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CABINET
Low Value Construction & Highways Services
Framework
Portfolio Holders: Councillor J McMahon and Councillor D Hibbert
Officer Contact: Report of: Elaine McLean, Executive Director for
Economy and Skills
Report Authors: Peter Wood, Head of Strategic Facilities Management.
Darren Judge, Commercial Manager, Procurement.
Ext: 4028
30th March 2015
Reason for Decision
This report requests approval to establish a Low Value Construction Framework,
aimed at bringing together under one contract, a number of existing Oldham Council
measured term building and highway maintenance contracts, (that are managed by
Unity Partnership as the Council’s Strategic Partner), which are due to expire (as
detailed in Appendix A), to facilitate the future delivery of maintenance works.
Executive Summary
A review of the delivery of repair and maintenance contracts currently managed by
Unity Partnership and the Council, identified initially through the elapsed Procurement
& Commissioning Board and finalised through the Diamond Partnership Board (DPB),
a potential to deliver a significant efficiency saving through retendering the current
measured term contracts, to be replaced with a new overarching framework contract.
The proposal is to establish a Low Value Construction Framework, which includes a
variety of lots (as detailed in Section 2.6) to cover the majority of the Council’s
maintenance work requirements. The Council needs to ensure that all procurement
activity is fully compliant with Oldham Council Contract Procedure Rules and EU
Regulations. The Framework Contract is to be established initially for a two year
period, with the option to extend by an additional two years (in one year increments),
if considered appropriate to do so at that time.
Recommendations
That Cabinet approval is given to establish this Low Value Construction Framework
(LVCF) Oldham Council Contract.
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Low Value Construction Framework
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30th March 2015
Cabinet
Title: Low Value Construction & Highways Services Framework
1.
Background
1.1
The existing Oldham Council Term Contracts are coming to their expiry date
(31st March 2015). The Council and Unity Partnership need to ensure all
procurement activity is fully compliant with Oldham Council Contract
Procedure Rules and EU Regulations.
1.2
On review of an options appraisal, the outcome provided an opportunity for
the Council and Unity Partnership to review current ways of working and to
formulate in partnership, a strategy for procuring construction and highways
maintenance works. This was done by stream lining the process and
delivering efficiencies in line with the Council’s co-operative and objectives to
make Oldham a productive place to invest where business and enterprise
thrive.
1.3
The recommendation is the establishment of an over-arching master
framework agreement, divided into value banded work categories (as detailed
below), as a route to market to cover all maintenance, servicing, statutory,
repairs and minor / moderate works that will be required to the Council’s
building stock; whether a reactive or planned requirement. It is proposed that
the framework contract period, will initially be for a two year fixed period, with
the option to extend by an additional two years (one year increments), if
considered appropriate to do so at that time.
1.4
The resultant contract termed, the Low Value Construction & Highways
Services Framework is divided into the following Lots:
Lot Nr
Work Category
Work Type
Value Band 1 - £0 to £5,000
Lot 1
Roofing Works – Flat / Pitched.
Lot 2
Drainage Works.
Responsive & Minor
Repairs.
(merged to Lot 3).
Value Band 2 - £0 to £50,000
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Lot 3
Building Repairs / Maintenance.
Lot 4
Mechanical Works
Lot 5
Electrical Works
Lot 6
(Specialist Works)
6a
Asbestos Remediation Works
6b
Lift Servicing
Low Value Construction Framework
Responsive Service &
Minor Works.
Reactive, Servicing &
Minor Works.
Reactive, Servicing &
Minor Works.
Reactive & Planned
Service.
Reactive & Responsive
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6c
Legionella Risk Assessments, Tank &
Scald Protection
6d
Fire Alarms & Extinguishers Servicing
6e
Security & CCTV
Repairs.
Risk Assessments &
Remedial Works.
Responsive Servicing &
Planned Repairs.
Responsive Servicing &
Planned Repairs.
Lot 7
Highways Minor Works
Planned Service.
Lot 8
Highways Lining / Road Marking
Planned Service.
Value Band 3 - £50,000 to £500,000
Lot 9
Building Repairs / Maintenance / New
Build / Extensions / Refurbishment
Planned Service
Lot 10
Mechanical Works
Planned Service
Lot 11
Electrical Works
Planned Service
Value Band 4 - £5,000 to £500,000
Lot 12
Lot 13
Lot 14
Lot 15
Roofing Works – Flat / Pitched
Highways Carriageway Surfacing
Highways Surface Dressing
Bridges & Structures and Drainage
Planned Service
Planned Service
Planned Service
Planned Service
2.
Current Position
2.1
Due to the value of the LVCF contract, it has been necessary to procure the
contract through the OJEU tender process, advertised via the Council’s
Procurement Portal; The Chest. A Pre Qualification Questionnaire (PQQ) for
this contract was openly advertised, with a due diligence process that
consisted of interested suppliers having to meet predetermined selection
criteria, linked to a Constructionline assessment. Secondly, bidders were
required to demonstrate competency by completing Technical assessments
and Professional Capacity questions, which made reference to i.e. experience
/ capability, staffing, qualifications, delivery, performance, quality,
environmental, social and economic criteria requirements.
2.2
As a co-operative council, we wanted to ensure a fair and open process that
delivered high performance. The outcome of the PQQ process was aimed at
identifying the top highest scoring bidders for each lot, which would be invited
to progress to the Invitation to Tender (ITT) stage. The PQQ evaluation was
undertaken by Oldham Council’s Procurement Team and with officers from
Unity Partnership. The Council received One hundred and eleven (111) bidder
responses.
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2.3
The ITT stage was undertaken and scored as follows:
An assessment on price was undertaken, relevant to each Lot, which was
scored via various methods i.e. by using a mixture of schedule of rates, bills
of quantities, sample schemes, assessment of labour rates and charges, with
material and overhead / profit percentage mark ups.
2.4
A technical assessment was undertaken as aforementioned, which involved
scoring a set of predetermined questions focused on framework management,
the approach to partnership working, continuous improvement, operational
management, sustainability, project delivery and our co-operative values,
initiatives and behaviours. Lot specific questions also covered technical
related questions to the relevant discipline.
2.5
The outcome of the ITT evaluation process identified the top highest scoring
four to six bidders that would be considered, for a place on the relevant
Framework Lot. This would be further reinforced by Lots 1 to 8 having a
‘ranked’ system whereby the highest scoring supplier would receive directly
awarded works to a certain value (in the main up to £5,000). This would be a
ranked system, so if the top ranking supplier did not perform as required, the
offer would drop down to the next ranked supplier, and so on. Any work
procured outside the awarded framework, will be administered via a
competitive mini competition (quote process) between all relevant suppliers.
2.6
The outcome of the ITT is as follows. The suppliers / bidders are identified in
ranking order from Lots 1 to Lot 8, with Lots 9 to 15 in random (no particular)
order:
Lot Nr
Successful Framework Suppliers Comments
(Ranking)
Lot 1
1.
2.
3.
4.
Fulwood
Roofing
Services
st
(Northern) Limited (1 ).
New Charter Building Company
(2nd).
Prime Roofing (Rochdale) Limited
(3rd).
WRPS Limited (4th).
Lot 2
Merged to Lot 3.
Lot 3
1.
2.
3.
4.
5.
6.
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E Smith and Son (1st).
Jackson, Jackson & Sons Limited
(2nd).
New Charter Building Company
(3rd).
Kaberry (4th).
P&L Construction Limited (5th).
Connor Limited (6th).
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Lot 4
1.
2.
3.
4.
Lot 5
1.
2.
3.
4.
Lot 6a
1.
4.
5.
Northern Insulation Contractors
(1st)
Reddish Vale Insulation Limited
(2nd)
Aspect Contracts Limited (3rd)
Woods Building Services Limited
(4th)
Concept Elevators (1st)
E A Foulds Limited (2nd)
Total Lift Care Limited (3rd)
Hertel (UK) Limited (1st)
Graham Facilities Management
(2nd)
Maxigiene Limited (3rd)
Hydro-X Water Treatment Limited
(4th)
Guardian Technical Maintenance
Limited (1st)
Amalgamated Limited (2nd)
GTM Electrical Services Limited
(3rd)
Spie Scotshield Limited (4th)
Spie Scotshield Limited (1st)
Mono Alarm Installations Limited
(2nd)
Quadrant
Security
Solutions
Limited (3rd)
Stanley Security Solutions Limited
(4th)
J Hopkins (Contractors) Limited
(1st)
J Cooney Limited (2nd)
Eric Wright Civil Engineering
Limited (3rd)
Westshield Limited (4th)
Kenny Bros (CE) Limited (5th)
1.
NSL Limited
2.
3.
4.
Lot 6b
Lot 6c
1.
2.
3.
1.
2.
3.
4.
Lot 6d
1.
2.
3.
Lot 6e
4.
1.
2.
3.
4.
Lot 7
1.
2.
3.
Lot 8
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Ellesmere Engineering Co Limited
(1st)
MWA Eco Systems Limited (2nd)
Tudor Northwest Limited (3rd)
New Charter Building Company
(4th)
Corlett Electrical Engineering Co
Limited (1st)
New Charter Building Company
(2nd)
Carey Electrical Engineering (3rd)
GTM Electrical Limited (4th)
Low Value Construction Framework
On agreement with the
suppliers,
the
Fire
Extinguisher
servicing
element of this contract is to
be withdrawn and tendered
as a separate Lot
This
Lot
received
an
insufficient response, and as
such this Lot will be retendered to achieve a
minimum number of suppliers
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Lot 9
Lot 10
Lot 11
Lot 12
1.
2.
3.
4.
5.
6.
7.
1.
2.
3.
4.
1.
2.
3.
4.
1.
2.
Lot 14
3.
4.
1.
2.
3.
4.
5.
1.
Lot 15
1.
Lot 13
Manley Construction
E Smith and Son
Harry Fairclough Construction
J Greenwood (Builders) Limited
Jackson, Jackson & Sons Limited
Rosslee Construction Limited
City Build Manchester Limited
WH Good Limited
Tudor Northwest Limited
Jackson, Jackson & Sons Limited
Lewis Facilities
Carey Electrical Engineering
Corlett Electrical Engineering Co
Limited
Link Contracting Services Limited
GTM Electrical Limited
Fulwood
Roofing
Services
(Northern) Limited
M&J Group (Construction &
Roofing) Limited
WRPS Limited
J Greenwood (Builders) Limited
J Hopkins (Contractors) Limited
Lafarge Tarmac Trading Limited
Hanson Contracting
J Cooney Limited
Kenny Bros (CE) Limited
Kiely Bros Limited
Eric Wright
Limited
Civil
to service this work stream.
One supplier to be removed
from this Lot before Cabinet
meeting.
This
Lot
received
an
insufficient response, and as
such this Lot will be retendered to achieve a
minimum number of suppliers
to service this work stream
Engineering This
Lot
received
an
insufficient response, and as
such this Lot will be retendered to achieve a
minimum number of suppliers
to service this work stream
3.
Options/Alternatives
3.1
There are two options available:
3.2
Option 1 – To approve the LVCF and award the contract to the panels of Lot
suppliers aforementioned.
This will ensure that this delivery model
commences on 1st May 2015, firstly to comply with Oldham Council Contract
Procedure Rules and EU Regulations, and secondly, to deliver best value for
the council and for local residents, alongside efficiencies savings, in terms of
service delivery.
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3.3
Option 2 – Not to award the contract, which is not considered viable, as the
consequence of this will leave the Council in breach of Oldham Council
Contract Procedure Rules, unless each scheme is individually quoted or
tendered for, which is considered an inefficient procurement method and
would not provide best value.
4.
Preferred Option
4.1
Option 1 – to award the Low Value Construction & Highways Services
Framework to the proposed panel of suppliers, who have demonstrated
through a robust OJEU compliant tender procedure to have offered the most
economically advantageous bids in relation to cost and service delivery.
5.
Consultation
5.1
The tender has progressed in consultation with Corporate Procurement,
Corporate Property Facilities Management and Unity Partnership.
6.
Financial Implications
6.1
Property Contracts
The contract will facilitate planned and reactive property works which will be
covered mainly through agreed capital and revenue streams within the
Economic Development service area which will form part of the Economy and
Skills Directorate.
6.2
The revenue property elements will mainly be funded through Repairs and
Maintenance and Maintenance Contracts within the corporate landlord
function for which a budget of £1,024,470 exists in financial year 2015/16.
Costs will need to be monitored and works prioritised by the service manager
to maintain a balanced budget within year.
(K.Williams)
6.3
Highways Contract
The contract will facilitate planned transport works which will be covered
through agreed capital and revenue streams within the Environmental
Services area of the Cooperatives and Neighbourhoods Directorate.
Expenditure on the contracts will be monitored to ensure that expenditure is in
line with the agreed revenue budgets and agreed capital programme
allocation. (James Postle)
7.
Legal Services Comments
7.1
This is a Framework for minor works which has been procured through a
competitive procurement process in compliance with OJEU procedures and UK
Public Contracts Regulations 2006.
7.2
Three of the lots received insufficient responses and therefore these can either
be re-tendered, as long as the specifications, evaluation criteria and contract
terms remain as previously advertised, or direct awards can be made to those
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bidders who were adjudged as compliant under the provisions of Regulation 14
of the 2006 Regulations provided that the proposed contract terms offered to
those bidders are substantially the same as offered to bidders in lots that have
achieved a sufficient response.
(Rebecca Coldicott)
8.
Co-operative Agenda
8.1
The technical assessment included, amongst other criteria, evaluating
suppliers based on our co-operative values and behaviour, as well as their
approach to partnership working. This process will help ensure that we
procure suppliers who are the best choice for Oldham as well as those who
support our co-operative values. (Dominic Coleman).
9.
Human Resources Comments
9.1
N/A
10.
Risk Assessments
10.1
N/A (Mark Stenson).
11.
IT Implications
11.1
None.
12.
Property Implications
12.1
The Council realises that if buildings are not maintained, they will cease to
fulfil their intended functions. Implementing the LVCF is recognised as a cost
effective measure of dealing with outstanding backlog maintenance issues,
which if deferred or left will ultimately result in future increased costs, possible
consequential damage and liabilities to the property estate.
The implementation of the LVCF will create an efficient model for dealing with
building and highway maintenance issues and also reduces the Council’s
risks in terms of loss of service and business continuity. (Peter Wood).
13.
Procurement Implications
13.1
The Procurement has been carried out in line with EU Regulations and
Oldham Council’s Contract Procedure Rules.
13.2
All Framework suppliers are registered with Constructionline in accordance
with the Council’s requirements. Throughout the term of this Framework
agreement, all the successful suppliers will continue to be monitored and
forward vetted by Constructionline reducing risk.
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13.3
The financial status of the Framework suppliers have been assessed by the
Council (Dun & Bradstreet report), all outcomes of increased risk will be
addressed accordingly.
13.4
Social value, the ‘Get Oldham Working’ initiative and Oldham’s ‘Fair
Employment Charter’ formed part of the tender submission. The successful
suppliers will be expected to deliver locally and will be monitored to ensure
commitments are carried through accordingly.
13.5
The Framework as a whole will be contract managed through the Council
Strategic Relationship Management Team to improve contract performance
and report on the deliverables. (Darren Judge)
14.
Environmental and Health & Safety Implications
14.1
Oldham Council’s Health and Safety Team have no objections as we are
assured that all contractors will have signed up to construction line. Specific
risk assessments and other safety documentation will still need to be checked
for individual jobs/projects during the planning/construction phases of any
works (Laura Smith).
14.2
Environment: Environmental management formed part of the Pre-Qualification
Questionnaire scoring for this framework, and a basket of environmental
performance measures will be applied to contractors undertaking some of the
larger contracts with greater environmental risk. [Andrew Hunt]
15.
Equality, community cohesion and crime implications
15.1
None.
16.
Equality Impact Assessment Completed?
16.1
No.
17.
Key Decision
17.1
Yes.
18.
Key Decision Reference
18.1
CFHR-29-14.
19.
Background Papers
19.1
The following is the previously approved Waiver Report that provides a
background to this report, based in accordance with the requirements of
Section 100(1) of the Local Government Act 1972. It does not include
documents which would disclose exempt or confidential information as
defined by the Act:
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File Ref: CFHR-29-14.
Name of File: Contract Decision in respect to extending existing Measured
Term Contracts for Repairs and Maintenance
Records held in Property Services Department, Henshaw House, Cheapside,
Oldham. OL1 1NY
Officer Name: Peter Wood
Contact No: 0161 770 4028.
20.
Appendices
20.1
Appendix A – Current or expired contracts.
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Appendix A – Current or Expired Term Contracts
Service Area
Servicing and
Responsive
Repairs to
Mechanical Plant
Servicing and
Responsive
Repairs of
Emergency
Lighting, PAT
testing, Fixed
Wiring testing
Servicing &
Responsive
Repairs of Fire
Alarms
Servicing and
Responsive
Repairs of Lifts and
Hoists
Servicing &
Responsive
Repairs of Sonitrol
Intruder Alarms
Responsive
Building Repairs
and Maintenance
Provision of Flat
and Pitched
Roofing Works
Asbestos
Removal/Remediati
on
Provision of Water
Risk Assessments
Servicing and
Responsive
Repairs to Air
Conditioning
&Ventilation Plant
Servicing and
Responsive
Repairs to Fire
Extinguishers
Contractor
Start Date
End Date
st
31 March
2012
st
31 March
2012
st
31 March
2012
st
31 March
2014
st
31 March
2014
st
31 March
2014
Tudor
Northwest
1 April
2009
Corlett
Electrical
Engineering
1 April
2009
Guardian
Technical
Maintenance
1 April
2009
Total Lift Care
1 January
2010
Stanley
Security
1 August
2009
FCHO
1 April
2009
31 March
2012
st
IKO Ltd
1 August
2010
31 March
2013
Northern
Insulation
Contractors
1
April 2009
Maxigiene
1 Sept
2009
Rourke
Environmental
Services
1 April
2009
Fire Queen
1 April
2009
st
st
st
st
Extension
Date
th
(30 June
2012)
th
30
July 2011
st
st
st
th
(30 June
2014)
th
30
July 2013
st
31 March
2014
st
31 March
2015
st
31 March
2014
31 March
2012
st
(30 June
2012)
th
st
31 March
2012
st
31 March
2012
st
st
st
th
(30 June
2014)
st
31 March
2014
st
st
31 March
2014
st
Please note:
A delegated Waiver report was approved in April 2014, to extend all of
aforementioned contracts to the 31st March 2015, to coincide with the commencement
of this Low Value Construction Framework Contract.
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