Item 07 - Contract Authorisation Report – Supply of Domestic Furniture and Furnishings
West Dunbartonshire Council · 15 March 2023
Back to Tendering Committee — 15 March 2023 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer – Supply, Distribution and Property Tendering Committee: 15 March 2023 ___________________________________________________________________ Subject: Contract Authorisation Report – Supply of Domestic Furniture and Furnishings 1. Purpose 1.1 The purpose of this report is to seek the approval of the Tendering Committee to authorise the Chief Officer - Regulatory and Regeneration to conclude the award of the contract for Supply of Domestic Furniture and Furnishings. 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 Supply of Domestic Furniture and Furnishings to New Two Ltd. b) Note that the contract shall be for a period of two years with the option of a two x 12 month extension and at a value of £660,880.50 inclusive of VAT over two years and £1,321,761 inclusive of VAT should the contract be extended. The estimated commencement date of the contract is 27 March 2023. 3. Background 3.1 The Council has a requirement to renew the existing Supply of Domestic Furniture and Furnishings to allow continued use of supplying furniture, household items, window blinds and flooring to temporary accommodation, refugee resettlement and housing first services. 3.2 The overall budget for Supply of Domestic Furniture and Furnishings was approved at the West Dunbartonshire Council Committee at 9 March 2022 and Housing and Communities Committee on 24 August 2022. The period of budget was for four years. The budget for this specific contract which is Housing Revenue Account budget, was approved by the Housing and Communities Committee on 24 August 2022. 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 13 December 2022. ITEM 7
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4. Main Issues 4.1 The procurement route to market compared three framework agreements (FA). When carrying out the market analysis, the Scottish Procurement Alliance (SPA) and Crown Commercial Services (CCS) FA’s did not cover off all the requirements for the furniture and furnishings specified. Following the market analysis it was agreed with the service area that a mini competition would be conducted utilising a Scotland Excel (SXL) FA. A mini competition was issued on 19 December 2022 to all three providers named on the FA who could meet the Council’s requirements, with three providers expressing an interest and all three providers submitting a mini competition response by the tender deadline 16 January 2023 4.2 The three mini competition submissions were evaluated by representatives from Housing Services and the Corporate Procurement unit against the pre- determined award criteria which was based on Price / Quality ratio of 70% / 30%. The scores relative to the award criteria of each provider was as follows: Weighting New Two Ltd CF Services Ltd The Furnishing Service Ltd Quality (30%) Invoice Accuracy (2%) 0.1% 0.1% 0.1% Fit for purpose Goods / Services (10%) 4.9% 4.9% 3.3% Returns (5%) 0.8% 0.8% 2.5% Lead Time / On Time Delivery Against Objectives (10%) 7.5% 2.5% 0.8% Fair Work Practises (1%) 0.2% 0.1% 0.2% Environmental Sustainability (1%) 0.2% 0.2% 0.2% Social Benefits (1%) 1% 1% 1% Quality Sub-Total %: (40%) 14.7% 9.6% 8.1% [Price / TCO] (70%) [Price / TCO] Sub Total £ - £1,321,761 £1,289,193.35 £1,253,768.78 [Price / TCO] Sub Total % (70%) 66.3% 68% 70% Total Score 100% 81% 77.6% 78.1%
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4.3 It is recommended that the contract is awarded to New Two Ltd of Glasgow, who has provided the most economically advantageous mini competition submission. The contract shall be for a period of two years with the option of a two x 12 month extension and at a value of £660,880.50 inclusive of VAT over four years and £1,321,761 inclusive of VAT should the contract be extended. 4.4 New Two Ltd 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. Further, New Two Ltd has committed to delivery of the following social benefits as a direct result of delivery of this contract: • Recruitment of four members of staff from within the West Dunbartonshire geographical area; • One newly registered apprenticeship to a resident of the West Dunbartonshire geographical area; • Deliver quarterly workshops, covering career skills, mock interviews etc., within a school or community learning environment; • Facilitate one quarterly work experience opportunities covering a range of work based skills; • Support for local small and medium sized enterprises as part of this contract; • Support for local Third Sector organisation(s) as part of this contract; • Donation of £3,000 to a community group or charity that supports health and wellbeing within the community; • Donation of materials to support a local community project; • Donation of hours of labour to support a local community project; • Donation of £3,000 to support a local community project; • Sponsorship of a local sports team The social benefits will be discussed at the implementation meeting with New Two Ltd 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 Housing Revenue Account budget of Housing First, Refugee Resettlement and Emergency and Temporary Accommodation. 6.2 This procurement exercise was conducted in accordance with the agreed Contract Strategy produced by the Corporate Procurement Unit in close consultation with Housing First, Refugee Resettlement and Emergency and Temporary Accommodation officers and the provisions of Contract Standing Orders, the Financial Regulations and Public Procurement Regulations.
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7. Risk Analysis 7.1 New Two Ltd has 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 screening was undertaken for this reports to determine if there is an equalities impact. It identified a range of positive impacts for equality groups. 9. Consultation 9.1 Housing First, Refugee Resettlement and Emergency and Temporary Accommodation, Finance Services and Legal Services have been consulted on the contents of this report. 10. Strategic Assessment 10.1 The Supply of Domestic Furniture and Furnishings will contribute to the delivery of the Council's strategic priorities: • Our Council - Inclusive and Adaptable Name: Angela Wilson Designation: Chief Officer – Supply, Distribution and Property Date: 22 February 2023 Person to Contact: Ellie Street Strategic Procurement Officer, Corporate Procurement Unit, Council Offices, 16 Church Street, Dumbarton. Telephone: N/A Email: Ellie.Street@west-dunbarton.gov.uk Shari Law Senior Homeless Accommodation Worker
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Council Offices, 16 Church Street, Dumbarton. Telephone: N/A Email: Shari.law@west-dunbarton.gov.uk Background Papers: Contract Strategy Wards Affected: All Council Wards.