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RESOLVED to award a contract to Aspect Group Services
Limited for 12 months at a value of £6.4 million, via the Prosper UK framework
for the delivery of the Social Housing Decarbonisation Fund (Wave 2) and
associated works project only. 

 

To enter into a JCT Measured Term Contract between the council and
Aspect Group Services Limited. The Framework contract will include an
option to extend the arrangement by a further 1 year on the basis that any
extension after the initial one-year term is reviewed annually. The cost of the
contract is subject to annual fluctuation depending on market prices but is
fixed for 2026/27.

 

 

Reasons for the decision

The Council was successful in a grant funding bid in 2024 under the
Social Housing Decarbonisation Fund (Wave 2) and secured an allocation of £3.8 million.
The Social Housing Decarbonisation Fund project will retrofit 276 rural
properties to a minimum of Energy Performance Certificate (EPC) standard C,
resulting in reduced energy consumption, reducing carbon emissions and
expected energy cost savings for tenants. The project will deliver a
substantial contribution to council’s climate commitments. In addition to the
grant funding, the council has committed to contribute to the overall funding of the
project and has allocated circa £4.929 million of capital funding to the
project.

 

A range of measures will be incorporated including the installation of
roof-mounted Photo Voltaic panels to generate power and Air Source Heat Pumps
to provide space heating and hot water. Other measures including cavity wall
insulation, loft insulation, external wall insulation, and new windows and
doors will be added to some of the properties based on bespoke design
criteria.  Additional roofing works associated with the SHDF project will
be also included in the scope.

 

To drive efficiencies the council will directly procure a contractor
generally on a ‘labour only’ basis. The contractor will fulfil the Principal
Designer and Contractor role and provide a range of services such as resident
liaison, contract management, site supervision, and scaffolding and access
services. The contractor will receive the major components for installations on
a ‘free issue’ basis.

 

The cost of the contract was built into the original budgets
for 2024/25 and 2025/26.  The underspend in 2024/25 has now been
reallocated into 2025/26 and 2026/27 based upon revised estimates for the
timing of the expenditure.  The impact of this programme on the
Medium-Term Financial Strategy will only be the timing differences arising in
the recognition of the expenditure and the associated grant funding.

 

The proposed supplier was selected from the Prosper UK framework. They
were placed second on this framework for Price and Quality. They were selected
as the first placed company is a sister company of Axis Europe, and due to
their refusal to undertake these works we did not select their sister company.
There is a social value contribution from the framework equating to a 1% cash
rebate to the council based on the overall expenditure through this
arrangement.

A route to market assessment has been undertaken in conjunction with
procurement colleagues at Chelmsford City Council.

Alternative options considered

The route
to market assessment considered a range of procurement routes.  Due to the timescales attached to expenditure
of the allocated grant funding, a direct award via a framework is the most
effective option to procure a suitable supplier.