Servicing, Maintenance and Compliance (Gas, M&E and Buildings) of Council Managed Assets - Term Service Contract

Concepts

• portsmouth city council
• portsmouth
• mechanical installations
• council managed assets
• term service contract
• liberty gas services limited
• buildings
• gas safety
• council's housing stock
• m&e

Location

The Council's housing stock comprises approx. 15,000 properties across 7 estates located within Portsmouth and surrounding environs being: • Portsea • City South • Landport • Buckland • Paulsgrove • Leigh Park • Wecock Farm The Council's broader property portfolio encompasses a range of building types which include but are not limited to: • Schools • Offices • Commercial buildings, warehouses and depots • Care homes • Sheltered housing and supported living properties • Maritime port facilities

Description

Portsmouth City Council - the 'Council' - has extended a term service contract for the provision of servicing, maintenance, installation and compliance checks of gas, water, heating and other associated building installations across the Council's housing stock and wider property portfolio. The contract may also be used at the Council's option to commission associated project works via task order. The Council originally let the contract via a compliant OJEU advertised procurement process which commenced in 2012 with subsequent award following in 2013. The contract commenced on 1st April 2013 for an initial term duration of 3 years extendable up to maximum total term of 9 years. The Council commenced a procurement process on 6th May 2021 via issue of a Contract Notice via Find a Tender Service (ref: 2021/S 000-009814) for the re-procurement of the contract. The Council was unable to conclude the procurement process and informed candidates and tenderers who had taken part that the procurement was to be abandoned via correspondence issued to them on 3rd February 2022. The activities covered by the contract are of a critical nature and continuity of service is required to ensure that the Council is able to fulfil various non-discretionary statutory obligations, which include for: • As a landlord the Council has an obligation under the Gas Safety (Installation and Use) Regulations 1998 as amended Approved Code of Practice and guidance to ensure an annual safety check is carried out on each gas appliance/flue. • As a landlord the Council has health and safety at work act obligations under L8 Approved Code of Practice (3rd edition) (ACOP) and a requirement for landlords of both domestic and business premises to assess the risks from exposure to Legionella to their tenants. • The Regulatory Reform (Fire Safety) Order 2005 requires that the Council manages fire safety risks, this includes servicing fire alarms, automatic opening vents, emergency lighting, lightning conductors etc., all of which are part of the contract. Whilst the new procurement process is undertaken the Council has secured continuity of service on an interim basis via a 1 year extension of the contract to cover the period of 1st April 2022 to 31st March 2023 with its current supplier Liberty Gas Services Limited. The Council estimates that spend via the contract for this period to be approximately £8M based upon its known servicing requirements, historical demand associated with response repair activities and current programme of planned project works. To help ensure that no further extensions of the contract are required the Council will immediately commence a new procurement process following the Restricted Procedure as defined within the Public Contracts Regulations (2015) in line with the summary programme set out below: • Issue FTS Prior Information Notice - 6th April 2022 • Issue FTS Contract Notice - 23rd May 2022 • Supplier Selection Questionnaire return deadline - 22nd June 2022 • Issue Invitation to Tender to shortlisted tenderers - 11th July 2022 • Tender return deadline - 9th September 2022 • Notification of award - 17th October 2022 • Completion of standstill and S20 Leaseholder Notification - 16th November 2022 • Contract execution - 28th November 2022 • Service commencement - 1st April 2023

Total Quantity or Scope

The scope of services and works covered by the contract can be summarised as follows: • Annual gas servicing to the housing stock completing the LGSR together with undertaking response repairs to appliances, pipework, heating systems and controls or new installations as appropriate for domestic dwellings and commercial heating installations. • Legionella testing, risk assessments and tank maintenance. • Servicing, testing, maintenance and replacement as appropriate of dwelling smoke detectors, air conditioning, commercial catering equipment, laundry equipment, duct and extractor systems, sprinklers, district heating systems, HIU boards and any other related mechanical and electrical installations. • On an optional basis, electrical inspections and reports (EICR) including PAT testing and emergency lighting checks. • Installation works for new or refurbish existing gas heating systems and other associated mechanical & electrical equipment via optional task order facility.

Award Detail

Award Criteria

CPV Codes

• 50712000 - Repair and maintenance services of mechanical building installations
• 45311000 - Electrical wiring and fitting work
• 45331100 - Central-heating installation work
• 45331110 - Boiler installation work
• 45331200 - Ventilation and air-conditioning installation work
• 45331230 - Installation work of cooling equipment
• 45332000 - Plumbing and drain-laying work
• 45333000 - Gas-fitting installation work
• 45350000 - Mechanical installations
• 50710000 - Repair and maintenance services of electrical and mechanical building installations
• 50720000 - Repair and maintenance services of central heating
• 50730000 - Repair and maintenance services of cooler groups

Indicators

• Award on basis of price and quality.

Legal Justification

The Council commenced a procurement process on 6th May 2021 via issue of a Contract Notice via Find a Tender Service (ref: 2021/S 000-009814) for the re-procurement of the contract. The Council was unable to conclude the procurement process and informed candidates and tenderers who had taken part that the procurement was to be abandoned via correspondence issued to them on 3rd February 2022. The activities covered by the contract are of a critical nature and continuity of service is required to ensure that the Council is able to fulfil various non-discretionary statutory obligations. The only viable sourcing option to the Council for continuation of the critical services covered by the contract which was due to expire on 31st March 2022 following abandonment of the procurement process on 3rd February 2022 was to seek to extend the existing contractual arrangements in place with the incumbent supplier Liberty Gas Services Limited. The contract requirements are of a significant scale with any incoming contractor likely to require no less than 2 months in order to undertake an effective mobilisation which would likely entail the securing of local depot facilities, vehicles, equipment, TUPE transfers, recruitment as well as integration with the Council's IT systems. This situation made it impossible for the Council to undertake an effective competitive procurement process either via the seeking of revised tenders from the tenderers who submitted bids under the abandoned procurement, via advertised procurement with use of Accelerated Procedure or via mini-competition from existing national framework agreements. Following agreement with the supplier the Council has now formally extended the contract by 1 year with the contract now due to expire on 31st March 2023. Other than the extension to the duration of the contract all technical, commercial and legal terms are consistent with those agreed when the contract was originally let. The Council considers that the extension to the contract is lawful under the Public Contracts Regulations (2015) via broad application of Regulation 72(1)(b)(ii) on the basis of the significant inconvenience to the Council which would be incurred due to the non-discretionary statutory activities that would be disrupted if the contract was not to be extended, and the estimated value of the contract for the 1 year out of term extension not equating to 50% or more of the value of the contract originally advertised when it was compliantly procured in 2012. To help ensure that no further extensions of the contract are required the Council will immediately commence a new procurement process following the Restricted Procedure as defined within the Public Contracts Regulations (2015) in line with the summary programme set out below: • Issue FTS Prior Information Notice - 6th April 2022 • Issue FTS Contract Notice - 23rd May 2022 • Supplier Selection Questionnaire return deadline - 22nd June 2022 • Issue Invitation to Tender to shortlisted tenderers - 11th July 2022 • Tender return deadline - 9th September 2022 • Notification of award - 17th October 2022 • Completion of standstill and S20 Leaseholder Notification - 16th November 2022 • Contract execution - 28th November 2022 • Service commencement - 1st April 2023