Issue - meetings

The Cabinet Member for Finance, Growth and Investment presented a report on the procurement of 32 contracts for a range of services relating to the Council’s housing stock.

The Cabinet Member referred to the details of each procurement, as detailed in Appendix 1 to the report, and confirmed that appropriate break clauses would be included in contracts to ensure that the new Home Services delivery model could benefit in the future.

Arising from consideration of the proposed specifications, procurement routes and tender evaluation criteria, the following observations were made:

a)  A number of the contracts had proportionally high ‘price versus quality’ evaluation ratios.  The Cabinet Member explained that a proportionally high price ratio was considered appropriate in those instances as the minimum specification requirements in terms of quality and health and safety standards would be set at very high levels in the first place;

b)  The Cabinet Member acknowledged that the high-value contracts for an initial two-year term and three-year extensions options could potentially deter larger companies from bidding, although it was believed that the proposals struck the correct balance; and

c)  The Green Smart Street Project did not include details of the evaluation criteria.  The Cabinet Member advised that the criteria were still being developed as it was an emerging area in which the Council was leading the way in its drive to become the “Green Capital of the Capital”.

The Cabinet Member for Corporate Delivery and Performance also sought clarification of the arrangements for Cabinet Members to be advised of the outcome of the procurements and the subsequent performance of the successful contractors.  The Cabinet Member for Finance, Growth and Investment clarified that, in line with normal arrangements, he would be involved in the procurement and award processes.  Taking on board further comments regarding (1) the desire to increase the level of contract expenditure that went to local businesses from the current level of 14%, which placed Barking and Dagenham in the Top 40 performing local authorities, to a target figure of 25%; (2) the numbers of local people and apprentices employed by the Council’s contractors; and (3) other ‘social value’ issues; the Cabinet Member for Finance, Growth and Investment agreed to present an annual report to the Cabinet on the performance of all Council contracts.

The Cabinet resolved to:

(i)  Agree that the Council proceeds with the procurement of the 32 contracts as detailed in Appendix 1 to the report and in accordance with the proposed strategy; and

(ii)  Delegate authority to the Strategic Director of Growth and Homes, in consultation with the Cabinet Member for Finance, Growth and Investment and the Director of Law and Governance, to approve the final procurement strategy for the appointment of a main contractor and to conduct the procurement and award and enter into the contracts and all other necessary or ancillary agreements with the successful bidder(s) following its endorsement by the Procurement Board, in accordance with the Council’s Contract Rules, the European Tendering Regime and Public Contract Regulations.