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RESOLVED: Cabinet authorised
the Assistant Director Assets & Environment, in consultation
with the Executive Director Resources and Cabinet Member for
Finance, to:
1. Procure contracts, including
awarding contracts to the successful bidders, for:
a)   
Servicing, inspection, and testing of electrics,
mechanical and specialist equipment.
b)   
Cleaning services (including outsourcing in whole or
part of services currently provided in-house).
2. In-source cleaning services,
in whole or part.
 
REASONS RESOLVED:
1.    
The Council’s current term maintenance and
cleaning contracts are due for expiry in 2025 and without putting
in place arrangements to deliver those services the Council would
not be able to meet its statutory obligations. Having suitable
arrangements in place helps ensure that the Council fulfils its
statutory obligations but also that buildings are safe, warm, and
dry and are conducive to service delivery.
2.    
It is sensible to consider options for providing
cleaning services to optimise the results and value for money for
the Council.
3.    
Procurement of contractors for term maintenance on a
schedule of rates, indexed annually, should ensure that the Council
is paying a relevant market rate.
4.    
Likewise, the competitive process of letting the
proposed cleaning contract should provide the most economically
advantageous rates.
5.    
Previous experience has shown it is not practical to
pass the risk in changes to the National Living Wage or
employer’s national insurance contributions to contractors,
where employment costs are a large part of the overall costs.
Therefore it is sensible in such cases for the Council to retain
this risk and avoid paying a risk premium for a risk which is not,
in practice, transferrable.
 
ALTERNATIVE OPTIONS:

·      
(A) Do nothing. The Council does not procure and
award term maintenance contracts. As the work still has to be
carried out, this would require a large number of smaller
procurements to be carried out. As noted above, this is unlikely to
be manageable and would certainly be expensive in terms of staff
time required. It would increase the risk of key activity being
missed and harm resulting. It would corresponding put the Council
at greater risk of breaches of statutory and regulatory
requirements that could lead to prosecution of both the Council and
those individuals involved.

·      
B) Procure term contractors. This approach should
maximise value whilst giving the Council access to suitably
trained, qualified, and competent persons to undertake term
maintenance activity. Option (B) is recommended. This option
ensures that the Council fulfils its statutory duties via the
utilisation of competent persons.