alone; however, this would not necessarily return a more competitive tender and would not necessarily tease out a quality commitment from the lowest bidder.

(iii)       To seek individual quotations for each void property on an ad-hoc basis; however, this would be very time consuming and was not cost effective, and given the volume of works per annum, this would also breach Contract Standing Order C5 (3) with the works exceeding £20,000 in value during one financial year.

(iv)       Procuring the works with just one Contractor; however, from experience, the lack of competitive benchmarking only led to more administration and resources, which in turn increased internal costs, and in any event would not assist in keeping void periods to a minimum due to capacity issues.