Purpose

A Mayoral decision is required to regularise expenditure under the existing Electrical Measured Term Contract (P5430), which has exceeded the original contract value approved when the contract was awarded in 2021. Whilst the contract term remains valid until October 2026, spend has exceeded the approved contract value due to increased service requirements, inflationary pressures, Town Hall alterations and the insourcing of Leisure Services.

Decision

DECISION:

1. To approve an interim contract arrangement for the provision of Electrical MTC services for a maximum period of six months following expiry of P5430, with a maximum value of £0.9m, to maintain continuity while the replacement procurement is completed.
2. To delegate authority to the Corporate Director, Housing & Regeneration, in consultation with Procurement, Legal and Finance, to finalise and award the interim arrangement.
3. To note the timetable for the replacement competitive procurement, with the new Electrical MTC expected to be operational by April 2027.
4. To agree monthly monitoring of expenditure against the £0.9m interim approval.
5. To note the Equalities implications set out in section 5 of the report.

Action by:

David Joyce, Corporate Director, Housing and Regeneration

Sarah Steer, Interim Head of Facilities Management

Reasons for the decision

Electrical maintenance is a critical service supporting the safe, compliant and effective operation of Council buildings. The service includes planned and reactive electrical maintenance, testing, statutory compliance activity, repairs and small works.

The existing contract expires in October 2026. The replacement procurement is not expected to conclude and mobilise until April 2027, creating a potential service gap of up to six months.

A break in provision would expose the Council to unacceptable operational, health and safety and statutory compliance risks and could result in building closures or restrictions on service delivery.

The replacement procurement for this contract was deferred pending completion of the General Build Contract award process. It was essential that the lessons learned from the delays encountered during that procurement were fully captured and embedded into future commissioning and procurement activities. The replacement procurement is now underway and must be delivered to a robust and tightly managed programme to prevent any further extension of interim arrangements and ensure timely contract mobilisation.

The proposed interim arrangement is therefore required solely as a time-limited continuity measure. It must not extend beyond the period or financial ceiling approved without further governance approval.

Alternative options considered

Do nothing / cease planned maintenance – This option is not recommended. It would create a material risk of electrical failure, non-compliance with statutory obligations, disruption to Council services and potential closure of buildings.

Procure individual works through multiple RFQs – This would create significant administrative demand, fragmented accountability and inconsistent response arrangements. It is unlikely to provide an efficient or resilient solution for the full estate-wide requirement during the interim period.

Direct award / interim award to the incumbent – This is our recommended option, it provides the greatest continuity and avoids mobilisation risk, but may only proceed where Procurement and Legal confirm that a lawful statutory basis exists. The justification must not rely on the supplier’s local SME status or the impact on the incumbent; the decision must be based on the Council’s service requirement, legal basis, proportionality and value for money.