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Contract Authorisation Report - Roads Related Structures

Renfrewshire Council · 15 June 2022
Back to Finance, Resources and Customer Services Policy Board — 15 June 2022 and its agenda

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___________________________________________________________________
To: Finance, Resources and Customer Services Policy Board
On: 15 June 2022
___________________________________________________________________
Report by: The Chief Executive and the Director of Environment and Infrastructure
___________________________________________________________________
Heading: Contract Authorisation Report for a Framework Contract for Works to
Roads Related Structures (RC-CPU-21-427)
___________________________________________________________________
1. Summary 
1.1 The purpose of this report is to seek the approval of the Finance, Resources
and Customer Services Policy Board to enter into a Framework Contract with
a number of suitably qualified and experienced Suppliers for Works to Roads
Related Structures (RC-CPU-21-427).   
1.2 The tendering procedure for this Framework Contract was conducted in
accordance with the Procurement Reform (Scotland) Act 2014 and the
Procurement (Scotland) Regulations 2016 and Renfrewshire Council’s
Standing Orders Relating to Contracts using the open procedure for a
Regulated Procurement threshold Works contracts. 
1.3 A Contract Strategy was approved by the Head of Operations and
Infrastructure and the Procurement Manager in February 2021. 
___________________________________________________________________ 
2. Recommendations

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2.1 It is recommended that the Finance, Resources and Customer Services Policy
Board: 
2.1.1 Authorise the Head of Corporate Governance to enter into a Framework
Contract for Works to Roads Related Structures (RC-CPU-21-427)
(“Framework Contract”) with each of the Suppliers shown in 3.11; 
2.1.2 Note the cumulative spend made under this Framework Contract will be
up to the maximum value of £2,000,000 excluding VAT; 
2.1.3 Note that the Framework Contract is intended to commence on 11 July
2022 or alternatively, the date confirmed in the Council’s Letter of
Acceptance issued to each Supplier and will be for a period of two years
with the Council having the sole option to extend on two (2) separate
occasions for a period of up to twelve (12) months on each occasion; 
2.1.4 Note Call -Off Contracts made under this Framework Contract will be
awarded by way of a Package Order using the selection procedure or
the quotation procedure contained in the Framework Contract. Selection
of the most appropriate procedure is at the discretion of the Council and
will be subject to Council Standing Orders Relating to Contracts, the
requirements of the individual Package Order (Call-off Contract) for the
works and the need to secure best value. 
_________________________________________________________________________________
3. Background 
3.1 Renfrewshire Council has a statutory obligation to maintain roads related
structures within the Council boundary.
3.2  This Framework Contract includes repairs, maintenance and improvements of
roads related structures. 
3.3  The Framework Contract will be formed under the NEC3 Framework Contract
April 2013 with bespoke Z Clauses. Call-off Contracts awarded under the
Framework Contract will be formed using the NEC3 Term Service Short
Contract April 2013 with bespoke Z Clauses.  
3.4 The Framework Contract was tendered as a Regulated Threshold Works
Contract in accordance with the Procurement Reform (Scotland) Act 2014 and
the Procurement (Scotland) Regulations 2016, as amended and Council
Standing Orders relating to Contracts using the Open Procedure. The contract
notice was published on the Public Contracts Scotland portal on 28 March
2022. The tender documents were available for download through the Public
Contracts Scotland – Tender portal.

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3.5 During the tendering period, eighteen (18) companies expressed an interest in
the Framework Contract. By the closing date set for return of electronic
tenders, 12 noon on Thursday, 28 April 2022, five (5) companies provided a
response, four (4) declined to respond and nine (9) failed to respond. The five
(5) Tender Submissions received were evaluated by a panel comprising
representatives from Environment and Infrastructure, Health and Safety, Risk
and the Corporate Procurement Unit. 
3.6 One (1) bid was rejected at this stage as the Invitation to Tender had a
selection requirement which placed a limit on fee percentages Tenderers were
to include within their Tender Submission. The Invitation to Tender stipulated
that Tenderers who tendered a fee percentage in excess of this limit would
have their bid rejected. 
3.7 The remaining Tenderers were evaluated against a pre-determined set of
criteria in the form of the Single Procurement Document, SPD (Scotland). All
four (4) remaining Tenderers satisfied the Council’s requirements in respect of
their responses to the SPD (Scotland). 
3.8 The technical and commercial responses contained in each Tender
Submission were scored against the award criteria of 30% technical (Quality)
and 70% commercial (Price). The scores achieved by each Tenderer are
noted as follows: 
Tenderer Price Quality Total
W I & A Gilbert Limited 55.72% 28.75% 84.47%
Geo-Structural Ltd 70.00% 7.50% 77.50%
Mackenzie Construction Limited 40.05% 28.75% 68.80%
Taziker Industrial Limited 20.15% 28.75% 48.90% 
3.9 The Invitation to Tender stipulated that it was anticipated that four
(4) Suppliers would be approved for inclusion in the Framework Contract.
However, the Council reserved the right to increase or decrease the number
of Suppliers as deemed appropriate by the Council. 
3.10 The Framework Contract ordering procedures contains the selection
procedure and the quotation procedure. Where the selection procedure is
applied then the Supplier ranked first will be invited to apply for the Package
Order (Call-Off Contract).  Should the first ranked Supplier reject the invitation,
the second ranked Supplier will be invited to apply for the Package Order
(Call-Off Contract) and so on until the Package Order has been awarded.

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Where the quotation procedure is used the Package Order will be awarded to
the most economically advantageous tenderer. 
3.11 The Supplier ranking information for the first year of the Framework Contract
is as follows: 
Lot 1 – Carriageway Resurfacing
Tenderer Ranking on Lot
W I & A Gilbert Limited 1st
Geo-Structural Ltd 2nd
Mackenzie Construction Limited 3rd 
3.12 The ranking will be fixed for the first year of the Framework Contract.   From
the end of the first year and no later than 2 months prior to each anniversary
of the start date, Suppliers may submit an application for price increase or
decrease in accordance with the terms of the Framework Contract for the
purpose of re-evaluating the Suppliers’ competitiveness.  This annual re-
evaluation will be in respect of prices and rates only. Where the revised prices
and rates are accepted by the Council these will replace any earlier prices and
rates quoted by that Supplier. The Council shall evaluate the new prices and
rates and add this score to the quality score achieved by each Supplier in the
original evaluation of Tender submissions for the Framework Contract.
Suppliers will be re-ranked in accordance with the revised score. Where
ranking positions are amended, the Council will notify all Suppliers awarded
under this Framework Contract of their new ranking position prior to the
commencement of the next year of the Framework Contract.  The new ranking
will apply for Package Orders (Call-Off Contracts) awarded after that
anniversary of the Framework Contract. 
3.13 All Suppliers accepted onto this Framework Contract have committed to
providing Community Benefits. The level of Community Benefits provided will
be based on the value of any Package Orders (Call-Off Contracts) awarded to
each Supplier. The Community Benefits to be delivered will be in line with the
Council’s Community Benefits Outcome Menu.
___________________________________________________________________
Implications of the Report
1. Financial 
The cost of all Package Orders (Call-Off Contracts) issued under this
Framework Contract will be met by the individual Service budgets. 
2. HR & Organisational Development
Not applicable.

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3. Community/Council Planning
Reshaping our place, our economy and our future – the Framework Contract
proposed will support the delivery of this outcome. 
4. Legal 
The tendering procedure for this Framework Contract was conducted in
accordance with. 
5. Property/Assets
The Council’s roads infrastructure will be maintained to a high standard. 
6. Information Technology 
No Information Technology implications have been identified or are
anticipated. 
7. Equality & Human Rights
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. 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 
All Suppliers health and safety credentials were evaluated by Corporate
Health and Safety and met the Council’s requirements regarding health and
safety. 
9. Procurement 
The procurement procedures outlined within this report shall ensure that the
Council meets is statutory requirements in respect of procurement
procedures, efficiency and modern Government. 
10. Risk 
All Suppliers insurances have been assessed and evaluated to confirm that
they have met the minimum requirements regarding insurable risk. 
11. Privacy Impact 
No Privacy Impact implications have been identified or are anticipated. 
12. Cosla Policy Position
No Cosla Policy implications have arisen or anticipated. 
13. Climate Risk

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The level of impact associated with works connected with the Framework
Contract has been assessed using the Scottish Government Sustainability
Test and is considered to be high risk. Suppliers awarded Package Orders
(Call-off Contracts) under the Framework Contract will be required to organise
their activities in such a way that the impact they have on the environment is
minimised. 
.
_________________________________________________________
List of Background Papers 
None 
___________________________________________________________________ 
Author:           Brian Bradley, Acting Strategic Commercial Category Manager,
Corporate Procurement Unit, brian.bradley@renfrewshire.gov.uk