Agenda, decisions and minutes

There were no apologies for absence.

NOTED

This being a Special meeting only additional late information will be permitted to be considered under Item 6 and 8 below.  There is no provision for any other items of urgent business.

There were no items of urgent business.

NOTED

A Member with a disclosable pecuniary interest or a prejudicial interest in a matter who attends a meeting of the authority at which the matter is considered:

(i) must disclose the interest at the start of the meeting or when the interest becomes apparent, and

(ii) may not participate in any discussion or vote on the matter and must withdraw from the meeting room.

A Member who discloses at a meeting a disclosable pecuniary interest which is not registered in the Register of Members’ Interests or the subject of a pending notification must notify the Monitoring Officer of the interest within 28 days of the disclosure.

Disclosable pecuniary interests, personal interests and prejudicial interests are defined at Paragraphs 8.1-15.2 of Section Two of Part 5 of the Constitution  and Appendix A of the Members’ Code of Conduct.

A Member with a disclosable pecuniary interest or a prejudicial interest in a matter who attends a meeting of the authority at which the matter is considered:

(i) must disclose the interest at the start of the meeting or when the interest becomes apparent, and

(ii) may not participate in any discussion or vote on the matter and must withdraw from the meeting room.

A Member who discloses at a meeting a disclosable pecuniary interest which is not registered in the Register of Members’ Interests or the subject of a pending notification must notify the Monitoring Officer of the interest within 28 days of the disclosure.

Disclosable pecuniary interests, personal interests and prejudicial interests are defined at Paragraphs 8.1-15.2 of Section Two of Part 5 of the Constitution  and Appendix A of the Members’ Code of Conduct.

There were no declarations of interests.

NOTED

On occasions part of the Cabinet Procurement Committee meeting will be held in private and will not be open to the public if an item is being considered that is likely to lead to the disclosure of exempt or confidential information. In accordance with the Local Authorities (Executive Arrangements) (Meetings and Access to On occasions part of the Cabinet Procurement Committee meeting will be held in private and will not be open to the public if an item is being considered that is likely to lead to the disclosure of exempt or confidential information. In accordance with the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012 (the “Regulations”), members of the public can make representations about why that part of the meeting should be open to the public.

This agenda contains exempt items as set out at Item  , and  :

No representations with regard to these have been received.

This is the formal 5 clear day notice under the Regulations to confirm that this Cabinet Procurement Committee meeting will be partly held in private for the reasons set out in this Agenda.  Information) (England) Regulations 2012 (the “Regulations”), members of the public can make representations about why that part of the meeting should be open to the public.

This agenda contains exempt items as set out at Item  12, and  13:

No representations with regard to these have been received.

This is the formal 5 clear day notice under the Regulations to confirm that this Cabinet Procurement Committee meeting will be partly held in private for the reasons set out in this Agenda.

There were no representations received.

NOTED

There were no deputations, petitions or questions.

NOTED

This report seeks Cabinet Procurement Committee’s approval to a one year extension, effective from 31 August 2020, to the existing contracts under the ‘Contract 1’ framework for Decent Homes, Planned and Responsive Maintenance Works  to Hackney Council housing.

RESOLVED

That approval be given to a  one  year  extension,  effective  from  31  August  2020,  to  the existing contracts  under  the  ‘Contract  1 ’ framework  for  Decent  Homes,  Planned  and  Responsive  Maintenance  Works  to  Hackney  Council housing which include  contracts  with  three  service  providers;  two  of  which have  Project  Partnering  Contract  (PPC)  forms  of  contract,  and  one of which  has  both a  PPC  and  Term  Partnering  Contract  (TPC)  form  of contract.

OPTIONS APPRAISAL AND BUSINESS CASE (REASONS FOR DECISION) 

5.1.1 ‘Contract  1’  is  a  framework  contract  let in  2015,  and  includes  three  main contractors.  Each  contractor  has  a  PPC  (Project  Partnering  Contract)  form of  contract  for  planned  maintenance  works  to  Hackney  Council  housing. One  of  the  contractors  has  an  additional  TPC  (Term  Partnering  Contract) for  reactive  works  which  form  a  back-up  service  to  the  Council’s  DLO  for works  such  as  voids,  asbestos  removal,  dry  riser  maintenance  and communal  boiler  maintenance.  The  CPC  papers  relating  to  the  award  of ‘Contract 1’ are listed in Section 4: Related Decisions.

This  report  has  a  recommendation  to  extend  all  contracts  under  the ‘Contract  1’  framework,  by  a  period  of  one  year  effective  from  August 2020, for the reasons set out in the following paragraphs.

5.1.2 The  contracts  (PPC  and  TPC  forms)  let  under  Contract  1  are  due  to  expire in  August  2020,  and  the  Council  has  arrangements  in  place  to  procure replacement  contracts  to  continue  the  delivery  of  the  services.  These replacement  contracts  were  the  subject  of  a  CPC  Business  Case  approved in  June  2019  and  listed  in  Section  4  of  this  report.  As  of  March  2020,  the coronavirus  pandemic  response  has  significantly  disrupted  these  plans. The  disruption  will  cause  significant  delays  to  the  procurement  work, largely  as  market  conditions  are  seriously  affected  and  it  is  unclear  when they  will  return  to  a  stable  condition  such  that  public  contracts  can  be  let and still demonstrate value for money. 

5.1.3 The  lockdown  has  meant  that  all  current  pre-construction  projects  are  on hold  or  progressing  at  a  much  reduced  pace,  and  the  remaining  works planned  to  be  let  under  the  ‘Contract  1’  framework  will  more  than  likely  not be  ready  for  issue  by  August.  Without  an  extension,  there  would  be  a  gap in  capital  works  delivery  from  now  until  possibly  late  2022,  and  this  has significant  impacts  on  the  capacity  of  the  Council  to  ensure  that  homes  are maintained to the required standards.

The  lockdown  has  also  had  significant  disruptions  to  the  Council’s  DLO operations,  for  which  one  contract  under  the  ‘Contract  1’  framework  acts  as a  back-up.  This  part  of  the  contract  includes  essential  asbestos  and  fire safety  systems  maintenance  works,  and  it  is  considered  prudent  to  ensure that the    ‘back-up    contractors’  remain    in  place    to ensure    that  these  essential responsive services are fully resourced.

5.1.4 The impact  on  the  programme  for  the  current  procurement  work  is  set  out  in Table  1  below.  This  work  includes  the  procurement  of  5 no. term  contracts and  a  framework  contract  divided  into  2 no. lots.  This  is  behind  ...  view the full decision text for item 6.

The Chair asked for an introduction of the report before the meeting.

The Head of Property and Asset Management – Ms Sinead Burke advised the meeting that the report before the Committee recommended the extending of  a current contract, known as ‘Contract 1’ by one year owing to exceptional circumstances caused by the coronavirus lockdown, as permitted by Regulation 72 1-C of the Public Contracts Regulations.

Ms Burke informed the meeting that the contract was a framework used to deliver planned and responsive maintenance works to the council’s housing stock.  There were three service providers with each having a Project Partnering Contract (or PPC) for planned works, and one having a Term Partnering Contract (TPC) for responsive works.  All contracts were currently due to end on 31 August 2020, and this meant that that was the last date on which instructions to start new projects could be issued.  Ms Burke went to explain that the PPC contracts were used to deliver planned external maintenance works including window and roof renewals, planned internal works including kitchen and bathroom renewals and capital fire safety projects, for example the council’s front entrance door replacement programme.  The TPC contract  was used for works such as void renovations, asbestos removal and boiler maintenance.  All these works were within Hackney’s responsibility as a landlord to undertake to ensure that homes are maintained to the appropriate standards.  Ms Burke advised that this was therefore important that the council was able to ensure the continuity of contracts for those services.

Ms Burke further commented that the current lockdown had had two significant impacts on service delivery, which had necessitated the extension request.

Firstly current programmes were highly disrupted with most projects paused on site, as while construction works generally continued, these works tended to involve access to people’s homes, which was not considered appropriate at this time.  The council had also elected to pause issuing new Section 20 notices to leaseholders during lockdown unless absolutely necessary which meant that  new projects would be delayed in starting, and with no extension, there was limited prospect that new projects could be started under the current contract.

Secondly, the lockdown had disrupted procurement work for replacement contracts to this framework.  The business case for those was approved by  Cabinet Procurement Committee in June  2019, and work was well underway on the necessary tender documentation.  A suite of contracts were due to be issued to tender from Summer 2020. 

Ms Burke further advised that operationally there had been some disruption as key staff were diverted to planning the Council’s  coronavirus response, but equally the Council was mindful that the construction market was likely to undergo a short term period of significant disruption, which would make it unsuitable to procure prices for long term contracts.  Ms Burke commented that ideally, in order to be confident about value for money, it was preferable to tender within a stable market.

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In reference to Regulation 72-1 of the Public Contracts Regulations which set out  ...  view the full minutes text for item 6.

Note from the Governance Services Manager

Item 8 allows for the consideration of exempt information in relation to item 6.

Proposed resolution:

THAT the press and public be excluded from the proceedings of the Cabinet Procurement Committee during consideration of exempt item 8 on the agenda on the grounds that it is likely, in the view of the nature of the business to be transacted, that were members of the public to be present, there would be disclosure of exempt information as defined in paragraphs 5 of Part 1 - Schedule 12A to the Local Government Act 1972 as amended.

The Chair advised that as there had been no request by Members to discuss the exempt appendix to the report before the Committee there would be no requirement to exclude the public and press and the exempt appendix would be noted as circulated.

NOTED

Item 6 refers

Appendix 1 is exempt from publication under para 5 Part 1, Schedule 12a of the Local Government Act 1972 (as amended).

RESOLVED

That exempt appendix 1 in respect of unrestricted agenda item 6 be noted.