Agenda item

Background:

This report provided details of the LED (Light Emitting Diode) and Column Replacement Programme and procurement exercise following consideration at the Procurement Board on 18 March 2020. The report explained that at the Gateway 1 stage, this project was approved as a Category B, medium risk procurement activity. In accordance with the Council’s Contract Procedure Rules, medium risk reports would be reviewed and approved by the Chief Legal Officer in consultation with the Procurement Board.

The report stated that the procurement exercise was undertaken via the Crown Commercial Services Framework (RM1089). The incumbent term contractor from the Council’s pre-existing Highways Infrastructure Contract was also invited to tender alongside those Contractors on the Framework, under the same Terms and Conditions.

The tender encompassed both LED conversion and column replacements, with options for a Central Management System (CMS) for dimming and trimming light levels and Smart City future proofing and integration, with the preferred option being to install a CMS system, if it was financially viable.

An Exempt Appendix provided details of the financial analysis of the submissions and the outcome of evaluation. The report explained that the Gateway 3 report had been considered at the Procurement Board on 18 March 2020 and the Chief Legal Officer in consultation with the Procurement Board agreed that this procurement proceeds with award to the winning evaluated bidder, for the option with CMS set out in paragraph 3.2 in the Exempt Appendix, subject to approval of funding.

The report explained that the procurement requirement and its associated delivery would require Full Council approval for a new scheme to be added to the Capital Programme funded by prudential borrowing met from projected energy savings. The contact would not be awarded until a decision had been made by Full Council on 23 April 2020 on the funding award.

The Council's decision to award this contract would also be subject to observing the procurement standstill period of a minimum of 10 days in accordance with the requirements of the Public Contracts Regulations 2015. The Council would be unable to enter into the contract before the end of the standstill period.

Reasons:

This scheme will upgrade the extensive street lighting network and increase the asset base condition, thus ensuring network safety and will contribute to both Medway Council’s climate change and Smart City agendas.

The cost of the scheme, over the predicted 20 year life span of the LED lanterns, will be funded via cost avoided savings in energy, which are predicted to exceed the investment required over the period.