Agenda item

[Report of the Director for Housing and Growth. To be introduced by the Cabinet Member for Housing and Estate Renewal.]

Recommending the award of contract for supply of furniture and fittings for Temporary Accommodation properties to preferred provider following tender process. Contract Standing Order (CSO) 9.01.1 (requirement to let contract following publication of an appropriate (tender) advertisement.

The Cabinet Member for Housing Estate and Renewal introduced this report which sought approval to the award of the Framework agreement for the supply of furniture and white goods for a 4 year period at a total value not exceeding £1.5m to three providers.

The Cabinet Member stressed it was important that residents lived in homes that were well equipped and comfortable, and that included residents who were currently living in temporary accommodation. The framework would ensure that homes used for temporary accommodation were equipped with furniture and white goods, which would help make them appropriate places to live for families and other households who became homeless.

Following questions from Cllr Brabazon and Cllr Gordon, the following was noted:

·         Officers would confirm whether the furniture contract would be charged to the General Fund or the Housing and Revenue Account. It was suspected to depend on the property so if in a council owned lodge it would be the HRA but if Temporary Accommodation then the general fund.

·         Officers would confirm where the three suppliers were located. They were well known to the Council and it had been using their services for 10 years.

Further to considering exempt information at item 20,

RESOLVED:

To approve the award of the Framework agreement for the supply of furniture and white goods for a 4 year period at a total value not exceeding £1.5m (one million and five hundred thousand pounds) to the following three suppliers:

·        MFD Limited

·        Myers Ideal Suppliers Limited

·        Elegance Furniture Suppliers Limited

Reasons for decision

The Framework that was granted in August 2016 for a 4-year period has been exhausted. An interim contract that was awarded in July 2018 will expire in January 2019. Therefore, a new contract is required for another 4 years.

The new Framework will address the ongoing demand for furniture and white goods within Homes for Haringey and the Council.

This report seeks approval for the award of the Framework for a total value of £1.5m which will be split equally between MFD, Elegance, and Myers. Two of the three suppliers have worked with the Council for over 10 years and have provided white goods and furniture in a timely and economic way. The third supplier currently supplies several London Boroughs with similar products. This Framework represents continuity and value for money for the Council.

The proposed award to MFD, Elegance and Myers is based 70 per cent on price and 30 per cent on quality.

If the Council fails to secure the service of dedicated suppliers with fixed prices, it may have no choice but to consider ad hoc purchases which will be more expensive in both the short and long term. Any delay in engaging these           suppliers will also have a resulting adverse effect on void costs.

The option to use MFD, Elegance and Myers represents value for money for the Council. In addition, the Council will have more options with a third supplier joining the Framework. They are all relatively local to the Council and will be in a position to respond to emergency situations very quickly.

The new Framework award to MFD, Elegance and Myers will be for four years.

Alternative options considered

Do nothing

The Council has a statutory duty to provide temporary accommodation to households who are owed a homelessness duty. The Council is required to ensure that the accommodation provided is suitable for occupation, which includes providing basic furnishings if the household requires this.

Source furnished accommodation

If the Council were unable to secure furnishings through this Framework, they would need to procure accommodation that is already furnished. This form of accommodation is most often available on a nightly paid basis and has a far higher cost than other forms of temporary accommodation, therefore placing increased pressure on the temporary accommodation budget. In addition, the current preferred approach of providing temporary accommodation in Council-owned lodges gives an additional level of oversight and quality control. The decision not to award this new Framework would prevent the third proposed conversion of a Council-owned building to a lodge from going ahead.