Archived decisions

Contact: Phil Samms, ext 7072 email: [email protected]

1. Summary

1.1 The following decision is sought:

That approval be given to tender the Term Highways Contract 2008-2015 for the ongoing maintenance of highways and related structures within Hampshire, on the basis set out in the report.

2. Reason

2.1 The County Council has a statutory duty to maintain highway infrastructure in a safe and effective manner. The new Term Highways Contract will ensure that the current high standards for the safe operation and maintenance of highways and highway related structures within Hampshire are continued following the cessation of the existing Highways Term Maintenance Contract on 30 April 2008.

2.2 The new Term Highways Contract builds on experiences from the existing contract, together with best practice employed by other local authorities, to provide a more customer focused service. The new contract forms part of a Highways and Transport Strategic Alliance aimed at aligning suppliers directly with the corporate objectives of the Council.

2.3 On 20 March 2007 the Buildings, Land and Procurement Panel considered a report on `The Proposed Highways Contract Strategy Principles' and resolved to advise the Executive Member for Environment to approve the proposals. These proposals included the introduction of an Improvement Works Framework and the Term Highways Contract 2008-15, which is the subject of this report.

3. Other Options Considered and Rejected

3.1 The existing Highways Term Maintenance Contract was available to extend beyond 30 April 2008, potentially for a further two years. Discussions with the existing supplier, however, indicated that the company would require a significant renegotiation of the `variation of price' clause within the contract, which was deemed to be unacceptable under the Council's financial controls. In addition, concerns had been expressed regarding the ongoing performance of the contract, particularly in providing a customer focused service, and that more modern forms of contract were now available to deliver a more effective overall service. It was therefore decided that an extension was not feasible, and that alternative arrangements should be sought.

3.2 As part of a wide ranging review of highway procurement, a variety of options were considered in the development of a new highways contract strategy, including the re-establishment of a Direct Labour Organisation, single supplier contract, managing agent contract (MAC) and area based contract. Ultimately, a combination of a revised term maintenance contract and supporting framework arrangement was agreed as the most flexible option to progress.

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

1324Decn/PS