Agenda item

Report of Corporate Director for Communities, Environment and Resident Services

Meagan Milic, Highways Compliance Manager, and Chris Keene, Head of Highways Services, introduced the report seeking approval for the provision of future procurement arrangements to support delivery of statutory highway maintenance works (under Section 41 of the Highways Act 1980), highway improvement and public realm programmes and specialist support services for highways work activity.  They highlighted the following information:

a)  This procurement supports the Streets for People 2 Programme and Planned Highways Maintenance Programme agreed earlier in the meeting.

b)  The value of the decision is £92m over four years.  This value is indicative based on previous trends and anticipated funding going forward, and there is no commitment to spend.

c)  The intention is to procure 18 frameworks.  Some of these will be renewals of existing frameworks and some have been identified as now being required as spend analysis shows that procurement thresholds are close to being reached.

d)  These frameworks will give opportunities for small to medium enterprise companies in the City and support associated local jobs.  This is in line with forthcoming changes to procurement regulations which will place greater emphasis on social value and include requirements for market engagement and breaking down packages so that they are accessible to smaller suppliers.

e)  It is known that some smaller companies are put off by perceived amounts of paperwork and the need to engage with the framework online so pre-market engagement is being undertaken to support smaller businesses in engaging with this. 

The Committee welcomed the work taking place to provide easier opportunities for small to medium enterprise companies to engage and obtain work and the positive impact this has for local jobs.

Resolved to:

(1)  approve the procurement and set up of corporate framework agreements listed in table 1 of Appendix 1 to the report;

(2)  approve the call-off from the framework agreements as set out in table 1 of Appendix 1 to the report and award contracts for the delivery of the 2024/25 Statutory Highway Maintenance Works (under Section 41 of the Highway Act 1980), Highway Improvement and Public Realm Programmes and Specialist Support Services for Highways Works; and

(3)  approve the call-off from external third-party frameworks that have been let in accordance with public procurement regulations, as outlined in table 2 of Appendix 1 to the report.

Reasons for decision

f)  The decision enables compliant delivery of works and services to fulfil statutory obligations to maintain the highway and supports all transport services in compliant delivery options.

g)  The benefits of operating under the arrangements are:

  i.  continuity in the provision of compliant delivery arrangements for highways activities in response to increased grant allocation for highways and transport projects;

  ii.  enabling the delivery of external grant funded statutory work activity in line with timescales of award;

  iii.  a value for money delivery model with no fixed financial commitments to use the framework;

  iv.  flexibility with no restriction in developing other delivery models for highways in the future;

  v.  opportunities for local small to medium enterprise companies to tender for the work through framework awards under smaller lots;

  vi.  the potential for a local workforce through utilising regional small to medium enterprise contractors;

  vii.  ensuring the Council complies with its duty of best value by going through a competitive process to evaluate price and quality, including further competition through mini competition;

  viii.  economies in accessing established third-party frameworks where viable;

  ix.  the ability to develop relationships with a core set of framework providers to the Council and ensuring effective management through such relationships;

  x.  demonstrating the Council’s commitment to all stakeholders in the East Midlands Devolution Plan that it is invested in low carbon economic growth; and

  xi.  utilising framework partners that support the Council’s Carbon Neutral Charter and initiate carbon management through their entire supply chain.

h)  Call-offs with a value of £750,000 or more require approval by the appropriate Executive Committee or the Leader of the Council.

Other options considered

i)  Not letting contracts or frameworks would mean that the Council does not have compliant procurement measures in place and that would adversely affect its ability to engage with suppliers and contractors to deliver essential highway works and projects through time limited external grant funding.  There would also be no effective means to demonstrate compliance with financial and procurement regulations for the increased spend in future years by the broader transport group at Nottingham City Council.  Therefore this option was rejected.

j)  Not progressing the new framework arrangements would jeopardise grant funding and the Council would lose out on the opportunity to invest in the City, its transformation and in local neighbourhoods.  Therefore this option was rejected.

k)  Directly awarding contracts would require commitment to spend at the point of contract and would not provide the flexibility required for service requirements, including commercial market opportunities, over the period and therefore not provide best value.  Therefore this option was rejected.

l)  Term Service Contracts require more stability in the funding regime at the Council.  Currently the Council receives annual awards for highway maintenance and further grant awards for transport schemes but there is no medium term funding strategy that would assist consideration of a medium term delivery solution with a third party.  As engagement continues under the East Midlands Combined County Authority agenda and with the merging of Department for Transport funding streams there could be opportunity for this option to be considered in the future but it was currently rejected.

m)  Multi-Agency Frameworks require more stability in strategic decision making between local authorities in the region and more stability in the funding regime as noted in (l).  As engagement continues under the East Midlands Combined County Authority agenda and with the merging of Department for Transport funding streams there could be opportunity for this option to be considered in the future but it was currently rejected.