Purpose

The Council as a social
landlord has statutory obligations and requires the use of the
Electrical and Mechanical Planned Maintenance and Improvement (PMI)
works term contract to continue to deliver essential electrical and
mechanical maintenance, statutory planned preventive maintenance
and capital improvement works including minor works and major
refurbishment requirements across the Council’s
estate.
 
These comprise works
to:         
•          
ensure property and asset electrical safety and fitness for
purpose,                                                     
•          
maintain health and safety,                                                                                    
•          
maximise viable life expectancy, and                                                                 
•          
ensure statutory compliance.  
 
The Council has now used
exhausted the original full contract of full contract value -
£26 million. The recommendation and request is to vary the contract by 27% of the original award
value £7 million to £33 million. Further recommendation
for a year extension to the contract is also requested.
 
The recommendation to continue
the contract is to support continuity of contract delivery to
ensure that the Council meets its statutory obligation as set out
above.
 

Content

The Corporate Director of
Housing RESOLVED to:  
 

approve
the exercise of the remainder of a
permitted three-year contract extension for the delivery
of Electrical and Mechanical Planned Maintenance and
Improvement Works contract with AJS
Electrical Ltd, at an annual value
of £2.3m with a
maximum contract value of £6.9m until
31st March 2025. 

 

Note that although
the contract technically expired on 31st March
2022, services have continued to be provided however
governance approval has been delayed and is sought for
the remainder of the extension period until the latest
date of 31st March 2025. A review of the
service is being carried out to review the contract and options
analysis as to determine the long-term procurement
strategy. 

 
 

Reasons for the decision

The Council as a social
landlord has statutory obligations and requires
the use of the Electrical and Mechanical Planned
Maintenance and Improvement (PMI) works term contract to
continue to deliver essential electrical and
mechanical maintenance, statutory planned preventive
maintenance and capital improvement works including minor works and
major refurbishment requirements across the Council’s estate.
These comprise works
to:           
 

ensure property and
asset electrical safety and fitness for
purpose,                                                       

maintain health and
safety,                                                                                      

maximise viable life expectancy,
and                                                                   

ensure
statutory compliance.                                                                           

 
The scope of works as described
in 4.4 covers essential maintenance, improvement
checks, certification and works to any Council school building
and social care properties as and when required. These are
considered as priority 1 landlord responsibilities
which benefit tenants, leaseholders, and
children (schools). 
 
The term of
contract included permitted extension for
the remainder of the first three year option as detailed in the award
report approved by procurement board on
20th October 2016 ref: 1176/16-17, and commenced on
1st April 2017 to deliver the Council’s
planned maintenance and improvement works.  
 
The report seeks to extend
the contract for the remainder of the
first permitted three
year extension period. However, after
the expiry of the extension the contract will be
reprocured due to the contract value being
exceeded. 
 
Although the contract
technically expired
on 31st March 2022, services have
continued to be provided however governance approval has been
delayed with the service and
is sought for the remainder of the extension
period up until 31st March 2025. 
 

Alternative options considered

The following options were
considered with regards to the contract
extensions:  
 
Do Nothing  
 
Should the Council not enable
provision of housing maintenance and repair arrangements. The
Council would be in breach of Housing Act 2004, the significant risk would be borne on
the Council due to lack of strategic supply arrangements being made
available to support the Council requirements and the tenants.
Therefore, potentially subject to the Council on its failure to
meet its legal obligations. Also, the Council’s reputation
would be damaged from the lack of provision arrangements would be
under scrutiny.  
 
Bring the
service in-house 
 
The competency of in-house
staff will remain limited compared to an
experienced electrical contractor. Also, the Council do
not have the current internal resource or infrastructure to
manage the complexities of the service and will
be costly to the Council. 
 
 Issue invitation to
tender 
 
Considering the time and
capacity of the service in dealing with other priorities at
this time, efficient delivery may be
impaired. This option has therefore been
rejected. 
 
Issue invitation to tender
via a suitable public sector framework. 
 
A number
of national frameworks have been established by
following the FTS procurement process. This allows the Council to
undertake a mini competition which has shorter timescales in
comparison with following the Open
procurement Procedure process. The service will not
be able to procure this service, based on the reactive
work required for the contract and the need for
business continuity.