Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report

Decision Maker

Buildings, Land and Procurement Panel

Date of Decision

30 June 2009

Decision Title

Corporate Procurement and County Supplies Contracting Activity 2009/10

Decision Reference

575

Report From:

Director of Property, Business and Regulatory Services

Contact name

Neil Jones

Tel

01962 846180

Email

[email protected]

1) Executive Summary

1.1

This report seeks approval for the expected programme of contracting activity to be undertaken by the Corporate Procurement and County Supplies team, within Property, Business and Regulatory Services for the period to September 2010

   

2) Contextual Information

2.1

Corporate Procurement and County Supplies undertakes contracting activity on behalf of the County Council and external customers and partners in accordance with the County Council's contract standing orders and, where appropriate, the European Union Procurement Directives.

   

2.2

The majority of these contracts are for routine common use goods and services which are made available to County Council departments, schools and external customers. Some more specialist contracting work for individual departments, establishments and external customers is also undertaken, including single site contracts for cleaning and catering.

3) Key Issues

    3.1. The planned programme of contracting activity covers the next 15 months to September 2010. The overall programme includes over 200 individual contracts with a total annual value that approaches nearly £50 million (including expenditure by external customers).

    3.2. Most of these contracts are not linked to specific one-off purchases or projects, but are framework arrangements that will provide for the ongoing routine requirements of a large number of individual budget holders. Therefore, the contract values are only estimates and actual expenditure will be determined by the aggregate commitments made by many budget holders.

    3.3. Just over one-third of the contracts relate to site specific arrangements for cleaning and catering or are contracts made on behalf of external customers only. The team also plans to let framework contracts for window cleaning and building cleaning for the first time, which will be a more efficient procurement process for the County Council and contractors. External customers requiring site specific contracts will have the option to access these frameworks to appoint contractors using a `mini-competition' process.

    3.4. The programme of work includes a number of contracts which may in practice be extended rather than re-tendered when the initial contract period expires (subject to satisfactory performance and agreement over terms). Such extension periods will have been provided for during the original tender exercise.

    3.5. A number of the arrangements described in this report refer to the Central Buying Consortium (CBC) and Eastern Shires Purchasing Organisation (ESPO), which are local authority purchasing consortia. The County Council is a member of the CBC and in line with the national collaborative agenda, CBC is forming closer working relationships with other consortia, particularly ESPO. The aim of this joint purchasing activity is to secure further economies of scale through the aggregation of requirements and to reduce the burden of public sector tendering and contract administration on suppliers. County Supplies conducts over 20% of its purchasing activity (more than £25 million annually) through CBC and ESPO arrangements and this is expected to rise further in the coming years. In such cases, the award of contracts is jointly agreed by the purchasing staff of the participating authorities. In procedural terms, the `master agreement' is let in accordance with the constitution and contract standing orders of the lead authority.

    3.6. The County Council's arrangements for the supply of electricity and gas are due for renewal during the coming year. As Members will be aware, energy prices have been subject to both large and relatively rapid movements in price for several years. Current prices for gas were fixed two years ago in 2007 when prices were very favourable and the next price movement for gas is, therefore, likely to be upwards despite recent falls in the market. In light of the rapidly fluctuating energy markets, Corporate Procurement and County Supplies have been reviewing alternative procurement strategies. One of the alternative approaches is `flexible' procurement, which features multiple purchases of individual `packets' of energy over a period of time to create a portfolio that meets the County Council's total requirements. The effect of this approach is to remove some of the `timing' risk that is involved in energy purchasing and should, in principle, provide the opportunity to take advantage of periods when forward prices are relatively low. Such an approach may help to achieve slightly more favourable average prices over the longer term, but this is not guaranteed and it does not offer protection from any overall, ongoing increase in prices. In common with a number of other local authorities within CBC, gas purchases will be arranged on this basis of flexible purchasing for the next three years.

    3.7. Electricity prices were set last autumn in difficult market conditions. Since these one-year agreements were made, prices have fluctuated, but the market has moved markedly lower. The opportunity has recently been taken to agree new electricity prices that will come into effect this autumn. The reductions that have been concluded will amount to some £2.4 million per annum against current contracts.

4) Conclusions

   

4.1

The Corporate Procurement team continues to maintain a strong focus on direct support to departments both through the programme of procurement reviews and by responding to individual requests for assistance and advice. This work continues to be well supported by departments.

5) Recommendations

   

5.1

That the Panel advises the Executive Member for Policy and Resources that the schedule of forthcoming contracts for the period up to September 2010 as detailed in Appendix 1, be approved.

Integral Appendix A

CORPORATE OR LEGAL INFORMATION:

Links to the Corporate Strategy

Hampshire safer and more secure for all:

no

Corporate Business plan link number (if appropriate):

Maximising well-being:

no

Corporate Business plan link number (if appropriate):

Enhancing our quality of place:

no

Corporate Business plan link number (if appropriate):

OR

This proposal does not link to the Corporate Strategy but, nevertheless, requires a decision because the tendering programme has a direct impact on the management of resources.

Other Significant Links

Links to previous Member decisions:

  

Title

Reference

Date

Corporate Procurement Updates

  

13/1/09

   

14/7/08

Corporate Procurement and County Supplies Contracting Activity - Contracts for the period up to September 2009

  

2/4/08

Direct links to specific legislation or Government Directives

 

Title

Date

Section 100 D - Local Government Act 1972 - background documents

 

The following documents disclose facts or matters on which this report, or an important part of it, is based and have been relied upon to a material extent in the preparation of this report. (NB: the list excludes published works and any documents which disclose exempt or confidential information as defined in the Act.)

Document

Location

None

  

COMPREHENSIVE RISK & IMPACT ASSESSMENT

Race and Equality Impact assessment

Race and equality impact assessment has been considered in the development of this report and no adverse impact has been identified.

Crime prevention issues

The County Council has a legal obligation under Section 17 of the Crime and Disorder Act 1998 to consider the impact of all the decisions it makes on the prevention of crime. The proposals in this report have no impact on the prevention of crime.

Climate Change:

How does what is being proposed impact on our carbon footprint / energy

consumption?

No impact identified

How does what is being proposed consider the need to adapt to climate

change, and be resilient to its longer term impacts?

No impact identified

Appendix 1

    List of Forthcoming Contracts (July 2009 to September 2010)

  
 

Title

Approx. annual value (£000)

Date

  

(a)

 Contracts with whole life value of more than £100,000

 

         
 

"Aiming High" (Children with Disabilities) - Play Schemes

1,968

01-Jul-09

  
 

Cleaning Framework

1,000

01-Jul-09

 

 

Street Furniture (CBC / ESPO)

90

01-Jul-09

^

 

Early Learning (CBC / ESPO)

100

01-Jul-09

^

 

Salary Sacrifice Bicycles

100

01-Jul-09

 

 

Staging, Stage Lighting & Auditorium Seating (CBC)

350

01-Jul-09

 ^

 

Folding Furniture (CBC)

200

01-Jun-09

^

 

Science Equipment & Materials (CBC)

55

01-Jul-09

^

 

Testing/Maintenance of Hoists

180

01-Jul-09

 

 

Assistive Technology (CBC)

2,000

01-Jul-09

^

 

Cleaning & Disinfection of AT Equipment (CBC)

250

01-Jul-09

  
 

Periodicals (CBC)

108

01-Jul-09

^

 

PVA Adhesives (CBC)

33

01-Jul-09

^

 

Computer Consumables (CBC)

1,000

01-Jul-09

^

 

Corporate Stationery (CBC)

66

01-Jul-09

^

 

Maintenance and Repair of Laundry and Sluice Equipment

60

01-Jul-09

 

 

Vehicle Parts and Accessories

405

01-Jul-09

 

 

Cabinet Roller Towels

35

01-Jul-09

 

 

Residential Respite Care for Children

1,500

01-Jul-09

  
 

Domiciliary Care for Children

1,500

01-Jul-09

  
 

Travel and Rail Ticketing

700

01-Jul-09

  
 

Cleaning Materials (CBC / ESPO)

291

01-Aug-09

^

 

Vending Equipment & Supplies

100

01-Aug-09

 

 

Modelling Materials (CBC)

39

01-Aug-09

^

 

Library Shelving and Display Units

150

01-Aug-09

 

 

Provision of a Regional E-Recruitment Portal

275

01-Aug-09

 

 

Cheese (CBC)

370

01-Sep-09

^

 

Fresh Meat (CBC)

330

01-Sep-09

^

 

Franking Machines (CBC / ESPO)

128

01-Sep-09

^

 

Training - IT

200

01-Sep-09

 

 

Public Notice Advertising

200

01-Sep-09

 

 

Recording Media (CBC)

60

01-Sep-09

^

 

Milk and Morning Goods

500

01-Oct-09

 

 

Point-of-use Equipment & Ancillary Products (CBC/ESPO)

160

01-Oct-09

^

 

Art Paints (CBC)

99

01-Oct-09

^

 

Art, Craft & Display Papers

105

01-Oct-09

  
 

Exercise Books & Papers (CBC)

      536

01-Oct-09

^

 

Title

Approx.

    
   

annual value

    
   

£000

    
 

Electricity - Small Sites (Quarterly Billed)

2,200

01-Oct-09

  
 

Light Catering Equipment (CBC/ESPO)

160

01-Oct-09

    ^

 

Electricity - Unmetered Sites

300

01-Oct-09

     

 

Steel Lockers (CBC)

50

01-Oct-09

    ^

 

Electricity - Small Sites (Maximum Demand Monthly Billed)

1,670

01-Oct-09

     

 

Children's Centres - Phase 3

1,910

20-Oct-09

  
 

Electricity - Large sites

5,000

01-Nov-09

  
 

Whiteboards and Noticeboards (CBC)

400

01-Nov-09

    ^

 

Classroom Tables (CBC)

180

01-Nov-09

    ^

 

Pulpboard (CBC)

42

01-Nov-09

    ^ 

 

Flooring Services (CBC)

200

01-Nov-09

    ^

 

Gas (CBC)

6,400

01-Nov-09

    ^

 

Venue Hire & UK Accommodation

350

01-Dec-09

  
 

Zip Wallets

56

01-Dec-09

  
 

Outdoor Play Equipment & Furniture (CBC/ESPO)

120

01-Dec-09

    ^

 

Domestic Electrical Appliances (CBC)

90

01-Dec-09

    ^

 

Timber and Fencing

700

01-Dec-09

     

 

Fasteners & Fixings (CBC)

90

01-Dec-09

    ^

 

Vehicle Purchase (CBC)

1,000

01-Jan-10

    ^

 

Ring Binders, Box Files & Lever Arch Files (CBC)

99

01-Jan-10

    ^

 

Vending Equipment & Supplies

100

01-Jan-10

  
 

Software (Pro5 lead by ESPO)

1,100

01-Jan-10

    ^

 

Grounds Maintenance - South West

178

01-Jan-10

     

 

Grounds Maintenance - South East 2

211

01-Jan-10

     

 

Grounds Maintenance - South East 1

201

01-Jan-10

     

 

Grounds Maintenance - South Central

233

01-Jan-10

     

 

Variable Data Print

230

01-Jan-10

     

 

Grounds Maintenance - Area 1

42

01-Jan-10

     

 

Catering Mixes (CBC)

200

01-Jan-10

    ^

 

Coated Papers

80

01-Jan-10

     

 

Lease Finance (CBC)

700

01-Jan-10

    ^

 

Commercial Catering Equip, Supply & Installation (CBC/ESPO)

350

01-Jan-10

    ^

 

Venues for Sponsored Conferences & Exhibitions

60

01-Feb-10

     

 

Graphic Design

360

01-Feb-10

  
 

Recruitment Advertising

1,500

01-Feb-10

     

 

Provision of Supply Teaching Services

4,000

01-Apr-10

  
 

Manilla Files & Folders

62

01-Apr-10

     

 

Black Waste Sacks (CBC)

95

01-Apr-10

    ^

 

Office Machines (CBC / ESPO)

107

01-Apr-10

    ^

 

Whiteboard Markers (CBC)

156

01-Apr-10

    ^

 

Security Services Framework

1,000

01-Apr-10

  
 

PVC Accessories (CBC)

42

01-Apr-10

    ^

 

Actuarial Services

100

01-Apr-10

     

 

Appropriate Adults (Wessex YOT)

200

01-Apr-10

     

 

Cash Collection

150

16-Apr-10

     

 

Maintenance of PE Equipment

55

01-May-10

     

 

Print (Framework & Ancillary Services)

729

01-May-10

     

 

Postal Services

250

01-Jun-10

     

 

Market Research Services

180

01-Jun-10

     

 

Catalogue Content Management System

60

01-Jun-10

 

 

School and Corporate Textbooks

2,900

01-Jun-10

 

Title

Approx. annual value (£000)

Date

Diaries and Calendars

49

    01-Jun-10

^

Web-fed (based) Printing

150

    01-Jun-10

 

Tyres and Tubes (CBC)

100

    01-Jun-10

^

Childcare Vouchers - Salary Sacrifice

1,600

    01-Jun-10

 

Local Stationery

50

    01-Jul-10

 

First Aid & Medical (CBC)

60

01-Aug-10

^

Linen & Bedding

30

01-Aug-10

Education Audio Goods (CBC)

75

01-Sep-10

^

Entrance Matting

29

01-Sep-10

Cartridge Paper (CBC)

40

01-Sep-10

^

Canned Soft Drinks (CBC)

160

01-Sep-10

^

Volker Beds - Service & Maintenance

90

01-Sep-10

 

Wooden Storage Furniture (CBC)

120

01-Sep-10

^

MCA Training (Adult Services)

160

01-Sep-10

 

Par Fried Chips (CBC)

48

01-Sep-10

^

    (b)

 Single Site / External Contracts

 

Cleaning - Purbrook Park School

71

01-Jul-09

#

Cleaning - Staunton Community Sports College

80

    13-Jul-09

#

Cleaning - The Mountbatten School

79

    23-Jul-09

#

Cleaning - Horndean Technology College

158

    25-Jul-09

#

Catering - Brookfield Community School & Language College

115

01-Aug-09

#

Catering - Wyvern Technology College

171

23-Aug-09

#

Catering - Hounsdown School

146

28-Aug-09

#

Catering - Amery Hill School

141

28-Aug-09

#

Cleaning - Testbourne Community School

67

30-Aug-09

#

Catering - The Hurst Community College

66

    01-Sep-09

#

Catering - Costello Technology College

105

    01-Sep-09

#

Catering - Fort Hill Community School

58

    01-Sep-09

#

Cleaning - Mill Chase Community Technology School

77

    01-Sep-09

#

Catering - Calthorpe Park School

100

    01-Sep-09

#

Catering - Portchester Community School

70

    01-Sep-09

#

Security - Eastleigh College

90

    01-Sep-09

##

Cleaning - Test Valley School

64

    01-Sep-09

#

Transport - Testbourne Community School

75

    01-Sep-09

#

Transport - Itchen College

60

    01-Sep-09

##

Catering - Eggar's School

78

    01-Sep-09

#

Cleaning - Court Moor School

76

01-Nov-09

#

Security - Calshot Activities Centre

45

01-Nov-09

 

Catering - Manor Farm Country Park

113

14-Nov-09

 

Catering - Titchfield Haven Visitor Centre

121

14-Nov-09

 

Grounds Maintenance - Old Basing House/Grange Farm

33

    01-Jan-10

 

Grounds Maintenance - Fort Nelson

24

    01-Jan-10

 

Grounds Maintenance - Henry Cort Community College

22

    01-Jan-10

#

Grounds Maintenance - Thornden School

21

    01-Jan-10

#

Cleaning - Oak Farm Community School

65

    01-Jan-10

#

Cleaning - Sparsholt College

178

    01-Jan-10

##

Cleaning - The Wavell School

66

    01-Jan-10

#

Cleaning - Cowplain Community School

94

    08-Feb-10

#

Title

Approx. annual value (£000)

Date

Cleaning - The Henry Cort Community College

94

25-Mar-10

#

Cleaning - Fort Hill Community School

70

01-Apr-10

#

Catering - Queen Elizabeth Country Park

119

01-Apr-10

 

Cleaning - John Hanson Community School

84

01-Apr-10

#

Cleaning - Quilley School of Engineering

48

01-Apr-10

#

Cleaning - Yateley School

146

01-May-10

#

Cleaning - The Vyne Community School

75

01-May-10

#

Cleaning - Eggar's School

65

14-May-10

#

Cleaning - Sir Harold Hillier Gardens

48

15-May-10

 

Cleaning - Fairfields Primary School

21

31-May-10

#

Cleaning - Brookfield Community School & Language College

117

19-Jun-10

#

Cleaning - The Toynbee School

72

24-Jun-10

#

Cleaning - Swanmore College of Technology

84

22-Jul-10

#

Cleaning - Thornden School

82

25-Jul-10

#

Cleaning - Warblington School

80

25-Jul-10

#

Cleaning - Hiltingbury Infant and Junior Schools

33

25-Jul-10

#

Cleaning - Hamble Community Sports College

119

25-Jul-10

#

Catering - Eastleigh College

200

01-Aug-10

##

Cleaning - Barton Peveril College

166

01-Aug-10

##

Cleaning - Eastleigh College

112

01-Aug-10

##

Catering - Alton College

275

01-Aug-10

##

Cleaning - The Hayling College

52

01-Aug-10

#

Cleaning - Basingstoke College of Technology

194

01-Aug-10

##

Cleaning - Queen Mary's College

198

01-Aug-10

##

Catering - Neville Lovett Community School

86

01-Aug-10

#

Cleaning - The Clere School & Technology College

60

01-Aug-10

#

Cleaning - Kings School

111

27-Aug-10

#

Catering - Crestwood College for Business & Enterprise

66

28-Aug-10

#

Cleaning - Everest Community College

94

28-Aug-10

#

Catering - The Mountbatten School

150

01-Sep-10

#

Catering - Warblington School

50

01-Sep-10

#

Catering - Yateley School

142

01-Sep-10

#

Catering - Mill Chase Community Technology College

74

01-Sep-10

#

Catering - The Vyne Community College

85

01-Sep-10

#

Catering - Cove School

110

01-Sep-10

#

Cleaning - Frogmore Community College

63

01-Sep-10

#

Catering - Hamble Community Sports College

125

01-Sep-10

#

Catering - The Clere School & Technology College

101

01-Sep-10

#

Catering - The Connaught School

98

01-Sep-10

#

Cleaning - Potley Hill Primary School

15

01-Sep-10

#

Key:-

#

Single site contracts awarded by governing bodies

##

Contracts wholly for external customers and subject to decision by the authorities concerned

^

Contracts likely to be let by other Consortia Member Authorities