Contract Award for Measured Term Contract- Bitumen Macadam (Bitmac) Repairs 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 MS 21 062; NLC-CPT-21-105 Date: 31 August 2022 Contract Award for Measured Term Contract: Bitumen Macadam (Bitmac) Repairs 2022-26 From Brian Lafferty, Head of Business (Housing Property and Projects) E-mail starbucks@northlan.gov.uk Telephone Siobhan Starbuck – Contract Support Manager – via MS Teams 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 the Measured Term Contracts for Bitumen Macadam (Bitmac) Repairs 2022-26 HO MS 21 062; NLC-CPT-21-105 (the ‘Contract’) to John McGeady Ltd (Lot 1 Corporate) and Hillhouse Quarry Group Ltd TA MacAsphalt (Lot 2 Housing) 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 Standing Orders. The Contracts are for an initial period of 18 months anticipated to commence on 1 August 2022 (Lot 1) and 24 July 2022 (Lot 2). The Council reserves the right to extend the Contracts for additional periods up to a maximum of a further 24 months. The overall value of the Contract shall not exceed Six Million Seven Hundred Thousand Pounds Sterling (£6,700,000) exclusive of VAT. • Lot 1 (Corporate) up to a maximum of Two Million Eight Hundred Thousand Pounds Sterling (£2.8m) exclusive of VAT (including extension period) • Lot 2 (Housing) up to a maximum of Three Million Nine Hundred Thousand Pounds Sterling (£3.9m) exclusive of VAT (including extension period) Recommendations To homologate the decision taken by the Deputy Chief Executive to award the Contracts to: • Lot 1 (Corporate) up to a maximum of Two Million Eight Hundred Thousand Pounds Sterling (£2.8m) exclusive of VAT (including extension period) • Lot 2 (Housing) up to a maximum of Three Million Nine Hundred Thousand Pounds Sterling (£3.9m) exclusive of VAT (including extension period)
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This recommendation follows the completion of a procurement procedure, where the tenders recommended for award have been evaluated as providing the most economically advantageous tenders in terms of cost and quality for the Council. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition Statement (17) Ensure we keep our environment clean, safe, and attractive 1. Background 1.1 The incumbent contractors for this work are; • Lot 1 (Corporate) Maclay Civil Engineering Ltd. This contract is due to expire on 31 July 2022 • Lot 2 (Housing) Hillhouse Quarry Group Ltd TA MacAsphalt. This contract is due to expire on 23 July 2022 1.2 This procurement is an above GPA Threshold Regulated Procurement and has been discharged as a single-stage procurement process. 1.3 This is the renewal of an existing contract which was approved at September 2021 Housing and Regeneration Committee 1.4 A two lot approach was selected due to 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. 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(s), their selection stage responses were assessed in more detail to ensure they satisfied the minimum selection stage criteria applied.
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2.4 The Contract award recommendation is made on the basis of the tenderers who submitted the most economically advantageous tenders. 2.5 The tender(s) submitted below have been evaluated as representing the most economically advantageous tenders for this Contract; • Lot 1 (Corporate) John McGeady Ltd • Lot 2 (Housing) Hillhouse Quarry Group Ltd TA MacAsphalt 2.6 Appendices 1 and 3 confirm the scoring achieved by each tenderer on each of the lots, further details of the procurement procedure are provided in Appendices 2 and 4 and the SME status and location of all tenderers is located within Appendix 5. 2.7 The value of the Contract for each lot is; • Lot 1 (Corporate) up to a maximum of Two Million Eight Hundred Thousand Pounds Sterling (£2.8m) exclusive of VAT (including extension period) • Lot 2 (Housing) up to a maximum of Three Million Nine Hundred Thousand Pounds Sterling (£3.9m) exclusive of VAT (including extension period) 2.8 The costs associated with contract delivery will be contained within the HRA Revenue Budget for set for each financial year of the Contract period. Price Savings / Increases 2.9 Contract pricing is fixed until December 2022. Thereafter, prices will be adjusted annually by the application of the RICS BCIS General Civil Engineering Cost Index. Price Stability 2.10 Schedule of Rates with prices for adjustment by overall percentage and annual 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, John McGeady Ltd and Hillhouse Quarry Group Ltd TA MacAsphalt committed to deliver the following community benefits within the Contract: Community Benefit Type Quantity Committed Lot 1 (Corporate) John McGeady Ltd New Job for an Apprentice from a Priority Group 1 Work Experience Placement for an individual16+ years of age 2
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Business Mentoring and Advice to support to an SME / Social Enterprise / Voluntary organisation 2 Business Event / Briefing to promote supply chain opportunities 2 Non-financial Support for a Community Project / Organisation 1 Lot 2 (Housing) Hillhouse Quarry Group Ltd TA MacAsphalt New Job for an Individual not from a Priority Group 2 New Job for an Apprentice from a Priority Group 2 2.11.3 The community benefits delivered as part of the Contract includes the creation of jobs or apprenticeships for both Lots. Fair Work First 2.12 Within their tender submissions, both tenderers advised that they would commit to the following areas of the Scottish Governments “Fair Work First” initiative: Lot 1 (Corporate) John McGeady Ltd • Living Wage accredited • A transparent pay system will be deployed on this contract, free from any gender, race, religion, sexual orientation bias • Offers 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 • Do not use ‘zero-hour’ contracts Lot 2 (Housing) Hillhouse Quarry Group Ltd TA MacAsphalt • Pay policy supporting the Scottish Living Wage, are Living Wage Accredited Employer • Maintain and promote an Inclusive workforce which reflects the population of Scotland in terms of age, gender, race and disability • Gender balance and wider representative workforce • Maintains a diverse workforce from the UK, Czech Republic, Poland, Ireland, Ghana & New Zealand • No Zero hour or Sessional contracts • Flexible working and supportive of a wider work life balance • Family friendly policies & Career breaks • Provide arrangements to give staff a voice • Promoting workplace innovation and inclusion • Regular staff forums to provide a platform for employees to raise queries direct with senior management • Clear managerial responsibility in nurturing talent • Commitment to Modern Apprenticeships
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• Support for learning and development, are supportive of further education opportunities for employees Contract Strategy 2.13 Officers from Corporate Repairs and Maintenance and Housing Property and Projects will be responsible for managing Lot 1 and Lot 2 respectively of 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 the procurement procedure is compliant with procurement legislation and internal procedures; 3.3 that Best Value is both demonstrable and achieved; and 3.4 that the Contracts secure a range of Community Benefits. 4. Supporting documents Appendix 1 Summary of Tender Evaluation Process Lot 1 (Corporate) Appendix 2 Summary of Procurement Process Lot 1 (Corporate) Appendix 3 Summary of Tender Evaluation Process Lot 2 (Housing) Appendix 4 Summary of Procurement Process Lot 2 (Housing) Appendix 5 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? The costs associated with contract delivery will be contained within the HRA Capital budget. 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? N/A
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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? N/A 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 ☒
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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? N/A 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. 5.9.1 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. 5.9.2 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. 5.9.3 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 – Lot 1 (Corporate) 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 Outcome Final Rank Tenderer Name Total Tender Score (%) Recommended for Contract Award (Y / N) 1 John McGeady Ltd 94.69 Y 2 Hillhouse Quary Group Ltd TA MacAsphalt 55.04 N 3 JH Civil Engineering Ltd -3.63 N 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 John McGeady Ltd Pass Pass 72.27 Pass Yes
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Appendix 2 – Summary of Procurement Process – Lot 1 (Corporate) Response Procurement Procedure Utilised: Open Procedure Governing Legislation / Regulations: Public Contracts (Scotland) Regulations 2015 Date Contract Strategy Approved: 10 November 2021 Date Contract Notice Published: 17 November 2021 SME % of Expressions of Interest: 91.67% NLC Based % of Expressions of Interest: 16.67% Tender Return Deadline: 17 December 2021 Number of Tenders Received: 3 Tenders Received from SME’s: 3 Tenders Received from NLC Based Tenderers: 1 Number of Non−compliant Tenders: 0 Number of Compliant Tenders: 3 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: 01 August 2022 Total Contract Period (Months): 18 months plus up to a maximum of 24 months (in 3-month periods) Maximum Total Contract Value: £2.8m
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Appendix 3 – Summary of Tender Evaluation Process – Lot 2 (Housing) 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 Outcome Final Rank Tenderer Name Total Tender Score (%) Recommended for Contract Award (Y / N) 1 Hillhouse Quarry Group Ltd TA MacAsphalt 96.75 Y 2 JH Civil Engineering Ltd 73.22 N John McGeady 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 = 70) Pass/Fail Hillhouse Quary Group Ltd TA MacAsphalt Pass Pass 74.43 Pass Yes
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Appendix 4 – Summary of Procurement Process – Lot 2 (Housing) Response Procurement Procedure Utilised: Open Procedure Governing Legislation / Regulations: Public Contracts (Scotland) Regulations 2015 Date Contract Strategy Approved: 10 November 2021 Date Contract Notice Published: 17 November 2021 SME % of Expressions of Interest: 91.67% NLC Based % of Expressions of Interest: 16.67% Tender Return Deadline: 17 December 2021 Number of Tenders Received: 3 Tenders Received from SME’s: 3 Tenders Received from NLC Based Tenderers: 1 Number of Non−compliant Tenders: 1 Number of Compliant Tenders: 2 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: 01 August 2022 Total Contract Period (Months): 18 months plus up to a maximum of 24 months (in 3-month periods) Maximum Total Contract Value: £3.9m
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Appendix 5 – SME Status and location of all Tenderers – Lot 1 (Corporate) & Lot 2 (Housing) Name of Tenderer Size of Tendering Organisation (Micro, Small, Medium or Large) Location (Local Authority / Council Area) J H Civil Engineering Ltd Medium North Lanarkshire Hillhouse Quarry Group Ltd TA MacAsphalt Medium Renfrewshire John McGeady Ltd Small South Lanarkshire