Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: Yes

Date of Decision: October 14, 2024

Purpose:

Content: Salford City Council – Record of Decision   I, Paul Dennett, City Mayor, in exercise of the powers contained within the City Council’s constitution do hereby:   ·      approve the extension of the Contract forthe Framework Agreement for Demolition and Associated Works, as detailed in the table below:   Detail required Answers Contract Reference Title/Description of Contracted Service/Supply/Project Framework Agreement for Demolition and Associated Works Name of Contractor Connell Brothers Lot 1 & Lot 2 Type of organisation (to be supplied by Corporate Procurement) Private Limited Company Status of Organisation (to be supplied by Corporate Procurement) SME Ethical Contractor (EC): Mayor’s Employment Charter EC: Committed to sign the Charter EC: Accredited Living Wage Employer Name of Contractor Frank O’Gara & Sons – Lot 1 only Type of organisation (to be supplied by Corporate Procurement) Private Limited Company Status of Organisation (to be supplied by Corporate Procurement) SME Ethical Contractor (EC): Mayor’s Employment Charter EC: Committed to sign the Charter EC: Accredited Living Wage Employer Name of Contractor J Freeley Limited – Lot 1 only Type of organisation (to be supplied by Corporate Procurement) Private Limited Company Status of Organisation (to be supplied by Corporate Procurement) SME   Ethical Contractor (EC): Mayor’s Employment Charter EC: Committed to sign the Charter EC: Accredited Living Wage Employer Name of Contractor Rhodar Industrial Services – Lot 1 only Type of organisation (to be supplied by Corporate Procurement) Private Limited Company Status of Organisation (to be supplied by Corporate Procurement) SME   Ethical Contractor (EC): Mayor’s Employment Charter EC: Committed to sign the Charter EC: Accredited Living Wage Employer Name of Contractor Coleman & Company – Lot 1 only Type of organisation (to be supplied by Corporate Procurement) Private Limited Company Status of Organisation (to be supplied by Corporate Procurement) SME   Ethical Contractor (EC): Mayor’s Employment Charter EC: Committed to sign the Charter EC: Accredited Living Wage Employer Name of Contractor Alan Franklin – Lot 3 only Type of organisation (to be supplied by Corporate Procurement) Private Limited Company Status of Organisation (to be supplied by Corporate Procurement) SME   Ethical Contractor (EC): Mayor’s Employment Charter EC: Committed to sign the Charter EC: Accredited Living Wage Employer Value of Contract Extension (£) £1,800,000 Per annum (estimated average) Existing Contract Term 31/08/2022 to 30/08/2024 Extension Period 31/08/2024 to 30/08/2026 Contact Officer (Name & number) Jonathan Phillips Lead Service Group   Place Funding Source Capital Programme   The reasons are: The existing framework suppliers have demonstrated their ability and commitment in undertaking the Councils requirements over the period of the existing contract. They have confirmed that they are willing to continue their contract for a period of a further twenty four months.   Options considered and rejected were: None. All procedures are in full compliance with Contractual Standing Orders.   Assessment of risk: High: If the framework agreement is not awarded buildings across the city that are in a dangerous condition and others that are scheduled to be demolished, will remain exposed to risk of anti-social behaviour activities in these areas. The potential is to put the public at risk of harm and have a detrimental impact on local residents. The City Council will need to find an alternative procurement route at short notice to carry out works to make safe any dangerous buildings.   The source of funding is: The source of funding will vary from scheme to scheme although most will be capital.   Legal advice obtained: Tony Hatton When commissioning contracts for the provision of goods, services or the execution of works, the Council must comply with the provisions of the Public Contracts Regulations 2015 (PCR) and its own Contractual Standing Orders (CSO’s) as set out in the Constitution, failing which the award of a contract may be subject to legal challenge. In that regard, the Framework Agreement was set up following a compliant tender process in accordance with public procurement regulations in force at the time and CSO’s.   It is an established principle that an existing public contract is capable of being extended where the original agreement makes provision for the extension, and CSO’s allow for contract extensions to be made where the original contract makes provision for such an extension of the original term. The purpose of a framework agreement is to select through procurement/evaluation process a number of providers who can meet the service requirements of the Council, as and when those services are required.   When the Framework Agreement was originally put out to tender, it was made clear that the initial term would be subject to a potential extension of a period of up to twenty four months, hence any risk that any extension granted could be subject to realistic challenge by an aggrieved provider, on the basis that it ought to have been put out to tender and advertised in accordance with public contract regulations and CSO’s, is extremely low, and the option to extend within the agreement is now being properly exercised.   The maximum term for the framework agreement is a 4-year period (2 years plus the option to extend for 24 months), and the terms and conditions established under the framework govern the contracts let under it, although each contract will inevitably have some differences to reflect the agreement struck between the parties to the contract. At the end of the potential 4-year period, the framework must be dissolved and competition for the goods or service re-opened, and a new framework can then be established where appropriate. This ensures that value for money can be periodically tested, and open competition maintained. The period of the individual contracts established under the framework can be as long or as short as the authority requires and may be entered into at any time during the period of the framework agreement.   Also in accordance with CSO’s, where provision is made within an existing contract for an extension to the term, and the value is over £150,000, approval should be sought from Procurement Board, and if over £1million by the City Mayor on the recommendation of Procurement Board.   Financial advice obtained: Daniel Hillman, Senior Accountant The procurement board report details the request to approve the extension of the contract for the framework agreement for demolition and associated services. The contract value is an estimated average of £1.800m.   There will be variation of funding on a scheme by scheme bases. The financial implications of contracts let under the framework will continue to be considered as part of the capital monitoring process.   Procurement advice obtained: Deborah Derbyshire The framework was advertised through the Find a Tender Service (replacement for the European Journal) the Northwest Portal and Contracts Finder (central government advertising tool for a two year period with an option to extend for a further two years, therefore continuing and entering in to the extension complies with the Procurement Contract Regulations and the City Councils contractual standing orders.   As part of the Council’s Innovate programme and budget challenges over the next three years, the service group should consider efficiencies, revenue saving opportunities and enhanced contract management KPI’s as part of this contract.   HR advice obtained: N/A   Climate change implications obtained: No significant Climate Change implications in this project. All projects are developed to meet or exceed current legislation and requirements relating to energy efficiency and carbon reduction targets. Projects are required to support the Council’s objectives of becoming carbon neutral by 2038.   Documents used: ·      Report to Procurement Board dated 14th October 2024 titled Framework Agreement for Demolition and Associated Works   Contact details: Contact Officer: Jon Phillips          Telephone number: 07733 322371   ·      This matter is not subject to consideration by another Lead Member. ·      The appropriate Scrutiny Committee to call-in the decision is the Growth and Prosperity Scrutiny Panel and the Overview and Scrutiny Board.     Signed:    Paul Dennett       Dated:    14 October 2024.                    City Mayor   FOR DEMOCRATIC SERVICES USE ONLY   *           This decision was published on 14 October 2024 *           This decision will come in force at 4.00 p.m. on 21 October 2024 unless it is called-in in accordance with the Decision Making Process Rules.