Contract Award for Measured Term Contract - UPVC Door and Window Repairs and Maintenance 2022 -2026
North Lanarkshire Council · 31 August 2022
Back to Housing Committee — 31 August 2022 and its agenda
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North Lanarkshire Council Report Housing Committee Does this report require to be approved ☐ Yes ☒ No Ref HO WN 21 037 Date 31/08/2022 Contract Award for: MTC UPVC Door and Window Repairs and Maintenance 2022-2026 - HO WN 21 037/ NLC-CPT-21-045 From Brian Lafferty, Head of Business (Housing Property and Projects) Email starbucks@northlan.gov.uk Telephone Siobhan Starbuck – Contract Support Manager (01698 520 704) Executive Summary The purpose of this report is to seek homologation of the decision taken by the Deputy Chief Executive to award the Contract for UPVC Door and Window Repairs and Maintenance 2022- 2026 HO WN 21 037/ NLC-CPT-21-045 (the ‘Contract’) to Walker Profiles Limited and it was necessary, due to the end of the tender evaluation date and committee cycle dates, to award the contract under section 23.3.2 of the Council’s General Contact Standing Orders. The Contract is for an initial period of 20 months, commencing on 23rd May 2022. The Council reserves the right to extend the Contract for additional periods, up to a maximum of a further 24 months. The value of the Contract shall not exceed Seven Million Five Hundred Thousand Pounds Sterling (£7,500,000.00) exclusive of VAT. Recommendations To homologate the decision taken by the Deputy Chief Executive to award a Measured Term contract to Walker Profiles Limited at the maximum value of Seven Million Five Hundred Thousand Pounds Sterling (£7,500,000.00) 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. The Plan for North Lanarkshire
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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 with Walker Profiles Limited, the final contract extension period ends on 22nd May 2022. The Contract detailed within this report will commence on 23rd May 2022, this commencement date is 3 months earlier than the commencement date stated in the ITT. 1.2. This procurement is an above GPA threshold regulated procurement and has been discharged as a single-stage procurement process. 1.3. The incumbent contractor is Walker Profiles Limited. 1.4. This is the renewal of an existing contract which was approved at committee 10/05/2018. 1.5. A single lot approach was selected due the associated ease of contract implementation and efficiencies in contract management. 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. The contract opportunity was published on the Public Contracts Scotland and the UK Find a Tender (FTS) website with a “Open” procurement procedure adopted. 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. The single award stage tender response was assessed and then the selection stage response was assessed for compliance that this met the published minimum selection stage criteria. 2.4 The tender submitted by Walker Profiles Limited has been evaluated as representing the most economically advantageous tender for this Contract, due to this being the only tender received in competition in an open tender exercise. The current contract had attracted two tenders in 2018, the second tenderer did not submit a bid on this occasion.
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2.5 The Contract award recommendation is made on the basis of the tenderer who submitted the most economically advantageous tender. 2.6 The maximum value of the contract is Seven Million Five Hundred Thousand Pounds (£7,500,000.00) exclusive of VAT including any option to extend the Contract. 2.7 The costs associated with contract delivery will be contained within the HRA Revenue Budget set for each financial year of the Contract period. 2.8 Appendix 1 confirms the scoring achieved, further details of the procurement procedure is provided in Appendix 2, and the SME status and location of the tenderer is located within Appendix 3. Price Savings / Increases/ Stability 2.9 Contract pricing is fixed from the contract start date on 23 May 2022 until 1 January 2023. Thereafter, prices will be adjusted annually by the application of the RICS BCIS All-in Tender Price Index. 2.10 The £7,500,000 maximum contract value, (approx. £2,000,000 per year, including all optional extension periods), was confirmed in May 2021 by the SRO. The maximum value was based on the current contract spend (£1.6M per year average July 2018 - Feb 2022) with a 25% contingency allowance to cover, • Inflation • COVID-19 restrictions lifting, allowing more work to be completed, and • contingency to cover material price increases which the incumbent contractor had highlighted as an issue in early 2021. Community Benefits 2.11 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. 2.12 Within their tender, Walker Profiles Limited committed to deliver the following community benefits within the contract: Community Benefit Type Quantity Committed New Entrants – Key priority Groups 1 New Start - Apprentice 1 Work Experience Placement (16 + years of age) 1 Financial Support for a Community Project 1 Non-Financial Support for a Community Project 1
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The community benefits delivered as part of the Contract includes the creation of jobs or apprenticeships. Fair Work First 2.13 Within their tender submission, Walker Profiles Limited advised that they will commit to the following areas of the Scottish Government “Fair Work First” initiative: • Accredited Living Wage Employer - all employees involved in this contract will be paid the ‘Living Wage’ as a minimum • Will observe the rules under the ‘Working Time Directive • A transparent pay system will be deployed on this framework/contract, free from any gender, race, religion, sexual orientation bias • Will offer flexible working hours on this contract to accommodate wider work-life balance and family • Provide equal opportunities to employees, adhering to the Equality Act 2010 • Carry out a training gap analysis, identifying training needs relevant to not only this contract but the individual’s desires i.e. multi-skilled • Will never use ‘zero-hour’ contracts for any directly employed staff and promote this approach to supply chain partners • Recognise the right of all employees to be members of Trade Unions, and has a positive record of industrial relations with staff and their appropriate union • Will not tolerate modern slavery or human trafficking in its supply chains or in any part of its business Contract Strategy 2.14 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 award will deliver the following: 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
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Appendix 1 - Summary of Tender Evaluation Process Appendix 2 - Summary of Procurement Process Appendix 3 - SME status and location of all Tenderers Brian Lafferty Head of Business (Housing Property and Projects)
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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. The Council will continue to carry out equality impact assessments to determine if policies, practices, decisions, functions and strategies identify any negative impact on any particular group covered by the protected characteristics of the Equality Act 2010 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? N/A 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?
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Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? N/A 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? N/A 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? 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 ☐
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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 conditions encourage sustainable and safe environment; promote health and wellbeing; safe removal and disposal of materials. The contractor is BS EN ISO 14001 (or equivalent) and BS EN ISO 9001 (or equivalent) accredited and 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? 5.9.1 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. 5.9.2 Health and Safety Risk The proposed contractor is required to be UKAS (BS EN ISO 45001) Accredited (or equivalent) and provided appropriate evidence of their accreditation. 5.9.3 Contract Award during COVID-19 Restrictions The Contract will be awarded in accordance with the Council’s General Contract Standing Orders and Legal and Procurement advice will be sought and adhered to with regards to commencing the Contracts whilst COVID-19 restrictions are in place or being reviewed. Risk of awarding the Contract during the current conditions will be identified and mitigated where possible.
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5.9.4 Furthermore, the Council may develop a Contract Mobilisation Plan with the successful Tenderer which shall take cognisance of the current COVID-19 precautions. Any changes to restrictions will be closely monitored.
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Appendix 1 – Summary of Tender Evaluation Process In the Award Stage, the tenderer price score was added to the quality scores to obtain the final tender score. Only the first ranking tenderer from Award Stage would undergo Selection Stage evaluation. Details are contained in the tables below. Table 1: Stage 1 – Award Stage Evaluation Outcome Final Rank Tenderer Name Total Tender Score (%) Recommended for Contract Award (Y / N) 1 Walker Profiles Limited 88.73 Y 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 = 70) Pass/Fail Walker Profiles Ltd Pass Pass 91.17 Pass Yes
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Appendix 2 – Summary of Procurement Process Contract Title MTC UPVC Door and Window Repairs and Maintenance 2022-2026 - HO WN 21 037/ NLC-CPT-21-045 Procurement Procedure Utilised: Open Procedure Governing Legislation / Regulations: Public Contracts (Scotland) Regulations 2015 Date Contract Notice Published: 13 December 2021 Total Expressions of Interest Received: 14 SME % of Expressions of Interest: 92% NLC Based % of Expressions of Interest: 23% Tender Return Deadline: 18 February 2022 Number of Tenders Received: 1 Tenders Received from SME’s: 1 Tenders Received from NLC Based Tenderers: 1 Number of Non−compliant Tenders: 0 Number of Compliant Tenders: 1 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: 23 May 2022 Total Contract Period (Months): 20 months plus optional 24 months Maximum Total Contract Value: £7,500,000.00
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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) Walker Profiles Limited Small North Lanarkshire Council