Item A4
REPORT OF THE LEAD MEMBER FOR HOUSING
TO CABINET on 23rd JUNE 2009
TITLE: ESTABLISHMENT OF A FRAMEWORK AGREEMENT TO
FACILITATE THE PROVISION OF SPECIALIST DISABLED ADAPTATIONS
TO DOMESTIC PROPERTIES WITHIN THE CITY OF SALFORD (HOUSING
CONNECTIONS)
RECOMMENDATIONS:
That Cabinet is recommended to approve:

A framework agreement is established consisting of 20 companies to
provide adaptations to domestic properties within the City of Salford at
an estimated cost of £4,000,000 per annum. The estimated total cost
over 4 years is £16,000,000;

Give delegated authority to the Strategic Director for Sustainable
Regeneration or his appointed representative to let contracts utilising
the services of companies accredited under the framework agreement
in accordance with the Councils financial standing orders.

Authorise the City Solicitor to award contracts placed by utilising the
services of companies accredited under the framework agreement.
EXECUTIVE SUMMARY:
It is proposed that specialist disabled adaptations in Salford will be delivered
through a common Framework Agreement with suppliers. This sets out terms
and conditions under which specific purchases or services are provided,
during a given period, in particular with regards to price and quality. The
framework agreement can only be used “between the contracting authority
and economic operators originally party to the framework agreement” and for
a maximum period of 4 years.
Salford City Council (Specialist Housing and Corporate Procurement) have
created a framework of building companies who have the necessary skills to
carry out specialist disabled facilities adaptations to domestic properties in
the city. These will include bathroom conversions, level access showers,
ramp access, door widening, and associated electrical works.
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Adoption of the proposed framework will generate significant value for money
improvements which will enable more funds to be devoted to the provision of
this specialist work.
BACKGROUND DOCUMENTS:
JCT 2007 Minor Works
Procurement Evaluation Sheet
ASSESSMENT OF RISK: High – Failure to implement a new framework
agreement means that the service is operating outside of any contract.
SOURCE OF FUNDING: Capital and Revenue budgets.
LEGAL IMPLICATIONS: The service is open to legal challenge if a contract is
not in place.
Contact Officer and Extension No: Christine Flisk – Corporate Procurement
793 3336
Date Consulted: June 2008 to May 2009.
Comments: The tender exercise was conducted with the support and
guidance of the Corporate Procurement Team and was carried out in full
accordance with corporate procedures.
FINANCIAL IMPLICATIONS: The framework agreement has the potential to
deliver financial savings of up to £600 000 against current work expenditure
enabling more work to be undertaken using allocated resources.
Contact Officer and Extension No: Nigel Dickens ext 2585
Date Consulted: 19th May 2009.
Comments: The £4,000,000 is funded through the Housing Private Sector
Capital Programme (£2m), Housing Public Sector Capital Programme (£1m)
and by City West Housing Trust (£1m).
COMMUNICATION IMPLICATIONS: The framework tender was advertised in
Europe and in local and regional press (OJEU).
VALUE FOR MONEY IMPLICATIONS: The framework has the potential to
deliver efficiencies and reduce costs.
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CLIENT IMPLICATIONS: This is a new agreement and will increase the
output from financial resources available – this will have a positive impact on
waiting list times and outcomes.
PROPERTY: The framework will be in operation across tenure in Salford.
HUMAN RESOURCES: None.
CONTACT OFFICER:
Bob Turnbull
Extension No: 1402
WARD(S) TO WHICH REPORT RELATE(S): All Wards within the City.
KEY COUNCIL POLICIES: Contractual Standing Orders.
DETAILS:
1.0
Background
1.1
Management of this contract area has been undertaken by
Housing Connections on behalf of the Sustainable Regeneration
Directorate. Historically, contracts for the service were awarded
following a standard tender exercise, but the introduction of the
Consolidated EU Procurement Directives 2006 dictates that a
Framework Agreement is established to facilitate this type of
service.
1.2
A Framework Agreement is a general term for agreements with
suppliers which set out terms and conditions under which specific
purchases or services are provided, during a given period, in
particular with regards to price and quality. The framework
agreement can only be used “between the contracting authority
and economic operators originally party to the framework
agreement” and for a maximum period of 4 years.
1.3
A framework has been created of building companies who have
the necessary skills to carry out specialist adaptations to domestic
properties in the city. These will include:
o bathroom conversions
o level access showers
o ramp access
o door widening
o associated electrical works
o modular build installations
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o extensions
The efficiencies derive from the cumulative effect of lower contract
costs for individual work items defined within the schedule. Some
high volume items of work, for example a level access shower,
show a cost saving of circa £1000.00 per unit. Another example is
wall tiling which has shown a cost saving of circa £20.00 per
metre.
1.4
All contractors in the framework have priced on a schedule of
rates, which contains all relevant tasks involved with the work
carried out to adaptations of homes in the city. This will provide
greater levels of control over costs and quality of work delivered.
The framework builds on the successful schedule of rates pilot
which has been delivered by the service over the past 12 months.
The pilot has successfully improved efficiency and value for money
in the provision of specialist disabled adaptations.
2.0
Details
2.1
Management of Framework Agreement
Companies who have been successfully accredited through the
procurement process will be signed-up to the framework
agreement. During the period of the agreement, companies will be
monitored to ensure they continue to work within its terms and
conditions. Companies failing to update documentation, including
insurance, licenses and Health & Safety records will be changed to
a suspended status. If a company fails to update their records for a
period exceeding 3 months, they will be deleted from the
framework agreement and be unable to secure work.
Frameworks are a closed system and once created cannot be
added to.
The framework agreement will last for 2 years, with the option to
extend for a further 2 years. Under the terms of the agreement, it
will not be possible for further expressions of interest in this
timeframe.
2.2
Tender Procedure
1.
Advertising
An OJEU restricted procedure for the establishment of a
framework was published on 12th June 2006. The advert for
the Specialist Disabled Adaptations framework was placed in
the Manchester Evening News in June 2008. 72 sets of
documents were issued to interested parties.
2.
Prequalification receipt and initial evaluation
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The closing date for 17th July 2008 realised the recording of
47 PQQ’s for consideration.
3.0
3.
Invitation to Tender and evaluation
30 companies were shortlisted and invited to the ITT stage.
The closing date for completing the ITT was 13th October
2008 and 26 companies submitted a tender and completed
the schedule of rates. An evaluation of the submissions was
undertaken based 60% price and 40% quality (see appendix
1). The companies were placed into band A and band B
based upon the financial standing and resource capacity
determining the value of work that would be assigned to any
successful organisation. Based upon most economically
advantageous 20 companies have been selected to form the
framework.
3.
This process was led by the Corporate Procurement Team
and two surveyors from the Specialist Housing Team,
including the Senior Surveyor. All decisions were made in
line with agreed criteria and full documentation of the
decision-making process has been maintained to ensure
robustness, transparency and accountability.
4.
Each stage of the procurement process was conducted
wholly in line with the Council’s Procurement Policy and with
the support of the Corporate Procurement Team.
Conclusion
3.1
A framework agreement is established consisting of 20
companies to provide adaptations to domestic properties within
the City of Salford at an estimated cost of £4,000,000 per
annum. The estimated total cost over 4 years is £16,000,000.
3.2
Give delegated authority to the Strategic Director Sustainable
Regeneration or his appointed representative to let contracts
utilising the services of companies accredited under the
framework agreement in accordance with the Councils financial
standing orders.
3.3
Authorise the City Solicitor to award contracts placed by utilising
the services of companies accredited under the framework
agreement.
Councillor Peter Connor
Lead Member for Housing
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