Contract Award Report - General Office Supplies
North Lanarkshire Council · 13 September 2023
Back to Finance and Resources Committee — 13 September 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: AT/JMcK Date: 13/09/2023 Contract Award for General Office Supplies From James McKinstry, Chief Officer (Assets & Procurement) E-mail MckinstryJ@northlan.gov.uk Telephone: 07939 281102 Executive Summary Committee is asked to approve the award of a Call off Contract for General Office Supplies the (‘Agreement’) to Lyreco UK Limited. The Agreement is for a period of 48 months anticipated to commence on 14 September 2023. The value of the Agreement is two million, fifty-two thousand, two hundred and fifteen Pounds Sterling £2,052,215.00 exclusive of VAT. Recommendations It is recommended that the Finance and Resources Committee: (1) Approve the award of the Agreement for General Office Supplies to Lyreco UK Limited at the value of two million, fifty-two thousand, two hundred and fifteen Pounds Sterling £2,052,215.00 exclusive of VAT. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes 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 Contract for General Stationery and Office Paper was established from 1 June 2016 until 30th June 2023 following a Direct Award from the Scottish Government Framework Agreement SP-14-009. 1.2 The requirements within the Agreement are currently under contract with Lyreco UK Limited. 2. Report 2.1 A group of technical and procurement representatives was formed to develop and agree the procurement strategy for the Agreement to enable the council to achieve maximum benefit for the requirements. 2.2 The initial estimated value of the Agreement dictated that the procurement procedure be undertaken in accordance with the Procurement (Scotland) Regulations 2016. 2.3 The procurement procedure was undertaken as a “Direct Award” from the Scottish Government framework agreement for General Office Supplies SP-22-021. 2.4 Following the justification detailed and appraised within the associated contract strategy document, the Direct Award procedure was considered to demonstrate Best Value as it has been subject of a fully robust procurement procedure by Scottish Government on the Council’s behalf establishing a single provider framework offering best value for the Council’s use. 2.5 The tender received from Lyreco UK Limited underwent appropriate appraisal to ensure it was complete and compliant with the council’s requirements and demonstrated best value. 2.6 Further details of the procurement procedure are provided in Appendix 1 and the SME status and location of the tenderer is located within Appendix 2. Financial / Budget Consideration 2.7 Using the Councils historical spend, the pre-tender whole life estimate spend for the Agreement was £2,052,215.00. Following completion of the procurement procedure, the maximum value of the Agreement to be awarded is two million, fifty-two thousand, two hundred and fifteen Pounds Sterling £2,052,215.00 exclusive of VAT. 2.8 The Council will seek to identify potential savings through switching from more expensive branded products to best value products where they are deemed fit for purpose. The Council also has the option to reduce and consolidate the goods available for purchase to drive further savings opportunities throughout the duration of the Agreement. 2.9 The costs associated with delivery of the Agreement will be contained within the Revenue Budget of each individual service user. Price Stability 2.10 Pricing for the framework is fixed for 12 months at a time with subsequent price reviews conducted by Scottish Procurement and Lyreco UK Limited every 12 months.
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Community Benefits 2.11.1 The council is committed to maximising the delivery of community benefits. The procurement includes a community benefit requirement, and this approach is designed to deliver local community benefits where possible. 2.11.2 Within their tender to Scottish Government, Lyreco UK Limited committed to deliver community benefits within the framework agreement. The Council requested details of Community Benefits deliverable under the Agreement with the Council: Community Benefit Type Quantity Committed Recruit 3 modern apprentices in logistics department and offer appropriate support and training to secure, full-time career at Lyreco. Offer further training and upskilling that supports them into roles within chosen departments 3 Recruit 1 modern apprentice in customer services in their Airdrie call centre 1 Lyreco UK Limited offer all Lyreco employees in Scotland 1 full day leave per year (full-time) or ½ day leave (part-time) to participate, alongside Scottish Government staff, in community-based volunteering schemes/projects. Lyreco UK Limited will work with individual framework public bodies to identify specific charities 2.11.3 The community benefits delivered as part of the Agreement includes the creation of jobs or apprenticeships. Fair Work First 2.12 Within their tender submission, Lyreco UK Limited advised that they hold real living wage accreditation and are signatories to the Scottish business pledge. Contract Management 2.13 Officers from Corporate Procurement will be responsible for managing the Agreement which will be undertaken in accordance with the contract and supplier management conditions applied within the Agreement. 3. Measures of success The Agreement will deliver the following outcomes; 3.1 Best Value has been considered to be demonstrated by participating in a collaborative framework established by Scottish Government on behalf all Scottish Public Sector. 3.2 Economies of scale ensures that the Council achieves competitive prices as a result of the collaborative approach. 3.3 Fully managed framework agreement supported by the council officers and Lyreco UK Limited to ensure the Agreement continues to offer Best Value throughout its duration.
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4. Supporting documents Appendix 1 Summary of Procurement Process Appendix 2 SME Status and Location of All Tenderers James McKinstry Chief Officer (Assets & Procurement)
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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 been discussed and agreed with Finance? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Service Users will achieve best value pricing for products and through the Agreement, savings will be achievable through product switching and limiting product availability to own brand products. Further savings can be achieved through rationalisation of products through effective contract management and monitoring of management information. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts 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 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 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?
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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? Environmental benefits of the Agreement with the imposition of a minimum order value, reducing small value order volumes thus reducing deliveries and generating of purchase orders and invoices. Also, Lyreco UK Limited has committed to the following during the lifetime of the framework: • Prevent the use of single use plastic (SUP) in their supply chain product ranges, packing and business operations. • Support the Scottish Governments Zero Waste Plan providing product/packaging recycling services backed up by their zero to landfill status. • Deliver the Agreement in accordance with the Climate Emergency/the revised Climate Change Scotland Act. • Support the Authority’s aim for a circular economy and have aligned principles with the “Making Things Last: a circular economy strategy for Scotland.” • By 2025, to be the first company in the workplace industry to develop: ➢ Full ranges of recycle ready items. ➢ Collection and second life solution for all recycle ready products. ➢ Zero noncircular packaging. ➢ Zero single use plastic items in Lyreco offices. • Roll-out 130 new Euro 6 6.1 emissions vans providing; increased fuel efficiency and payload (50kg per van) - reducing the number of deliveries and CO2 emissions. • Use Electric Vehicles to cover 2 delivery routes in Edinburgh and will monitor the progression of technology/feasibility to increase Electric Vehicle coverage across Scotland to reduce CO2 emissions. 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? Corporate Procurement will communicate the Agreement to service users by way of Procurement Advisory 5.9 Risk impact Is there a risk impact? Yes ☐ No ☒
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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 ☒ 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. 5.11 Children’s rights and wellbeing impact Does the report contain any information regarding any council activity, service delivery, policy, or plan that has an impact on children and young people up to the age of 18, or on a specific group of these? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact and the provision that has been made to ensure there has been appropriate consideration of the relevant Articles from the United Nations Convention on the Rights of the Child (UNCRC). If Yes, has a Children’s Rights and Wellbeing Impact Assessment (CRWIA) been carried out? Yes ☐ No ☐
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Appendix 1 – Summary of Procurement Process CPT Contract Reference Allocated: NLC-CPT-23-018 Procurement Procedure Utilised: Direct Award From Framework Agreement Governing Legislation / Regulations: Public Contracts (Scotland) Regulations 2015 Date Contract Strategy Approved: 07 July 2023 Framework Owner: Scottish Government Framework Title: Call off Contract for General Office Supplies Framework Reference Number: SP-22-021 Date ITT Published: 07 July 2023 Tender Platform Utilised: PCS-Tender (PCST) Tender Return Deadline: 18 July 2023 Number of Tenders Received: 1 Tenders Received from SME’s: 0 Tenders Received from NLC Based Tenderers: 0 Number of Recommended Tenderers: 1 Assessment Team: Corporate Procurement Anticipated Start Date of the Agreement: 14 September 2023 Total Agreement Period (Months): 48 Awarded Value of the Agreement: £2,052,215.00
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Appendix 2 – SME Status and location of all Tenderers Name of Tenderer Size of Tendering Organisation (Micro, Small, Medium or Large) Location (Local Authority / Council Area) Lyreco UK Limited Large Telford, Shropshire