Decision details

To seek approval to:
i. procure a new fuel and fuel tank supplier for Scarborough Harbour following the surrender of the lease by the existing supplier and
ii. delegate authority to the Corporate Director - Environment to enter into a new lease/supply agreement for up to a 15- year period. Initial Term (10 years) Option to extend (5 years).

To enter a call-off contract for a period of two years with an option to extend for a further two years is approved.

Whilst not a statutory function, the supply of fuel to harbour users is an essential service for to good operation and management of the harbour.

This decision enables the fastest route to the reinstatement of fuel supplies to Scarborough harbour

The Council considered the option of replicating the current lease arrangement, but market engagement through the Preliminary Market Engagement Notice indicated this route was unviable, and if pursued the Council would be unlikely to receive any tenders.

An open competition or mini competition within a framework was considered but due to the urgency of the need to secure a new fuel supplier direct award was the most viable option. The supplier margin that has been quoted is competitive, in addition when comparing this to the supplier margins applied in the Council’s other Liquid Fuel Contracts this is comparable, and lower in most cases.

The Council also considered other frameworks for the direct award however, these frameworks did not allow direct award and/or did not supply the type of fuel required.