Agenda item

Report of Corporate Director for Resident Services

Having previously declared an interest, Councillor Williams left the room prior to discussion of this item.

Mark Bradbury, Highways Contracts and Compliance Manager, presented the report, which requested approval of procurement arrangements to support the Council’s delivery of Statutory Highway Maintenance Works, Highway Improvement and Public Realm Programmes and Specialist Support Services for Highways and Transport Strategy.

Mr Bradbury stated that:

(a)  new contracts and framework arrangements were required to cover the following essential services:

·  purchasing of aggregates, asphalt, ready mixed concrete, construction materials and signs;

·  plant hire or haulage, including hire of JCB with operator, tools, plant and welfare facilities;

·  services, including purchasing of winter service weather forecasting, maintenance of water features, design and installation of street lighting (currently excluded from PFI arrangements), asset management surveys, document production, data analysis and transport modelling and feasibility studies;

·  works, including painting and removal of pigeon guano from structures and bridges.

(b)  it was proposed that contracts be awarded through conducting processes in accordance with the Council’s Contract Procedure Rules and requirements under the Public Contracts Regulations 2015 and, where permitted, appropriate and it demonstrated Best Value, to access existing national frameworks.

(c)  contracts were anticipated to utilise the National Engineering Council (NEC 4) Suite of Construction Contracts or other industry recognised and accepted terms.

(d)  a breakdown of the contract requirements was set out in appendix A, including the proposed duration of contracts, which was generally 4 years.

(e)  in the operation of any awarded framework agreement, it would be necessary to award call-off contracts for individual projects and, in order to ensure oversight to the operation of any framework and subsequent call-off arrangements, it was requested that authority be delegated at an operational level to the Contracts and Compliance Manager for Highways.

During discussion, and in response to questions and comments, Mr Bradbury stated that, where possible, local labour would be employed and that there was currently work underway to bring Frameworks together to avoid duplication.

Resolved

(1)  to approve the procurement and subsequent award of contracts / Framework Agreements as detailed in appendix A;

(2)  to delegate authority to the Contracts and Compliance Manager for Highways to act as ‘Framework Manager’ on the awarded call-off from the Framework Agreements detailed in appendix A.

Reasons for recommendations

Recommendation 1 - Procuring Highway Contacts & Frameworks will allow Highway Services to continue to compliantly deliver works and services in order to fulfil their statutory duty to maintain the highway and support all Transport Services in compliant delivery options. The following advantages have been identified in putting these arrangements in place:

·  Enabling the delivery of external grant funded schemes in line with the timescales of the award;

·  A value-for-money delivery model with no fixed financial commitment to use the framework;

·  Opportunities for local Small to Medium Enterprise (SME) companies to tender for the work;

·  The potential for a local workforce either through direct employment or through regional SME sub-contractors;

·  Ensuring the Council complies with its duty of Best Value by going through a competitive process to evaluate price and quality;

·  The ability to develop relationships with a core set of framework providers to the Council and ensure effective management through such relationships.

Recommendation 2 – To have a named officer with oversight of the frameworks and approve any call-off arrangements will ensure that there is appropriate and ongoing governance of the spend and operation of the framework and that the necessary authorities and budgets are in place on a project by project basis before a call-off can be awarded.

This delivery model has a number of additional benefits, including strong links to our corporate value and objectives, a highly flexible and responsive structure to accommodate short term changes to delivery programmes and local knowledge available in the planning and assessment of proposed works.

Other options considered

Not to let contracts - Not having compliant procurement measures in place will adversely affect our ability to engage with suppliers and contractors to deliver both statutory highway maintenance works and essential highway works. Further, no effective means to demonstrate to compliance with financial and procurement regulations (external grant funded) for the broader transport group at NCC.

To not progress new contract and framework arrangements – this will jeopardise funding and Nottingham would lose out on the opportunity to invest the city and in local neighbourhoods. It would also fail to demonstrate commitment to the Government’s Levelling Up agenda, putting at risk the ability to secure future capital funding.

To directly award contracts as opposed to framework contract arrangements that have no commitment to value - This would require commitment to spend at point of contract, would not provide the flexibility required for service requirements over the period required and therefore not provide value for money.