17 - Final Report - Scottish Procurement Framework Agreement for the Supply of Natural Gas
Renfrewshire Council · 3 April 2025
Back to Finance, Resources and Customer Services Policy Board — 3 April 2025 and its agenda
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___________________________________________________________________ To: Finance, Resources and Customer Services Policy Board On: 3 April 2025 ___________________________________________________________________ Report by: The Director of Finance and Resources and the Director of Environment, Housing and Infrastructure ___________________________________________________________________ Heading: Contract Authorisation Report for Scottish Procurement Framework Agreement for the Supply of Natural Gas ___________________________________________________________________ 1. Summary 1.1 The purpose of this report is to inform the Finance, Resources and Customer Services Policy Board of the new collaborative Scottish Procurement Framework Agreement for the Supply of Natural Gas established by Scottish Procurement (Scottish Procurement is part of the Scottish Government and acts on behalf of Scottish Ministers to implement procurement policies and processes), and to note the Council’s estimated annual spend under this Framework. The Council’s gas requirements are procured via this Framework. 1.2 The new Scottish Procurement Framework Agreement for the Supply of Natural Gas period is from 1 April 2024 to 31 March 2027 (with Scottish Procurements options for a further three annual extensions to 31 March 2030). The Council’s Call-Off Contract starts on 1 April 2025 to 31 March 2027 (with options for a further three annual extensions to 31 March 2030). This is a Sole Supplier Framework, and the appointed provider is TotalEnergies Gas and Power Limited. ___________________________________________________________________
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2. Recommendations It is recommended that the Finance, Resources and Customer Services Policy Board: 2.1 notes the contents of this Report. 2.2 notes that the Council’s annual spend for gas under this Scottish Procurement Framework Agreement for the Supply of Natural Gas is estimated to be £2.5 million, excluding VAT. The total estimated spend under this Call-Off Contract (including the extension periods) is £13 million, excluding VAT. _________________________________________________________ 3. Background 3.1 Scottish Procurement formally known as Procurement Scotland was launched in March 2008 with a remit of developing and implementing procurement strategies for national commodities on behalf of all Scottish public bodies. 3.2 Scottish Procurement is the delegated third party who acts on behalf of Scottish Public Bodies through an Agency Agreement to ensure the cost-effective procurement of gas supplies. The existing Agency Agreement in place between Renfrewshire Council and the Scottish Ministers, which allowed the Scottish Procurement and Commercial Directorate to place any Call-Off Contract on the Council’s behalf under a relevant framework agreement was signed by the Chief Executive on behalf of Renfrewshire Council on 13 March 2012. 3.3 The previous Scottish Procurement Framework Agreement for the Supply of Natural Gas for the Scottish public sector expired on 31 March 2024. This recently expired framework agreement was a sole supplier framework with TotalEnergies Gas and Power Limited as the appointed provider. From 2022/23 to date, the Council has spent £8.6 million on the supply of gas under the previous framework agreement. 3.4 Following the award of the new Scottish Procurement Framework Agreement for the Supply of Natural Gas, the Framework period was live from 1 April 2024 to 31 March 2027 with the Scottish Ministers option to extend for up to 3 years to 31 March 2030 in single year extensions, with public sector access from 1 April 2025. 3.5 The Council’s Call-Off Contract starts on 1 April 2025 to 31 March 2027, (with options for a further three annual extensions to 31 March 2030). This is a Sole Supplier Framework, and the appointed provider is TotalEnergies Gas and Power Limited.
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3.6 Scottish Procurement, on behalf of Renfrewshire Council, will sign a Supply Contract with TotalEnergies Gas and Power Limited. There are three agreements which form part of these contractual commitments: 1. Scottish Procurement Framework Agreement for the Supply of Natural Gas SP-23-03 between Scottish Procurement and TotalEnergies Gas and Power Limited. 2. Agency Agreement between Scottish Procurement and Renfrewshire Council. 3. Supply Contract Call-off Contract between Renfrewshire Council and TotalEnergies Gas and Power Limited. ___________________________________________________________________ Implications of the Report 1. Financial – The estimated forecasted spend of this Call-Off Contract over the period including extensions 1 April 2025 to 31 March 2030 is £13 million, excluding VAT. 2. HR & Organisational Development – None directly arising from this report. 3. Community/Council Planning – None directly arising from this report. 4. Legal – There is a pre-existing Agency Agreement (The Scottish Procurement Agency Agreement relating to the supply of Electricity & Natural Gas between Renfrewshire Council and The Scottish Ministers) which details the level of authority granted to Scottish Procurement by Renfrewshire Council to act on its behalf in awarding these types of supply contract. 5. Property/Assets – None directly arising from this report. 6. Information Technology – None directly arising from this report. 7. Equality & Human Rights – None directly arising from this report. 8. Health & Safety – None directly arising from this report. 9. Procurement – The procurement procedures outlined within this report were undertaken by Scottish Procurement who would have ensured that statutory requirements were met in respect of procurement procedures. The Council’s Procurement department were not involved in this purchase.
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10. Risk – This would have been assessed and evaluated by Scottish Procurement at Framework level and confirmed that they meet the minimum requirements. 11. Privacy Impact – None directly arising from this report. 12. Climate Risk – Scottish Procurement confirmed that they carried out a sustainability test at framework level. 13. Children’s Rights – None directly arising from this report. 14. Cosla Policy Position – None directly arising from this report. _______________________________________________________ List of Background Papers (a) None ___________________________________________________________________ Author: Brad Cooper, Procurement Assistant, Corporate Procurement Unit, brad.cooper@renfrewshire.gov.uk