Issue - meetings

Gateway 5 Procurement Contract Management Report: Extension of Housing Responsive Maintenance Contract and Proposal for Fixed Fee Approach for repairs and Voids Service

 

 

Meeting: 19/04/2011 - Cabinet (Item 10)

10 Gateway 5 Procurement Contract Management Report: Extension of Housing Responsive Maintenance Contract and Proposal for Fixed Fee Approach for Repairs and Voids Service pdf icon PDF 817 KB

Minutes:

Background:

 

This report sought permission to extend the responsive repairs and maintenance contract, approve a pilot fixed fee approach for three months and give authority, subject to the success of the fixed fee trial, to enter into arrangements to formalise this arrangement for the remainder of the contract period. The contract was currently awarded to Mears PLC.

 

The contract included repairs to tenanted properties (including sheltered schemes and communal areas), vacant property repairs, out of hours emergency repairs, gas servicing/breakdowns and capital works.

 

It was noted that approval to extend the contract was based upon the procurement process undertaken during 2006, which led to an award of contract in December 2006 to Erinaceous Property Maintenance and commenced 1 April 2007. The Contract was subsequently novated to Mears PLC, and the contract contains provisions, which allow for it to be extended.

 

The Strategic Procurement Board reviewed a Gateway 4 Appraisal Report on 16 February 2011 and this Gateway 5 report was ratified by the Strategic Procurement Board on 30 March 2011 and recommended for referral to Cabinet.

 

Decision number:

 

Decision:

64/2011

The Cabinet agreed:

a)                    that the Responsive Repairs and Maintenance Contract be extended for two years with effect from 1 April 2012, 

b)                    that the pilot approach for delivery of the repairs and maintenance service, incorporating voids via a “fixed fee” approach, be approved for a three calendar month period, subject to completion of successful negotiations which is to be delegated for agreement to the Assistant Director of Housing and Corporate Services in conjunction with the Portfolio Holder for Housing and Corporate Services.

c)                    subject to a successful pilot of the fixed fee that the Assistant Director of Housing and Corporate Services be delegated authority, in consultation with the Housing and Community Services Portfolio Member, to enter into arrangements with Mears PLC to formalise these arrangements for the remainder of the contract term.

 

Reasons:

 

The reasons for the decisions are set out in Option 1 in section 4.1 of the report. This option provides for:

·           budgetary stability

·           further development of improvements with Mears that have been made over the last 12 months

·           further efficiencies in terms of other cost savings

·           increased speed of customer service

·           development of ICT to improve service delivery

·           Officers to concentrate on management of the existing contract rather than be distracted by work to re-tender the contract and potentially have a new contractor to build working methods and relationships with from April 2012.