Agenda item

Report of Corporate Director for Communities, Environment and Resident Services

Chris Keane, Head of Highway Services, presented the report and stated the following:

 

a)  the report sought approval to establish procurement arrangements that are essential for:

 

-   supporting Nottingham City’s statutory highway maintenance obligations under Section 41 of the Highways Act 1980;

 

-  facilitating the delivery of highway maintenance and improvement projects and broader public realm programmes;

 

-  enabling access to specialist support services required for various highways-related activities;

 

b)  existing framework arrangements are in place to support highways delivery. However, given the irregular nature of transport grant awards, and the anticipated increase in planned work activity in the coming years, it is crucial to establish new and additional frameworks that meet the needs of the wider directorate of ‘Resident Services’ and other service areas within the Council;

 

c)  this consolidated approach delivers on the corporate procurement policy of a ‘one framework model’, which offers a fast more efficient route to market, at the same time delivering best value. The frameworks will be in place starting in 2025/26 to ensure the Council has compliant delivery options;

 

d)  to prepare for this and ensure continuity of compliant delivery, both in-house and outsourcing options are proposed for the short to medium term. Looking ahead, should the Council choose to strategically explore other delivery models, such as those aligned with the development of a combined authority’s agenda, these can be accommodated. This flexibility is enabled as all current and proposed delivery options are structured under frameworks that do not include any commitment to spend;

 

e)  the framework arrangements will ensure value for money by utilising competitive processes to appoint and manage contractors. This approach will be based on evaluating price, quality, and environmental considerations;

 

f)  the report seeks approval to establish procurement arrangements for the following outsourced work activities and support services:

 

·  delivery - patching (hand lay);

·  Materials - construction materials (aggregates and asphalts);

·  Materials - construction materials (merchants);

·  Services - transport project support (traffic signal design);

·  Services - transport project support (structural engineers);

·  Services - transport project support (bridge inspectors);

·  Services - transport project support (transport business case);

·  Services - drilling, sawing and loop cutting;

·  Hire - hire of excavator with operator;

 

g)  the proposal recommends that frameworks be awarded through processes conducted in accordance with the Council's contract procedure rules, the requirements of the Public Contracts Regulations 2015, and by accessing existing national frameworks where allowed, provided they demonstrate best value. It is anticipated that these frameworks will utilize the NEC 4 suite of construction contracts from the National Engineering Council, or other widely recognised and accepted industry terms. A detailed breakdown of the framework requirements, including the proposed contract durations, is outlined in the appendix to the report;

 

h)  As part of the framework operation, 'call-off' contracts will be awarded for individual projects. To ensure proper oversight of both the framework's operation and the associated 'call-off' arrangements, management will be handled at an operational level by the Highways Contracts and Compliance Team.

 

Resolved

 

(1)  that authority be delegated to the Strategic Director of Resident Services to:

 

(a)  procure and enter into framework agreements, as set out in the annual procurement plan in the appendix to the report, to a maximum value of £17.3m;

 

(b)  award call-off contracts under the frameworks, within established budgets and in compliance with the terms of the frameworks, without having to seek further approvals, up to the appropriate financial limit for officer decisions in force at the time:

 

(2)  to note that in respect of awards of contract(s) other than provided for in resolution 1(b) above, approval appropriate to the delegated limits of authority set out in the Council’s Constitution at the time will be sought.

 

Reasons for recommendations

 

Recommendation 1

 

a)  Procuring Highway Frameworks will allow Highway Services to continue to compliantly deliver works and services to fulfil statutory obligations to maintain the highway and support all Transport Services in compliant delivery options.

 

b)  The identified benefits of putting these arrangements in place are:

 

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

 

·  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; through framework awards under smaller lots;

 

·  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; this to include further competition through mini competition;

 

·  economies in accessing established third-party frameworks where viable;

 

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

 

·  demonstrating the Council’s commitment to all stakeholders in the ‘East Midlands Devolution Plan’ that we are invested in low carbon economic growth;

 

·  implementing and embedding Framework Partners that support the Council’s Carbon Neutral Charter and initiate Carbon Management throughout their entire supply chain.

 

c)  Appendix 1 outlines the frameworks required to be approved under this decision, including estimated spend over a 4-year period. All frameworks have no commitment to spend, and values stated are indicative values based on current operational forecasts and the Medium Term Financial Plan.

 

Recommendation 2

 

d)  the report seeks authority to set up the frameworks and/or contracts set out in appendix 1 to support the continuing operations within Highways. The procurement and commercial strategy for each has been determined by the Compliance Team in Highways and in conjunction with the Procurement Team.

 

Other options considered

 

a)  Not to let Contracts or Frameworks - not having compliant procurement measures in place will adversely affect our ability to engage with suppliers and contractors to deliver essential highway works and projects through time limited external grant funding.

 

Further, no effective means to demonstrate compliance with financial and procurement regulations for the increased spend in future years by the broader Transport Group at NCC.

 

To not progress new framework arrangements will jeopardise grant funding and Nottingham would lose out on the opportunity to invest in the City, its transformation and in local neighbourhoods.

 

b)  To directly award Contracts - this would require commitment to spend at point of contract, would not provide the flexibility required for service requirements, including commercial market opportunities, over the period and therefore not provide best value.

 

c)  Term Service Contracts – this would require more stability in the funding regime at the Council. Currently, NCC are receiving annual awards for highway maintenance and further grant awards for transport schemes but there is no medium-term funding strategy that would assist consideration to a medium-term delivery solution with a third party. As engagement continues under Combined Authorities agenda and the merging of DfT funding streams this will provide opportunity for this option to be considered in the future.

 

d)  Multi Agency Frameworks – this would require more stability in strategic decision making between local authorities in the region and more stability in the funding regime as noted in 3.4 above. As engagement continues under Combined Authorities agenda and the merging of DfT funding streams this will provide opportunity for this option to be considered in the future.