PART 1
(Open to the public)
ITEM NO.
REPORT OF THE STRATEGIC DIRECTOR OF CUSTOMER AND SUPPORT SERVICES
To the: Lead Member for Customer and Support Services
On: 28 July 2010
TITLE : AGMA Contract for the Drinking Water Supply Services for the period 1 August 2010
to 31 July 2013 (with the option to extend to 31 July 2014)
RECOMMENDATIONS : The Lead Member is requested to approve:-
the Joint award of a contract to Cooler Aid Ltd and Pressure Coolers Ltd /t/a Maestro
International for the Drinking Water Supply Services to the following AGMA
authorities :Greater Manchester Police, Salford City Council, Tameside MBC, Trafford MBC,
Manchester City Council and Stockport MBC for the period 1 August 2010 to 31 July
2013 ( with the option to extend to 31 July 2014) at an approximate cost of
£627,826.62 over the initial three year contract period and £837,102.16 over a
possible four year period;
-
authorise the City Solicitor to prepare contract award documents as soon as
possible;
-
authorise delegated authority to the Strategic Director of Customer and Support
Services or his appointed representative to negotiate an optional 12 month extension
to the contract dependent on satisfactory service provision, consistent quality of
product and maintenance of competitive unit costs.
EXECUTIVE SUMMARY :
This contract renewal ensures a continuity of the City Council’s commitment to AGMA in
terms of Lead Authority status on contractual responsibility for the essential Supply of
Drinking Water Services.
This call-off contract arrangement will satisfy the operational needs of six public sector
organisations, and the possibility of other North West Authorities to benefit from a contract
which will provide value for money resulting from initiatives that the utilisation of bulk
purchasing power enables.
BACKGROUND DOCUMENTS :
OJEU advertisement
“thechest” advertisement
Tender receipt schedule
Tender evaluation schedules
Tender evaluation matrix. (These documents contain commercially sensitive information and
are not for public scrutiny)
ASSESSMENT OF RISK :
None other than supply and market fluctuations which are beyond our control.
SOURCES OF FUNDING :
Revenue budgets
COMMENTS OF THE STRATEGIC DIRECTOR OF CUSTOMER AND SUPPORT
SERVICES (or his representative)
LEGAL IMPLICATIONS
None.
FINANCIAL ADVICE
OBTAINED
Company accounts have been
assessed and Experian
Financial reports obtained.
PROPERTY (if applicable):
Not Applicable
HUMAN RESOURCES (if applicable):
Not Applicable
CONTACT OFFICER :
Valentine Lord – Corporate Procurement Team.
WARD(S) TO WHICH REPORT RELATE(S) :
Not Applicable
KEY COUNCIL POLICIES :
Best Value; Procurement Policies.
DETAILS : Restricted Procedure
19 expressions of interest were received following publication of our OJEU notice on 8
December 2009.
19 tenders were received by the closing date of 8 January 2010.
10 short listed companies were then invited to tender.
9 short listed companies returned their tenders by the closing date of 23 April 2010.
Extensive evaluation procedures have taken place involving the following criteria for
marking: - Quality of submissions, Economic and Financial standing, Technical/Professional
ability, Quality Assurance standards, Environmental Management standards, H &S/Equal
opportunities compliance. These criteria represent 40% weighting of the total evaluation: the
other 60% relates to pricing.
The tender price schedule required companies to provide costs for a range of drinking water
dispensers. i.e. Bottled water and Mains water supply.
Cooler Aid and Maestro provided costs for mains supply coolers and bottled water coolers.
Bronte Water Coolers were £4428.84 cheaper overall but the Experian risk report for this
company was very poor with a score of only 20 out of 100 points, a very high risk score.
Cooler Aid and Maestro are new companies to Salford Council and so site visits were
conducted as means to evaluate their operations and capacity arrangements. These proved
to be very satisfactory.
Due to the large geographical area that this contract covers the above two companies have
been selected to ensure a reliable service provision.
By applying the contract unit quantities to the old and new prices we see an annual value of
£253,748.00 and £209,275.54 respectively. A saving of £44,472.46 or 17.53% per annum.