Agenda item

The report sought approval from the Cabinet Member for Housing Services, Private Renters, and Planning for a variation to increase the currently approved contract value for the existing gas maintenance contract (Lot 2) with Purdy Contracts Ltd. This was to enable payment of pending and future invoicing to ensure continuation of current provision of gas service and maintenance and boiler replacements to Council residents for the remaining contract term up to 30-09-2025 and did not require any additional budget. The report also recommended steps which could be taken to ensure Equality Act duties are properly considered in future.

The Cabinet Member RESOLVED

To approve a variation, under Contract Standing Order 10.02.1.b, to increase the original currently approved contract value for the existing Gas Maintenance Contract (Lot 2), with Purdy Contracts Ltd by £5.504,908.90 from £11.95M to a total of £17,454,908.90, to cover the duration up to 31-03-2025.

Reasons for decision

To continue with the servicing and maintenance of domestic heating systems within the west of the borough and commercial/communal heating systems as well as private sector leasing (PSL) and hostel properties throughout the borough with minimal disruption to residents up to the end of March 2025.

To replace current obsolete and failing communal boiler systems, and renew gas supply pipes to an estate that no longer complied with current safety regulations.

To ensure continuity in adhering to regulation 36 (Duties of Landlords) under the Gas Safe Regulations 1998 to keep residents safe.

This was the most economically advantageous route as the procurement of a new contract was due to be carried out next year as the current contract expired in September 2025.

When the original procurement was conducted, there were large savings made over the previous contract however additional and unforeseen services had become necessary to ensure the safety of residents and the continued provision of heat and hot water and the contract costs had increased.

Since 2020, Purdy Contracts, had been delivering Social Value under the Haringey contract that has benefitted the local community through using the local supply chain, attending careers fairs, donating Christmas presents, taking on work experience placements and creating 5 Apprentice roles, 2 of which have since qualified and work as engineers, one of which started as work experience. Purdy had also attended careers, jobs, and apprentice fairs, and school visits, taking along Apprentices to tell their own story. This opened career options and awareness for residents regarding Housing Sector job roles.

Purdy were also committed to using the local supply chain to buy all materials needed on the contract. This had a direct impact on the local economy, and over the past year spend with local supplies merchant A10 equated to £840,000 of Social Impact Value (Thrive Social Value Calculator). Whilst future contracts would ensure that Social Value was a key factor, this variation to the contract would also ensure the continued good work under this contract until a new contract was in place.

Alternative options considered

Undertaking a full procurement exercise to re-tender the contract

As the contract was procured as a two-year contract with three optional one-year extensions, it was not viable to go through a full tender exercise at this point. This could take between nine to twelve months when the Council was scheduled to carry out a new procurement next year. Also, the contractor’s performance was good, so it was felt that there was no need to procure a new contract at this stage with eighteen months remaining of the contract duration.

Do Nothing

This was not an option as unless there was an increase in the contract value, the Council would not be able to continue meeting its statutory health and safety obligations.

In-house Delivery

Services previously delivered by Homes for Haringey were returned to the Council in mid-2022 and the Council had not yet undertaken a review of the option of in-house delivery. An enabling review could take up to twenty-four months to explore further service delivery options.