Democracy Spraffa

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

Text extracted from the council's PDF. Layout and reading order may differ from the original.

Original council PDF · Download plain text

Page 1

___________________________________________________________________
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.
___________________________________________________________________

Page 2

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.

Page 3

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.

Page 4

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