Agenda, decisions and minutes

1.1  Apologies were received from Deputy Mayor Bramble.

The Chair will consider the admission of any late items of Urgent Business. Late items of Urgent Business will be considered under the agenda item where they appear. New items of unrestricted urgent business will be dealt with under item 11 below. New items of exempt urgent business will be dealt with at item 15 below.

2.1  There was no urgent business to consider.

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 2 of Part 5 of the Constitution  and Appendix A of the Members’ Code of Conduct.

3.1  There were no declarations of interest.

On occasions part of the Cabinet Procurement and Insourcing 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 items 13 and 14.

No representations with regard to these have been received.

4.1  There were no representations to consider.

5.1  There were none received.

To confirm the unrestricted minutes of the meeting of Cabinet Procurement and Insourcing Committee held on 7 March 2022.

Resolved:

That the minutes of the Cabinet Procurement and Insourcing Committee held on 7 March 2022 are agreed as an accurate record of the meeting.

Resolved:

To vary the General Building Works for Area Surveying Managers (ASMs) Contract dated 01/10/2015 in favour of the existing Contractor until 31/03/2023 for an increased value of £7,098,000.00 excluding vat (£8,517,600 including VAT) to allow for the reprocurement of the service. This variation represents 15% of variation of the current contract value of £47M (excluding VAT) to support unplanned and unexpected works including both COVID and emergency works.

To procure four contractors to support the Building Maintenance service:

Lot 1, General Building Works for Area Surveying Managers (ASMs) for a period of 4 years with an option to extend up to a further 4 years for estimated contract value of £48M (excluding Vat):

i) Contract 1: The first ranked contractor will be allocated 60% of the work on a value basis.

ii) Contract 2: The second ranked contractor will be allocated 40% of the work on a value basis.

Lot 2: DLO Support Contractors for a period of 2 years with an option to extend up to a further 1 year for estimated contract value of £2m excluding VAT:

i) Contract 1: The first ranked contractor will be allocated 60% of the work on

a value basis.

ii) Contract 2: The second ranked contractor will be allocated 40% of the work on a value basis.

Reasons for Decision:

The existing contract for ASM was not expected to reach the levels of expenditure before the end of the contract term and this was unforeseen due to the increase in demand. It has therefore been decided to bring the procurement of the new service forward to limit the size of contract variation and to allow competition.

Some of the reasons for the increased expenditure was for fire safety works which have become more pressing since the introduction of recommendations after Grenfell as well as supporting repairs to housing services during COVID.

According to our finance team report (Payment Cert Logs-2021-2022), the existing contractor has spent £40,265,513 by 7th December 2021, and Hackney's remaining value would be £7,054,487.Considering work in progress, £1,738,143.16 Hackney's remaining value is £5,316,344.04.

Therefore, due to market fluctuations, the massive demand in Hackney and the lack of supply in the other areas of the Council such as PAM, FRA, Regeneration, VOIDS, and electrical a 15% increase in the total contract value,

would meet the Council’s needs and therefore a variation of £7,098,000.00 is required.

The historic performance of the existing contractor prior to the cyberattack has been satisfactory in terms of quality of work and service delivery. The Building Maintenance team has been working with the ICT services to develop a robust process to quantify and evaluate the contractor performance information by using our in-house Business Intelligence capabilities and to publish performance dashboards.

Reasons For Lot 1 And Lot 2

The reasons for splitting the new contracts into two lots with 2 contracts each are:

For Lot 1: The existing expenditure against the contract is close to the awarded value of the contract

The DLO is  ...  view the full decision text for item 7.

7.1  The report was introduced by the Interim Head of Building Maintenance. Cllr Woodley queried what the target was for bringing services in-house. It was noted that there would always be a need for external contractors in certain circumstances, though the focus was moving the balance to greater in-house delivery while demonstrating value for money over the next five year period.

Resolved:

To vary the General Building Works for Area Surveying Managers (ASMs) Contract dated 01/10/2015 in favour of the existing Contractor until 31/03/2023 for an increased value of £7,098,000.00 excluding vat (£8,517,600 including VAT) to allow for the reprocurement of the service. This variation represents 15% of variation of the current contract value of £47M (excluding VAT) to support unplanned and unexpected works including both COVID and emergency works.

To procure four contractors to support the Building Maintenance service:

Lot 1, General Building Works for Area Surveying Managers (ASMs) for a period of 4 years with an option to extend up to a further 4 years for estimated contract value of £48M (excluding Vat):

i) Contract 1: The first ranked contractor will be allocated 60% of the work on a value basis.

ii) Contract 2: The second ranked contractor will be allocated 40% of the work on a value basis.

Lot 2: DLO Support Contractors for a period of 2 years with an option to extend up to a further 1 year for estimated contract value of £2m excluding VAT:

i) Contract 1: The first ranked contractor will be allocated 60% of the work on

a value basis.

ii) Contract 2: The second ranked contractor will be allocated 40% of the work on a value basis.

Reasons for Decision:

The existing contract for ASM was not expected to reach the levels of expenditure before the end of the contract term and this was unforeseen due to the increase in demand. It has therefore been decided to bring the procurement of the new service forward to limit the size of contract variation and to allow competition.

Some of the reasons for the increased expenditure was for fire safety works which have become more pressing since the introduction of recommendations after Grenfell as well as supporting repairs to housing services during COVID.

According to our finance team report (Payment Cert Logs-2021-2022), the existing contractor has spent £40,265,513 by 7th December 2021, and Hackney's remaining value would be £7,054,487.Considering work in progress, £1,738,143.16 Hackney's remaining value is £5,316,344.04.

Therefore, due to market fluctuations, the massive demand in Hackney and the lack of supply in the other areas of the Council such as PAM, FRA, Regeneration, VOIDS, and electrical a 15% increase in the total contract value,

would meet the Council’s needs and therefore a variation of £7,098,000.00 is required.

The historic performance of the existing contractor prior to the cyberattack has been satisfactory in terms of quality of work and service delivery. The Building Maintenance team has been working with the ICT services to develop a robust process to quantify  ...  view the full minutes text for item 7.

Resolved:

That Cabinet Procurement and Insourcing Committee approves the procurement of two (2) contracts to undertake servicing and maintenance as well as lift refurbishments to Hackney’s housing stock for a period of five (5) years with an option to extend for a further five (5) years.

Reasons for Decision:

The proposed lift replacement and maintenance contracts are required to ensure that Hackney Council meets its statutory requirements as a landlord and ensures the safety of its residents. In addition, it will ensure that lifts are out of service for the minimum time possible. The contracts will enable Hackney to achieve its objective to undertake capital investment within its significant lift portfolio thus minimising breakdowns and ensuring longevity of the lifts. As a result of the significant statutory and reputational impact of not having a suitable lift contract in place the procurement of a lift contract can be considered of high risk to the Council.

8.1  The Interim Head of Property and Asset Management introduced the report. It was confirmed that the use of two contractors was an explicit requirement of the procurement exercise, and that the geographical split would secure benefits in terms of contractor vehicles covering a smaller area. The Chair welcomed the supplementary paper, but commented he would like to see some firmer Key Performance Indicators (KPIs) on how the contract would deliver the Council’s sustainable procurement priorities. Officers gave assurances that this would be taken into account, citing the use of training and opportunities for local apprenticeships as being a component of the procurement exercise.

Resolved:

That Cabinet Procurement and Insourcing Committee approves the procurement of two (2) contracts to undertake servicing and maintenance as well as lift refurbishments to Hackney’s housing stock for a period of five (5) years with an option to extend for a further five (5) years.

Reasons for Decision:

The proposed lift replacement and maintenance contracts are required to ensure that Hackney Council meets its statutory requirements as a landlord and ensures the safety of its residents. In addition, it will ensure that lifts are out of service for the minimum time possible. The contracts will enable Hackney to achieve its objective to undertake capital investment within its significant lift portfolio thus minimising breakdowns and ensuring longevity of the lifts. As a result of the significant statutory and reputational impact of not having a suitable lift contract in place the procurement of a lift contract can be considered of high risk to the Council.

Resolved:

That Cabinet Procurement and Insourcing Committee approves the award of the following contracts:

Electrical Fire Safety:

? Lot 1 - Large Blocks: Contractor 1 in Appendix A (Exempt) for a term of 5 years with an option to extend the contract for up to a further 5 years

? Lot 2 - Street Properties: Contractor 1 in Appendix A (Exempt) for a term of 5 years with an option to extend the contract for up to a further 5 years

To note the update on the procurement of the framework for internal and

external works.

Reasons for Decision:

The proposed Electrical Fire Safety contracts are required to ensure that Hackney Council meets its statutory requirements as a landlord and ensures the safety of its residents. The contract will be able to ensure that all properties that require fire protection systems such as fire alarm systems, communal and emergency lighting and automatic opening vents can either have these installed or upgraded. The contract will also enable the necessary servicing and testing as well as repairs to be undertaken.

9.1  The Interim Head of Property and Asset Management introduced the report. Questions were reserved for the exempt session, following which the Committee approved the recommendations.

Resolved:

That Cabinet Procurement and Insourcing Committee approves the award of the following contracts:

Electrical Fire Safety:

? Lot 1 - Large Blocks: Contractor 1 in Appendix A (Exempt) for a term of 5 years with an option to extend the contract for up to a further 5 years

? Lot 2 - Street Properties: Contractor 1 in Appendix A (Exempt) for a term of 5 years with an option to extend the contract for up to a further 5 years

To note the update on the procurement of the framework for internal and

external works.

Reasons for Decision:

The proposed Electrical Fire Safety contracts are required to ensure that Hackney Council meets its statutory requirements as a landlord and ensures the safety of its residents. The contract will be able to ensure that all properties that require fire protection systems such as fire alarm systems, communal and emergency lighting and automatic opening vents can either have these installed or upgraded. The contract will also enable the necessary servicing and testing as well as repairs to be undertaken.

Resolved:

To delegate the approval of the Contract Award for Kings Crescent Phases 3&4 to the Group Director, Climate, Homes and Economy in consultation with the Group Director, Finance and Corporate Resources.

Reasons for Decision:

This report outlines the process for procuring a main contractor using a Competitive Procedure with Negotiation procurement route, and entering into a single stage design and build contract for Kings Crescent Phases 3&4. The Council wishes to continue the phased development of Kings Crescent as an exemplary housing, community and commercial scheme and to procure a main contractor to deliver the project. The contractor will be appointed to take the project forward from RIBA stage 3+.

10.1  The Project Manager, Regeneration and Capital Programme Delivery introduced the report. The Committee discussed questions regarding the delegation of authority, and whether there was scope to look at the manner in which the Committee conducted business. It was confirmed that the delegation to the Group Director was valid although the individual was yet to assume their post. The Team Leader, Governance confirmed that a Delegated Powers Report by the Chief Executive had allocated approval to the relevant Service or Strategic Director as an interim arrangement while the Group Director recruitment was taking place.

10.2  Following some questions raised in the exempt session, the Committee approved the recommendations.

Resolved:

To delegate the approval of the Contract Award for Kings Crescent Phases 3&4 to the Group Director, Climate, Homes and Economy in consultation with the Group Director, Finance and Corporate Resources.

Reasons for Decision:

This report outlines the process for procuring a main contractor using a Competitive Procedure with Negotiation procurement route, and entering into a single stage design and build contract for Kings Crescent Phases 3&4. The Council wishes to continue the phased development of Kings Crescent as an exemplary housing, community and commercial scheme and to procure a main contractor to deliver the project. The contractor will be appointed to take the project forward from RIBA stage 3+.

11.1  There was no urgent business to consider. The Chair noted that Andy Spragg would be leaving Hackney at the end of the month to take up a role as Head of Governance at the General Optical Council. The Committee thanked him for his support.

Note from the Director of Legal, Democratic and Electoral Services.

Items 13 and 14 allow for the consideration of exempt information in relation to items 9 and 10 respectively.

Proposed resolution:

THAT the press and public be excluded from the proceedings of the Cabinet Procurement Committee during consideration of exempt items  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 paragraph 3 of Schedule 12A to the Local Government Act 1972 as amended.

Resolved:

THAT the press and public be excluded from the proceedings of the Cabinet Procurement and Insourcing Committee during consideration of Exempt items 13-14 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 paragraph 3 of Schedule 12A to the Local Government Act 1972 as amended.

13.1  The Committee asked a number of questions under the exempt item, before approving the recommendations set out under item 9.

14.1  The Committee asked a number of questions under the exempt item, before approving the recommendations set out under item 10.

15.1  There was no urgent business to consider.