Contact: Adrian Gray, ext 6892 email: [email protected]

1. Summary

1.1 The following decisions are sought:

(i) That the Buildings, Land and Procurement Panel advises the Executive Member for Environment to approve the proposal to extend for one year the period of the current term contract for the installation and maintenance of traffic signals and associated equipment.

(ii) That the Executive Member for Environment approves the proposal to extend for one year the period of the current term contract for the installation and maintenance of traffic signals and associated equipment.

2. Reason

2.1 The County Council has a statutory duty to maintain all highway infrastructure in a safe and effective manner. All traffic lights, signalled pedestrian crossings and other associated equipment are maintained through a contract to ensure that they operate effectively and safely for all users of these facilities with the repair of faults, replacement of equipment, etc. The extension of this contract will ensure that the current high standards for the safe operation and maintenance of traffic control equipment in Hampshire are continued.

2.2 The current contractor, Siemens Traffic Controls Limited, was awarded the contract in July 2003 following a competitive tender. Since this time its performance has been continuously assessed using a number of key performance indicators. Overall, performance has met or exceeded the targets specified for performance. The current five year contract will expire in July 2008 and provision exists in the current contract to extend

the contract annually up to a maximum of three years to July 2011. A decision is needed to either give notice of the intention to terminate the current contract, or extend.

3. Other Options Considered and Rejected

3.1 It would be possible to give notice on the current contract, and to re-tender the works using the existing specification. This option is not recommended as there are no performance issues under the current arrangements, and it is felt that the current costs of the contract are less than would be achieved in an open tender.

3.2 It would be possible to re-tender the works using a new specification. This option is not recommended as there is no guarantee that cost reductions would be achieved in an open tender using a revised specification. This option would also incur significant staff costs and could reduce maintenance standards.

3.3 It would be possible to re-tender the works as part of a larger framework or multi-disciplinary contract for other environmental services. This option is not recommended as there is no guarantee that cost reductions would be achieved in a larger contract due to the specialist nature of traffic signals.

4. Conflicts of Interest Declared by the Decision Maker or Other Executive Member Consulted - None.

5. Dispensation granted by the Standards Committee - None.

6. Reason(s) for the Matter being dealt with if Urgent - None.

Approved by: Date:

Councillor M J Kendal

Executive Member for Environment

1154Decn/AG