Measured Term Contract - Battery Storage and PV Panels (2023-2026)
North Lanarkshire Council · 15 February 2023
Back to Housing Committee — 15 February 2023 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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North Lanarkshire Council Report Housing Committee Does this report require to be approved? ☒ Yes ☐ No Ref: HO EE 22 078 Date: 15 February 2023 Contract Award for MTC Battery Storage and PV Panels (2023-2026) From Chief Officer, Housing Property Services E-mail Starbucks@northlan.gov.uk Telephone Siobhan Starbuck Contract Support Manager 07583 062739 Executive Summary Committee is asked to approve the award of a MTC contract for Battery Storage and PV Panels (2023-2026) (the ‘Contract’) to Saltire Facilities Management Ltd. The Contract is for an initial period of 10 months anticipated to commence in April 2023. The Council reserves the right to extend the Contract for additional periods up to a maximum of a further 24 months. (8 x 3 months optional extension periods). The value of the Contract shall not exceed Nine Million Pounds Sterling (£9,000,000) exclusive of VAT. Recommendations It is recommended that Committee approves the award of the Contract to Saltire Facilities Management Ltd. at the maximum value of Nine Million Pounds Sterling (£9,000,000) 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 (1) Ensure a housing mix that supports social inclusion and economic growth
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1. Background 1.1 The contract contains some new requirements, however some aspects are delivered within an existing contract with Saltire Facilities Management Ltd. This contract is due to expire on 12 August 2024. This contract is in addition to the contract currently in place. 1.2 This procurement was carried out as a single lot. 1.3. This procurement is an above GPA threshold regulated procurement and has been discharged as a single-stage procurement process. 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) 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 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. 2.5 The tender submitted by Saltire Facilities Management Ltd 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 Nine Million Pounds Sterling (£9,000,000) exclusive of VAT including any option to extend the Contract. 2.8 The costs associated with contract delivery will be contained within the HRA Capital budget set for each financial year. Price Savings / Increases
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2.9 Contract pricing is fixed until January 2024. Thereafter, prices will be adjusted annually by the application of the RICS BCIS General Building Cost Price Index. Price Stability 2.10 Schedule of Rates with prices for adjustment by overall percentage and annual RICS BCIS fluctuation percentage 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, Saltire Facilities Management Ltd committed to deliver the following community benefits within the Contract: Community Benefit Type Quantity Committed New Entrants – Key Priority Group 1 New Start - Apprentice 1 Work Experience Placement – 16+ years of age 2 Work Experience Placement – 14-16 years of age 2 Careers Event 3 Site Visits 3 School Mentoring or Enterprise Programme 3 Financial Support for a Community Project 1 Non-Financial Support for a Community Project 2 2.11.3 The community benefits delivered as part of the Contract includes the creation of jobs or apprenticeships. Fair Work First 2.12 Within their tender submission, Saltire Facilities Management Ltd advised that they commit to the following areas of the Scottish Governments “Fair Work First” initiative: • Living Wage Foundation Accredited member • No zero hours contracts • Flexible working and supportive of a wider work life balance • Promote diversity, equality, and fair employment practices • Support for learning and development, are supportive of further education opportunities for employees • Gender balance and wider representative workforce
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Contract Strategy 2.13 Officers from Housing Property and Projects 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 conclusion of a procurement procedure that is compliant with procurement legislation and internal procedures; 3.3 confirmation that Best Value is both demonstrable and achieved; and, 3.4 delivery of a range of Community Benefits. 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 Brian Lafferty Chief Officer, Housing Property Services
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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? This Contract will work towards improving outcomes for people and communities by assisting the Council to reduce inequalities of outcomes caused by socio-economic disadvantage. 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 Nine Million Pounds Sterling (£9,000,000) exclusive of VAT including any option to extend the Contract. The costs associated with contract delivery will be contained within the HRA Capital budget for Housing Property and Projects. 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 ☒ 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 ☐
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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 Contract has the following environmental impacts: encourage sustainable and safe environment; promote health and wellbeing; safe removal and disposal of materials. The proposed contractor was required to be BS EN ISO 14001 (or equivalent) and BS EN ISO 9001 (or equivalent) accredited and has provided appropriate evidence of accreditation 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? Risk will be minimised and managed by a designated Contract manager in accordance with the specification and in line with the Council’s agreed approach to Contract and Supplier Management. The proposed contractor was required to be UKAS (BS EN ISO 45001) accredited and provided appropriate evidence of their accreditation. 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.
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Appendix 1 – Summary of Tender Evaluation Process In the Award Stage, tenderers’ price scores were added to their quality scores to obtain their final tender scores. Only the first ranking tenderer from Award Stage underwent Selection Stage evaluation. Details are contained in the tables below. Table 1: Stage 1 – Award Stage Evaluation Final Rank Tenderer Name Total Tender Score (%) Recommended for Contract Award (Y / N) 1 Saltire Facilities Management Ltd 96.75 Y 2 BRB Electrical Ltd 91.11 N 3 Emtec Group 90.76 N 4 Everwarm Ltd 89.59 N 5 Procast Building Contractors Ltd Disqualified Table 2: Stage 2 – Selection Stage Evaluation Outcome Tenderer Name Part 3 A, B, C & D Part 4 A & B Part 4 C Part 4 D Selection Requirements Met? (Yes/No) Selection Criteria Selection Criteria Selection Criteria Selection Criteria Pass/Fail Pass/Fail Score (min = 50) Pass/Fail Saltire Facilities Management Ltd Pass Pass 71.11 Pass Yes
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Appendix 2 – Summary of Procurement Process Response CPT Contract Reference Allocated: NLC-NLP-22-063 Tender Platform Utilised: PCS Mailbox (PCS) Procurement Procedure Utilised: Open Procedure Governing Legislation / Regulations: Public Contracts (Scotland) Regulations 2015 Date Contract Strategy Approved: Insert Date Date Contract Notice Published: 20 October 2022 Tender Return Deadline: 21 November 2022 Number of Tenders Received: 5 Tenders Received from SME’s: 4 Tenders Received from NLC Based Tenderers: 2 Number of Non−compliant Tenders: 1 Number of Compliant Tenders: 4 Number of Recommended Tenderers: 1 Basis of Contract Award: Quality: 40% Price: 60% Evaluation Team: Staff from Housing Property and Projects Anticipated Contract Start Date: 03 April 2023 Total Contract Period (Months): 10 months plus optional 24 months Maximum Total Contract Value: £9,000,000
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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) Saltire Facilities Management Ltd Medium North Lanarkshire Council BRB Electrical Ltd Small Glasgow City Council Emtec Group Medium North Lanarkshire Council Everwarm Ltd Large West Lothian Council Procast Building Contractors Ltd Medium South Lanarkshire Council