Item 05 - Contract Authorisation Report – Provision of Fuel Cards and Associated Services
West Dunbartonshire Council · 15 November 2023
Back to Tendering Committee — 15 November 2023 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer – Regulatory and Regeneration Tendering Committee: 15 November 2023 ___________________________________________________________________ Subject: Contract Authorisation Report – Provision of Fuel Cards and Associated Services 1. Purpose 1.1 The purpose of this report is to seek the approval of the Tendering Committee to conclude the award of the contract for the Provision of Fuel Cards and Associated Services. 2. Recommendations 2.1 It is recommended that the Tendering Committee: a) Authorise the Chief Officer - Regulatory and Regeneration to conclude on behalf of West Dunbartonshire Council (the Council), the award of the Contract for the Provision Fuel Cards and Associated Services to UK Fuels Limited. b) Note that the contract shall be for a period of two years with the option of a two x 12 month extensions and at a budget value of £615,640.50 inclusive of VAT over two years and £1,231,281 inclusive of VAT should the contract be extended. The estimated commencement date of the contract is 1 January 2024. 3. Background 3.1 The Council has a requirement for a provider to provide fuel cards and associated services. The overall budget was approved at the West Dunbartonshire Council Committee on 1 March 2023. This General Revenue budget period was for four years. 3.2 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 27 July 2023. 4. Main Issues 4.1 The Crown Commercial Services Fuel Cards and Associated Services framework agreement was identified as the best route to market. By utilising any framework agreement, the timescales would be reduced compared to taking the requirement out to the open market as due diligence checks have already been conducted before appointing providers onto a framework agreement. During the initial market engagement, providers stated they had the capacity and capability to take part in a mini competition under the Fuel Cards and Associated Services framework agreement. ITEM 5
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4.2 A mini competition was published on 9 August 2023 closing on 29 August 2023. There were no tender submissions received within these timescales. The bidders were then contacted for feedback however only one bidder (UK Fuels Limited – the incumbent provider) came back to state they were interested in taking part. Further discussion with Roads and Neighbourhood indicated that a direct award utilising the Crown Commercial Services Fuel Cards and Associated Services framework agreement was the next preferred route. 4.3 It is recommended that the contract is awarded to UK Fuels Limited, of Crewe. The contract shall be for a period of two years with the option of a two x 12 month extension and at a budget value of £615,640.50 inclusive of VAT over two years and £1,231,281 inclusive of VAT should the contract be extended. 4.4 UK Fuels 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. There are no specific social benefits associated with this contract, however further social benefits will be discussed with UK Fuels Limited and any actions to take any social benefits forward will be agreed at implementation. 5. People Implications 5.1 There is no people implications. 6. Financial and Procurement Implications 6.1 Financial costs in respect of this contract will be met from the approved General Revenue budget of Roads and Neighbourhood. 6.2 The figures in the recommendations have been provided as inclusive of VAT in line with Scottish Government guidance. As the Council is able to recover VAT it may be of interest to note that the prices referred to in Paragraph 2.1(b) exclusive of VAT will be £513,033.75 over two years and £1,026,067.50 over four years. 6.3 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 Public Procurement Regulations. 7. Risk Analysis 7.1 UK Fuels 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 screening was undertaken by Roads and Neighbourhood which determined that 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.
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10. Strategic Assessment 12.1 The Roads and Neighbourhood 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 Officer – Regulatory & Regeneration Date: Person to Contact: Ellie Street Procurement Officer Ellie.street@west-dunbarton.gov.uk Background Papers: Contract Strategy EIA Screening Wards Affected: All council Wards.
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