Purpose

To award the interim contract.

Content

Decision:

1.    
To approve the award of the Domestic Gas Boiler Servicing
(East) contract to T.S.G
Building Services PLC for a period of 12 months from 16 January
2026 at a total contract value of £461,816.
2.    
To approve the award of the Domestic Gas Boiler
Servicing (West) contract to Sureserve
Energy Services UK Ltd for a period of 12  months from 16 January 2026 at a total contract
value of £461,816.
 
Reasons:
1.    
The previous contract for the East expired on 7
November 2025 and the contract for the West expired on 5 December
2025. At present, we are currently meeting demand for this service
on a reactive basis. It is not advisable to maintain this approach,
given the peak period for this service is approaching and there is
a need to put a formal compliant contract in place to ensure that
we meet our statutory duty.
2.    
If we do not enter into these contracts, the Council
will fail in providing its statutory Gas and Boiler Servicing
requirements.
3.    
The Council is preparing a tender for a longer-term
contract for each area, which is envisaged to be awarded within the
12 months period. It is imperative that whilst the council is
procuring a new long-term contract, that we continue to service all
domestic boilers in our properties.
4.    
A waiver has been put in place for each of the
expired contracts to cover the period following expiry until
commencement of the interim solutions.
5.    
Additionally, the costs for demobilisation of
current contractors and cost of system integration and mobilisation
of new contract for a short period would outweigh any benefit from
bringing in any potential new supplier.
6.    
Value for money is demonstrated by continuity of the
service via the incumbent suppliers under a compliant call off
contract against Fusion 21 Framework Heating, Renewables, and
Electrical Framework Lot 1.
 
Other options considered and
rejected by the Executive:
1.    
Do nothing – This option was dismissed because
continuing with the expired contracts presents a breach against the
Council’s Contract Procedure Rules. Furthermore, if the
supplier walked away from the contract, this would prevent the
Council from meeting its statutory duties under GSIUR, HHSRS, and
the Decent Homes Standard. It would place tenants at risk due to
unsafe or unmaintained gas installations, increase asset risk
across the housing stock, and expose the Council to potential
financial and reputational harm.
2.    
Extend Previous Contracts – This option was
dismissed because the existing contracts have now expired and
cannot legally be extended. Under the Public Contracts Regulations
2015 (PCR 2015), extending an expired contract would constitute a
direct award without competition, which is a breach of procurement
law. Proceeding in this way would expose the Council to significant
legal, financial, and reputational risks, including potential
challenge from the market. As such, this option is neither lawful
nor appropriate.
 
Details of any conflict of
interest declared by the Leader or lead councillors and any
dispensation granted:
None.