Decision details

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.