Agenda item

The Interim Director of Growth and Regeneration to submit a report to seek approval to award the contract for responsive and void repairs to Council owned properties.

The Interim Director of Growth and Regeneration submitted a report to seek approval to award the contract for responsive and void repairs to Council owned properties.

 

Councillor de Burle introduced the report to the Committee and gave an overview of the journey to secure a new housing repairs and voids maintenance contract with an estimated value of £9m for maintaining the 1821 Council owned homes, over the next ten years.

 

Councillor de Burle noted the complex, multifaceted nature of the process that was achieved by the working group consisting of: Council officers, the tenant’s organisation TFEC, Members and consultants Fairthorne Farrel Timms (FFT), as well as the tenderers.

 

It was noted that after receiving eleven applicants, three tenders were carried forward:

·         Wates Living Spaces (current holder)

·         Jeakins Weir

·         Axis Europe Plc.

 

The successful candidate was determined using an OJEU compliant competitive procedure and the final assessment was split 50:50 between pricing and quality.

 

Members were informed of the stages of the process:

1.    Senior teams from each supplier were invited to meet the working group for discussion and clarification of the contract requirements.

2.    The working group visited each of the tenderers’ central offices.

3.    A panel consisting of Councillor Pearson, the Chair of TFEC, the Interim Housing and Commercial Asset Manager, the Maintenance Surveyor, the Customer Services Team Leader and the IT Manager met to mark the applicants’ final submission statements.

 

Members were assured that the process had been very thorough and resulted in a clear leader; Axis Europe plc.

 

It was noted that the winner’s bid modelled against the current year’s budget of £712,890 produced an outturn figure of £631,500; an 11% reduction. Also, the new contract will reduce the current time for replacing a bathroom or kitchen from 25 days to 15 days which provides further savings.

The new contract commits to providing five additional benefits to the local community:

1.    One new full time three year apprenticeship in each year of the contract.

2.    Two further job opportunities per annum.

3.    90% of specialist work to be delivered through the local supply chain.

4.    1% of annual contract value to be given to local charities.

5.    Additional training to support tenancy sustainment and reduce unemployment.

 

Councillor de Burle thanked FFT, TFEC, officers and Members for their excellent participation in awarding the new contract and proposed the recommendations within the report.

The Chair thanked everyone who participated in the process for their work.

 

A Member gave support for the focus on quality and asked what implications there are if quality isn’t met.

 

The Interim Housing and Commercial Asset Manager noted that monthly monitoring of performance will be carried out in line with the Key Performance Indicator (KPI) handbook and that if the standard falls below a certain level of quality then the contract is at risk.

 

A Member noted that, after talking to the Corporate Director, it would be valuable to share the KPIs so that Members can see what a ‘good’ performance is.

 

The Interim Housing and Commercial Asset Manager noted that involvement from Members would be welcomed as well as involvement from TFEC after the award of the contract.

 

The Interim Director of Growth and Regeneration noted that Members will be able to review KPIs in two formats: committee agenda items and regular information submitted to the Policy Forum. Beyond that, Members could consider making additional arrangements to review performance.

 

The Chair noted that monthly updates will be helpful when approached by tenants.

 

A Member enquired what penalties there are for non-compliance and if there are financial implications that protect the Council.

 

Paul Smith from FFT confirmed that the KPIs are linked to termination. Due to legal reasons, penalties cannot be built into the contract however the contract does include damages.

 

The Chair sought a seconder.

All Members were in favour.

 

RESOLVED that

 

1)    The Place Committee notes the procurement process followed by the Council under the direction of Welland Procurement Unit and considers the outcome of the processes as set out in the report.

 

2)    On the basis of the evaluation results of the tenders received and summarised in Appendix A, the Place Committee awards the contract for responsive and void repairs to the preferred tendererm Axis Europe Plc. Commencing September 1^st 2018 and for a duration of five years with the option to extend the contract for up to five further years, subject to performance in line with Key Performance Indicators established in the tender document.