Agenda item

Report of Corporate Director for Communities, Environment and Resident Services

Andrew Smith, Assistant Fleet Manager, presented the report, and stated the following:

a)  the Fleet and Depot Operations Service is seeking permission to renew and replace its existing framework for the supply and delivery of both internal combustion engine and ULEV light commercial vehicles up to a maximum gross vehicle weight of 7,500kg;

b)  the report is not seeking a commitment to spend during the framework’s lifetime, just approval to provide a compliant solution for if a vehicle is required to support service delivery;

c)  the framework will be accessible by all other public sector bodies and the service specification of the framework will allow for supply and maintenance;

d)  the framework will also allow contracting parties, including Nottingham City Council, to purchase light commercial vehicles from various suppliers to enable them to fulfil replacement needs when necessary;

e)  the vehicles to be purchased throughout the lifetime of the framework will include those that are used to deliver statutory services across the registered users of the framework;

f)  a rebate of 1% is payable to Nottingham City Council for all purchases made under the terms of the framework to cover all costs incurred in the management of the framework and the procurement process.

Resolved to

(1)  to approve the undertaking of a procurement process to establish a framework for the outright purchase of Light Commercial Vehicles that all UK public sector contracting authorities can access;

(2)  delegate authority to the Corporate Director for Communities, Environment and Resident Services to:

(a)  enter into the initial light commercial vehicle framework;

(b)  sign all call-off orders under the terms of the framework.

Reasons for recommendations

a)  establishing a Framework Agreement provides the Council, and any other user of the framework, a compliant mechanism to source Light Commercial Vehicles.  Under the terms of the framework, the user can establish ‘call-off’ agreements for their specific requirement;

b)  the framework offers two call-off methods:

o  direct award to the highest ranked provider in each of the three lots;

o  mini competitions inviting all suppliers under the chosen lot to bid;

c)  there are benefits and considerations with either approach, these can be considered at the point of demand;

d)  the framework will consist of 3 lots. A framework agreement will be awarded to up to four suppliers per lot, suppliers can bid for one or more lots:

o  Lot 1 - light commercials up to a maximum GVW of 3,500kg;

o  Lot 2 - light commercials between 3,501kg GVW to 7,500kg GVW;

o  Lot 3 – pick-up trucks: 4x2 and 4x4 types;

e)  the structure of the framework considers not only any future fleet requirements, but those of other Council departments (Greenspace, Housing Services, etc);

f)  individual or multiple vehicles can be bought under the terms of the framework;

g)  the rebate payable by users of the framework will be (on average) 0.5% lower than third party framework and nationally accessible by all public sector contracting bodies;

h)  under the terms of any framework, there is no commitment to spend or to place a minimum number of orders.

Other options considered

a)  Extend the existing framework – this option was rejected as it would not comply with the Public Contract Regulations 2015.

b)  Renew the method and create a DPS – this option was rejected as the core members and users of the Framework are members of the Nottinghamshire Transport Group Consortium who many have stated don’t have the capacity to carry out numerous Mini Competitions and requested the option to retain the Direct Award process to enable swift purchases to be made where necessary.

c)  Undertake ad-hoc tenders at the point of demand – this option was rejected to avoid any duplication of work and to ensure all vehicle purchases are going through a compliant procurement mechanism with a specification created with the Council in mind.

d)  Access external third-party frameworks at the point of demand – this option was rejected to avoid any duplication of work and to be paying any rebate fees to third parties as opposed to benefitting from rebates paid to the Council by 3^rd party users of the Framework.

e)  Creating our own Framework also provides a way to ensure all vehicle purchases are going through a compliant procurement mechanism with a specification created with the Council in mind.