Contract Awards for Supply and Distribution of- Fresh Meats; Cooked Meats; and Fresh Fish
North Lanarkshire Council · 24 May 2023
Back to Finance and Resources Committee — 24 May 2023 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-23-003 Date: 24 May 2023 Contract Awards for Supply and Distribution of: Fresh Meats; Cooked Meats; and Fresh Fish From James McKinstry E-mail McKinstryJ@northlan.gov.uk Telephone: 07939 281102 Executive Summary Scotland Excel’s Multi-lot Framework Agreement for Supply and Distribution of Fresh Meats, Cooked Meats and Fresh Fish 0322 (the “Framework”) is now live, established for the period 1 April 2023 until 31 March 2027. This Framework is available for use by participating members including the Council. The tender evaluation model used for each lot on the Framework produced a ranked list of Contractors, scored against each Council’s requirements. Approval is sought from Finance & Resources Committee to award three individual call-off contracts (“Contracts”) to the Contractors with the highest tender score (rank 1 position) for the Council’s requirements as follows: • From Lot 1 Fresh Meat – recommended Contractor is McLays Limited • From Lot 2 Cooked Meats – recommended Contractor is Brake Bros Limited • From Lot 4 Specialised Products - recommended Contractor is McLays Limited The duration of the Contracts would be aligned to the Framework. Based on previous usage and forecasting demand, the Council’s anticipated aggregate spend across these contracts would be two million, seven hundred and eighty-five thousand pounds sterling (£2,785,000) exclusive of VAT. Recommendations It is recommended that Finance & Resources committee approves the following Contract Awards: (1) from Lot 1 Fresh Meats to McLays Limited, estimate contract value £1,700,001 excl.VAT (2) from Lot 2 Cooked Meats to Brake Bros Limited, estimate contract value £963,996 excl. VAT (3) from Lot 4 Specialised Products to McLays Limited, estimate contract value £121,003 excl. VAT This recommendation follows the Framework evaluation scoring, where the Contractor recommended for award is in rank position 1, with their bid being the most economically advantageous tender in terms of cost and quality for the Council.
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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 1. Background 1.1 Scotland Excel has a delivery plan to lead a range of procurements that establish collaborative Framework Agreements that are relevant for use by the bulk of its members, particularly Scottish Local Authorities. The delivery plan includes multiple Framework Agreements for supplies and services that provide a compliant route to market for members to purchase the various requirements, including catering supplies. 1.2 The Council has participated with Scotland Excel in the establishment of the previous generations and now the latest, 4th generation, Multi-lot Framework Agreement for Supply and Distribution of Fresh Meats, Cooked Meats and Fresh Fish. 1.3 The Councils existing contracts for fresh meats, cooked meats and associated products were made from the third generation Framework. 2. Report 2.1 Facility Support Services (“FSS”) attended and participated in a user intelligence group (the ‘UIG’) of technical and procurement representatives set up by Scotland Excel 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 participating members via the Framework for Supply and Distribution of: Fresh Meats; Cooked Meats; and Fresh Fish. 2.2 The UIG also took cognisance of the demands for food associated to Scottish Government policies including: • Increased nursery hours to 1140, nursery pupils FSM • Free school meals to all pupils P1-P5 • Roll out of free school meals to P6 & P7 circa 2025-6 • Inclusion of all Community Facilities and Hospitality units • Development of the Good Food Nation improvement plan 2.3 Scotland Excel conducted the procurement in accordance with the Public Contracts (Scotland) Regulations 2015, using an Open procedure. 2.4 Tender evaluation model for all lots was based on 30% Quality, 70% Price and followed the most economically advantageous scoring model. 2.5 For each participating member, a ranked list of Contractors appointed to the Framework was produced. The below tables provide the Framework appointments to the relevant lots required by the Council. Lot 1 – Fresh Meat
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Contractor Framework Score Framework Rank McLays Limited 97.08 1 Campbells Prime Meat Limited 90.25 2 Thos A Shaw 68.44 3 Lot 2 – Cooked Meat Contractor Framework Score Framework Rank Brake Bros Limited 97.50 1 McLays Limited 91.61 2 BFS Group Limited 84.63 3 Campbells Prime Meat Limited 79.23 4 Lot 4 – Specialised Products Contractor Framework Score Framework Rank McLays Limited 98.25 1 Campbells Prime Meat Limited 75.44 2 Bernard Corrigan Limited 69.74 3 Thos A Shaw 61.46 4 2.6 The Framework call-off options include ‘Direct Award’, which allows the Council to award contracts based on the highest tender score and rank in each Lot. 2.7 FSS recommend that the Council use the direct award approach to award Contracts to the Contractors in Framework Rank position on the basis their tenders were identified in the Framework evaluation as the most economically advantageous bids for the Council requirements. 2.8 The value of the Contracts being awarded including any requirement to extend the Contracts: • from Lot 1 Fresh Meats to McLays Limited, estimate contract value £1,700,001 excl.VAT • from Lot 2 Cooked Meats to Brake Bros Limited, estimate contract value £963,996 excl. VAT • from Lot 4 Specialised Products to McLays Limited, estimate contract value £121,003 excl. VAT 2.9 The costs associated with contract delivery will be contained within the Revenue budget for FSS. Price Savings / Increases 2.10 The Council’s anticipated aggregate spend across these contracts is £2,785,000 exclusive of VAT. 2.11 There are no identified savings due to the cost-of-living increase and food inflation.
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Price Stability 2.12 The Framework applies 6 months fixed pricing to all Lots. Thereafter, all requests for price increases will be evaluated according to the terms and conditions of the Framework by Scotland Excel. Community Benefits 2.13 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. 2.14 Within their Tender for appointment to the Framework, McLays Limited & Brake Bros Limited both committed to deliver community benefits with the Council Spend equating to band 5 (£400k-£500k per annum) for McLays and band 3 (£200-300K per annum) for Brakes. This will earn the Council 200/100 community benefit points. The Council will liaise with the successful supplier on the specific Community Benefits to be delivered. Fair Work First 2.15 Within their tender submission, McLays Limited advised they’re an accredited supplier who pay the living wage. Brakes Bros Limited have indicated that staff in Scotland delivering the service through the Scotland Excel framework are paid above the real living wage. Contract Management 2.16 Officers from FSS will be responsible for managing the Contracts which will be undertaken in accordance with the Council’s agreed approach to contract and supplier management. 3. Measures of success The Contract will deliver the following outcomes; • Successful Supply and Distribution of Fresh Meats, Cooked Meats; and Specialised Products; throughout North Lanarkshire. • Compliance with Nutritional Requirements for Food & Drink in Schools (Scotland) Regulations 2020. 3.1 Through six monthly management meetings items such as prices/spend/invoices/response times/ new products/complaints will be discussed. 4. Supporting documents n/a James McKinstry Chief Officer (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 Finance? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The value of the Contract is two million, seven hundred and eighty five thousand pounds Sterling (£2,785,000) 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. 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 Resources? 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 ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic? 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
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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 significant technology change, has an assessment been carried out (or is scheduled to be carried out) 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? Both suppliers are committed to the reduction of packaging and plastic. 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? Delivery times are requested out with pupil arrival times and are typically delivered early in the mornings. 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 ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services.