Content

Salford City Council – Record of
Decision
 
I Paul Dennett, City Mayor, in exercise of the powers contained within the
Council Constitution
do hereby approve:
 
·     
the award of a 24-month Contract for unmetered
public lighting to Drax Energy Solutions Limited,as detailed in the
table below:
 

Detail required

Answers

Title/Description of Contracted
Service/Supply/Project

Supply of
electricity to all public lighting (UMS)

Name of Successful
Contractor

Drax Energy
Solutions Ltd

Supplier Registration Number

(to be supplied by Corporate
Procurement)

05893966

Type of organisation

(to be supplied by Corporate
Procurement)

Public Limited Company

Status of Organisation

(to be supplied by Corporate
Procurement)

Non-SME

Contract Value (£)

£2,156,415 Per annum (estimated
average)

Contract Duration

24 months

Contract Start Date

01/04/2024

Contract End Date

31/03/2026

Optional Extension Period 1

12 months

Optional Extension Period 2

months

Who will approve each Extension
Period?

Procurement Board (extension >
£150k)

Contact Officer (Name &
number)

Majid Maqbool

Lead Service Group

Place

How the contract
was procured?

(to be supplied by
procurement)

Framework

Framework Details (where
applicable)

(procurement body, framework reference
& title, start/ end date

TC970 – Supply of electricity and electricity
related services

Funding Source

Revenue Budget

Ethical Contractor (EC): Mayor’s
Employment Charter

 

EC: Committed to sign Charter

 

EC: Accredited Living Wage
Employer

 
The Reasons are following the procurement of unmetered
public lighting electricity contract via a fully compliant
Manchester Framework, prices were obtained from the direct award
supplier, Drax Energy Solutions for 12, 24 and 36-month contract
durations. The 24-month contract provides best value in terms of
both budget certainty in current uncertain times and a cost
reduction of £238,356 per annum or 10% in comparison to
current costs.
 
Options considered and rejected
were 12-or-36-month contract
duration where the former offered 16% saving but for a much shorter
period and thereby increasing the risk of price increase, and the
latter only providing a saving of 4%.
 
The 24-month contract therefore
provides both a financial saving in comparison to current costs and
budget certainty for the next 2 years, thereby offering protection
from any short-term geopolitical risks and help in easing budget
pressures.
 
Assessment of Risk: Low
 
The source of funding
is:
Highways revenue budget.
 
Legal Advice obtained from: Tony Hatton, Principal
Solicitor
 
Financial Advice
obtained from: Martin
Anglesey, Accountant
 
Procurement Advice obtained
from: Heather Stanton, Category Manager
 
HR Advice obtained:
N/A
 
Climate Change Implications
obtained from: Majid Maqbool, Energy Manager
 
Contact Officer: Majid Maqbool
Telephone number: 0161 607 6987
 
The appropriate Scrutiny
Committee to call-in the decision is the Growth and Prosperity
Panel and overview Scrutiny Panel.
 
 

Signed:    Paul
Dennett      Dated:
   18 March
2024 
           
      City
Mayor
 

FOR DEMOCRATIC SERVICES USE
ONLY
 
*          
This decision was published on 26 March 2024
*          
This decision will come in force at 4.00 p.m. on 4 April 2024
unless it is called-in in
accordance with the Decision Making
Process Rules.