Contract for Approval - Retrofit of Sprinklers and Associated Works - Phase 3 - 4 No Tower Blocks, North Lanarkshire
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 NLC-SLP-22-009 (HO TB 22 027) Date 31/08/22 Contract Award for Retrofit of Sprinklers and Associated Works – Phase 3 – 4 No Tower Blocks, North Lanarkshire 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 1. Background Executive Summary Committee is asked to approve the award of a contract for “Retrofit of Sprinklers and Associated Works – Phase 3 – 4 No. Tower Blocks, North Lanarkshire” (the ‘Contract’) to Harmony Fire Limited. The Contract is anticipated to commence in November 2022 for 47 weeks. The value of the Contract is Two Million Two Hundred and Seventy-Six Thousand Three Hundred and Five Pounds and 18 pence (£2,276,305.18) exclusive of VAT. Recommendations It is recommended that Committee approves the award of the Contract to Harmony Fire Limited in the value of Two Million Two Hundred and Seventy-Six Thousand Three Hundred and Five Pounds and 18 pence (£2,276,305.18) 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 economic opportunities and outcomes Ambition statement (14) Ensure the highest standards of public protection
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1.1 The requirements of the Contract have never been contracted before by the Council therefore historical contract information is not available. 1.2 The procurement is for the provision of Phase 3 Retrofit of Sprinklers and Associated Works at Four North Lanarkshire Tower Blocks. 1.3 This procurement was carried out as a single lot. 1.4 This procurement is a below GPA threshold regulated procurement and has been discharged as a single-stage procurement process. 1.5 This is a stand-alone procurement and therefore there is no incumbent contractor for the works. 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 Procurement (Scotland) Regulations 2016. The contract opportunity was published on the Public Contracts Scotland with an Open procurement procedure adopted. 2.3 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. Award stage responses were evaluated first, then the most economically advantageous tender was taken forward to selection stage to ensure the tender satisfied the minimum selection stage criteria applied. 2.4 The Contract award recommendation is made on the basis of the bidder who submitted the most economically advantageous tender. 2.5 The tender submitted by Harmony Fire Limited has been evaluated as representing the most economically advantageous tender for this Contract. 2.6 Appendix 1 confirms the scoring achieved by each bidder, further details of the procurement procedure is provided in Appendix 2 and the SME status and location of all bidders is located within Appendix 3. 2.7 The value of the Contract is Two Million Two Hundred and Seventy-Six Thousand Three Hundred and Five Pounds and 18 pence (£2,276,305.18) exclusive of VAT.
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2.8 The costs associated with contract delivery will be contained within the HRA Revenue budget set for each financial year of the Contract period. Price Savings / Increases 2.9 Not applicable. Price Stability 2.10 Contract Pricing is fixed for the duration of the contract. 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 Harmony Fire Limited committed to deliver the following community benefits within the Contract: Community Benefit Type Quantity Committed Job for an Individual from a Priority Group 1 Modern Apprenticeships 1 Work Experience Placement (16+ Year Olds) 1 Educational Visits 3 Financial Support for the Community 2 Non-Financial Support for the Community 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, Harmony Fire Limited advised that they would commit to the following areas of the Scottish Governments “Fair Work First” initiative: • Living Wage accredited • Provide arrangements to give staff a voice • Support for learning and development, are supportive of further education opportunities for employees • No Zero hour contracts • Flexible working and supportive of a wider work life balance • Gender balance and wider representative workforce • support staff equality, diversity and inclusion
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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 Council’s agreed approach to contract and supplier management. 3. Measures of success It is anticipated that the award of the Contract will deliver the following successful 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 contract secures a range of community benefits. 4. Supporting documentation Appendix 1 Summary of Tender Evaluation Process Appendix 2 Summary of Procurement Process Appendix 3 SME status and location of all Bidders 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 ☐
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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? 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 ☐
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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 a sustainable and safe working environment; promote health and wellbeing, safe removal and disposal of materials The proposed contractor is 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? 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? 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 UKAS (BS EN ISO 45001) Accredited and has provided appropriate evidence of their accreditation. 5.9.3 Contract Award ( COVID-19 Considerations) 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 as required in relation to commencing the Contract whilst COVID-19 restrictions remain in place and/ or are being reviewed. Risk of awarding the Contract whilst any COVID- 19 restrictions remain in place will be identified and mitigated where possible. 5.9.4 Furthermore, the Council may develop a Contract Mobilisation Plan with the successful
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Bidder which shall take cognisance of any COVID-19 precautions in place, any changes to restrictions will be closely monitored.
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Appendix 1 – Summary of Tender Evaluation Process In the Award Stage, Bidders price scores were added to their quality scores to obtain their final tender scores. Only the first ranking bidder from Award Stage underwent Selection Stage evaluation. Details are contained in the tables below. Table 1: Stage 1 – Award Stage Evaluation Outcome Final Rank Bidder Name Total Tender Score (%) Recommended for Contract Award (Y / N) 1 Harmony Fire Limited 88.72 Y 2 Easy Heat Systems Limited 83.61 N 3 Vipond Fire Protection Limited 79.01 N Table 2: Stage 2 – Selection Stage Evaluation Outcome Bidder 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 Harmony Fire Limited Pass Pass 64.40 Pass Yes
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Appendix 2 – Summary of Procurement Process Contract Title Response Procurement Procedure Utilised: Open Procedure Governing Legislation / Regulations: The Procurement (Scotland) Regulations 2016 Date Contract Strategy Approved: 27 April 2022 Date Contract Notice Published: 29 April 2022 SME % of Expressions of Interest: 100% NLC Based % of Expressions of Interest: 0% Tender Return Deadline: 15 June 2022 Number of Tenders Received: 3 Tenders Received from SME’s: 3 Tenders Received from NLC Based Bidders: 0 Number of Non−compliant Tenders: 0 Number of Compliant Tenders: 3 Number of Recommended Bidders: 1 Basis of Contract Award: Quality: 40% Price: 60% Evaluation Team: Staff from Housing Property and Projects and external consultant Anticipated Contract Start Date: November 2022 Total Contract Period: 47 weeks Maximum Total Contract Value: £2,276,305.18
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Appendix 3 – SME Status and location of all Bidders Name of Bidder Size of Tendering Organisation (Micro, Small, Medium or Large) Location (Local Authority / Council Area) Harmony Fire Limited Medium Fife Vipond Fire Protection Limited Medium South Lanarkshire Easy Heat Systems Limited Small Perth