Democracy Spraffa

5 - Contract Award for the Supply and Delivery of Liquid Fuels

Renfrewshire Council · 8 June 2023
Back to Finance, Resources and Customer Services Policy Board — 8 June 2023 and its agenda

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___________________________________________________________________
To: Finance, Resources and Customer Services Policy Board
On: 8 June 2023
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Report by: The Director of Finance and Resources and the Director of
Environment, Housing and Infrastructure
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Heading: Contract Award: 2 Liquid Fuels Contracts
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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 2 Supply
Contracts for the Supply and Delivery of Liquid Fuels (reference RC-
CPU-22-203) to 
1) Certas Energy UK Limited t/a Scottish Fuels for the supply of
AdBlue, Gas Oil A2 (Red Diesel) and Petrol ULSP; and 
2) Highland Fuels Limited for the supply of Diesel. 
1.2 The recommendation to award these 2 Supply Contracts follows a
procurement exercise conducted as a Further Competition under the
Crown Commercial Services National Fuels 2 Framework Agreement
reference RM6177by the Scottish Government, Scottish Procurement
and Commercial Directorate (“Scottish Procurement”). National
contracts for commercial utilities for water services, electricity, gas and
fuel are tendered by Scottish Procurement for the Scottish public sector
in order to achieve economies of scale for the sector. 
1.3 A Contract Strategy was prepared by the Corporate Procurement Unit
and approved by the Head of Operations and Infrastructure and the
Strategic Commercial and Procurement Manager on 22 February 2023.
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2. Recommendations
It is recommended that the Finance, Resources and Customer Services
Policy Board: 
2.1 Authorise the Head of Corporate Governance to award contracts for the
Supply and Delivery of Liquid Fuels to:
(1) Certas Energy UK Limited t/a Scottish Fuels for the supply of
AdBlue, Gas Oil A2 (Red Diesel) and Petrol ULSP; and 
(2) Highland Fuels Ltd for the supply of Diesel.
Note these contracts (Call-Off Contracts) were created through a
Scottish Procurement Further Competition made under an existing
Crown Commercial Services National Fuels 2 Framework Agreement
reference RM6177. 
2.2 Authorise spend under both these contracts to a value of no more than
£3million pounds (excluding VAT) 
2.3 Note that both Contracts are anticipated to have call off Start Dates of
3rd July 2023, the exact date for each contract will be confirmed in the
respective Order Form.  The Contract end dates will be 31st March
2025.
2.4 Note the award of this Contract is subject to the completion of the
Crown Commercial Services National Fuels 2 Framework Agreement
Order Form.
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3. Background
3.1  National contracts for commercial utilities for water services, electricity,
gas and fuel are tendered by Scottish Procurement for the Scottish public
sector in order to achieve economies of scale. 
3.2 The Council has historically utilised the Scottish Procurement
arrangements for such contracts. 
3.3 Scottish Procurement identified the Crown Commercial Services
Framework Agreement for National Fuels 2 reference RM6177
established on 1st February 2021 as suitable for the Scottish public
sector requirement.

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3.4  The Framework Agreement permits the use of Further Competition
procedures. Scottish Procurement identified that it could demonstrate
best value for money for the Scottish public sector by using a Further
Competition for this commodity.
3.5 Scottish Procurement conducted a Further Competition (reference
CCFU22A26) for Liquid Fuels on behalf of approximate 80 Public
Bodies, including this Council, under the Crown Commercial Services
Framework for National Fuels 2 reference RM6177. Lot 103 (Scotland
Central) has nine suppliers registered on the agreement. All nine
suppliers were invited to participate in the Further Competition issued
on 2nd March 2023, 4 suppliers participated in this mini competition and
2 of those submitted the most economically advantageous tenderer for
the Council’s requirement under Lot 103 (Scotland Central). 
3.6  The supplier’s awarded the contracts for the Council under Lot 103 will
provide the services noted below: 
1) Certas Energy UK Limited t/a Scottish Fuels for the supply of
AdBlue, Gas Oil A2 (Red Diesel) and Petrol ULSP. All of which
will be supplied to the Council premises at Underwood Road,
Paisley. 
2) Highland Fuels Ltd for the supply of Diesel. Which will be
supplied to the Council premises at Underwood Road, Paisley.
3.8  Below is a summary of the National Benefits being delivered under the
CCS Framework Agreement:
 All suppliers, employees are paid at least the Scottish Living
Wage
 There are no zero hours contracts
 Certas Energy UK Limited t/a Scottish Fuels provide employee
opportunities for learning and development
 Suppliers provide financial support and engagement to
community groups and charities.
 In line with the Government’s publication “Decarbonising
Transport: Setting the Challenge” Both suppliers have
committed to support the Council in working to achieve the
Transport Decarbonisation Plan. By promoting, monitoring and
measuring what changes that can be made.

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 Both Suppliers demonstrated how their organisation would work
with the Council to ensure that environmental impacts (in terms
of clean air, reducing the risks of harm from environmental
hazards, mitigating and adapting to climate change and
minimising waste) are reduced and how they would monitor and
measure this. 
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Implications of the Report
1. Financial                                                                                                  
The costs under these 2 Contracts will be financed via Environment,
Housing & Infrastructure’s revenue budgets.   
2. HR & Organisational Development – None                                                                 
3. Community/Council Planning – 
 Place – These Contract is contributing to 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
 Economy - to Certas Energy UK Limited t/a Scottish Fuels and
Highland Fuels Ltd both provided information within this
procurement process in regard to their approach to ensuring fair
working practices throughout their organisation and supply chain
i.e. payment of the living wage, training and development
opportunities.
 Living our values – This Contracts ensures Renfrewshire Council
delivers Best Value for our citizens and customers, that we are a
well governed, effective organisation 
 
4. Legal – Scottish Procurement on behalf of the Council and other public
sector bodies carried out a Further Competition under Lot 103 (
Scotland Central) of Crown Commercial Services Framework
Agreement for National Fuels (ref: RM6177) in compliance with the
Framework requirements.

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5. Property/Assets - No property/asset implications have arisen or are
anticipated. 
6. Information Technology - None                                                                                   
7. Equality & Human Rights 
a) The Recommendations contained within this report have been 
assessed in relation to their impact on equalities and human rights.  
No negative impacts on equality groups or potential for infringement of
individuals’ human rights have been identified arising from the
recommendations contained in the report because for example it is for
noting only.  If required following implementation, the actual impact of
the recommendations and the mitigating actions will be reviewed and
monitored, and the results of the assessment will be published on the
Council’s website.   
8. Health & Safety – Certas Energy UK Limited t/a Scottish Fuels and
Highland Fuels Ltd’s health and safety standards have both been
assessed and evaluated by Scottish Procurement to confirm they meet
the minimum requirements regarding health and safety risk.                                        
9. Procurement                                                                                                              
The procurement procedures outlined within this report satisfied the
Council that the Further Competition conducted by Scottish
Procurement was an acceptable route to obtain the services required. 
10. Risk – Both Certas Energy UK Limited t/a Scottish Fuels and Highland
Fuels Ltd’s insurances have been assessed and evaluated by Scottish
Procurement to confirm they meet the minimum requirements regarding
insurable risk.                                                                                                                 
11. Privacy Impact - No Privacy Impact Assessment requirements were
identified within this procurement.                                                                                  
12. Cosla Policy Position - No Cosla Policy Position implications have
arisen or are anticipated.       
13. Climate Risk –The fuel being ordered under this contract is for Ultra-
Low Sulphur Diesel (USLD) which is a cleaner-burning diesel fuel that
contains 97% less sulphur than low- sulphur diesel. ULSD was
developed to allow the use of improved pollution control devices that
reduce diesel emissions more effectively. 
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List of Background Papers 
None 
___________________________________________________________________ 
Author:           Kerri-Anne Ben Ammar, Senior Procurement Specialist, Corporate
Procurement Unit, kerri-anne.benammar@renfrewshire.gov.uk