Item 10 - Purchase of Heavy Goods Vehicles and Refuse Collection Vehicles
West Dunbartonshire Council · 20 September 2023
Back to Tendering Committee — 20 September 2023 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer – Regulatory and Regeneration Tendering Committee: 20 September 2023 ___________________________________________________________________ Subject: Purchase of Heavy Goods Vehicles and Refuse Collection Vehicles 1. Purpose 1.1 The purpose of this report is to advise Members of the award of the contract for the Purchase of Heavy Goods Vehicles and Refuse Collection Vehicles. The contract was approved on 7 August 2023 by the Chief Officer - Roads and Neighbourhoods after consulting with the Convenor of the Infrastructure, Regeneration & Economic Development Committee. 2. Recommendations 2.1 It is recommended that Members note that the contract for the Purchase of Heavy Good Vehicles and Refuse Collection Vehicles was awarded to Motus Group (UK) Limited: and a) Note that the contract shall be for a period of three years including warranty and at a value of £2,263,294.80 inclusive of VAT. The estimated commencement date of the contract is 1 September 2023. b) The approval was granted in accordance with Standing Orders 35(b) (ii) – (iv) due to the urgent need to secure a production slot for delivery in March 2024 (the usual contract authorisation would add an additional 13 weeks to the programme), secure the offered pricing that would potentially otherwise see an additional financial burden of circa £328,500 and end the ongoing hire charges that the Council are incurring: “35 (b) Officers will exercise those powers referred to above in accordance with the following scheme: (ii) Delegated powers should generally not be exercised where any decision by an authorised officer would represent a departure from Council policy or procedure or would be contrary to a standing instruction of Council (or Committee), or would itself represent a significant development of policy or procedure. (iii) Such decisions will be referred to Council, or the appropriate Committee, except in the case of urgency, where the officer may, after consultation with the relevant Service Spokesperson or Convener of the appropriate Committee, exercise such delegated powers.” ITEM 10
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3. Background 3.1 The Council has a Vehicle Replacement Programme and as part of this Programme, Fleet and Waste Services were seeking to replace a significant part of the current fleet of heavy goods vehicles and refuse collection vehicles operated across the Council. The age of the current vehicles is making them difficult and expensive to maintain and it can affect front line services when the vehicles break down. Currently the Service Area have a number of hire vehicles due to the age and / or condition of the vehicles which is having a significant revenue burden. 3.2 The overall budget is funded from the recurring Vehicle Replacement budget line which has £1.257m in 2023/24, £1.040m in 2024/25 and £1.040m in 2025/26 and was approved at the West Dunbartonshire Council Committee on 9 March 2022 and additionally was approved again when the West Dunbartonshire Council Committee agreed the 2023/24 budget on 1 March 2023. The period of the budget was for 10 years. 3.3 This procurement exercise has been conducted in accordance with the Council’s Standing Orders and Financial Regulations and the Public Procurement Regulations. A Contract Strategy document was also approved on 26 June 2023. 4. Main Issues 4.1 The Contract Strategy identified a direct award utilising The Procurement Partnership Limited framework agreement as the route to market. The market research has confirmed that all other compliant routes to market were unable to fulfil orders until 2024 due to supply chain constraints and limited availability. Furthermore, only one supplier Motus Group (UK) Limited on the Procurement Partnership Limited framework agreement had capacity to deliver the requirement in 2023. 4.2 The contract was awarded to Motus Group (UK) Limited, of Travellers Lane, Wellham Green, AL9 7HW, who had provided the most economically advantageous tender. The contract shall be for a period of three years including warranty and at a value of £2,263,294.80 inclusive of VAT. 4.3 Motus Group (UK) Limited has committed to paying all staff as a minimum the real Living Wage (£10.90 per hour) and promotes Fair Working Practices across their organisation. The social benefits will be discussed at the implementation meeting with Motus Group (UK) Limited and actions to take these forward will be agreed. 5. People Implications 5.1 There are no people implications. 6. Financial and Procurement Implications 6.1 Financial costs in respect of this Contract will be met from the approved General – Capital budget of Roads and Neighbourhood.
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6.2 This procurement exercise was conducted in accordance with the agreed Contract Strategy produced by the Corporate Procurement Unit in close consultation with Roads and Neighbourhood officers and the provisions of Contract Standing Orders, the Financial Regulations and relevant Public Procurement Regulation. 7. Risk Analysis 7.1 There was an imperative to award this contract urgently due to the need to secure a production slot for delivery in March 2024 (the usual contract authorisation would add an additional 13 weeks to the programme), secure the offered pricing that would potentially otherwise see an additional financial burden of circa £328,500 and end the ongoing hire charges that the Council are incurring. 7.2 Motus Group (UK) Limited has no known links to Serious and Organised Crime which would have significant political and reputational ramifications for the Council. 8. Equalities Impact Assessment (EIA) 8.1 An equalities impact assessment screening was undertaken which determined a full equalities impact assessment was not required. 9. Consultation 9.1 Roads and Neighbourhood, Finance Services and Legal Services have been consulted on the contents of this report. 10. Strategic Assessment 10.1 The Purchase of Heavy Goods Vehicles and Refuse Collective Vehicles will contribute to the delivery of the Council’s strategic priorities: • Our communities are resilient and thriving; • Our environment promotes a greener future; • Our economy is strong and flourishing Name: Alan Douglas Designation: Chief Offer – Regulatory and Regeneration Date: September 2023 Person to Contact: Michelle McKenzie, Senior Procurement Officer, 16 Church St, Dumbarton, G82 1QL, michelle.mckenzie@west-dunbarton.gov.uk Appendices: None Background Papers: Contract Strategy Wards Affected: All Wards