Agenda item - Award two Heating Contracts to successful bidder.

Report of the Corporate Director of Adults, Housing and Health. To be presented by the Cabinet Member for Housing & Planning (Deputy Leader)

DECLARATIONS OF INTEREST RELATING TO THIS ITEM:

None

RESOLVED:

That Cabinet:

1. Approved the award of a contract for Domestic East (Lot?1) to Bidder?A in accordance with Contract Standing Order (CSO)?8.01 and CSO?2.01(c), based on the scores shown in Table?1 of the report and with further detailed commercial information set out in the exempt section of the report.

2. Approved the award of a contract for Domestic West (Lot?2) to Bidder?B in accordance with Contract Standing Order (CSO)?8.01 and CSO?2.01(c), based on the scores shown in Table?1 of the report and with further detailed commercial information set out in the exempt section of the report.

Reasons for decision

The decision ensured compliance with Statutory Regulation?36 (Duties of Landlords) under the Gas Safety (Installation & Use) Regulations and other applicable regulations, and supported minimal disruption, maximum safety, and the provision of sustainable homes for Council residents.

Heating servicing, repairs, maintenance, and installations were critical to maintaining safety across the Council’s housing stock. The service area covered approximately 14,000 homes with various appliances supplying heat and hot water to tenants across the borough. Most systems and appliances were gas?fired, although the service also included solid?fuel and other non?electric heating types. Electric heating was maintained separately by Haringey’s Repairs Service.

The existing heating contracts for servicing and maintenance were approaching the end of their five?year duration (two initial years plus up to three one?year extensions). One contract also included communal boiler servicing and maintenance. As all available extensions had been exhausted, the contracts required re?tendering and the award of two new contracts.

Budget provision for the contracts was contained within the current Housing Revenue Account Medium?Term Financial Strategy (HRA MTFS).

Alternative options considered

Do nothing
This option was not viable due to residents’ needs and the Council’s statutory health and safety obligations.

Continue with the current contract
This option was rejected because the contract period and value had been fully exhausted, including all possible extensions. The Council was also required to demonstrate value for money, regularly review service provision, and comply with procurement rules.

Deliver the works in?house
This option was discounted because the Council did not currently have the required internal capacity or specialist expertise to deliver the works in?house. Although in?sourcing would continue to be considered as part of the Council’s wider agenda, substantial investment, time, and resources would be required to determine whether an in?house model would be viable in terms of cost and risk.

The Cabinet Member for Housing and Planning, and Deputy Leader of the Council introduced the report.

It was stressed by the Cabinet Member that the safety of residents was a key consideration in the provision of safe, sustainable, stable and affordable homes in Haringey. Regulatory requirements for heating systems were set out under the Gas Safety (Installation and Use) Regulations 1998, alongside additional regulations covering oil and solid fuel systems and emerging technologies such as heat pumps. The council was required to ensure that all systems and appliances were appropriately installed, safety checked, fit for purpose and maintained, so that they operated correctly and provided controlled and affordable heating for residents. The implementation of the new contract for heating safety checks, servicing, repairs, maintenance and installations supported residents to remain safely in their homes. It also contributed to carbon reduction objectives and ensured compliance with Awaab’s Law and the requirement to address Category 1 hazards under the Housing Health and Safety Rating System as part of the Decent Homes programme.

It was explained that the contract specifications enabled the Council to review and update its Employer’s Requirements for new developments and to maintain consistent standards for gas and heating safety across council housing. This included the use of consistent materials, appliances and associated technologies across repairs and major works, including where delivery was undertaken by different contractors. It was noted that these arrangements improved safety, comfort and affordability for residents through the provision of appropriate heating systems, supported by regular safety checks, maintenance and installation works.

Following questions from Councillors Cawley-Harrison, the following information was shared:

It was explained that, when reviewing major works contracts, it was explained that the Council sought to install heat pumps wherever possible. It was noted that the Council would work with residents to improve energy efficiency.
It was explained that a part of the bid included providing energy advice for residents as part of the social value requirements.
It was noted that the Council was looking to increase use of AI and digital work to install smart thermostats where possible.

It was noted that boiler replacement would be undertaken on a ad hoc basis. It was explained that this could happen as part of major works programmes.

It was noted that contract lengths of 1+1 terms allowed the flexibility for the Council, and ensured that the number of contract re-procurement would not spike.