Contract Award for Postal Services
North Lanarkshire Council · 16 March 2023
Back to Policy and Strategy Committee — 16 March 2023 and its agenda
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North Lanarkshire Council Report Policy and Strategy Does this report require to be approved? ☒ Yes ☐ No Ref SP/FT Date 06/02/23 Contract Award for Postal Services From Stephen Penman, Chief Officer (Strategic Communication and Engagement) E-mail penmanste@northlan.gov.uk Telephone 07947997750 1. Background 1.1 Committee will recall previous reports in March 2022 that confirmed the council’s participation and use of Scottish Government’s National Collaborative Framework’s for Postal Services (“National Framework”). 1.2 The current National Framework was established during 2021 and was supported Executive Summary The council requires provision of a variety of mail services on an ongoing basis in order to meet its statutory obligations across a range of service areas. Mail services require to be continuously available to the council with no delay or break. Further to previous reports, the committee is asked to approve the award of a call-off contract for the provision of Postal Services (the “Contract”) to Royal Mail Group Ltd. • Procurement route: use of Scottish Government’s National Collaborative Framework for Postal Services, Lot 1 - one stop shop (Physical, Hybrid, Scheduled Bulk/Planned, Digital Mail • Procurement procedure: call-off by ‘Direct Award’ • Contract Period: 6 months, 1 July 2023 until 31 December 2023 • Estimated Contract Value: Four Hundred and Fifty Thousand pounds Sterling (£450,000) exclusive of VAT. Recommendations It is recommended that committee approves the award of the contract to Royal Mail Group Ltd for 6 months with contract value of Four Hundred and Fifty Thousand pounds Sterling (£450,000) exclusive of VAT. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements
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by officers of the council for specification development and tender evaluation. The National Framework is live for the period 1 July 2021 until 30 June 2025, and it is open for all public bodies in Scotland to use as a procurement route for a range of postal services. 1.3 The National Framework has two lots: • Lot 1 – one stop shop (Physical, Hybrid, Scheduled Bulk/Planned, Digital Mail (single contractor appointed is Royal Mail Group Ltd) • Lot 2 – Hybrid, Scheduled Bulk/Planned (Print & Post), and Digital Mail Services (single contractor appointed is Critiqom) 1.4 The National Framework continues to be the council’s preferred procurement route to contract its postal services. The council’s most recent call-off contract for postal services is in place with Royal Mail Group Ltd until 30 June 2023. 2. Report 2.1 Procurement Process 2.1.1 An internal user intelligence group (the ‘UIG’) of technical and procurement representatives was formed to review technical specifications, discuss mailing procedures and requirements across council service areas, options appraisal on routes to market, ways to maximise community benefits and sustainability, and to agree the procurement strategy that would deliver maximum benefit for the council via the contract. 2.1.2 The initial estimated value of the contract dictates that the procurement procedure be undertaken in accordance with the Public Contracts (Scotland) Regulations 2015. 2.1.3 The National Framework has been determined as the preferred procurement route, particularly since officers from the council were involved in establishing this framework. Furthermore, it secures economies of scale by representing all public bodies’ postal requirements. 2.1.4 The National Framework has two alternative lots, with each having a sole contractor. It is not possible to hold a mini-competition between contractors of different lots, so comparison of each contractor’s solution (commercial and technical) must be completed as desk-based analysis. 2.1.5 While there has been testing of the mail solution offered by Critiqom, it has not been possible to conclude research of compatibility and functionality, however the Critiqom solution remains under consideration as a potential solution for the Council in the near future. Only the one-stop shop solution offered by Lot 1 contractor Royal Mail Group Ltd can provide the immediate stability and known functionality since this is is already fully integrated to the Council’s operations and would not require change to any of the existing mailing procedures. 2.1.6 A 6-month contract period is proposed as this would secure short-term continuity without any disruption to service delivery while providing the Council scope to continue with research, analysis and comparison of postal services available from the Lot 2 contractor. A further report and request for approving a longer-term
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contract award for postal services will be sought through a new report in due course for the next contract that would be required to commence on 1 January 2024. 2.1.7 Based on the recurring requirements for postal services over previous years and application against National Framework’s rates, the UIG determined that the estimated cost of the 6-month contract would be £450,000. 2.1.8 Officers from Corporate Communications 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 3.1 The contract will deliver the following outcomes; • Appointment of a contractor who has the experience and capability to deliver robust postal services which meet the council’s needs • A procurement procedure that is compliant with the procurement legislation and internal procedures • Best value is both demonstrable and achieved 4. Supporting documentation Appendix 1 Summary of Procurement Process Stephen Penman Chief Officer (Strategic Communication and Engagement)
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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? 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 Finance? 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 Resources? 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? 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 significant technology change, has an assessment been carried out (or is scheduled to be carried out) 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? 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 Procurement Process Contract Title Response Procurement Procedure Utilised: Call-off Contract using direct award procedure against Scottish Procurement’s National Collaborative Framework Agreement for Postal Services. Governing Legislation / Regulations: The Public Contracts (Scotland) Regulations 2015 Date Contract Notice Published: Not applicable to this procedure Basis of Contract Award: In conformance with the terms of the Framework Agreement, this contract is made as a Direct award to sole contractor on Framework Lot 1 - one stop shop (Physical, Hybrid, Scheduled Bulk/Planned, Digital Mail. The single Contractor is Royal Mail Group Ltd. Evaluation Team: Officers from within the Council Service Areas Contract Start Date: 01 July 2023 Contract Duration: 6 months Contract Value: £450,000