Issue - items at meetings - New Heating and Hot Water Contract (HRA)

RESOLVED:

2.1       That Housing Committee delegate authority to the Executive Director for Housing Neighbourhoods and Communities to procure and award a contract for the services described below for a term of 5 years with the option to extend for a period of up to two further periods of two years following the initial five year term (5+2+2), subject to satisfactory performance by the contractor and further approval described below.

2.2       That Housing Committee note that a report will be presented to Housing Committee updating on the performance of the contract, including its contribution towards our Carbon Neutral ambition, prior to the end of the initial 5 years, seeking authority to extend the contract beyond the initial term.

56.1     The Housing Sustainability & Affordable Warmth Manager introduced the report to the committee.

            Answers to Committee Member Questions

56.2     Councillor Platts raised questions relating to concerns raised by the procurement board and the five years plus 2, plus 2 extension options. The councillor was informed that the procurement of contract would be continually reviewed, and any extensions would come back to committee for approval and the procurement board concerns regarding a full 9 year contract have been removed. In the first 5 years the movement from gas to low carbon will be tested and if necessary, come back to committee after approximately 3.5 years.

56.3     Councillor Williams raised questions relating to monitoring of contract and consultations. The councillor was informed that all contracts are monitored for performance which starts at the beginning of the procurement process. The contract will contain conditions relating to underperformance and termination. Consultations are not specific to key indicators; however, performance does is a key indicator. There have been high levels of consultation so far and the importance of feedback from tenants is very important and the contractor would need to understand this.

56.4     Councillor Mears stated they were nervous regarding the recommendations, and they agreed with the Procurement Advisory Board (PAB) who requested a clearer link between the future Committee approval to extend the contract and the performance of the contract specifically in relation to its role in delivering our Carbon Neutral ambition.

56.5     Councillor Osborne raised a question relating to the percentage of quality and was informed that the PAB noted the balance of percentages with 55% quality and 45% cost and discussed the possibility of increasing the quality percentage to 60%. The Housing Sustainability & Affordable Warmth Manager stated they would look into the matter and get back to the councillor.

            Vote

56.6     A vote was taken, and the committee unanimously agreed the recommendations.

RESOLVED:

2.1       That Housing Committee delegate authority to the Executive Director for Housing Neighbourhoods and Communities to procure and award a contract for the services described below for a term of 5 years with the option to extend for a period of up to two further periods of two years following the initial five year term (5+2+2), subject to satisfactory performance by the contractor and further approval described below.

2.2       That Housing Committee note that a report will be presented to Housing Committee updating on the performance of the contract, including its contribution towards our Carbon Neutral ambition, prior to the end of the initial 5 years, seeking authority to extend the contract beyond the initial term.