Decision details

Procurement Strategy Approval

RESOLVED:

1.  That the procurement strategy outlined in the report, and as detailed in paragraphs 2 – 5 below be approved.

2.  That it be approved to bring the CFM (corporate facilities management) services outlined in paragraph 36 of the report in-house on expiry of the current facilities management (FM) contracts in June 2020, with an estimated annual cost of £1m.

3.  That a further competition be undertaken via the Crown Commercial Service (CCS) framework for Hard FM Services (hard FM), which includes small works and capital investment projects, Ref: RM3830 Facilities Management Marketplace (Lot 1b – Total Contract Value £7m - £50m) at an estimated annual cost of £3.6m for hard FM and up to £3.5m for the small works and capital investment projects, for a period of five years with the potential to extend up to a further two years (in increments at the council’s discretion), making an estimated maximum total contract value of £49.8m, with an estimated start date of June 2020.

4.  That the award of small works and capital investment projects be directed in line with the council’s contract standing orders, to exempt CFM from obtaining five tenders from the works approved list in respect of project related works procured through this contract in accordance with the methodology specified below;

·  all project related works up to £500k will be procured through this contract where the contractor is adequately performing their main contract work, subject to CFM undertaking a pre-tender estimate and the contractor demonstrating value for money against this benchmark

·  for project related works up to £500k, where the contractor is not a specialist in the area, is not adequately performing the main contract or cannot prove value for money, then tendered from the approved list an open market exercise.

5.  That a separate further competition be undertaken, to appoint a second supplier for Soft FM Services (soft FM) Ref: RM3830 Facilities Management Marketplace (Lot 1b – Total Contract Value £7m - £50m) at an estimated annual cost of £5.2m for a period of five years with the potential to extend up to a further two years (in increments at the council’s discretion), making an estimated total contract value of £36.2m, with an estimated start date of June 2020.

6.  That it be noted that there is no additional cost to use this framework agreement.