Decision
Purchase of Telehandler - DDN Exception to Contractual Standing Orders
Decision Maker:
Outcome:
Is Key Decision?: No
Is Callable In?: Yes
Date of Decision: July 14, 2025
Purpose:
Content: Salford City Council - Record of Decision I Councillor Barbara Bentham, Lead Member for Neighbourhoods, Environment and Community Safety, in exercise of the powers contained within the City Council Constitution do hereby endorse the action of the Executive Director of Place to approve an exception to Contractual Standing Orders in accordance with Paragraph 3.1, to award a contract with a total value of less than £150,000 for the purchase of one Telehandler Kramer KT276. The Reasons are: The Turnpike Depot fleet management and replacement programme has identified a number of vehicles for replacement within the 2025/26 Operational Division Service capital budget. The approved capital budget for 2025/26 is £1,243,000, the approved budget will allow for the proposed vehicles within this report to be replaced as anticipated. This approval for the purchase of one telehandler Kramer KT276 by exception to the Corporate Standing Orders for reasons of best value and the goods/services form spart of that replacement programme, supports operational efficiency and SCC with its ambition to be carbon neutral by 2038. Options considered and rejected were: not to replace the vehicle Assessment of Risk: Low - these purchases are replacing two of the existing diesel tractors in the fleet which is identified within the fleet replacement programme at Turnpike Depot this year 25/26 and this purchase would contribute to fulfilling these vehicle allocations. The source of funding is: approved 2025/26 Place Capital programme Legal Advice obtained: Tony Hatton, Shared Legal Service Financial Advice obtained: Ethan Beswick, Accountant Procurement Advice obtained: Daniel Cunliffe, Category Manager Level 1 HR Advice obtained: n/a Climate Change Advice obtained: The decarbonisation of fleet is a key project for SCC with our ambition to be carbon neutral by 2038. The team have engaged with suppliers and determined electric tractors are not currently a market option for Salford’s consideration at this time, technology is still in its infancy and needs more time and testing to be a viable option in the future. The following documents have been used to assist the decision process: Report submitted to Neighbourhoods, Environment and Community Safety Lead Member Briefing on 14th July 2025 Contact Officer: Alan Fitzsimons Service Manager, Vehicle Management Services, Place Directorate E-mail: alan.fitzsimons@salford.gov.uk - This decision is not subject to consideration by another Lead Member. - The appropriate scrutiny to call-in the decision is the Communities and Neighbourhoods scrutiny Panel Signed: Councillor Barbara Bentham Lead Member for Neighbourhoods, Environment and Community Safety Dated; 14th July 2025 This decision was published on Tuesday, 15th July 2025 This decision will come in force at 4.00 p.m. on Tuesday 22nd July 202 unless it is called-in in accordance with the Decision Making Process Rules. PLACE DIRECTORATE DELEGATED DECISION NOTICE I, John Searle, Executive Director of Place in consultation with the Lead Member for Neighbourhoods, Environment and Community Safety, Cllr B Bentham,in exercise of the powers conferred on me by the Council’s Constitution, do hereby approve an exception to Contractual Standing Orders in accordance with Paragraph 3.1, to award a contract with a total value of less than £150,000 for the purchase of one Telehandler Kramer KT276 vehicle, as detailed in the table below; This information will be used to populate the Corporate Contracts Register Detail required Answers Title/Description of Contracted Service/Supply/Project Purchase of one Telehandler Kramer KT276 Procurement Reference Number (DN and CR, supplied by Procurement) S1804 Name of Successful Contractor Cornthwaite Agricultural Ltd Supplier Registration Number (to be supplied by Procurement) 06236827 Proclass Classification No. (to be completed by procurement) 380000 - Vehicle Management Type of organisation (to be supplied by Procurement) Public Limited Company Status of Organisation (to be supplied by Procurement) Non-SME Contract Value (£) £70,500 Total Cost Total Contract Value including extensions (£) £ Total project Contract Duration Contract Start Date 21/07/2025 Contract End Date 31/07/2025 Contact Officer (Name & number) Alan Fitzsimmonds Lead Service Group Place Reason for CSO Exception: Delivers Best Value to the Council Tick if it applies ? Funding Source Capital Programme Ethical Contractor (EC): Mayor’s Employment Charter Choose an item. EC: Committed to sign up to the Mayor’s Employment Charter No EC: Committed to the principles outlined in the Mayor’s Employment charter No EC: Accredited Living Wage Employer No EC: Committed to becoming Accredited Living Wage Employer No Details The Turnpike Depot fleet management and replacement programme has identified a number of vehicles for replacement within 2025 Operational Division Service capital budget. The approved capital budget for 25/26 is £1,243,000, the approved budget will allow for the proposed vehicle within this report to be purchased as anticipated. This report seeks approval for the purchase of one telehandler Kramer KT276 by exception to the Corporate Standing Orders for reasons of best value and the goods / services. Vehicle Proposed Supplied by Cornthwaite Agricultural Ltd the vehicle proposed is a 74 plate (2024) ex-demonstration vehicle with low mileage (around 160hrs of use). This vehicle is a replacement for a large tractor within the existing fleet which is at its end of life. The telehandler is a versatile vehicle which can be fitted with a range of attachments, buckets, grabs, forklift etc. and has the added benefit of crane and lifting functions. Providing the council with a like for like replacement for the large tractor but with added functionality, this is added value to the services it supports and may lead to a reduction in leasing other specific plant equipment. The telehandler Kramer KT276 usually retails at a price of £123,295, but has been made available to the council at a cost of £70,500 with warranty of 3yrs provided. A replacement large tractor would have cost between £79,000 (used) or £90,000 (new), again showing this vehicle is providing additional savings to the council. It was previously identified on the timescales for the fleet replacement 2025 programme that the telehandler would be purchased around September 25, however the vehicle has become available earlier than anticipated and is available to purchase now. This opportunity has been developed through an existing relationship with Cornthwaites in the provision of other vehicles the council has had. As an ex-demo vehicle it has a considerable discounted price, making a saving of around £53,000 against the price of a brand new vehicle. This reduced price point represents value for money for the council. The decarbonisation of fleet is a key project for SCC with our ambition to be carbon neutral by 2038. The team have engaged with suppliers and determined electric tractors are not currently a market option for Salford’s consideration at this time, technology is still in its infancy and needs more time and testing to be a viable option in the future. The purchase of these ex-demo vehicles at a reduced cost will also provide an opportunity to make savings within the 2025/26 approved budget plan. With a council wide reduction in the capital programmes, these savings can be used to support other essential areas of need/spend including the replacement of other fleet vehicles. This will include consideration of other diesel and electric vehicles in order to maximise the budget available. Assessment of Risk Low – this purchase is are replacing one of the existing diesel tractors in the fleet which is identified within the fleet replacement programme at Turnpike Depot this year 2025. Legal Implications (only if appropriate) Contact officer and telephone number: Tony Hatton 0161 219 6326 Date provided: 26.06.25 When commissioning contracts for the procurement of goods, services or the execution of works, the Council must comply with public procurement legislation and its own Contractual Standing Orders (CSO’s), failing which a contract may be subject to legal challenge from an aggrieved provider. For contracts of this value, the Council would usually undertake an exercise to obtain written tenders using the Chest portal. Whilst exceptions to CSO’s may be authorised by a decision notice from Strategic Director for the value of this award, as detailed in section 3 of Part 5 of the Constitution there is still a risk of challenge from aggrieved providers if the usual tender process has not been followed. The risk of challenge increases in tandem with the value of the award, and in this instance, as noted in the report, the value is relatively low and for a one-off purchase. The Council is also under a best value duty to carry out its functions economically, efficiently and effectively with the objective to achieve value for money in all public procurement and considered the purchase of the vehicle to be of most benefit and least risk, particularly when the cost savings are taken into account, and the relative urgency required to purchase the vehicle. Financial Implications Contact officer and telephone number: Ethan Bestwick, Accountant Date provided: 26/06/2025 The source of funding is: Unsupported borrowing from the Fleet replacement programme`s allocation Expenditure Code: F31023 I can confirm that budget is available to support this purchase. Acquiring ex-demonstration vehicles at a discounted price presents an opportunity for the council to achieve cost savings. These savings can be reallocated to other projects or used to bring forward the replacement of vehicles scheduled for renewal in future years. This will likely deliver revenue savings through reduced maintenance and operational costs. Procurement Implications Contact officer and telephone number: Daniel Cunliffe Date Provided: 26/06/2025 Awarding a contract without carrying out a procurement exercise always proposes a risk to SCC. However, this is a one off purchase and ensures best value for money for the council. HR Implications (N/A) Contact Officer Alan Fitzsimons Tel No. 0161 925 1042
Related Meeting
Lead Member for Neighbourhoods, Environment and Community Safety Briefing - Monday, 14 July 2025 9.30 am on July 14, 2025