Agenda item

The Cabinet Member for Finance and Corporate Services noted that the Council had  awarded a security contract to United Guarding Services Ltd (UGS) in May 2021 for 5 years with a contract value of £7m. This contract provided security guarding services on request and as and when required for Homes for Haringey but also enabled supplementary resources to be called upon for Council-related security services.

It was further noted that when Homes for Haringey was insourced in June 2022, Strategic Procurement novated the contract and changed the named contract owner to Haringey Council. The Cabinet Member noted that the contract has continued to be called upon since then for the Housing Service and to meet the supplemental needs identified by Operational Facilities Management.

Since the commencement of the contract, a higher level of externally provided security service has been required than originally foreseen – across both housing and other operational buildings. This increased demand for external support has accelerated the spend rate on the contract.

In considering the recommendations, the Cabinet Member for Finance and Corporate Services requested careful monitoring of this contract and asked to receive monthly updates on this contract spend.

The Cabinet Member for Finance and Corporate Services,

RESOLVED

Pursuant to Contract Standing Order 16.01, to approve an uplift in the current value of the security contract with United Guarding Services by 50% (representing an increase of £3.5m) in accordance with Regulation 72(1)(c) of the Public Contract Regulations 2015.

Reasons for decision

The 50% increase in contract value is the maximum permissible under Regulation 72(1)(c) will allow continuity of the current contract for an estimated further 18 months’ security provision between July 2024 and December 2025.

That 18-month period will allow a full review of the future levels of security required, identifying the extent to which the current level of in-house security provision can be increased, and a full procurement exercise undertaken to reflect the conclusions of that review. It is worth recognising, though, that there will nonetheless be a continuing need to call on some supplemental external security to support Operational Facilities Management in responding to ad hoc variable work requests from other services, undeliverable even from an expanded inhouse security team.

Not increasing the current contract value would mean that Operational Facilities Management would have to stand down all contracted security with immediate effect and not be able to provide a robust security service to ensure Council staff, residents and buildings are kept safe.

Alternative options considered

Do not increase the contract value. This is not an option as the Council needs a security contractor to provide security services to Council services/ directorates to ensure staff, residents and buildings are kept safe.

Uplift contract value by 40% (i.e., £2.8m). This uplift would provide an estimated 13 months’ security provision between July 2024 and August 2025. This would allow a shorter period for conducting a review of future security provision, thereby constraining detailed exploration of future service delivery options. In addition, this would also limit the ability of the existing contract to respond to any significant increase in demand for external security resource.

Uplift contract value by 30% (i.e., £2.1m). Whilst this uplift would provide an estimated 11 months’ security provision between July 2024 and June 2025, it would severely constrain the extent of the aforementioned review and mean a challenging timeframe for any associated procurement.