Replacement of Windows and Doors (2023-2025)
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: SS/SL Date: 15 February 2023 Contract Award for Replacement of Windows and Doors (2023 – 2025) From Chief Officer of Housing Property Services E-mail laffertyb@northlan.gov.uk Telephone Siobhan Starbuck, Contract Strategy Manager – 07583 062739 Executive Summary The Housing Committee (the Committee”) is asked to approve the award of a contract for the Replacement of Windows and Doors (2023 – 2025) (the ‘Contract’) to: • Lot 1 – Walker Profiles Limited • Lot 2 – Belac Group Limited The Contract is for an initial period of nine (9) months anticipated to commence on 03 April 2023. The Council reserves the right to extend the Contract for additional periods up to a maximum of a further 12 months. The maximum value of the Contract shall not exceed Fifteen Million Pounds Sterling (£15,000,000.00) exclusive of VAT. The value of the Contract is split across both lots with £10,000,000 applicable to Lot 1, and £5,000,000.00 applicable to Lot 2. As a “Measured Term Contract” form of agreement, the value of the Contract is pertinent to demand therefore there is no guarantee that the Councils spends any or all of the awarded contract value. Recommendations It is recommended that Committee approves the award of the Contract at the maximum value of Fifteen Million Pounds Sterling (£15,000,000.00) exclusive of VAT to: • Walker Profiles Limited for Lot 1 up to the maximum value of Ten Million Pounds Sterling (£10,000,000.00) exclusive of VAT • Belac Group Limited. for Lot 2 up to the maximum value of Five Million Pounds Sterling (£5,000,000.00) 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.
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The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition Statement (1) Ensure a housing mix that supports social inclusion and economic growth 1. Background 1.1 The requirements within the Contract are currently under contract. This contract is due to expire on 26 March 2023 with the Contract detailed within this report due to supersede it. 1.2 As part of the Councils ongoing “Capital Programme”, there is a requirement for window and door replacements throughout the Councils housing stock including ‘four in a block’, semi- detached, low rise and high rise properties etc. 1.3 The scope of works within the Contract includes but is not limited to the following: • Removal of existing finishes, removing doors/composite screens, • removing timber or UPVC windows of various sizes; • removing existing plumbing and electrical installations (where it presents an issue with new installs, etc.); • supply and fit of like for like replacement doors and windows of various size, any mineral wool slab cavity barriers, any associated pointing and mastic works; • new kitchen and bathroom ventilation, axial fans to windows, refixing etc; and • reinstating any previously removed installations including fans etc. or finishes including paint and plaster. 1.4 To enable adequate service provision, the requirements of the Contract have been split across two (2) lots, with each lot having a set maximum value of work orders the appointed contractors could be issued. This approach allows the Council to spread the workload across multiple contractors therefore ensuring delivery of requirements can be met depending on appointed contractor’s availability and capacity at time of order. 1.5 Accordingly, tenderers were free to bid for both lots 1 and 2 however, should a tenderer be recommended for lot 1, their tender for lot 2 (if bidding for both lots) would be excluded on the basis of the Councils intention to appoint a single / separate contractor to each lot. 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.
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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(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 two tenderers who submitted the most economically advantageous tender. 2.5 The tender(s) as detailed below have been evaluated as representing the most economically advantageous tenders for this Contract: • Lot 1 – Walker Profiles Limited • Lot 2 – Belac Group Limited 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 maximum value of the Contract shall not exceed Fifteen Million Pounds Sterling (£15,000,000.00) exclusive of VAT. The value of the Contract is split across both lots with £10,000,000 applicable to Lot 1, and £5,000,000.00 applicable to Lot 2 2.8 The costs associated with contract delivery will be contained within the Housing Capital budget for Housing Property Services. Price Savings / Increases 2.9 The pre-tender whole life estimate for the Contract was £15,000,000.00. This is the maximum value of the Contract as identified and set by the Council and as a measured term contract there is no obligation on the Council to spend any or all of this value. When comparing rates to with the existing contract tendered in 2019, tendered rates for this Contract have increased by approximately 40%. These increased costs can be attributed to a multitude of factors including the Covid pandemic, the ongoing war in Ukraine, increased construction material costs, and increased labour costs brought about by the sharp rise in inflation and other cost of living pressures i.e. utility / fuel costs. As a result of the increased costs associated with the Contract, there will be a subsequent reduction in the number of homes to be included within this phase of the Council’s Windows and Doors Replacement Programme when compared to the previous contract. Price Stability
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2.10 Contract pricing is fixed until January 2024. Thereafter, prices will be adjusted quarterly by the application of the RICS BCIS General Building Cost Price Index which is an industry standard approach. 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, the two recommended contractors committed to deliver the following community benefits within the Contract: Lot 1 - Walker Profiles Limited Community Benefit Type Quantity Committed New Job for an Individual from a Priority Group (Full Time) 1 New Job for an Apprentice from a Priority Group (Full Time) 1 Educational Visits 3 Educational Workplace Visit 3 Work Experience Placement for an individual16+ years of age 3 Financial Support for a Community Project / Organisation 2 Non-financial Support for a Community Project / Organisation 2 Lot 2 - Belac Group Limited Community Benefit Type Quantity Committed New Job for an Individual from a Priority Group (Full Time) 1 New Job for an Individual not from a Priority Group (Full Time) 1 New Job for an Apprentice from a Priority Group (Full Time) 1 Educational Sponsorship 1 Financial Support for a Community Project / Organisation 1 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, the two appointed contractors provided responses to demonstrate their commitment to the Scottish Governments “Fair Work First” initiative as detailed below: For Lot 1, the Walker Profiles Limited included (but was not limited to) confirmation that their company’s approach is aligned to ‘Fair Work First’, they have numerous company policies
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including: - Equal Opportunities, Flexible Working, and Professional Development in place, and that they are a Real Living Wage Employer For Lot 2, the Belac Group Limited included (but was not limited to) confirming that they are a Real Living Wage Employer, do not utilise zero hour contracts, have regular communication events with their employees and have programme of training and development available to their staff. Contract Management 2.13 Officers from Housing Property Services 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 of 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 Fifteen Million Pounds Sterling (£15,000,000) 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 Services 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 contractors are 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 Lot 1 Final Rank Tenderer Name Total Tender Score (%) Recommended for Contract Award (Y / N) 1 Walker Profiles Limited 92.34% Yes 2 Belac Group Limited 92.14% No 3 Sidey Solutions Limited 90.84% No 4 CR Smith Manufacturing Limited 86.17% No Lot 2 Final Rank Tenderer Name Total Tender Score (%) Recommended for Contract Award (Y / N) 1 Bell Decorating Group Limited 94.16% No 1 2 Belac Group Limited 92.80% Yes 3 Sidey Solutions Limited 89.89% No 4 CR Smith Manufacturing Limited 86.68% No 5 Sovereign Group Limited 78.56% No 1 Following their identification as submitting the most economically advantageous tender for Lot 2, the Council requested evidence from Bell Decorating Group Limited to corroborate initial responses to the SPD (Scotland) to demonstrate that they met the Council’s minimum requirements in terms of eligibility, business probity, financial standing, experience etc. During this process, the evaluation panel jointly agreed that Bell Decorating Group Limited failed part of this assessment therefore they could not be recommended for award of Lot 2. Thereafter, the same process to obtain evidence to corroborate SPD (Scotland) responses was undertaken with the next ranked tenderer to determine if they met the Council’s minimum requirements which the evaluation panel jointly agreed that they did.
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Appendix 2 – Summary of Procurement Process Response CPT Contract Reference Allocated: NLC-CPT-21-163 Tender Platform Utilised: PCS-Tender (PCST) Procurement Procedure Utilised: Open Procedure Governing Legislation / Regulations: Public Contracts (Scotland) Regulations 2015 Date Contract Strategy Approved: 10 October 2022 Date Contract Notice Published: 20 October 2022 Total Expressions of Interest Received: 17 SME % of Expressions of Interest: 52% NLC Based % of Expressions of Interest: 47% Tender Return Deadline: 12 Noon, 21 November 2022 Number of Tenders Received: Eight (8) Total: Lot 1 – Six (6) / Lot 2 – Eight (8) 2 Tenders Received from SME’s: Six (6) Tenders Received from NLC Based Tenderers: Five (5) 3 Number of Non−compliant Tenders: Two (2) Number of Compliant Tenders: Six (6) Total: Lot 1 – Four (4) / Lot 2 – Six (6) Number of Recommended Tenderers: Two (2) Basis of Contract Award: Quality: 40% Price: 60% Evaluation Team: Officer from Housing and Projects Anticipated Contract Start Date: 03 April 2023 Total Contract Period (Months): 9 + 12 (in 4 x 3 month increments) Maximum Total Contract Value: £15,000,000.00 2 Tenderers were free to bid for a single or both lots. All tenderers bid for lot 2 however six only bid lot 1. 3 Although not having their registered address in North Lanarkshire, some tenderers advised that they operate from premises within North Lanarkshire
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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) Belac Group Limited Medium North Lanarkshire Bell Decorating Group Limited Large North Lanarkshire CCG (Scotland) Limited Large South Lanarkshire CR Smith Manufacturing Limited Medium Fife Procast Building Contractors Limited Medium South Lanarkshire Sidey Solutions Limited Medium Perth and Kinross Sovereign Group Limited Medium Lancashire Walker Profiles Limited Medium North Lanarkshire