Agenda item

Report of the Director of Adult Social Servicesseeking approval  on the proposal to enter into framework agreements for the provision of disabled adaptations works.

The Leader noted the report, which sought approval to enter into framework agreements for the provision of disabled adaptations works.

Councillor Connor raised concerns with the minimal number of Occupational Therapists available at a community care level and highlighted that this could cause delays in the process. In response, officers acknowledged these concerns and advised that consideration would be given to how this could be mitigated.

RESOLVED

I.        That the Cabinet Member for Adult Social Care & Culture approve the proposal to enter into framework agreements for the provision of disabled adaptations works with Keepmoat Regeneration Ltd, Richwell Construction Ltd, Effectable Construction Services and The AD Construction Group as allowed under Contract Standing Order (CSO) 16.02, for a period of two years with the option to extend the framework agreements for a further two years on an annual basis subject to satisfactory performance of the suppliers.

Reasons for decision

 The intention is for the proposed framework agreement to:

·         Deliver value for money through a competitively procured schedule of rates, with scope for good economies of scale with the suppliers and the council working together to achieve cost reductions and continuous improvement;

·         Provide four specialist adaptations suppliers to allow for a responsive service with good capacity;

·         Ensure consistency and continuity over the term of the agreement;

·         Allow for suppliers to be assessed on quality as well as cost to ensure a high standard of work and customer service; and

·         Ensure delivery of housing adaptations in the shortest possible time.

·         Ensure that through the term of the contract Value for Money is reflected in all commitments;

·         Guarantee that the framework and call-offs issued under it are all fully compliant with the Public Contract Regulations 2015.

Alternative options considered

             The options set out below have been considered by the Head of Adaptations Service and Strategic Procurement.

            The options were considered in detail against the various project objectives.

 It was concluded that Option D was the preferred option.

            Of significance, the adaptations works are classified as works under Schedule 2 of the Public Contracts Regulations 2015. The anticipated value of spend under the framework agreement  over the next four years is over the EU threshold value for works and is therefore within the scope of the Public Contract Regulations 2015 and subject to a full EU wide compliant procurement route.

 Option A – Tender work in batches

            This would mean continuing with the current arrangement whereby the work is competitively tendered in batches which is both very time consuming and a lengthy process for already stretched internal resources.

            The existing arrangement was only a short term expedient to maintain continuity in the provision of services pending the development of a  more lasting solution that fully complied with the Public Contract Regulations 2015 which is necessary given the projected value of the work over the next four years which is in excess of the EU threshold for works.

Option B - Access an existing Adaptations Framework operated by other public sector bodies.

            While this option might be efficient in terms of staff time in the procurement process there are the following disadvantages if joining an existing framework:

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·         There will be a cost to the council to access the framework;

·         It may not provide the wide range of services that the council and Homes for Haringey require;

·         It may increase the level of sub- contracting as suppliers on a framework may not have a local presence or have the capacity or capability to meet the council’s requirements;

·         It may prevent the council being able to determine its own contract terms as they are already prescribed in the framework structure ;

Option C - Measured Term Contract with a single Supplier

            This contract is suitable for a regular flow of adaptations works to be carried out by a single contractor over a specified period of time. The work is measured and valued on the basis of an agreed Schedule of Rate. The major concern about option C is reliance on a single contractor and is therefore not recommended.

Option D - Council Framework Arrangement with one or more Suppliers

            Framework Agreements can be either sole supplier or multi supplier frameworks and are an agreement between the contracting authority and the contractor(s) detailing the terms and conditions against which the contracting authority may place orders or tasks. The contracting authority is not obliged to order, accept or pay for any of the services other than those actually ordered and / or authorised under the terms of the framework agreement.

            Each order or task raised against a framework agreement is a separate legally binding contract relating only to the services covered by the particular order or task, subject to the terms and conditions stated in the framework agreement.

            Under a framework agreement that there is no commitment for either party to undertake any business until the first contract is 'called off'.

            It is considered that a multi supplier framework is best suited to the council’s requirements for housing adaptations. The possibility of incorporating the needs of Enfield’s requirements into the framework agreement was explored but did not get off the ground as Enfield decided to develop their own framework agreement tailored to their specific requirements.