Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
Cabinet is requested to:
1. In line with internal governance process, Cabinet approval is sought for additional budget for the domestic gas heating contract term, to commence award of contract to the winning bidder.
2. Award delegated authority to the Divisional Director of Housing in consultation with the Portfolio Holders for Housing and Finance & Resources to award the commercial gas heating contract following a mini-competition tender exercise.
3. Authorise the award of the domestic heating gas contract to the winning tenderer by granting the increase in budget as necessary for a 4-year contract from 03/01/2022 to 02/01/2026 with an option to extend for up to a further two years (4+2). The total value of this contract(s) for the initial four-year term will be £4,065,872.36. The value of the two-year contract extension if used will be £2,032,936.18.
4. Approve the award of the commercial contract to the winning tenderer following a competitive mini-tender competition, for a 4-year contract from 6/12/2021 to 5/12/2025. The total value of this contract(s) for the initial four-year term will be £587,427.80. The value of the two-year contract extension if used will be £293,713.90.
5. Delegate authority to the Corporate Director of Community, following consultation with the Portfolio Holders for Housing and Finance & Resources and Director of Finance to award a new contract.
Having noted the confidential appendices to the report, Cabinet
(1) the award of the domestic gas heating contract to Liberty Group for a period of 4 years commencing 28/02/2022 to the 01/03/2026, with an option to extend for a further two years, be approved and the Corporate Director of Community, following consultation with Portfolio Holders for Housing and Finance and Resources, be authorised to carry out any contractual matters with respect to the above;
(2) the award of the commercial gas heating systems contract to Thermoserve for a period of 4 years commencing 14/02/2022 to the 15/02/2026, with an option to extend for a further two years, be approved and the Corporate Director of Community, following consultation with Portfolio Holders for Housing and Finance and Resources, be authorised to carry out any contractual matters with respect to the above;
(3) approval for the budget and authority to commence procurement of commercial gas heating system which was being sought retrospectively as set out in resolution 2 above, be noted;
(4) for 2021/22 the part year impact of the contracts, £10,367 and one-off costs of internal project support up to a maximum of £35,000 be funded from the Housing Revenue Account (HRA) repairs reserve; and
(5) from 2022/23 the full year cost, £0.878m, of the above contracts be funded from the following sources:
· existing revenue budgets within the Housing Revenue Account -£0.600m,
· Community Centre and General fund budgets -£0.025m
· the boiler installation, capitalised repairs and unallocated budget within the housing capital programme (min £0.178m to max £0.300m budget permitting),
· revenue savings of £0.075m from a savings to the contract by converting to new technologies over the term of the contract.
Reasons: The approval was being sought so that the Council would be able to continue to provide essential services to meet its statutory duties as a social housing landlord across Council homes within the Borough, whilst complying with Health and Safety Gas Regulations.
Alternative Options Considered and Rejected: As set out in the report.
Conflict of Interest relating to the matter declared by Cabinet Member/Dispensation Granted: None.
Report author: Divisional Director, Housing Services
Publication date: 19/11/2021
Date of decision: 18/11/2021
Decided at meeting: 18/11/2021 - Cabinet
Effective from: 27/11/2021