Item 05 - Contract Authorisation Report - Laundry Equipment and Maintenance Works etc.
West Dunbartonshire Council · 21 September 2022
Back to Tendering Committee — 21 September 2022 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer – Supply, Distribution and Property Tendering Committee: 21 September 2022 ___________________________________________________________________ Subject: Contract Authorisation Report – Laundry Equipment and Maintenance Works and Provision of Electrical Specialist Including Entry Systems and Alarms 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 to conclude the award of the contracts for: • Laundry Equipment and Maintenance Works; and • Electrical Specialist Including Entry Systems and Alarms 2. Recommendations 2.1 It is recommended that the Tendering Committee authorise the Manager of Legal Services to conclude on behalf of the Council, the award of: a) The contract for Laundry Equipment Maintenance Works to Washco Ltd. The contract shall be for a period of two years at a budget of £97,500 ex VAT with the option to extend the period by another two x one year with the four year budget being £195,000 ex VAT. The estimated commencement date of the contract is 30 September 2022. b) The contract for Electrical Specialist to Alger Electrics and Alarms Limited, Dumbarton. The contract shall be for a period of two years at a budget of £900,000 ex VAT with the option to extend the period by another two x one year with the four year budget being £1,800,000 ex VAT. The estimated commencement date of the contract is 30 September 2022. 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. 3.2 The period of the budget is for four years. The budget was set and approved by Council at its meetings on March 2021 and March 2022. ITEM 5
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3.3 These procurement exercises have 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. 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 CPU 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 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. 4.3 The Laundry Equipment Maintenance Works contract notice was published on the Public Contracts Scotland advertising portal on 7 July 2022. Five potential bidders expressed an interest for this, with two bidders submitting a response by the deadline on 8 August 2022. 4.4 The Electrical Specialist contract notice was published on the Public Contracts Scotland advertising portal on 6 July 2022. 19 potential bidders expressed an interest for this, with one bidder submitting a response by the deadline on 5 August 2022. 4.5 The tender submissions were evaluated by representatives from Building Services and CPU against pre-determined selection criteria forming part of the published tender documents which assessed competence, experience, and capacity. There was two tender submissions for Laundry Equipment Maintenance Works and there was one submission for Electrical Specialists which passed the selection criteria. 4.6 The Laundry Equipment Maintenance Works tender submissions were evaluated against a set of award criteria that was based on a Quality/Price ratio of 40% / 60%. The scores relative to the award criteria of each tenderer are as follows:
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Weighting Washco Ltd Thain Commercial Ltd Quality (40%) Quality 18% 12.25% 12.875% Specification 10% 6.75% 7.25% Cost 5% 3.75% 1.875% Business Continuity 3% 1.5% 1.875% Social benefits 2% 2% 2% Sustainability 1% 1% 0.875% Fairwork First 1% 0.5% 0.75% Quality Sub-Total %: (40%) 27.75% 27.5% Price (60%) Price - £112,753 £143,330 Price Sub-Total %: (60%) 60% 47.20% Total Score 100% 87.75% 74.7%
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4.7 The Electrical Specialist tender submissions were evaluated against a set of award criteria that was based on a Quality/Price ratio of 40% / 60%. The scores relative to the award criteria of each tenderer are as follows: 4.8 It is recommended that the contract is awarded to Washco Ltd, of Glasgow who has provided the most economically advantageous tender. The contract shall be for a period of two years at a budget of £97,500 ex VAT with the option to extend the period by another two x one year with the four year budget being £195,000 ex VAT. The estimated commencement date of the contract is 30 September 2022. 4.9 It is recommended that the contract is awarded to Alger Electrics and Alarms Limited, of Dumbarton. The contract shall be for a period of two years at a budget of £900,000 ex VAT with the option to extend the period by another two x one year with the four year budget being £1,800,000 ex VAT. The estimated commencement date of the contract is 30 September 2022. Weighting Alger Electrics and Alarms Limited Quality (30%) Quality 18% 16.25% Specification 10% 9% Cost 5% 3.75% Business Continuity 3% 2.25% Social benefits 2 % 1.86% Sustainability 1% 0.81% Fairwork First 1% 0.94% Quality Sub-Total %: (40%) 34.86% Price (70%) Price Sub-Total %: (60%) 60% Total Score 100% 94.86%
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4.10 Both Washco Ltd and Alger Electrics and Alarms Limited 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. 4.11 Appendix 1 details the additional social benefits that the contractors have committed to deliver as part of these contracts. The social benefits will be discussed at the implementation meetings with the contractors 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 will be met from the approved Housing Revenue and Capital accounts / Central Revenue and Capital accounts. 6.2 These procurement exercises were conducted in accordance with the agreed Contract Strategy produced by the CPU in close consultation with Building Services and Corporate Asset Services and the provisions of Contract Standing Orders, the Financial Regulations and Public Procurement Regulations. 7. Risk Analysis 7.1 These Contractors have no known links to Serious and Organised Crime which would have significant political and reputational ramifications for the Council. 7.2 Should the Tendering Committee decide not to proceed as recommended then this will delay the project, may have financial implications and reputational ramifications. 8. Equalities Impact Assessment (EIA) 8.1 An equalities impact screening was undertaken and identified that an Equalities Impact Assessment was required. 9. Environmental Sustainability 9.1 Public bodies have a duty under the Climate Change (Scotland) Act 2009 to carry out all of their functions in a way that is best calculated to deliver on Scotland's carbon reduction targets and Climate Change Adaptation plans 9.2 The specifications include mandated social, environmental and economic wellbeing considerations including materials, waste and equality. 10. Consultation 10.1 Building Services, Corporate Asset Services, Finance Services and Legal Services have been consulted on the contents of this report 11. Strategic Assessment
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11.1 The Provision of Laundry Equipment & Maintenance Works and Electrical Specialist Including Entry Systems and Alarms will contribute to the delivery of the Council’s strategic priorities: • A Strong local economy and improved employment opportunities; • Open, accountable and accessible local government; and • Efficient and effective frontline services that improve the everyday lives of residents. Name: Angela Wilson Designation: Chief Officer – Supply, Distribution and Property Date: 5 September 2022 Person to Contact: Ellie Street Procurement Officer Ellie.street@west-dumbarton.gov.uk Daniel O’Donnell Procurement Officer Daniel.O'Donnell@west-dunbarton.gov.uk Alistair Norris Capital Projects Manager Alistair.Norris@west-dumbarton.gov.uk Appendices: Additional Social Benefits Background Papers: Contract Strategy EIA Screening Wards Affected: All Council Wards
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Appendix 1: Additional Social Benefits Additional Social Benefits Laundry Equipment Maintenance Works Electrical Specialist Recruit member of staff from within the West Dunbartonshire geographical area - 2 Use of West Dunbartonshire based organisations for sub-contracting opportunities 2 - Offer a new registered apprenticeship to a resident of the West Dunbartonshire geographical area - 3 Deliver quarterly workshops, covering career skills, mock interviews etc., within a school or community learning environment 2 - Facilitate quarterly work experience opportunities covering a range of work based skills 1 - Any other measurable and committed support for local small and medium sized enterprises as part of this contract 1 - Any other measurable and committed support for local Third Sector organisation(s) as part of this contract 1 - Any other measurable and committed support for local Supported Businesses as part of this contract 1 - Any other measurable and committed support for local community benefits as part of this contract 1 - Donation of goods to local food-share scheme 6 - Donation of money to a community group or charity that supports health and wellbeing within the community 1 - Donations of materials to support a local community project 2 - Donation of labour to support a local community project 1 - Provision of volunteers to support a local community project 1 - Donation of money to support a local community project 1 - Any measurable and committed support for fair and ethically traded Goods / Services / Works as part of this contract 1 - Any measurable and committed support to the equality agenda as part of this contract 1 - Any measurable and committed support to the fair work practices for workers (including any agency or sub-contractor workers) engaged in the delivery of this contract 1 - Supporting environmental regeneration, such as re-development of old quarry or brown belt areas 1 - Supporting environmental educational projects in schools such as tree or woodland planting or educational packs 1 - Supporting the reduction of non-recyclable materials throughout the West Dunbartonshire area 1 - Uplifting the same amount of plastic from the Council as you have delivered and recycle the plastic in a sustainable way 1 -
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