Content

Salford City Council – Record of
Decision
 
I Councillor Youd, Lead Member
for Finance and Support Services and chairman of the Procurement
Board, in exercise of the powers contained within the
Council Constitution
do hereby approve:
 

to Award the Contract
for theoperation of the DfT E-scooter Trial in Salford, as detailed
in the table below:

 

Detail required

Answers

Title/Description of Contracted
Service/Supply/Project

DfT E-scooter Trial in Salford

Name of Successful
Contractor

Lime Technology

Supplier Registration Number

(to be supplied by Corporate
Procurement)

11517465

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 (£)

£         
Concession Agreement

Contract Duration

23 months

Contract Start Date

01/07/2024

Contract End Date

31/05/2026

Optional Extension Period 1

12 months

Optional Extension Period 2

0 months

Who will approve each Extension
Period?

Strategic Director (extension <
£150k)

Contact Officer (Name &
number)

Andrew Fisher

Lead Service Group

Place

How the contract
was procured?

(to be supplied by
procurement)

Open Competition

Funding Source

Choose an item.

Ethical Contractor (EC): Mayor’s Employment
Charter

 
 

EC: Committed to sign up to charter

x

EC: Accredited Living Wage Employer

 
Basis for decision
Lime Technology were selected
as the chosen operator for the DfT e-scooter trial, based on their
current experience in running e-scooter trials in the UK and other
countries. Lime Technology’s response to the tender provided
a detailed plan as to how they would operate the scheme and provide
ongoing investment to Salford as part of their
operations.
 
Two other applications were
received from Smidsy Ltd (t/a Beryl)
and Voi Technology limited. Both companies provided credible plans
to operate the e-scooter trial within Salford, however they lacked
the sufficient detail and commitment to operate the scheme in
Salford. The bids were evaluated against the weightings in the
table below. The most economically advantageous tender was
chosen.
 

Operator

Quality 70%

Social Value

15%

Pricing 15%

Total Score

Lime
Technology Ltd

58.00%

15.00%

14.29%

87.29%

Operator 2

56.00%

12.00%

14.31%

82.31%

Operator 3

52.00%

12.00%

15.00%

79.00%

 
Assessment of Risk
The e-scooter trial has been
running successfully since October 2020. Initially a one year
contract with the chosen operator was agreed to coincide with the
trial length as set by the DfT. As the
trial length has been extended, the contract was extended in line
with the trial length. As the trial has now been extended until
 31st May 2026 it was decided
to retender the contract in line with the new trial period. If a
new operator is not selected there could be break in service of the
e-scooters.
 
The source of
funding
The e-scooter trial will be
fully funded by the operator.
There will be no costs to the council involved in the operation of
the trial and any costs incurred by the council associated with the
running of the trial will be reimbursed by the operator.
 
Legal Advice obtained: Legal advice was supplied by Tony Hatton – Solicitor: All
public contracts must be procured using principles of fairness,
transparency and non-discrimination, hence the procurement of the
e-scooter service undertaken must be in accordance with those
principles, and accordingly there must be no prejudice suffered by
bidders due to Lime Scooters’ involvement and earlier
appointment to the pilot project, nor any distortion of competition
or advantage gained by them as the incumbent supplier.
 
The proposed award is
for a concession contract as the Council is not guaranteeing any
level of payment but giving the operator the opportunity to
generate income. For contracts of this nature, the Council must
comply with the terms of the Concessions Contracts Regulations 2016
as well as its own contractual standing orders. In simple terms, a
concession contract is one where a Contracting Authority grants a
contract for works or services to a third party and the
consideration involved, rather than being a direct payment from the
Contracting Authority, consists solely of the right to exploit the
work or service (or sometimes these rights in addition to receiving
a payment.
 
To qualify as a
concession contract, it must also involve the transfer to the third
party (or “concessionaire”) of an operating risk in
exploiting the service which, at least in part, “involves
real exposure to the vagaries of the market”.
 
Department for
Transport has extended the trial period for the duration of the
e-scooter trial until May 2026, and the use of e-scooters as part
of the Trial within the proposed Phase 4 area is covered within the
current City-wide authorisation issued by the Department for
Transport. However, authorisation to operate e-scooters within new
trial areas pursuant to the DfT authorisation may be approved by
the Executive Director.
 
Financial Advice
obtained:
Financial comments were supplied by Adam Flaherty
(senior accountant) There are no direct financial implications of
this Lead Member Briefing. The agreement is on a concession basis
so there are no immediate financial implications. Full
consideration of any funding would be provided at DDN stage (if
applicable). 
 
Procurement Advice
obtained: Procurement comments were supplied
by:  Daniel Cunliffe (Procurement
officer) The opportunity was advertised as a concession agreement
due to there being no cost to Salford City Council, the advert was
posted on the northwest portal as an open tender, inviting
companies to submit a bid to deliver the scooter service for the
residents of Salford City Council. The process undertaken complies
with the Public Contract Regulations and the Contractual Standing
Orders.
 
HR Implications:
The trial will be operated
fully by the Lime with oversight by council officers. Additionally,
Lime employee members of staff with a proportion of the staff
sourced locally. As part of the original agreement with Lime, Lime
have agreed to comply with anti-slavery legislation.
 
Climate Change
Implications
The scheme will continue to
provide a more sustainable transport option in line with the
council’s climate change aspirations, helping to reduce car
use and air pollution within Salford.
 
Contact Officer: Andrew Fisher
Telephone number: 0161 779640
 
·     
This matter is also subject to consideration by Cllr
McCusker, Lead Member for Planning, Transport and Sustainable
Development.
·     
The Lead Member has been consulted and is supportive
of the proposed contract.
 
 

Signed:    Cllr J
Youd          Dated:
   12 June
2024.
           
City Mayor / Lead Member
 

FOR DEMOCRATIC SERVICES USE
ONLY
 
*          
This decision was published on 12 June 2024
*          
This decision will come in force at 4.00 p.m. on 19 June
2024 unless it is called-in in
accordance with the Decision Making
Process Rules.