Item 05 - Contract Authorisation Report – Measured Term Contract for Lift Equipment
West Dunbartonshire Council · 3 August 2022
Back to Tendering Committee — 3 August 2022 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer – Supply, Distribution and Property Tendering Committee: 03 August 2022 ___________________________________________________________________ Subject: Contract Authorisation Report – Measured Term Contract for Lift Equipment 1. Purpose 1.1 The purpose of this report is to seek the approval of the Tendering Committee to authorise the Manager of Legal Services, Regulatory and Regeneration to conclude the award of the Measured Term Contract for Lift Equipment. 2. Recommendations 2.1 It is recommended that the Tendering Committee: a) Authorise the Manager of Legal Services, Regulatory and Regeneration to conclude on behalf of West Dunbartonshire Council (the Council), the award of the Measured Term Contract for Lift Equipment to Kone Plc. b) Note that the contract shall be for a period of two years and at a value of £207,349.68 ex VAT, £248,819.62 in VAT with the option of a two x one year extensions with the four year budget of £650,000 ex VAT. The estimated commencement date of the contract is 1 February 2023. 3. Background 3.1 Building Services provides a quality 24 / 7 / 365 service to Council owned operational and non-operational properties and is responsible for repairs to common elements in mixed tenure blocks and local Registered Social Landlords. Building Services will continue to carry out as much of the repairs and maintenance work as possible using in-house resources. Where this is not possible sub-contractors and specialist contractors are utilised as appropriate. The sub-contractors and specialist contractors will allow Building Services to meet its service to customers. 3.2 The contract period is for four years. The budget was set and approved by Council at its meetings on March 2021 and March 2022. Elected Members approved the request to undertake procurement and tendering activities at the IRED committee meeting on 17 November 2021. 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 25 February 2022. ITEM 5
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4. Main Issues 4.1 The Corporate Procurement Unit (CPU) published a Prior Information Notice containing a market research questionnaire looking to understand the supply base to inform the Council’s lotting structure, with a particular focus to engage with as many local small and medium-sized enterprises (SME) as possible. The Corporate Procurement Unit advertised the market research questionnaire on the Council’s Social Media pages, informed the local Chamber of Commerce to highlight the opportunities locally; provided information about the Supplier Development Programme (SDP), which helps businesses that have little or no experience of tendering and are often too small to have dedicated bid / tender resources to contemplate bidding for public sector contracts. 4.2 The Corporate Procurement Unit utilised the Consortium Procurement’s Stairlifts and Lifting Equipment Framework Agreement as it provided a number of suppliers who could deliver the service in line with the Council’s requirements. 4.3 An initial contract notice was published on the Public Contracts Scotland advertising portal on the 25 March 2022 with a Tender closing date of 20 April 2022. Feedback from the market indicated that due to time constraints no bids were submitted within the tender time period. Consequently after discussions with the Service Area it was agreed to re-publish the tender and inform interested bidders of the opportunity. The Contract Notice was published on the 20 May 2022 with a closing date of 3 June 2022 with one bidder submitting a response by the tender deadline. 4.4 The tender submission was evaluated by representatives from Building Services, the Corporate Procurement Unit , Health & Safety Services and Finance Services against pre-determined selection criteria forming part of the published tender documents which assessed competence, experience, and capacity. One tender submission passed the selection criteria. 4.5 One tender submissions were evaluated against a set of award criteria which was based on Price / Quality ratio of 40% / 60%. The scores relative to the award criteria are as follows:
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Weighting Bidder Name: Kone Plc Quality (60%) Quality 27% 20.3% Specification 15% 13.8% Cost 7.5% 7.5% Business Continuity 4.5% 3.4% Social Benefits 3% 1.5% Sustainability 1.5% 1.5% Fairwork First 1.5% 1.5% Quality Sub- Total %: (60%) 49.5% Price (40%) Price Sub Total £ - £207,349.68 Price Sub Total % (40%) 40% Total Score 100% 89.5% 4.6 It is recommended that the contract is awarded to Kone Plc, of Cherstey, Surrey. The contract shall be for a period of two years and at a value of £207,349.68 ex VAT, £248,819.62 in VAT with the option of two x one year extensions with a budget value of £650,000 ex VAT over four years.
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4.7 Kone Plc has committed to paying all staff as a minimum the real Living Wage (£9.90 per hour) and promotes Fair Working Practices across their organisation. Further, Kone Plc has committed to delivery of the following social benefits as a direct result of delivery of this contract: • Recruitment of 1 member of staff from within the West Dunbartonshire geographical area; • Deliver quarterly workshops, covering career skills, mock interviews etc., within a school or community learning environment. The social benefits will be discussed at the implementation meeting with Kone Plc and actions to take these forward will be agreed. 5. Financial and Procurement Implications 5.1 Financial costs will be met from the approved Housing Revenue and Capital accounts / Central Revenue and Capital accounts. 5.2 This procurement exercise was conducted in accordance with the agreed Contract Strategy produced by the Corporate Procurement Unit in close consultation with Building Services officers and the provisions of Contract Standing Orders, the Financial Regulations and Public Procurement Regulations. 6. Risk Analysis 6.1 Kone Plc has no known links to Serious and Organised Crime which would have significant political and reputational ramifications for the Council. 6.2 Should the Tendering Committee decide not to proceed as recommended then this will delay the project and may have financial implications and reputational ramifications. 7. Equalities Impact Assessment (EIA) 7.1 An equalities impact screening was undertaken and identified that an Equalities Impact Assessment was not required. 8. Consultation 8.1 Building Services, Finance Services and Legal Services have been consulted on the contents of this report. 9. Strategic Assessment 12.1 The Measured Term Contract for Lifts will contribute to the delivery of the Council's strategic priorities: • Efficient and effective frontline services that improve the everyday lives of residents.
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Name: Angela Wilson Designation: Chief Officer – Supply, Distribution and Property Date: July 2022 Person to Contact: Daniel Cullen – Procurement Officer Corporate Procurement Unit, Council Offices, 16 Church Street, Dumbarton Email: Daniel.Cullen@west-dunbarton.gov.uk Alistair Norris – Capital Projects Manager Email: Alistair.Norris@west-dunbarton.gov.uk Appendices: N/A Background Papers: Contract Strategy EIA Screening Wards Affected: All
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