Item 1 - Contract Award - PPM Servicing and Reactive Report
Renfrewshire Council · 12 September 2024
Back to Finance, Resources and Customer Services Policy Board — 12 September 2024 and its agenda
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___________________________________________________________________ To: Finance, Resources and Customer Services Policy Board On: 12 September 2024 ___________________________________________________________________ Report by: The Director of Finance and Resources and the Director of Environment, Housing and Infrastructure ___________________________________________________________________ Heading: Contract Award: Planned Preventative Maintenance, Servicing and Reactive (Un-Planned) Maintenance to Sheltered Housing Buildings Heating Systems (RC-CPU-23-152) ___________________________________________________________________ 1. Summary 1.1 The purpose of this report is to seek the approval of the Finance, Resources and Customer Services Policy Board to award a Services Contract for Planned Preventative Maintenance, Servicing and Reactive (Un-Planned) Maintenance to Sheltered Housing Buildings Heating Systems (RC-CPU-23-152) to Alba Facilities Services Ltd. 1.2 The recommendation to award the Contract follows a procurement exercise conducted in accordance with the Public Contracts (Scotland) Regulations 2015 and the Council’s Standing Orders Relating to Contracts 1 January 2024 for a services contract above Government Procurement Agreement (GPA) Threshold, utilising the Open Procedure. 1.3 A Contract Strategy was approved the Corporate Procurement Manager, Head of Facilities and Property Services and the Director of Environment, Housing and Infrastructure in June 2024. ___________________________________________________________________
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2. Recommendations It is recommended that the Finance, Resources and Customer Services Policy Board: (a) Authorises the Head of Corporate Governance to award a Services Contract in the form of the SBCC Measured Term Contract for use in Scotland, MTC/Scot (2011 Edition) incorporating the Employer’s Amendments for Planned Preventative Maintenance, Servicing and Reactive (Un- Planned) Maintenance to Sheltered Housing Buildings Heating Systems reference RC-CPU-23-152 to Alba Facilities Services Ltd.; (b) Authorises the approved contract value of up to £700,000.00 excluding VAT for the Contract Period, including any use of any extension periods, for Orders issued under this Contract; (c) Authorises a Contract Period of 3 years with an option to extend for a period of up to 12 months and up to a further 12 months thereafter, the commencement date is 17 October 2024 and shall be confirmed in the Letter of Acceptance; and (d) Notes the award of this Contract requires the provision of a Data Processor Agreement as indicated within the tender documentation. _________________________________________________________ 3. Background 3.1 A central requirement of the Environment, Housing and Infrastructure Service is to ensure that statutory legislative requirements are being met to ensure that Council operated properties, facilities and assets are properly maintained in line with the relevant legislation. 3.2 The Council’s estate has a large number of properties which includes sheltered housing complexes. These properties and complexes are subject to a range of different maintenance requirements, upgrades and alterations. 3.3 The Council has the requirement to appoint a specialist qualified contractor to carry out the Planned Preventative Maintenance and emergency call-out maintenance and Reactive Repairs, including out- of-hours, to seven gas fired communal heating sheltered housing complexes. The Contractor will also be required to fully service the boiler plant within each complex.
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3.4 To initiate the procurement process a Contract Notice was published on Find a Tender Service issued via Public Contracts Scotland advertising portal on Friday 14 June 2024 with tender documentation available for downloading from Public Contracts Scotland – Tender portal from this date. 3.5 During the live tender period, fourteen organisations expressed an interest in the tender. By the closing date set for the return of electronic tender submissions, 12 noon on Tuesday 16 July 2024, three organisations submitted a tender response, three organisations declined to respond, and eight organisations did not respond. 3.6 Tenderers were required to complete a Single Procurement Document (SPD) to be submitted with their tender submission. All three organisations were evaluated against a pre-determined set of criteria in the form of the SPD by representatives from the following Council Services: Property Services, the Corporate Procurement Unit, Corporate Risk, and Corporate Health & Safety. 3.7 During the Commercial Corrections and Clarifications part of the evaluation period one tenderer withdrew their tender submission. 3.8 The remaining two tender submissions complied with the minimum selection criteria of the SPD. The two tender submissions were each evaluated against the Award Criteria which were based on a weighting of 65% Price, 35% Quality. 3.9 The scores relative to the Award Criteria for each of the tender submissions are noted below: Tenderer Price (65%) Quality (35%) Total Score Alba Facilities Services Ltd. 65.00% 30.75% 95.75% Richard Irvin FM Limited 44.94% 30.25% 75.19% 3.10 The evaluation of tender submissions received identified that the submission by Alba Facilities Services Ltd. is the most economically advantageous tender. 3.11 The form of contract is SBCC Measured Term Contract for use in Scotland, MTC/Scot (2011 Edition) incorporating the Employer’s Amendments.
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3.12 The costs for this Contract will be met from the Housing Revenue Account. 3.13 Community Benefits were requested as part of this procurement exercise and Alba Facilities Services Ltd. confirmed that the following Community Benefits would be made available to the Council for this Contract: Community Benefit Description No of People / Activity Work Experience Placement for an individual 16+ years of age 2 Work Experience Placement for an individual in full time education 2 Business advice/support to a local SME /Social Enterprise/ Voluntary organisation 2 Non-financial support for a Social Enterprise or other approved community initiative 2 ___________________________________________________________________ Implications of the Report 1. Financial – the costs of up to £700,000, excluding VAT, over the 3- year initial contract period plus two 12 month extension periods, will be met through the Housing Revenue Account revenue budget. Note that spend is forecasted at an estimated £140,000 per annum, excluding VAT. The anticipated commencement date is 17 October 2024. 2. HR & Organisational Development - None directly arising from this report. 3. Community/Council Planning – Our Renfrewshire is thriving – Maximising economic growth, which is inclusive and sustainable. Our Renfrewshire is well - Supporting the wellness and resilience of our citizens and communities. Our Renfrewshire is fair - Addressing the inequalities which limit life chances. Our Renfrewshire is safe - Protecting vulnerable people and working together to manage the risk of harm. Place: - Delivering those strong universal services, we all receive, and all rely on like - safe roads, clean and well-lit streets, efficient waste and recycling - making Renfrewshire a great place to live.
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Economy: - Improving lives and securing wellbeing through a stronger, inclusive and sustainable economy, being creative, imaginative and linking opportunities to enhance the benefits for Renfrewshire. - Creating sustainable employment opportunities for people who live in Renfrewshire, attracting good employers to the area and encouraging growth of businesses already operating here, ensuring that all people can benefit from the inclusive growth in Renfrewshire. - Supporting our citizens, particularly those furthest from the jobs market, into fair work – well paid, fulfilling employment. - Matching the skills developed in Renfrewshire with the opportunities available in Renfrewshire and equipping all children and young people to achieve success in life. Fair: - Reducing inequalities. - Supporting improved health and wellbeing for our citizens. - Protecting vulnerable people. Green: - Working across partners and communities to deliver the priority area highlighted in our Plan for Net Zero, working towards a net zero Renfrewshire by 2030. - Protecting and enhancing nature in Renfrewshire and encouraging equal access to opportunities to enjoy nature across all people and communities. Living our Values: - Sharpening the focus of our organisation to ensure future financial sustainability. - Ensuring Renfrewshire Council delivers Best Value for our citizens and customers, that we are a well governed, effective organisation. 4. Legal – The Procurement of this Contract was conducted in accordance with the requirements of the Council Standing Orders Relating to Contracts 1 January 2024 and The Public Contracts (Scotland) Regulations 2015 for a Services Contract.
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5. Property/Assets - is to ensure that statutory legislative requirements are being met to ensure that Council operated properties, facilities and assets are properly maintained in line with the legislation. 6. Information Technology - None directly arising from this report. 7. Equality & Human Rights – None directly arising from the recommendations contained in the report. 8. Health & Safety – Alba Facilities Services Ltd health and safety credentials were evaluated by Corporate Health and Safety and met the Council’s minimum requirements regarding health and safety. 9. Procurement – The procurement procedures outlined within this report ensures that the Council meets its statutory requirements in respect of procurement procedures, efficiency, and modern Government. 10. Risk – Alba Facilities Services Ltd. insurances have been assessed and evaluated to confirm that they meet the requirements regarding insurance risk. 11. Privacy Impact - A Data Processor Agreement will be in place between Renfrewshire Council and Alba Facilities Services Ltd. 12. Children’s Rights – None arising directly from this report. 13. Climate Risk – The level of impact associated with provision of these services have been assessed using the Scottish Government Sustainability Test and is considered High Risk. To mitigate against the High Risk impact, the contractor is ISO 14001 accredited Environmental Management System. The Contractor will also: - Provide bespoke reports of their Scope 1, 2 & 3 emissions which includes the environmental initiative work they do for Renfrewshire Council. - Monitor all gas, electric and water consumption within all properties to ensure they are on track to meet Renfrewshire’s sustainability goals. - Work to achieve net zero for Scope 1 and 2 by 2025. - committed to a programme to offset the carbon produced. This includes investing £5,000 per year in tree planting north of Scotland, which offsets 250 tonnes of C02 as set out in the below table for Scope 1 & 2:
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The Contractor waste and sustainability initiatives include: - All waste resulting from operations is separated and any equipment that is in a viable condition is either retained for future use or passed onto charities for reuse. - Any redundant materials from a client’s premises (e.g. air con units, boilers, pipework etc.) are removed by the team and passed to their Waste Management partner for processing and separation into recyclable components. - Ensuring any non-electric vehicles meet Euro-6 emissions standards. - Purchase all electricity via a renewable energy contract. - Replaced all gas appliances within the office with air-sourced heat pumps. - Replaced all office lighting with motion-controlled LED lighting. - Replacing our remaining fleet of diesel vehicles with hybrid or electric (as soon as possible). 14. Cosla Policy Position – None directly arising from this report. _____________________________________________________ List of Background Papers (a) None ___________________________________________________________________ Author: Kevin Milliken, Acting Senior Procurement Specialist, Corporate Procurement Unit, kevin.milliken@renfrewshire.gov.uk. 2019 2022 2024 2025 TCO2E Produced 443 312 250 225 CO2 Off Setting 0 0 250 250 Net CO2 443 312 0 -25