Decision details

Approval of procurement strategy for repairs and maintenance provision of individual heating and water

RESOLVED:

1.  That the procurement strategy outlined in the report to undertake a tender procedure for the heating and water repairs, maintenance, refurbishment and replacement work contracts split into two lots with a total combined estimated maximum value of £187.92m be approved as follows:

·  Lot 1 – Individual Heating and Water Repairs and Maintenance:

o  Contract A - Bermondsey, Rotherhithe, Walworth and Borough and Bankside at an estimated annual cost of £4.58m

o  Contract B – Camberwell, Dulwich, Peckham and Nunhead at an estimated annual cost of £4.78m.

each for a period of five years from April 2025 (at an estimated combined total cost £46.80m) with the option to extend up to a further three years (in increments at the council’s sole discretion subject to performance) making an estimated total contract value for both contracts of £74.88m.

·  Lot 2 - District Heating Maintenance, Refurbishment and Replacement:

o  Contract C - Bermondsey, Rotherhithe, Walworth and Borough and Bankside at an estimated annual cost of £7.52m

o  Contract D – Camberwell, Dulwich, Peckham and Nunhead at an estimated annual cost of £6.61m.

each for a period of five years from 1 April 2025 (at an estimated combined total cost £70.65m) with the option to extend up to a further three years (in increments at the council’s sole discretion subject to performance) making an estimated total contract value for both contracts of £113.04m.

2.  That it be noted that the procurement strategy in this report will result in bidders being required to bid as backup to each other in their own lot on their tendered rates to ensure an efficient service delivery.

3.  That it be noted that no one contractor can win more than one contract in each lot, and that bidders will be required to choose (at the pre-selection stage) which of the two lots they wish to bid for, which ensures that there is sufficient contractor capacity to deliver works.

4.  That it be noted that the cabinet member for homes, communities and finance approved the publication of a Prior Information Notice (PIN) to inform the market of the council’s intention to procure.

5.  That authority be delegated to the strategic director of housing to approve the gateway (GW) 3 report in for an extension to the existing contracts to align with the award of the new contracts when the procurement tender exercise is completed.

6.  That authority be delegated to the strategic director of housing, in consultation with the cabinet member for council homes, to approve the GW2 report for the four contracts A, B, C and D noted in recommendation 1 above for the reasons detailed in paragraph 48 of the report.