Brighton & Hove City Council
HOUSING & NEW HOMES COMMITTEE Agenda item 39
Subject: Procurement of Waste Contractors for Housing Repairs & Maintenance and Tenancy Services
Date of Meeting: 15 November 2023
Report of: Executive Director for Housing, Neighbourhoods & Communities
Contact Officer Name: Grant Ritchie
Tel: 01273 296806
Email: Grant.Ritchie@brighton-hove.gov.uk
Ward(s) affected: (All Wards).
FOR GENERAL RELEASE
1. PURPOSE OF REPORT AND POLICY CONTEXT
1.1 The Housing Management landlord service currently source waste collection and disposal through three separate routes for the purposes of managing waste arising from the operation of our Housing Repairs & Maintenance service, Estates service and through our Tenancy Sustainment service, providing support to highly vulnerable residents to enable them to live safely in their homes.
1.2 This is currently delivered under two waivers that end on 31 March 2024 and by spot purchase arrangements.
1.3 This proposal will seek to combine the separate arrangements into new contract/s for the Housing Management service.
1.4 This report seeks delegated authority for the Executive Director of Housing
Neighbourhoods and Communities to procure and award waste management contract/s, for the provision of collection and disposal of waste for the Housing Management service with an initial contract term of three years, with the option to extend for a further two years.
2. RECOMMENDATIONS:
That Housing Committee grants delegated authority to the Executive Director of Housing, Neighbourhoods and Communities to:
2.1 Procure and award waste management contract/s for the provision of collection and disposal of waste from the three separate service areas within the Housing Management service, Repairs & Maintenance, Estates and Tenancy Sustainment, with an initial term of three years with the option to extend for up to a further two years;
2.2 Grant the optional extension of the contract referred to in 2.1 subject to satisfactory performance of the contractor.
3 CONTEXT/ BACKGROUND INFORMATION
3.1 The Housing Repairs & Maintenance service was brought in-house on 1st April 2020. The opportunity to review and potentially combine the overall Housing Management waste management requirements was not feasible at the time due to the prioritisation of other insourcing activities.
3.2 The Repairs & Maintenance service complete approximately 2,600 housing repairs and on average 80 empty homes refurbishments each month, creating various levels and types of waste. The waste is deposited in skips and containers located at the council’s Housing Centre or Queensway site and collected by the contractor at frequent intervals, depending on waste type. This is taken for both disposal and recycling purposes. Waste is also tipped by both services, using secure caged vans at a facility site in Lewes, East Sussex.
3.3 The Housing Estates service provide a responsive collection service to remove and dispose of goods causing a hazard or impacting on resident’s enjoyment of community spaces. This includes items deposited in communal ways, fly-tipped items and larger clearances from Housing land across the City. This service completes approximately 200 jobs per month, which are mixture of planned bulky waste removals, ad-hoc collections of fly-tipped items and rapid response to deal with health and safety risks. Once the caged vehicle is full, the waste is taken to a facility site in Newhaven, East Sussex.
3.4 The Tenancy Sustainment service provide support to highly vulnerable residents to enable them to live safely in their homes. This involves a specialist waste service, to remove and dispose of items from homes and gardens, including hoarded items and household rubbish and other waste. This element of the contract will involve removal of bio-hazardous waste and bio-hazardous deep cleans. The future service specification will reflect the need for trained and skilled staff to sensitively engage with tenants and liaise with Housing staff, working with vulnerable households.
3.5 The average yearly spend across all three service areas is approximately £0.400m, which is funded from the Housing Revenue Account (HRA) revenue budget. Housing Management have reviewed how the waste management service contract can best be procured and are exploring various options.
3.6 The procurement process will provide an opportunity for local organisations to bid for this work. The identified benefits for this procurement activity include:
3.6.1 Value for Money – By combining service needs and contract values.
3.6.2 Efficiency – Combining the skip and tipping provision for the Repairs & Maintenance service and Housing Estates service will achieve greater efficiency than the current arrangements. It will improve contract management and create opportunities to implement new ways of working across Housing.
3.6.3 Sustainability – The procurement process will require interested parties to demonstrate how they will support the Council’s work to reduce carbon emissions and become a carbon neutral city by 2030. Also, how they will support one of the City Council Plan priorities for 2023-2027: “a sustainable, safe and clean environment”.
3.6.4 Social Value – Through the duration of the contract/s we will seek to secure long-term investment and detailed commitments to social value.
3.6.5 Innovation – The Invitation to Tender will request innovative waste and IT solutions, for example to provide a smartphone App with the ability to show the nearest facility to recycle electrical equipment. The contractor/s will also have to commit to increasing the amount of materials that can be reused and recycled for the duration of the contract term. This will be monitored in the monthly contract meetings.
3.6.6 Flexibility - Other council services such as Health & Adult Social Care will be able to access relevant contract/s to support their existing arrangements and provide value for money across the Council.
3.6.7 Simplify invoicing - Finance processes to be made easier, simpler and less resource intensive to process under new arrangements.
3.6.8 Customer / contract relations – Longer contract terms provide an opportunity to establish working relationships with dedicated waste providers. It also provides tenants with consistency of staffing for the specialist cleans and clearances.
3.6.9 Contract management – Formal monthly contractor meetings will be held to monitor key performance indicators. The meetings will also be used to continually drive service improvements and efficiency of the service.
4. ANALYSIS & CONSIDERATIONS OF ALTERNATIVE OPTIONS
4.1 This procurement exercise is intended to replace the two existing waivers and current spot purchase arrangements, with new contractual arrangements, including clear requirements for the future needs of the service.
4.2. We have approached Cityclean, the Council’s in-house waste and recycling collection service. This service offer would be limited to collecting glass, refuse (rubbish) and recycling the same items as the household collection service. All other waste needs, including biohazardous waste and skips, would need be met through a separate contract and would result in several companies being responsible for the different parts of the contract.
5. COMMUNITY ENGAGEMENT & CONSULTATION
5.1 The Survey of Tenants and Residents (STAR) was carried out during October 2023. This research included a question to all participating tenants or residents about their satisfaction or dissatisfaction with the way the Housing Management service keeps communal areas clean and well maintained. Responses from STAR will be used to provide data on satisfaction rates prior to the new waste procurement. Future STAR results will then be reviewed to see if customer satisfaction levels have increased, decreased or stayed the same.
6. CONCLUSION
6.1 Our recommendation to Committee is to procure and award waste management contract/s for the provision of collection and disposal of waste from the three separate service areas identified within the Housing Management service.
6.2 Delegated authority will enable the Housing Management service to complete all stages for the procurement process in a timely way.
6.3 It is critical for the Housing Management service to have reliable contractors, who will work with us on agreed terms and conditions. This will assist with the collection of waste as a result of repairs, hoarding, fly tipping, items deposited in common ways. This will assist the Council to provide an excellent service to residents, whilst fulfilling our duties to provide safe and well-maintained homes.
7. FINANCIAL & OTHER IMPLICATIONS:
Financial Implications:
7.1 There may be financial implications if the submitted tender prices are substantially different from the proposed HRA revenue budgetary provision for 24/25, which are based on current spending levels as referred to in section 3.5 of the report. However, it is expected that the proposed framework and contract arrangements will deliver efficiencies; both financial and operational and this will help inform future HRA budget setting for 25/26 onwards.
Finance Officer consulted: Mike Bentley 3rd November 2023
7.2 The Housing & New Homes Committee is the appropriate committee for the recommendations set out in paragraph 2 above in accordance with Part 4 of the council’s constitution. In order to comply with the Contract Standing Order 3.1, authority to enter into contracts in excess of £500,000 must be obtained from the relevant Committee.
7.3 The council has a duty to secure
‘economy, efficiency and effectiveness’ in all its activities. The procurement
of the proposed contract in a manner which attracts the most economically
advantageous bid supports this principle and is in line with the relevant
procurement rules.
7.4 The council’s Legal officers will advise on the use of any framework agreements and the call off contract(s) during the procurement process to ensure that the council complies with all relevant public procurement legislation as well as the council’s Contract Standing Orders (CSOs).
Lawyer consulted: Eleanor Richards 31st October 2023
Equalities Implications:
7.5 The procurement process documents will include questions that ensure interested parties address all equalities considerations, both as a business and through evaluation on how they will engage with residents to ensure they give consideration and commitments to the Council’s Equality and Inclusion Policy Statement and Strategy.
7.6 The council’s standard anti-racism clause will be included in the future Waste Management Framework. Monitoring will take place via monthly contract meetings which will require the contractor/s to supply data to evidence positive actions to achieve equality and diversity in their workforce. For example, via recruitment policies and training or actively challenging any prejudice or discrimination against staff or people using the service.
7.7 The key sustainability criteria for this procurement is included in the ‘Invitation to Tender’ document. This includes the council’s target of Caron Net Zero by 2030, requiring consideration to be given to the impact of our Housing waste management service on the carbon footprint of the city. The contract meetings will regularly review recycling rates and landfill amounts, vehicle usage, mileage, cleaning products used and wastewater disposal methods.
7.8 Sustainability will form part of our evaluation of tender submissions, and a minimum of 10% of our overall quality score.
8.0 Any Other Significant Implications:
Social value and community wealth building considerations
8.1 The ‘Invitation to Tender’ states the minimum commitments that add additional value to the community. This includes a minimum of one apprenticeship for every two years of the contract term. Facilitation of a minimum of four community clean up events per year with the contractor/s being required to identify a minimum of one local community organisation, community project or local charity to support with the delivery of one specified project (as the minimum) for each year of the contract/s.
8.2 Through the procurement process we will seek to secure support for local business, optimise opportunities for community wealth building, engage with local contractors and help provide employment opportunities for the city’s residents.
8.3 Social value and community wealth building will from part of our evaluation, and a minimum of 10% of our overall quality score.
SUPPORTING DOCUMENTATION
Appendices:
1. There are none.
Documents in Members’ Rooms
2. There are none.
Background Documents
3. There are none associated with this report.
Crime & Disorder Implications:
4. None arising directly from this report.
Risk and Opportunity Management Implications:
5. The current arrangements for waste collection and removal services do not offer the required assurance around service delivery, value for money and contractual control or agreement. The opportunities arising from the procurement process include to complete a test of the market to achieve an improved level of value for money. Also, to establish clear contractual terms that deliver value for money, efficiency, sustainability, social value, innovation and good contractual management. All of which should result in a better reflection of and allowance for how the Housing Management service will develop and improve over the contract term.
Public Health Implications:
6. Securing contract/s to dispose of goods causing a hazard, or impacting on resident’s enjoyment of community spaces could have a positive impact on the health, wellbeing and quality of life for our residents.
Corporate / Citywide Implications:
7.0 Outcome 1: A City to be proud of: An accessible, clean, and sustainable city – ‘What we will do’ 1: Keep our city clean and manage waste, with a focus on minimising waste.
‘What we will do’ 2: Work towards carbon net zero, reduce carbon emissions.
7.1 Outcome 2: A Fair and Inclusive City - Homes for everyone.
‘What we will do’ 3: Improve housing support for residents • Optimise the local benefits and social value of our inhouse repairs and maintenance service.