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
security and caretaker staff contract to Profile Security Services
Ltd for a period of 3 years commencing on the 1 April 2024, as detailed in the table
below:
 

Detail required

Answers

Title/Description of Contracted
Service/Supply/Project

Supply of Security Staffing Services

Name of Successful
Contractor

Profile Security Services Ltd

Supplier Registration Number

(to be supplied by Corporate
Procurement)

2371997

Type of organisation

(to be supplied by Corporate
Procurement)

Private Limited Company

Status of Organisation

(to be supplied by Corporate
Procurement)

Non-SME

Contract Value (£)

£         
570,404 (RLW) per annum estimated average

Contract Duration

36 months

Contract Start Date

01/04/2024

Contract End Date

31/03/2027

Optional Extension Period 1

12 months

Optional Extension Period 2

12 months

Who will approve each Extension
Period?

Procurement Board (extension >
£150k)

Contact Officer (Name &
number)

Stephen
Kearney, 0161 686 5810

Lead Service Group

Place

How the contract
was procured?

(to be supplied by
procurement)

Open Tender

Framework Details (where
applicable)

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

N/A

Funding Source

Revenue Budget

Ethical Contractor (EC): Mayor’s
Employment Charter

 

EC: Committed to sign Charter

x
 

EC: Accredited Living Wage
Employer

x

 
The Reasons are to best protect the interests of
Salford City Council and enable the continuing delivery of
essential services.
 
Options considered and
rejected were:
The insourcing of staff and the use of framework
agreements.
 
Assessment of Risk: High
in the event we were unable to award the contract and thus deliver
the services post April 2024.
 
The source of funding
is: Lot 1 - CCTV
(F2800) / Lot 2 – City Watch (F2802) / Lot 3 -
Gateways
 
Legal Advice obtained: Supplied by: Tony
Hatton 219 632. When commissioning contracts
for the procurement of goods, services or the execution of works,
the Council must comply with the provisions of the Public Contracts
Regulations 2015 as well as its own Contractual Standing Orders
(CSO’s), Financial Regulations and the duties of Best and
Social Value. In addition, the PCR require that contracting
authorities treat candidates equally and in a non-discriminatory
way and act in a transparent manner, failing which the award of a
contract may be subject to legal challenge.
 
The
procurement procedure undertaken in this matter appears robust and
compliant with the requirements of CSO’s and PCR
following
an open tender process which is outlined in the body
of the report, with bidders being evaluated
on the most economically advantageous tender, resulting in the
proposed award of the contracts for the two different lots for a
three-year term, with the option to extend for two further periods
of twelve months.
 
As
the value of the contract is over £1 million, the approval
should be made by City Mayor on the recommendation of Procurement
Board.
 
Supplied by Jeanette Williams, Employment Legal Team, 0161 234
4128
 
The
Transfer of Undertakings (Protection of Employment) Regulations
2006 (TUPE) (“the 2006 Regs) govern the rights of employees
and the obligations of employers when a business or service
transfers from one entity to another.
 
The
new provider of the services will take over all rights,
responsibilities and liabilities of the outgoing
provider.
 
Staff who carry out the services, immediately prior to the
transfer will (where eligible) automatically transfer to the new
provider. Therefore, if the services are brought in-house, SCC will
become their employer and if they are delivered by a new
contractor, the contractor will become the employer.
 
Transferring employees should not lose their existing employment
rights. The new employer will assume all responsibilities under
each transferring employee’s employment contract, including
their contacted hours, holiday entitlement, pay and periods of
continuous employment. In addition, the 2006 Regs also ensure that
all liabilities are transferred to the new employer, including
arrears of pay and any contractual or statutory
breaches.
 
Any
changes to terms and conditions of employment will be void
if the reason, or principal for the change is the transfer
itself.
 
Accordingly, the option to move transferring employees to SCC
terms and conditions is not recommended as this would be a breach
of the 2006 Regs and employees would be entitled to seek redress in
the employment tribunal.
 
Financial Advice obtained: Supplied by: Paul
Guest – Senior Accountant (Place), Leanne Wrigley –
Accountant (Service Reform) 12/12/2023. In respect of Lot 1 –
CCTV and Lot 2 – Mobile Response, there is budget provision
within the Place revenue account to fund these contracts. The
revised tender reduces operating requirements by 84-hours per week,
although any potential saving from this has been offset by an
increase in the National Living Wage in April 2024 across the other
areas of the contract.
 
In
respect of Lot 3 – Caretake/ Custodian, there is budget
provision within the Service Reform customer service revenue
account to fund this contract for the relevant gateways. Walkden,
Pendleton and Eccles gateways a % of the costs incurred will be
recharged to partners which is calculated on the basis of floor
area occupied in the buildings. 
Broughton Hub security cost are recharged to Broughton Hub
Development Services.
 
Procurement Advice obtained: Supplied
by Heather Stanton, Category Manager ext. 6241
 
The
tender for the Security Staffing Services went out to market as an
open tender. Bids were received from 14 bidders of which two were
discounted. Not all bidders applied for all Lots. The process
complied with SCC standing orders and PCR’s 2015.
 
As
part of the Council’s Innovate program and budget challenges
the service group considered efficiencies and any savings
opportunities as part of this procurement activity.
 
HR
Advice obtained: Supplied by Rachel
Rennie.11.01.2024 - If the service is to remain outsourced then
there are no direct implication for the
workforce, any TUPE implications would be managed by the Incumbent
Supplier and the new provider.
 
If the service decision is to
insource the work, then incoming staff would be protected by TUPE
regulations, this would mean that all their existing terms and
conditions must remain the same however there are some concerns if
the service is brough in house which would need to be
addressed:
·     
Staff would transfer
over on existing Terms & Conditions there would be no changes
made at the time of transfer.
·     
SCC would however have
to make one change as an accredited FLW employer we would have to
increase the hourly rate for all staff to a minimum of £12.00
per hour from 1 April 2024.
·     
This creates a risk as
the differentials would be eroded which would require a change to
any supervisory contracts and rates of pay. Staff would not be
subject to SCC T&C’s and therefore JE would not apply. An
alternative method of evaluating the role would need to be
applied.
·     
Current contracted
hours range from 24 to 60 per week contracts over 48-hours are in
breach of working time directive which creates a risk for the
Council. Negotiation would need to take place on whether a waiver
is in place and ensure regular reviews are undertaken this raises
concerns:
o 
These contracts would
not be compliant with the Employment Charter.
o 
SCC contracts could be
offered which would be on 36 hours any hours over and above would
be at enhanced rates this would need to be factored into the costs.
There is no obligation for SCC to offer contracts or accept a
request to move onto SCC T&C’s.
o 
SCC would not support
regular working over and above working time directive – a
contract for 36-hours with 12-hours contractual overtime would be
an option this would in turn see an increase in costs and a
potential detriment to Health and Wellbeing.
·     
It is not clear how
holidays and absence would be covered given the need for the SIA
and the 54-hours contract, under SCC T&C’s 1.5 FTE would
be required to cover any absence.
·     
Future costings would
need to consider if an employee on a 54-hour contract left they
would be replaced by 1.5 FTE on a 36-hour SCC contract.
·     
The contacted hours
raise concerns about Health and Safety and Health and
Wellbeing.
 
If changes were to be made to the service to bring in line
with SCC terms and conditions, working time directive it is a
requirement under TUPE to demonstrate that any changes are a result
of an Economic, Technical or Organisational requirement and not as a direct
result of the transfer.
 
Climate Change Implications
obtained: It is proposed that the award
of Lot 2 be made on the use of carbon neutral electric vehicles,
thereby affording a positive contribution to climate
change.
 
The following documents have
been used to assist the decision process: Tender submissions received from the respective bidders –
these relevant documents contain exempt or confidential information
and are not available for public inspection.

Contact
Officer:
Stephen Kearney (Lots 1 and 2) / Mark Nevin (Lot
3)
Telephone
number:
0161 686 5810
 
This matter is also subject to
consider by the Lead Member for Environment and Community Safety.
The Lead Member has been consulted and is supportive of the
proposed contract.
 

Signed:     Paul
Dennett     Dated:
    24
January 2024.
           
       
City Mayor
 

FOR DEMOCRATIC SERVICES USE
ONLY
 
*          
This decision was published on 25 January 2024  
*          
This decision will come in force at 4.00 p.m. on 1 February 2024 unless it is called-in in
accordance with the Decision-Making Process Rules.