Provision of Domestic Flooring 2023 - 2027
North Lanarkshire Council · 15 February 2023
Back to Housing Committee — 15 February 2023 and its agenda
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North Lanarkshire Council Report Housing Committee Does this report require to be approved? ☒ Yes ☐ No Ref: SL Date: 15 February 2023 Contract Award for Provision of Domestic Flooring 2023 - 2027 From Stephen Llewellyn, Chief Officer, Housing Management E-mail Llewellyns@northln.gov.uk Telephone 01698274192/ 07939280680 Executive Summary Committee is asked to approve the award of a contract for the Provision of Domestic Flooring 2023 - 2027(the ‘Contract’) to Spruce Carpets Ltd. The Contract is for a period of 48 months anticipated to commence on 20 February 2023. The value of the Contract shall not exceed eight hundred thousand pounds Sterling (£800,000 exclusive of VAT). Recommendations It is recommended that Committee approves the award of the Contract to Spruce Carpets Ltd. at the maximum value of eight hundred thousand Pounds Sterling (£800,000) 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 the health and wellbeing of our communities Ambition Statement (12) Ensure our residents are able to achieve, maintain, and recover their independence through appropriate supports at home and in their communities 1. Background 1.1 The requirements of the Contract have never been contracted before by the Council therefore historical contract information is not available.
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1.2 Under terms of the Housing (Scotland) Act 1987, the Housing Solutions Team have responsibility for providing temporary housing solutions (temporary accommodation) for service users who have presented to the authority as homeless. As the majority of applicants applying as homeless are presenting in a crisis situation, they do not have any household items available for their use at the time of presentation, therefore the council provide furnished temporary accommodation pending the outcome of their homeless persons application. 1.3 When furnishing the temporary accommodation different types of flooring are used throughout the property, including carpets in the living room, bedrooms and halls and vinyl flooring within kitchens and bathrooms. This call off contract would be used to obtain the flooring required for temporary accommodation throughout North Lanarkshire. 1.4 We may also on occasions use this contract to purchase flooring which is required to be replaced within communal areas of our retirement housing complexes or in any other council properties, as required, following refurbishment works. 1.5 Scotland Excel (SXL) established a framework for Domestic Furniture & Furnishings in 2019. The Council confirmed its participation in the Framework Agreement to SXL and subsequently SXL tendered on our behalf. This framework comprised of 2 Lots, Lot 1 New Furniture and Lot 2 Reuse Furniture, with 7 suppliers (5 in Lot 1 & 2 in Lot 2) all able to service North Lanarkshire Council. 1.6 It is the intention to direct award to the sole supplier of flooring in Lot 2, (Reuse),Flooring – of the Scotland Excel Framework for Domestic Furniture & Furnishings 2019. 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. 2.3 The procurement procedure was undertaken as a “Direct Award” from the Scotland Excel framework agreement for Domestic Furniture & Furnishings 2019; Lot 2- Reuse Furniture. 2.4 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 thousand Pounds Sterling (£800,000) 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 budget for Housing Services.
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Price Savings / Increases 2.9 The pre-tender whole life estimate for the Contract was £800,000 This estimate has been provided following a review of annual spend on flooring within our housing localities and averaging spend across the localities. We have also considered future potential increases in material and labour costs when estimating spend forecasts. Price Stability 2.10 Pricing in this contract will remain static for the first year with potential increases being applied in future years following discussion with the service. 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, Spruce Carpets Ltd. committed to deliver the following community benefits within the Contract: Community Benefit Type Quantity Committed Business Monitoring and Advice to support an SME / Social Enterprise / Voluntary Organisation. 2 Financial Support for a Community Project / Organisation 2 Business Event / Briefing to promote supply chain opportunities 2 Non-financial support for a Community Project /Organisation 2 Educational Visits 2 2.11.3 The council will seek confirmation of Community Benefit Deliverables for this call off contract from the sole supplier. Fair Work First 2.12 Within their tender submission, Spruce Carpets Ltd advised that they commit to the following areas of the Scottish Governments “Fair Work First” initiative: They will pay the real living wage to all employees; they are committed to equal opportunities and actively support flexible working patterns. Other benefits include training and development opportunities and healthcare.
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Contract Strategy 2.13 Officers from Housing Services, Central Housing Solutions Team 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 In providing floor coverings within council owned temporary accommodation which is offered to applicants who present to the council as homeless, this contract will contribute to ensuring the Housing service meet their statutory obligation in terms of the Housing (Scotland) Act 1987. 3.2 In calling off from Lot 2 – Reuse Furniture of the SXL Framework the contract will contribute to government and local targets set in reducing the local and global environmental impact of our consumption and production by reusing flooring that would otherwise be transferred to landfill sites. 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 Stephen Llewellyn Chief Officer, Housing Management
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5. Impacts 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? 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 ☐ 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?
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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? In using this contract we will be contributing to both government and local targets set in reducing the local and global environmental impact of our consumption and production by reusing flooring that would otherwise be transferred to landfill sites. 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? 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 Final Rank Tenderer Name Total Tender Score (%) Recommended for Contract Award (Y / N) 1 Spruce Carpets Limited n/a Yes
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Appendix 2 – Summary of Procurement Process Response CPT Contract Reference Allocated: NLC-CPT-22-101 Tender Platform Utilised: PCS-Tender (PCST) Procurement Procedure Utilised: Direct Award Governing Legislation / Regulations: Public Contracts (Scotland) Regulations 2015 Date Contract Strategy Approved: 22 November 2022 Date Contract Notice Published: 10 January 2023 Tender Return Deadline: 16 January 2023 Number of Tenders Received: One Where Only One Tender Is Received, Why?: This was a direct award from the Scotland Excel Framework for ‘Domestic Furniture & Furnishings 2019’, ‘Lot 2 – Reuse Furniture’. Lot 2 within this framework covers four product categories one of which is flooring, and Spruce carpets were the sole contractor for flooring within this Lot. Tenders Received from SME’s: One Tenders Received from NLC Based Tenderers: None Number of Non−compliant Tenders: None Number of Compliant Tenders: One Number of Recommended Tenderers: One Basis of Contract Award: Quality: 50% Price: 50% Evaluation Team: Officers from Procurement and Housing Operations Anticipated Contract Start Date: 20 February 2023 Total Contract Period (Months): 48 months Maximum Total Contract Value: £800,000
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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) Spruce Carpets Ltd Small Glasgow, Glasgow City Council