Framework agreements : Community Overview and Scrutiny Committee on 21/01/2003

Waverley Borough Council Committee System - Committee Document

Meeting of the Community Overview and Scrutiny Committee held on 21/01/2003
Framework agreements

This report reviews and proposes a new method of procuring specialist consultancy services to facilitate the repair, maintenance and refurbishment to the Council’s Housing Stock.
The proposed framework agreement will speed up the procurement process and is a key outcome to the best value review and new procurement strategy.
The resource implications will be contained within the HRA revenue and capital budgets.

APPENDIX P

WAVERLEY BOROUGH COUNCIL

COMMUNITY OVERVIEW AND SCRUTINY COMMITTEE – 21ST JANUARY 2003

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Title:

Framework agreements

[Wards Affected: N/A]
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Summary and Purpose

This report reviews and proposes a new method of procuring specialist consultancy services to facilitate the repair, maintenance and refurbishment to the Council’s Housing Stock.
The proposed framework agreement will speed up the procurement process and is a key outcome to the best value review and new procurement strategy.
The resource implications will be contained within the HRA revenue and capital budgets.

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Introduction

1. The Council has traditionally prepared and procured its Planned Maintenance Programmes through in-house staff, supplemented by external consultant resources and expertise. This process has been reasonably successful in that different projects can be prepared simultaneously, and there is a flexible response when urgent work is required or an emergency diverts in-house resources away from their current work in hand.

2. A number of local and national consultancies have been and are currently used covering all aspects of the technical professions. Some carry out specialist investigations and provide independent expert reports, for example on subsidence and structural problems; others are used to prepare drawings and specifications for specific projects.

3. The consultancies themselves are appointed after procured through a competitive process has been conducted and the cheapest is then selected for the work.

4. At any one time during a working year there will be between 5 and 20 consultants working on between 30 to 50 projects.

5. The process to procure and monitor this diversity takes considerable time and effort from in-house staff, which in turn limits the time that they are able to devote to their own projects.

6. It is proposed that this process now be reviewed and streamlined.

Framework agreements

7. A framework agreement sets out the type and extent of procurement and preparation work that is expected to be carried out by the consultant over a period of time (typically three years, with agreed extension to five depending on performance) against which the consultant sets down their fee structure and limits. The document also describes the time scales and standards that are expected to be achieved within the agreement.

8. The object is to enable a tendering exercise to be carried out, resulting in a limited number of consultancies (depending on specialisms) who will contract with the Council to carry out a body of work that can be delivered to a pre-agreed quality standard and timetable.

9. Advertisements would be placed inviting appropriate consultancies to apply, and the process will then proceed in accordance with Standing Orders (Contracts).

10. However, the purpose of the exercise is to choose consultancies that the Council can be assured will deliver on standards and time, and not to simply pick the cheapest. Therefore, the selections made will be on the basis of the most economically advantageous to the Council.

11. Annexe 1 sets out the process for selecting the consultants.

12. It is intended that when the tenders are returned, each tenderer will be marked according to prearranged criteria including price, and the highest scoring will be invited to an interview process with a panel that includes a tenants’ representative, the Portfolio holder and a member of the internal audit section. That interview panel will make the final selection having pre-agreed a marking process.

Resources

13. The provision of the Major Repairs Allowance now means that the Council can plan further forward with certainty that financial resources will be available. The current employment market for in-house and external consultancies in the building construction industry is under pressure and this proposed framework agreement will help to secure a more efficient use of the internal and external resources over a longer period.

Environmental implications

14. There are no environmental implications arising from this report

"Opportunities for All" implications

15. There are no “Opportunities for All” implications arising from this report

Conclusion

16. Annexe 1 to this report shows the timetable for procurement of the framework agreement. It is expected that the framework will be in place early in the new financial year. This will enable the procurement planning for the new 8-year maintenance programmes to be undertaken with more confidence that timetables can be achieved. Consequently, more certain information can be produced earlier for customers telling them when the work to their homes is likely to be carried out and completed.

Recommendation

That the Committee commends to the Executive that:

1. the principle of the framework agreement for the recruitment of consultant resources be approved;

2. the tendering exercise for the procurement be undertaken to achieve the most economically advantage agreement for the Council; and

3. to enable the Council to accept the most economically advantageous bid the proposals be exempt from the following Standing Orders (Contracts):

a) In the event that the advertisement does not attract the required number of appropriate consultants-S.O.105(3) (number of persons or bodies invited to tender);

b) S.O.111(1) - Acceptance of tenders other than the lowest in price.

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Background Papers (DOH)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.

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CONTACT OFFICER:

Name: David Simmons Telephone: 01483 523374
E-mail: dsimmons@waverley.gov.uk
COMMS/O&S2/088

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