Contract Award for BEMS (Building Energy Management System) Servicing & Maintenance 2023-2026
North Lanarkshire Council · 30 November 2022
Back to Finance and Resources Committee — 30 November 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: NLC-CPT-22-053 Date: 30 November 2022 Contract Award for BEMS (Building Energy Management System) Servicing & Maintenance 2023-2026 From James McKinstry, Head of Asset and Procurement Solutions E-mail mckinstryj@northlan.gov.uk Telephone Chris Sullivan (Strategic Asset Manager, 07939 280579 Executive Summary Committee is asked to approve the award of a contract for BEMS (Building Energy Management System) Servicing & Maintenance 2023-2026 (the ‘Contract’) to Chartwell Limited. The Contract is for an initial period of 24 months anticipated to commence on 23 January 2023. The Council reserves the right to extend the Contract for additional periods up to a maximum of a further 12 months. The value of the Contract shall not exceed Eight Hundred and Twenty-Five Thousand Pounds Sterling (£825,000) exclusive of VAT, including any extension periods. Recommendations It is recommended that Committee approves the award of the Contract to Chartwell Limited at the maximum value of Eight Hundred and Twenty-Five Thousand Pounds Sterling (£825,000) exclusive of VAT. This recommendation follows the completion of a procurement procedure, where the tender recommended for award has been evaluated as providing the most economically advantageous tender in terms of cost and quality for the Council. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition Statement (21) Continue to identify and access opportunities to leverage additional resources to support our ambitions
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1. Background 1.1 The requirements within the Contract were previously under contract with Trend Control Systems Limited. This contract was terminated early by Trend Control Systems Limited on 21 September 2022; under the terms of the contract 3 months’ notice was provided of this decision. The contractor is closing all their UK engineering offices by 31 December 2022 and will no longer be providing maintenance services. 1.2 The Contract detailed within this report is due to supersede it. Short-term alternative arrangements have been put in place to cover the period from when the previous contract ended, and for when the new Contract is due to commence. 1.3 The Council has a requirement to service and maintain its existing suite of Building Energy Management Systems (BEMS). BEMS is a computer-based system (linked to various pieces of hardware throughout a building) that controls and monitors mechanical and electrical equipment such as heating, ventilation, lighting, and power systems. 1.4 The work within the Contract includes the provision of servicing & maintenance support to cover the Council’s BEMS network, including Active & Creative Communities properties, to include the existing 156 systems that are currently in operation throughout various sites within the Council’s corporate portfolio, including schools, office accommodation, and community & leisure centres. 1.5 The requirement will also cover a proposal for six (6) systems that the Council intends to procure over the coming years, along with any other new installs within the Contract period as well as a phased programme of upgrading a number of the Councils older / outdated systems to more advanced current technology. Upgrades and maintenance of existing front- end software will be also required, including any future front-end software installations. 1.6 The Contract will also include scheduled on-site maintenance visits and 24/7 off-site response and support. 2. Report 2.1 A user intelligence group (the ‘UIG’) of technical and procurement representatives from the Asset & Procurement Service 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) website. 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 satisfied / declared that they met the published minimum selection stage criteria progressed to the award stage evaluation. Following identification of the recommended
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tenderer(s), 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. 2.5 The tender submitted by Chartwell Limited has been evaluated as representing the most economically advantageous tender for this Contract. 2.6 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. 2.7 The value of the Contract is Eight Hundred and Twenty Five Thousand Pounds Sterling (£825,000) exclusive of VAT including any option to extend the Contract. 2.8 The costs associated with contract delivery will be contained within the revenue and capital budgets for Asset and Procurement Solutions. Price Savings / Increases 2.9 When compared against historic contracts, there is a 2% increase on the rates provided for cyclical inspection, servicing, maintenance and reporting on an annual basis to all plant, equipment and components relating to the BEMS at various sites. Price Stability 2.10 The rates provided are fixed for the duration of the Contract. Community Benefits 2.11.1 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. 2.11.2 Within their tender, Chartwell Limited committed to deliver the following community benefits within the Contract: Community Benefit Type Quantity Committed Educational Visits 4 Business Event / Briefing to promote supply chain opportunities 1 Fair Work First 2.12 Within their tender submission, Chartwell Limited advised that they will commit to the following areas of the Scottish Governments “Fair Work First” initiative:
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• No inappropriate use of zero hour contracts; • Payment of the real Living Wage; and • Investment in workforce development. Contract Strategy 2.13 Officers from Asset and Procurement Solutions will be responsible for managing the Contract which will be undertaken in accordance with the Councils agreed approach to contract and supplier management. 3. Measures of success The Contract will deliver the following outcomes; 3.1 the appointment of a service provider who has the experience and capability to deliver an innovative, high quality and responsive service; 3.2 the contract award procedure is compliant with the procurement legislation and internal procedures; 3.3 that best value is both demonstrable and achieved; 3.4 that the Contract secures a range of community benefits; 3.5 that the Contract supports payment of the living wage to staff employed in the delivery of the Contract; 3.6 that the Contract performance is proactively managed against a number of Key Performance Indicators; and 3.7 a collaborative approach to the procurement of the requirement, minimising the burden on internal resource and leveraging the economies of scale. 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 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? 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 maximum value of the Contract is £825,000.00 exclusive of VAT including any option to extend the Contract. The Council does not warrant or guarantee the amount of the total value of the Contract, this amount is indicative only. The costs associated with contract delivery will be contained within the revenue and capital budgets for Asset and Procurement Solutions. 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? 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 ☒
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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? This contract will ensure the installed heating control systems operate correctly and assist in reducing energy costs and consumption in operational buildings. 5.8 Communications Impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒
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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? A contract specific risk register is contained within the Contract Strategy and will be managed by the service throughout the lifecycle of the Contract.
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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 Chartwell Limited 86.71% Y 2 ABEC Limited 84.80% N 3 Laplace Building Solutions (South) 84.48% N 4 E.ON Control Solutions Limited 83.14% N 5 Enterprise Controls Systems 82.66% N 6 Kendra Energy Solutions Limited 80.58% N
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Appendix 2 – Summary of Procurement Process Response Procurement Procedure Utilised: Open Procedure Governing Legislation / Regulations: Public Contracts (Scotland) Regulations 2015 Date Contract Strategy Approved: 05 August 2022 Date Contract Notice Published: 05 August 2022 Total Expressions of Interest Received: 18 SME % of Expressions of Interest: 43.8% NLC Based % of Expressions of Interest: 0% Tender Return Deadline: 09 September 2022 Number of Tenders Received: 6 Tenders Received from SME’s: 6 Tenders Received from NLC Based Tenderers: 0 Number of Non−compliant Tenders: 0 Number of Compliant Tenders: 6 Number of Recommended Tenderers: 1 Basis of Contract Award: Quality: 60% Price: 40% Evaluation Team: Staff from Enterprise and Communities Anticipated Contract Start Date: 23 January 2023 Total Contract Period (Months): 36 Maximum Total Contract Value: £825,000
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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) ABEC Limited SME Gloucestershire Chartwell Limited SME Kent E.ON Control Solutions Limited SME Glasgow Enterprise Controls Systems SME Glasgow Kendra Energy Solutions Limited SME Glasgow Laplace Building Solutions (South) SME Berkshire