Contract Award for Supply and Fit of Tyres for Vehicles and Plant
North Lanarkshire Council · 24 August 2022
Back to Environment and Place Committee — 24 August 2022 and its agenda
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North Lanarkshire Council Report Environment and Place Committee Does this report require to be approved? ☒ Yes ☐ No Ref: AMcP/LO Date: 24 August 2022 Contract Award for Supply & Fit Tyres for Vehicles & Plant From Andrew MacPherson, Head of Regulatory Service and Waste Solutions E-mail Oneillly@northlan.gov.uk Telephone 07939 280467 Executive Summary Committee is asked to approve the award of a contract for Supply & Fit Tyres for Vehicles & Plant including associated Services (the ‘Contract’) to McConechy’s Tyre Service Limited The Contract is for an initial period of 24 months anticipated to commence on 1 November 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 nine hundred and sixty thousand Pounds Sterling (£960,000.00) exclusive of VAT. Recommendations It is recommended that Committee approves the award of the Contract to McConechy’s Tyre Service Limited at the maximum value of nine hundred and sixty thousand Pounds Sterling (£960,000.00) 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 recommendation is subject to McConechy’s Tyre Service Limited satisfying the Council’s published minimum requirements of the SPD (Scotland) as per section 2.3 below. 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. Background 1.1 The Council requires a single provider for the supply and fit of tyres for its wide range of vehicles and plant including associated services i.e. wheel balancing, alignment etc. Following a review of spend and usage of historical contracts for requirements, the Council was able to identify a “core” list of tyres and associated services which are purchased on an ongoing basis and are classified as high volume. Any additional tyres and associated services required that are not deemed as high volume are classified as “non-core” and a process was created to ensure full pricing coverage. 1.2 The requirements within the Contract are currently under contract with McConechy’s Tyre Service Limited. This contract was a direct award via the Scotland Excel Tyres for Vehicles and Plant (02-21) (the “Framework”) and will expire on 31 October 2022 with the Contract detailed within this report due to supersede it. 1.3 The Framework was created via a six-lot structure with three of the lots covering supply only requirements and the other three lots covering supply and fit requirements for light vehicles, heavy vehicles and plant.. Following discussions with Scotland Excel, it was determined that the Council was unable to utilise the Framework for its future provision as it was not possible to undertake a competition across the multiple lot structure when the Council’s ambition was to appoint a single supplier for all its requirements. 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 in three stages as per below: Stage 1: Compliance Check: The first stage was to ensure tenders submitted were substantially complete, complied with the requirements of the ITT and responses / declarations within SPD (Scotland)* responses indicated that that tender met the Council’s minimum requirements applied within the procurement procedure. Stage 2: Evaluation and Award Stage. The next stage was to evaluate tenders other than those rejected as non-compliant (as per stage 1 above), in order to determine the most economically advantageous tender(s) via an assessment of quality and price responses. Stage3: Request for Documentation: The final stage was to assess responses to the SPD (Scotland) in more detail for those identified as submitting the most economically advantageous tender(s). This process incudes requesting additional evidence, documentation, information etc. to corroborate initial responses to ensure the tender meets the Council’s minimum requirements applied.
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*The SPD (Scotland) is a standard questionnaire that contains questions on both exclusion and selection criteria in terms of business probity, economic / financial status, technical and professional ability and general standards of tenderers. At time of writing, McConechy’s Tyre Service Limited is still undergoing the stage 3 assessment (as above) therefore the recommendation to award the Contract is subject to them meeting the Council’s minimum requirements within the procurement procedure. 2.4 The Contract award recommendation is made on the basis of the tenderer who submitted the most economically advantageous tender in terms of quality and price. 2.5 The tender(s) submitted by McConechy’s Tyre Service Limited has been evaluated as representing the most economically advantageous tender for this Contract. 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 value of the Contract is nine hundred and sixty thousand Pounds Sterling (£960,000.00) exclusive of VAT including any option to extend the Contract. 2.8 The costs associated with contract delivery will be contained within the revenue budget for Fleet Services, Regulatory Services and Waste Solutions. Price Savings / Increases 2.9 Price savings cannot be identified at this point as the requirements for the Contract is service dependent and cannot be projected. Generally the market has seen an increase in costs for the supply of tyres due to supplies primarily being imported from China. Price Stability 2.10 Contracted “core” tyre prices will be fixed for the first 12 months of the Contract and be inclusive of any delivery charges. Subsequent to that initial period, and on an annual basis thereafter, some or all of the prices submitted by McConechy’s Tyre Service Limited may be subject to review. That review under no circumstances will introduce increases greater than the current level at the time of request as determined by the National Retail Price Index. 2.11 Tyres and services deemed as “non-core” where they are not specified in the Pricing Schedule and these shall be subject to the Contractors current pricing lists at the time of ordering, less any non-core discount offered. The Council must always be provided with McConechy’s Tyre Service Limited most current price lists. Non-core tyres will achieve a 10% discount from McConechy’s Tyre Service Limited price lists. 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, McConechy’s Tyre Service Limited committed to deliver the following community benefits within the Contract: Community Benefit Type Quantity Committed New Job for an Apprentice from a Priority Group (Full Time) 1
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Business Mentoring and Advice to support to an SME / Social Enterprise / Voluntary organisation 1 Non-financial Support for a Community Project / Organisation 4 2.11.3 The community benefits delivered as part of the Contract includes the creation of a job for an apprenticeship. Fair Work First 2.12 Within their tender submission, McConechy’s Tyre Service Limited advised that they will commit to the Scottish Governments “Fair Work First” initiative: McConechy’s Tyre Service Limited also offer a company-wide apprenticeship programme with their training partner; recruitment of the right person for the position no matter the ethnic origin and gender; a Flexible Working Policy that offers flexible working patterns to all colleagues, managers proactively encourage, promote and support colleagues to work flexibly. Contract Strategy 2.13 Officers from Fleet Services, Regulatory Services and Waste Solutions 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 A provider who is able to service the Council’s requirements for the supply and fit of the various Tyres for all vehicles and plant types over expanse of the whole Council area with mobile response vehicles able to respond to emergency call outs within 60 minutes of logging a call with the Contractor within the geographical boundary of the Council. 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 Andrew McPherson Head of Regulatory Services and Waste Solutions
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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 Financial Solutions? 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 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 ☒
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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 ☐ 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? 5.8 Communications Impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒
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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? Low impact.
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Appendix 1 – Summary of Tender Evaluation Process Final Rank Tenderer Name Total Tender Score Recommended for Contract Award (Y / N) 1 McConechys Tyre Services limited 97.37% Yes 2 R&J Strang Tyre Services Limited 92.49% No 3 Soltyre Limited 87.20% No 4 Tructyre Fleet Management Limited 75.98% No
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Appendix 2 – Summary of Procurement Process Response Procurement Procedure Utilised: Open Procedure Governing Legislation / Regulations: Public Contracts (Scotland) Regulations 2015 Date Contract Strategy Approved: 06 April 2022 Date Contract Notice Published: 03 May 2022 Total Expressions of Interest Received: 7 SME % of Expressions of Interest: 57% NLC Based % of Expressions of Interest: 14% Tender Return Deadline: 12 Noon, 10 June 2022 Number of Tenders Received: 4 Tenders Received from SME’s: 2 Tenders Received from NLC Based Tenderers: 1 Number of Non−compliant Tenders: 0 Number of Compliant Tenders: 4 Number of Recommended Tenderers: 1 Basis of Contract Award: Quality: 30% Price: 70% Evaluation Team: Staff from Regulatory Services and Waste Solutions and the Corporate Procurement Team Anticipated Contract Start Date: 01 November 2022 Total Contract Period (Months): 24 + 24 Maximum Total Contract Value: £960,000
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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) McConechys Tyre Services Limited Large Glasgow City Council R&J Strang Tyre Services Limited Medium South Lanarkshire Soltyre Limited Medium North Lanarkshire Tructyre Fleet Management Limited Large Gateshead Council