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

1. Summary

1.1 The following decision is sought:

That approval be given to extend the existing contract for transport planning and highway design related professional services by one year and, subject to continued good performance, the further extension of a single year, taking it to a revised contract end date of 31 March 2010.

2. Reason

2.1 The County Council has a statutory duty to maintain and improve the public highway and, as such, the professional transport planning, design and implementation of engineering solutions is critical. Whilst the Council has operated a significant in-house engineering resource to deliver much of this ongoing service for many years, additional transportation funding over the past six years has required the use of external private sector resources to assist with the increased workload. Funding levels are expected to remain at similar levels over the 2008/09 and 2009/10 financial years, indicating a continued need for support.

2.2 Highways and transportation issues are a high priority for the people of Hampshire, as regularly outlined in the public satisfaction surveys arranged to assess the Council's ongoing performance. The need for a high quality, reliable transport planning and design resource for the Council is therefore essential to ensure that all possible opportunities are taken to enhance the environment and safety of Hampshire's communities and to meet the performance targets set out in the Council's Local Transport Plan.

2.3 The Buildings, Land and Procurement Panel considered the item on 26 June 2007 and supported extension of the contract.

3. Other Options Considered and Rejected

3.1 It would be possible to give notice on the current two year contract, and to retender the services using the existing specification. This option is not recommended as the contract has resulted in significant, measured performance improvements since its commencement in May 2006 and a new contract with a new provider would require a new mobilisation period to build up to the same level of performance. Also, the prices within the contract, which themselves were subjected to competitive tender when the contract was first let, will rise by an amount less than that likely through a re-tender of the contract. This is due to the differences between the price index used within the contract and that used by the Construction Industry as a whole.

3.2 The possibility of incorporating highway design professional services into the new Highways Contract Strategy, due to be implemented on 1 May 2008, was considered. Whilst there may have been modest initial procurement cost savings in combining the design and works service into a single contract, it was recommended that the significant differences in the services being procured (one transport planning and design, and the other works only) would lead to a dilution of focus for a single service provider. Current arrangements allow public/private partnering to take place at a more appropriate level, ensuring that matters are dealt with between like-minded professionals, with sufficient focus on their service area to ensure quick and well considered decisions to be reached. The Term Highways Contract also includes a proposal for integration of services through an Alliance Board.

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

1325Decn/PS