Decision Maker: Assistant Director - Housing
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
A Key Decision is required in relation to the
ex- Harrogate Borough Council (HBC) Gas Servicing contract and the
ex-Richmondshire (RiDC) Gas Servicing contract.
Approval is being sought through the Gateway and Key Decision
process to extend both contracts for five and two months
respectively to allow a new, single contract to be awarded that
will amalgamate the two contracts plus the ex-Selby District
Council, as part of the transformational work following the Local
Government Reorganisation. The extension to the ex HBC contract
will be done through a variation to the contract.
No records of previous Key Decisions in relation to the HBC and
RiDC contracts has been located, therefore a Key Decision is being
taken at this stage.
Original contact awarded by Richmondshire
District Council: To extend the current Boiler Replacement Works
including ancillary upgrades as necessary, plus heating servicing
and repairs to domestic properties (including gas, oil and solid
fuel systems and air source heat pump systems) contract for a
further two months.
The current contract was awarded by Richmondshire District Council.
It is a JCT Measured Terms contract and was executed as a
Deed.
It is recommended that a two-month extension be approved from 1st
April 2024 to 28th May 2024, rather than the 12 months that is
available within the current contract (from 1 April 2024 to 31
March 2025). The Supplier has confirmed agreement with the contract
extension despite it being for a two-month period rather than the
available 12-month period.
The Schedule of Rates are fixed annually, and fluctuation
adjustments can be made based on the CPI All Items Index published
in the ONS in the January of the relevant year. The Supplier has
requested a 6.2% increase for the period of the contract extension
and the service area has agreed this.
Original contract awarded by Harrogate Borough Council:
To extend the current servicing, testing, commissioning and
maintenance services and refurbishment, replacement for domestic
heating systems contract with Sure Maintenance Limited for
approximately five months.
This original contract was awarded by Harrogate Borough Council
through the Northern Housing Consortium Framework for a period of
24 months plus a 24-month extension. The current contract expires
on 2 January 2024. The Supplier, Sure Maintenance Ltd has confirmed
agreement with the five months contract extension.
By extending the contract for a further five months will allow the
Council to align the end date to the ex-Richmondshire contract and
the ex-Selby contract and so will enable the opportunity for a new
single contract to be procured, to commence from the end of May
2024.
Procurement resource has already been allocated to the
project
The Schedule of Rates are fixed annually, and fluctuation
adjustments can be made based on the CPI All Items Index published
in the ONS in the January of the relevant year. The Supplier has
requested a 6.2% increase for the period of the contract extension
and the service area has agreed this.
ex Richmondshire District Council: The reason
a two-month extension is being recommended for this contract is to
align the end date with the Gas Servicing, Repairs and Central
Heating Installation Works contract held by Selby District Council
which expires on 28 May 2024. This will allow a single contract to
be procured.
ex Harrogate Borough Council: The reason a contract variation is
being recommended is due to the short timescale available to carry
out a re-procurement but in addition, it has been identified that
similar contract held by Selby District Council expires on 28 May
2024 and is being re-procured. Aligning the end date of this
contract will allow a single procurement to be carried out to award
a single contract to cover the NYC geographical area.
Both HBC and RiDC contracts are with the same supplier – Sure
Maintenance Ltd.
ex Richmondshire District Council: There is a
risk of the Supplier not agreeing to the shorter extension,
however, they have confirmed in writing that they agree to the
shorter timeframe.
Any gap in service would leave the Authority at risk of being
unable to meet its statutory duties and obligations around social
housing.
If the two-month extension isn’t agreed, the full contract
extension will need to be applied to 31 March 2025, meaning the
aligning of the contracts will be delayed.
ex Harrogate Borough Council: If the variation isn’t agreed,
a new procurement will need to be completed, with contract awarded
by mid-November to allow a short period for mobilisation of the new
contract, which will include the Christmas holiday period.
Resources will be required from multiple teams, including the
service area, Legal and Procurement and Contract Management, to
continue the contract management of this service at the same time
as contract managing the contract that will commence at the end of
May / beginning of June 2024.
Without a contract, there is a risk that the Authority will be
unable to meet its statutory duties and obligations around social
housing.
Publication date: 06/12/2023
Date of decision: 06/12/2023
Effective from: 14/12/2023
Accompanying Documents: