Issue - items at meetings - Rationalisation and Procurement of the Mechanical and Electrical Term Contracts

Report of the Executive Director for Finance & Resources (copy attached).

That the Executive Director for Finance & Resources be granted delegated authority to:

(i)                 Rationalise, procure in accordance with OJEU procedures and award the mechanical and electrical term maintenance contracts for a term of 4 years; and

(ii)               Grant a two year extension to any or all of the contracts referred to in (1) above subject to satisfactory performance of the contract(s) in question.  

9.1             The Executive Director for Finance & Resources introduced the report which detailed the proposed rationalisation and procurement of the mechanical and electrical term maintenance contracts for the council.  She stated that the proposed rationalisation was a reflection of the new corporate landlord approach which centralised the property portfolio and enabled greater efficiency with the amalgamation of various contracts.  She noted that there was a potential for fewer suppliers to be able to bid for the rationalised contracts, however it was intended to look to stimulate the local interest and the local supply chain.

9.2             Councillor Littman welcomed the report and noted that it was proposed to reduce the number of contracts down from 21 to 4 in regard to mechanical and electrical term contracts.

9.3             Councillor Morgan stated that whilst rationalisation was a welcome step, there was always the question of the loss of expertise in regard to a specific area if a local contractor was then unsuccessful in bidding for the new contract.

9.4             Councillor A. Norman welcomed the report and queried whether consideration had been given to letting contracts with other organisations or through the SE7 Group.

9.5             Councillor Peltzer Dunn referred to paragraph 6.1 and queried when an extension to a contract may be exercised if it was felt to be necessary.

9.6             The Executive Director for Finance & Resources stated that the procurement of the contracts with other organisations or via the SE7 Group had been considered but it was felt that on this occasion it would prove cost effective to procure them as detailed in the report.  In regard to the award of an extension to a contract, depending on whether there was a need for it to go through the OJEU process it would begin with around 12months left of the original contract or if it fell under a framework agreement then it would be slightly later.

9.7             The Chair stated that it was important to stimulate the local economy and also to seek to secure cost effective provision of the contracts.  He believed that the proposed rationalisation would result in improvements and put the recommendations to the vote.

9.8             RESOLVED: That the Executive Director for Finance & Resources be granted delegated authority to:

(i)           Rationalise, procure in accordance with OJEU procedures and award the mechanical and electrical term maintenance contracts for a term of 4 years; and

(ii)         Grant a two year extension to any or all of the contracts referred to in (1) above subject to satisfactory performance of the contract(s) in question.