Agenda and draft minutes

Commissioning and Procurement Sub-Committee
Tuesday, 14th January, 2020 10.00 am

Venue: LH 0.06 - Loxley House, Station Street, Nottingham, NG2 3NG. View directions

Contact: Phil Wye  Email: Phil.Wye@nottinghamcity.gov.uk

Items
No. Item

31.

Apologies for absence

Minutes:

Councillor Cheryl Barnard – other Council business

32.

Declarations of interest

Minutes:

None.

33.

Minutes pdf icon PDF 157 KB

Minutes of the meeting held on 10 September 2019, for confirmation

Minutes:

The Committee confirmed the minutes of the meeting held on 10 September as a correct record and they were signed by the Chair.

34.

Voluntary and Community Sector update

Additional documents:

Minutes:

An update document was submitted by Celina Adams, Head of Support Services at Nottingham Community and Voluntary Services (NCVS) and is appended to these minutes.

 

NCVS will continue to develop links with smaller community groups through its Community Connector who works with groups to help recruit volunteers and support them with training and funding applications.

35.

Procurement of Utilities Contract 2020 to 2024 pdf icon PDF 340 KB

Report of the Portfolio Holder for Energy, Environment and Democratic Services

Minutes:

This decision is not subject to call in because Councillor Anne Peach agreed that the decision is reasonable in all circumstances and should be treated as a matter of urgency because due to EU procurement rules the tender has to be posted on or before the 16th January to enable the Council to have lead in time to have a new contract in place from the 1st April 2020.

 

Wayne Bexton, Head of Energy Services, introduced the report about the procurement of the contract for supply of gas and electricity in the financial year 2020/21. It was noted that the procurement will be via an open tender process and the contract will be awarded by the Corporate Director for Strategy and Resources.

 

RESOLVED to

 

(1)  approve the procurement of supply of gas and electricity for Nottingham City Council via an open tender;

(2)  delegate authority to the Corporate Director for Strategy and Resources to award the contract;

(3)  approve the spend associated with this supply for 4 years.

 

Reasons for decision

 

·  the Council’s contract for the supply of gas and electricity are expiring in the financial year 2020/21 (gas expires 31st March 2020 and electricity 30th September 2020).

·  Nottingham City Council have an opportunity to review the best route of procurement to deliver a value for money type for Nottingham City Council which will contribute towards the Medium Term Financial Plan (MTFP) and the budget gaps.

·  This report contains a detailed options appraisal document for the most cost effective route for the Council to take for its supply of energy for the next four years.

 

Other options considered

 

·  Not to go to market for gas and electricity supply. This would have seen Nottingham City Council and its partners pay out of contract rates, which would have seen a significant rise in the costs for gas and electricity.

·  To procure via a current framework such as ESPO or Crown Commercial Services. This option provides no opportunity for the contribution via a levy on this contract to the Nottingham Jobs Fund.

·  In light of the current financial climate for Nottingham City Council it is key that the route that will deliver value for money is undertaken.

36.

Funding for Nottingham Schools Trust pdf icon PDF 230 KB

Report of the Portfolio Holder for Early Years, Education and Employment

Minutes:

Nick Lee, Director of Education Services, introduced the report seeking to enter into a five year funding agreement with Nottingham Schools Trust (NST). NST opened in September 2017 and was initially funded through a grant funding agreement. This agreement was a temporary measure until the trust had established itself.

 

RESOLVED to

 

(1)  authorise the award of three five year contracts to Nottingham Schools Trust relating to intervention, school improvement and quality assurance;

(2)  agree dispensation from Contract Procedure Rule 5.1.2 in accordance with Financial Regulation 3.29 to allow the direct award of these contracts to Nottingham Schools Trust.

 

Reasons for decision

 

·  NST opened in September 2017 and is an education trust where maintained schools and standalone academies have partnered to deliver school improvement in their own schools and the other schools in the trust.

 

·  In the relatively short time NST has been operating, it has enjoyed significant success and 97% of schools in NST are now rated either Good or Outstanding by Ofsted (100% of the primary schools in the trust are Good or Outstanding). NST opened with 33 member schools and three additional schools have since joined.

 

·  Dispensation from financial regulations is required to directly award the three contracts to NST. This is because NST are uniquely placed to deliver the full school improvement package the council is seeking, due mostly to its membership. NST is funded through two income streams; DfE funds via NCC and the £5,100 annual membership fee charged to all of its 36 member schools. Whilst the income allows NST to deliver a comprehensive range of school improvement support, the value of NST also lies with its membership and the time member schools put into peer to peer support and attendance at trust-wide development meetings.

 

·  NST would be destabilised without the school improvement funding from the DfE and NCC and would most likely cease trading which, in light of its tremendous success in a short period of time is not a desired outcome. Awarding a five year contract to NST will give the trust further stability and time to develop and deliver further ambitious school improvement.

 

Other options considered

 

The option to go out to tender was considered but this was disregarded. NCC played a significant role in the establishment of NST and the outcomes to date have exceeded expectations. Whilst some of the school improvement functions could be tendered for, the power and success of the NST model comes from the whole package of the trust and this could not be replicated with a different model. Therefore, going out to tender was not considered a reasonable option.

37.

Building Services, Mechanical And Electrical Team Procurement Requirements – 2020-24 pdf icon PDF 338 KB

Report of the Portfolio Holder for Energy, Environment and Democratic Services

Minutes:

David King, Head of Building Services, introduced the report setting out the requirements for Nottingham City Council Building Services Mechanical and Electrical (M&E) Team to procure multiple frameworks to enhance the expanding service requirements. The six specific frameworks that will be procured are as detailed below:

 

1: Electrical Support Framework (£1m over 4 years):
This framework will consist of but no limited to the following disciplines:

·  Electrician

 

2: Mechanical Support Framework (£2.5m over 4 years):

·  Plumber

·  Domestic Gas Engineer

·  Commercial Gas Engineer

·  Mechanical Fitter

 

3: Electrical Contracting Supply and Install Framework (£5m over 4 years):

·  Electrical Supply and Install

·  Electrical Testing

 

4: Mechanical Contracting Supply and Install Framework (£4.8m over 4 years):

·  Mechanical Supply and Install

·  Out of Hours Call Out

 

5: Flue Fabrication and Install Framework (£0.3m over 4 years):

·  Fabrication and install of specialist flue systems

 

6: Tool Hire Framework

·  Small Tools

·  Scaffolding

·  Power Generation and Lighting

·  Powered Access

·  Specialist Gas, Water and Electricity Equipment

 

RESOLVED to

 

(1)  approve the procurement of Framework Agreements in line with Public Procurement Regulations 2015;

(2)  delegate authority to the Head of Service for Building Services to approve the outcome of the procurement processes and award Framework Agreements in line with criteria as set out within the tender documentation;

(3)  delegate authority to the appropriate person within Building Services in line with the Financial Regulations, to call off from the Framework Agreements.

 

Reasons for decision

 

·  NCC adopts a mixed approach to the delivery of M&E work that utilises the Council’s own skilled workforce and fully supports the City Council’s ambitious commercialisation agenda.

·  Procuring the Frameworks will result in the following advantages:

o  a value for money delivery model with no fixed financial commitment to use the framework;

o  opportunities for local Small to Medium Enterprise (SME) companies to tender for the work;

o  the potential for a local workforce either through direct employment or through regional SME sub-contractors.

·  The delivery model has a number of additional benefits including:

o  strong links to the Council’s corporate value and objectives;

o  a highly flexible and responsive structure to accommodate short term changes to design programmes;

o  local knowledge available in the planning and assessment of proposed works.

 

Other options considered

 

·  Do nothing – no authorised procurement is in place for the provision of specialist services and as such would not be compliant with Nottingham City Council’s Financial Regulations and Public Procurement Regulation 2015.

·  Insource all of the activity covered by the contract areas under consideration for renewal – this option has been rejected due to the following; capacity, complexity, risk and value for money.

38.

Mental Health Accommodation and Support Pathways pdf icon PDF 257 KB

Report of the Portfolio Holder for Adult Care and Local Transport

Additional documents:

Minutes:

Claire Labdon-West, Lead Commissioning Manager, introduced the report seeking approval to commission four Housing Related Support Services and two Independent Living Support Services for people with mental ill health. These services support adults with mental ill health to live independently or to recover sufficiently to move to more independent living arrangements and to help reduce the need for other more intensive forms of support.

 

Discussions are ongoing with the NHS around funding for commissioned health-related services.

 

RESOLVED to

 

(1)  approve the commissioning of a Mental Health Reablement service, which will replace the current Independent Living Support Service for which the contract ends on the 31st of March 2020;

(2)  approve to undertake a tender process for a Mental Health Reablement service, four accommodation based Housing Related Support (HRS) services and the Forensic Outreach Service for a contract period of 3+2+2+2 years. This will be for an annual contractual value of up to £1,595,024;

(3)  delegate authority to the Head of Service for Contracting and Procurement to approve and sign off the outcome of the tender process for the four HRS services, the Mental Health Reablement service and the Forensic Outreach Service and to award a contract;

(4)  note that one of the HRS services, Hughenden Lodge, is subject to agreement by NHS Greater Nottingham Clinical Commissioning Partnership to maintain joint funding. Discussions with NHS Greater Nottingham Clinical Commissioning Partnership suggests that they may change the method of payment from a block fund arrangement to a S117 and continuing healthcare arrangement. NCC should receive confirmation by the latest February 2020 as to how they will pay for the service;

(5)  approve the spend associated with this decision in recommendation (£14,355,216) for a potential contract period of nine years;

(6)  approve an extension of six months from 1st of April 2020 in relation to the current contracts. This will be required if there is a change in provider and a longer implementation period is required or for some other reason. This will be up to a total value of £797,512;

(7)  approve dispensation from Contract Procedure Rules 5.1.1 and 5.1.2 in accordance with Financial regulations 3.29 to allow for 6 month extensions as outlines in recommendation 6 and for the funding of services for the 6 month period as outlined in appendix 1;

(8)  delegate authority to the Head of Contracting and Procurement to issue extensions to contracts up to the values noted in appendix 1.

 

Reasons for decision

 

·  The services within the scope of this report have been reviewed recently. The review concluded that these services are generally operating effectively in line with current requirements. These services enable the Council to deliver against its statutory requirements under the Mental Health Act 1983 and the Care Act 2014.

·  Approval is sought to procure six services: a Mental Health Reablement Service, four accommodation based HRS services and the Forensic Outreach Service which will support people with mental ill health. A competitive tender process will be undertaken which will deliver value for  ...  view the full minutes text for item 38.

39.

Exclusion of the public

To consider excluding the public from the meeting during consideration of the remaining item(s) in accordance with Section 100A(4) of the Local Government Act 1972 on the basis that, having regard to all the circumstances, the public interest in maintaining the exemption outweighs in the public interest in disclosing the information.

Minutes:

RESOLVED to exclude the public from the meeting during consideration of the remaining items in accordance with Section 100(4) of the Local Government Act 1972 on the basis that, having regard to all the circumstances, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

40.

Exempt appendix - Procurement of Utilities Contract 2020-2024

Minutes:

RESOLVED to note the information contained in the exempt appendix.