Contract Award for the Supply and Distribution of Milk 2022-2026
North Lanarkshire Council · 14 September 2022
Back to Finance and Resources Committee — 14 September 2022 and its agenda
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref: JB/LB Date 14/09/22 Contract Award for the Supply and Distribution of Milk 2022-2026 From James McKinstry, Head of Asset and Procurement Solutions E-mail mckinstryj@northlan.gov.uk Telephone 07939 281102 Executive Summary Executive Director Approval was provided (in accordance with General Contracts Standing Orders 21.3.2) to expedite the contract award for the Supply and Distribution of Milk (the ‘Contract’) to Muller UK and Ireland Group LLP T/A Muller Milk & Ingredients. The Contract was awarded for an initial period of 4 years with an option to extend for a period of 6 months. The contract award value is £2,431,836 exclusive of VAT. Recommendations Finance and Resources Committee are advised of: (1) the award of a Contract to Muller Milk & Ingredients for a period of 4 years with an option to extend for a period of 6 months (2) Scotland Excels Supply & Distribution of Milk (Lot 1: Ref: 05/21) was used as the procurement route. A direct award, in conformance with the framework conditions, was made to Muller Milk & Ingredients. The Plan for North Lanarkshire Priority Improve the health and wellbeing of our communities Ambition statement (15) Encourage the health and wellbeing of people through a range of social, cultural, and leisure activities
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1 Background 1.1 The National Framework for Milk was established by Scotland Excel on behalf of member local authorities and went live 1st March 2022. 1.2 The framework supports Scottish Government policies: • Increased nursery hours to 1140 and introduction of Scottish Milk (Aug 21) and Healthy Snack scheme where all nursery pupils receive a free milk. • Proposal from Scottish Government to introduce free milk to all Primary pupils within same timeframe as P6 & P7 free schools meals roll out. 1.3 In determining the Council requirements for Milk, a volume of 5% has been added to estimated usage to account for supplies for Culture and Leisure hospitality who were not included in previous years figures. 2 Report 2.1 Facility Support Services (“FSS”) collaborated with Scotland Excel to establish the latest Milk framework. Officers supported a review of technical specifications, trading processes, assessment of market conditions and trends. 2.2 The resultant framework was used by the Council to contract the Supply and Distribution of Milk. 2.3 In conformance with the framework conditions, a direct award procedure was used. 2.4 Evaluation was completed in March 2022. Executive Director approval was sought in accordance with General Contract Standing Orders 21.3.2. to expedite the contract award process. 2.5 The contract commenced 28/03/2022. 2.6 Officers from FSS will be responsible for managing the Contract which will be undertaken in accordance with the Council’s agreed approach to contract and supplier management. 2.7 The Council will liaise with Muller Milk & Ingredients to secure Community Benefits in line with the framework conditions. Fair Work First 2.8 Within the framework evaluation, Fair Work First questions were evaluated. Equalities 2.9 The original procurement procedure to establish the framework was setup to exclude any tenderer where a complaint had been upheld after investigation by the Equality and Human Rights commission or its predecessors and a failure to take remedial action.
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3 Measures of success • Healthier alternative available to school pupils. • Successful supply and distribution of milk throughout North Lanarkshire. • Compliance with Scottish Milk and Healthy Snack Scheme (Scotland) Regulation 2021. • Compliance with Nutritional Requirements for Food & Drink in Schools (Scotland) Regulations 2020. 4 Supporting documentation N/A James McKinstry Head of Asset & Procurement Solutions
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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? The report is not about a key strategic decision and not subject to the Fairer Scotland Duty. 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 Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The value of the Contract is £2,431,836.00 exclusive of VAT including any option to extend the Contract. The Council does not warrant or guarantee the amount of the annual or total value of the Contract, these amounts are indicative only. The costs associated with contract delivery will be contained within the revenue budget for FSS. Price Savings / Increases Prices have increased by 2.02% from previous tender and the overall discount has reduced by 1% to 14%. Rebate applies if spend breaches £400,000 per annum of 0.25%. The rebate does not apply to the first £400,000 spend. Price Stability The prices will remain fixed for the first 12 months of the contract per the framework conditions. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact?
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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 Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 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 ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk 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 ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? 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 ☐ If Yes, please provide a brief summary of the impact? The 2 litre milk cartons are recyclable and should be picked up through trade waste. 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 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? Mechanisms exist in the contract to allow for any ad-hoc price increases to be reviewed due to external market factors.