Contract Award for Pest Control Services - Domestic & Corporate Premises - NLC-CPT-22-035
North Lanarkshire Council · 8 February 2023
Back to Environment and Climate Change Committee — 8 February 2023 and its agenda
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North Lanarkshire Council Report Environment and Climate Change Committee Does this report require to be approved? ☒ Yes ☐ No Ref: AM/MF Date: 08 February 2023 Contract Award for Pest Control Services - Domestic & Corporate Premises - NLC-CPT-22-035 From Andrew McPherson, Chief Officer of Community Operations E-mail Mcphersona@northlan.gov.uk Telephone: 07939 280467 Executive Summary Environment and Climate Change Committee is asked to approve the award of a contract for Pest Control Services – Domestic & Corporate Premises NLC-CPT-22-035 (the ‘Contract’) to GP Environmental Ltd. The Contract is for an initial period of 36 months anticipated to commence on 3rd April 2023. The Council reserves the right to extend the Contract for additional periods up to a maximum of a further 24 months. The maximum value of the Contract shall not exceed Two Million Pounds Sterling (£2,000,000) exclusive of VAT. Recommendations It is recommended that the Environment and Climate Change Committee approves the award of the Contract to GP Environmental Ltd at the maximum value of Two Million Pounds Sterling (£2,000,000) exclusive of VAT. The Plan for North Lanarkshire Priority Improve the health and wellbeing of our communities Ambition Statement (14) Ensure the highest standards of public protection
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1. Background 1.1 The requirements within the Contract are currently under contract with GP Environmental Ltd. and due to expire on 2nd April 2023 with the Contract detailed within this report due to succeed this. 1.2 The Contract will provide the treatment to completion of the following pests from domestic and corporate premises within North Lanarkshire: rats, mice, wasps, bees, bed bugs, fleas, ants, squirrels, cockroaches, other insects, bird removal and preventative bird works and planned proactive preventative visits for corporate premises. 1.3 The contractor will conduct pest control activity throughout North Lanarkshire to support the internal resources of the Council in providing this service. A clause is contained in the contract which highlights there is no guaranteed level of spend or work demand. The unknown variables in pest control activity as well as internal restructures and corporate decisions can impact the spend driven through the contract duration. 1.4 High risk pest control jobs have to be responded to within 2 working days and low risk pest control jobs have to be responded within to 5 working days. 1.5 The contract was procured via “Open Procedure” and the Public Contracts (Scotland) Regulations 2015 applied. 2. Report 2.1 A user intelligence group (the ‘UIG’) of technical and procurement representatives was formed to review technical specifications, discuss trading processes, market conditions and trends, ways to maximise community benefits and sustainability and to agree the procurement strategy that would deliver maximum benefit for the Council via the Contract. 2.2 The initial estimated value of the Contract dictated that the procurement procedure be undertaken in accordance with the Public Contracts (Scotland) Regulations 2015. An advert for the contract opportunity was published on the Public Contracts Scotland and the UK Find a Tender (FTS) websites. 2.3 The procurement procedure was undertaken as an “Open Procedure” Based on the evaluation criteria and scoring methodology set out in the invitation to tender package within the procurement procedure; an evaluation of tender responses was completed by members identified by the UIG. Selection stage responses were assessed first and compliant tenderers that declared that they met the published minimum selection stage criteria progressed to the award stage evaluation. Following identification of the recommended tenderer, their selection stage responses were assessed in more detail to ensure they satisfied the minimum selection stage criteria applied. 2.4 The Contract award recommendation is made on the basis of the tenderer who submitted the most economically advantageous tender. The tender submitted by GP Environmental Ltd has been evaluated as representing the most economically advantageous tender for this Contract. 2.5 Appendix 1 confirms the scoring achieved by each tenderer, further details of the procurement procedure is provided in Appendix 2 and the SME status and location of all tenderers is located within Appendix 3. 2.6 Due to the varying nature of demand for pest control activities a maximum value has been applied to the contract. The maximum spend for these services during the lifetime of the
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Contract is Two Million Pounds Sterling (£2,000,000) exclusive of VAT and including any option to extend the Contract. 2.7 The costs associated with contract delivery will be contained within the Revenue budget for Protective Services. Price Savings / Increases 2.8 The pre-tender whole life estimate for the Contract was set at a maximum value of £2,000,000. 2.9 Higher inflation, higher fuel costs and increased rat infestations may lead to higher costs for this service, but pest numbers are seasonal, and numbers could drop if charging is re- introduced for rats and mice, which are currently free until 31/03/2023 with any extension considered as part of the Council’s budget setting process. Price Stability 2.10 The contract is a fixed price for the duration of the contract. Community Benefits 2.11 The Council is committed to maximising the delivery of community benefits. The procurement included a community benefit requirement, this approach is designed to deliver local community benefits where possible. 2.12 Within their tender, GP Environmental Ltd. committed to deliver the following community benefits within the Contract: Community Benefit Type Quantity Committed New Job for an Individual from a Priority Group (Part Time) 1 Educational Sponsorship 1 Educational Support and Skills Transfer 1 Educational Visits 1 Educational Workplace Visit 1 Business Event / Briefing to promote supply chain opportunities 1 Financial Support for a Community Project / Organisation 1 Non – Financial Support for a Community Project / Organisation 1 2.13 The community benefits delivered as part of the Contract includes the creation of one part- time job for an individual from a priority group. Fair Work First 2.14 Within their tender submission, GP Environmental Ltd. advised that they commit to the following areas of the Scottish Governments “Fair Work First” initiative: • Living Wage Accredited Employer • Fair and Equal pay; all staff are paid in excess of the National Living Wage • Staff Employment Contracts have guaranteed hours of employment • Do not support or operate Zero Hour contracts • Continuous learning and development through a Training Programme
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• Provide fair access to employment, training, and development • Oppose the use of fire & rehire practices • Support progressive workforce engagement by involving staff in monthly staff meetings to raise any concerns and allow staff to have their voice heard • Flexible working hours including shared parental leave, maternity, paternity, and time off for dependents. • Support progressive workforce engagement by involving staff in ideas for improvement. • Recognition of Trade unions • Encourage the use of the Company Grievance Procedure and Public Interest Disclosure Policy • Evidence of our commitment to Fair Working Practices for employees would be our stable workforce with low staff turnover • In the process of being accredited with “Investors in People” Contract Management 2.15 Officers from Protective Services will be responsible for managing the Contract which will be undertaken in accordance with the Council’s agreed approach to contract and supplier management. 3. Measures of success 3.1 The Contract will deliver the following outcomes; • Improve the local environment for residents • Eradicate public health significant pests within communities and residential properties • High risk pest control jobs to be responded to within 2 working days 90% of the time • Low risk pest control jobs to be responded to within 5 working days 90% of the time • Raise awareness with internal colleagues and services to collaboratively reduce infestations by improving housekeeping • Raise awareness and engage with local community groups and third-party organisations on measures to reduce infestations • Streamlining pest control contract to include new NL Leisure premises and realise benefits as a result (economies of scale and simplified ordering process). 4. Supporting documents Appendix 1 Summary of Tender Evaluation Process Appendix 2 Summary of Procurement Process Appendix 3 SME Status and Location of All Tenderers Andrew McPherson Chief Officer (Community Operations)
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? N/A If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer-scotland- duty-impact-assessments Yes ☐ No ☒ 5.2 Financial Impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Finance? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The contract is covering additional pest control work for the Council including leisure and cultural premises which previously were under different contracts. Costs for the contract will be covered by the revenue budget for Protective Services with any work undertaken for other Council services appropriately recharged. 5.3 HR Policy Impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ 5.4 Legal Impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic? N/A
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5.5 Data Protection Impact Does the report / project / practice contain or involve the processing of personal data? Yes ☒ No ☐ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☒ 5.6 Technology / Digital Impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ 5.7 Environmental / Carbon Impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ 5.8 Communications Impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ 5.9 Risk Impact Is there a risk impact? Yes ☐ No ☒ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex-Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒
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Appendix 1 – Summary of Tender Evaluation Process Final Rank Tenderer Name Total Tender Score (%) Recommended for Contract Award (Y / N) 1 GP Environmental Ltd 97.40% Y 2 Contego Environmental Services Ltd 56.52% N 3 Horizon Environmental Services 54.71% N 4 Mitar Environmental Services Ltd 47.10% N 5 Graham Environmental Serviced Ltd 35.10% N
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Appendix 2 – Summary of Procurement Process Response CPT Contract Reference Allocated: NLC-CPT-22-035 Tender Platform Utilised: PCS-Tender (PCST) Procurement Procedure Utilised: Open Procedure Governing Legislation / Regulations: Public Contracts (Scotland) Regulations 2015 Date Contract Strategy Approved: 03 November 2022 Date Contract Notice Published: 04 November 2022 Total Expressions of Interest Received: 10 Tender Return Deadline: 07 November 2022 Number of Tenders Received: 5 Tenders Received from SME’s: 4 Tenders Received from NLC Based Tenderers: 0 Number of Non−compliant Tenders: 0 Number of Compliant Tenders: 5 Number of Recommended Tenderers: 1 Basis of Contract Award: Quality: 30 Price: 70 Evaluation Team: Enterprise & Communities - Protective Services Anticipated Contract Start Date: 03 April 2023 Total Contract Period (Months): 36 + 12 + 12 Maximum Total Contract Value: £2,000,000
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Appendix 3 – SME Status and location of all Tenderers Name of Tenderer Size of Tendering Organisation (Micro, Small, Medium or Large) Location (Local Authority / Council Area) GP Environmental Ltd SME Glasgow Contego Environmental Services Ltd SME Durham Horizon Environmental Services T/A Pestokill Large Warrington Mitar Environmental Services Ltd SME West Lothian Graham Environmental Serviced Ltd SME Fife