Purpose

This report is to get approval for the extension of
the existing mechanical and electrical term maintenance contract
for a period of 6 – 9 months. 

 

This report summarises the background to the
required extension which will ensure the Council’s corporate
and education premises are maintained, remain fit for purpose, safe
for occupancy, and statutorily compliant.

 
The Council’s current
Facilities Management (FM) mechanical and electrical term
maintenance contract expires 03 July 2023.  This contract is for the provision of reactive
repairs, minor works, planned and statutory maintenance, capital
improvement, refurbishment, fit out and adaptation works across the
corporate and education estate.

The content of the award report for the existing contract was
endorsed by the Contracts and Commissioning Board on 2/03/2016
[CCB 1102/15-16] and this reflected the
contract term of 5 years with option to extend for a further twelve
months up to 2 years (5+1+1). The 2nd extension period
runs until 3rd July 2023 and was endorsed via Contracts
and Commissioning Board on 30 March 2022 CCB1734/21-22. This
contract has successfully delivered mechanical and electrical
maintenance, planned and reactive works, also capital improvement
works across the Council including Education, Libraries and
Corporate assets.
 
The Council is retendering a
new maintenance and construction services contract which is to
commence by 1st April 2024. To ensure provision of
essential maintenance and reactive repairs in the interim period
between expiry of the existing contract and commencement of new,
the existing arrangements with the incumbent service provider will
need to be extended.
The extension period is to be for a
period of up to 9 months to allow for a full 6 month mobilisation
period before anticipated contract start by 1st April
2024.The extension would also allow for a possible earlier contract
start date of 1st January 2024 should the successful
contractor deem it possible and viable to mobilize within 3
months.
The incumbent has agreed to continue to
provide maintenance, repair and projects delivery services on the
basis of the existing contract terms and conditions, subject to an
uplift for enhanced call out and contract management arrangements.
The requested uplift compares favourably with inflation and has
been assessed by the Property Maintenance Manager as fair and
reasonable.

Performance of the required maintenance services by the incumbent
would avoid the significant inconvenience or substantial
duplication of costs arising from the appointment of a new provider
for a relatively short period of time and in the context of a live
procurement taking place.  Proceeding with this extension
will also enable the Council to satisfy its statutory compliance
obligations, keep its building and property assets operationally
safe and fit for purpose, and deliver high priority capital
improvement within allocated budgets.

The overall value of the services delivered under the proposed
extension falls within the original OJEU award notice contract
value and the extension is fully funded from existing revenue and
capital budgets.

Content

RESOLVED: To
 
Approve the extension by way of variation of the FM
mechanical and electrical maintenance services delivered by the
incumbent service provider, Atalian Servest, until the latest date
of 1st April 2024; noting that the estimated service extension
value of £2.269m will remain within the original maximum
contract award value of £35m.