AGENDA ITEM NO. 1 (d)
To: Procurement Sub Committee
On: 21st January 2015
Report by:
Joint Report
by
Director of Finance and Corporate Services & Director of Community
Resources
Heading:
Contract Authorisation Report
1.
Summary
1.1 The purpose of this report is to seek the approval of the Procurement SubCommittee to enter into a contract with Lightways (Contractors) Limited under
the terms of Lot 2 of Renfrewshire Council’s framework agreement reference
R111102690 for Street Lighting Maintenance, Repairs, Improvements and
Developments.
1.2 The recommendation to award follows conclusion of a mini competition process
run in accordance with the terms and conditions of Framework Agreement
R111102690 for street lighting improvements at Johnstone town centre.
2.
Recommendations
It is recommended that the Procurement Sub Committee:
2.1 Authorise the Head of Legal and Democratic Services to award a contract for
Street Lighting Improvement Works at Johnstone Town Centre to Lightways
(Contractors) Limited, with a contract value of £258,662.10;
2.2 Note the period of the contract shall be 20 weeks. The anticipated contract
start date is 9 February 2015;
Page 1 of 3
2.3 Authorise an additional £30,000 contingency sum may be spent on this contract
for unforeseen circumstances which are required on site.
3.
Background
3.1 The street lighting in Johnstone town centre requires urgent upgrading to
replace faulty underground cable networks which are now life expired and
deemed irreparable. A temporary overhead supply has been installed to
ensure that lighting remains operational however this solution is short term and
not cost effective.
3.2 To deliver a sustainable solution for Johnstone town centre, the Council ran a
mini competition under Lot 2 of the existing Street Lighting Maintenance,
Repairs, Improvements and Developments Framework Agreement (Reference
R111102690) to undertake street lighting improvement works in the Johnstone
town centre area.
3.3 In accordance with the terms of Clause 27.4 of the Contract Standing Orders all
four contractors on the Framework capable of performing the contract were
invited to participate in the mini competition, only one tender response was
received.
3.4 Lightways (Contractors) Limited offered a price of £258,662.10 for delivery of
the full package of works. The works will be funded from the Street Lighting
Capital Works Programme and fall within the existing budget for the financial
year 2014 / 2015.
3.5 Street lighting materials will be provided by the Council and will include new
LED lanterns for installation in Johnstone town centre. LED lanterns provide
the Council with sustainable cost effective lighting solutions which reduce the
total cost of ownership over a 10 year period in terms of lantern life, energy
usage and cost of maintenance.
3.6 Due to the short term nature of this works contract, community benefits cannot
be delivered. However, community benefits will be sought over the coming
months for larger street lighting maintenance and any capital investment
contracts.
Lightways (Contractors) Limited currently deliver the Council’s Street Lighting
Maintenance Contract which secures local employment within Renfrewshire.
They have also been working with the Council to trial technologies which aim
deliver environmental benefits.
Implications of the Report
1.
Financial Implications
Financial costs for this project will be met from the Service’s Capital Budget.
Page 2 of 3
2.
HR & Organisational Development
Not applicable
3.
Community Planning
Greener: The improvement works proposed under this contract will contribute
to a safer and greener environment for Johnstone town centre providing
efficient street lighting which uses less energy and requires less maintenance.
Safer and Stronger: Renfrewshire Council has a statutory obligation under the
Roads (Scotland) Act 1984 for the provision and maintenance of roads and
footways.
4.
Legal
This mini competition has been conducted in accordance with the terms of
Contract Standing Order 27.4 and the terms set out the Framework Agreement
for Street Lighting Maintenance, Repairs, Improvements and Developments.
5.
Property Assets
None
6.
Information Technology Implications
None
7.
Equality & Human Rights
Lightways (Contractors) Limited has confirmed compliance with the statutory
obligations in respect of Equal Opportunities.
8.
Health & Safety
Lightways (Contractors) Limited health and safety submission was assessed by
Renfrewshire Council’s Health and Safety section at the point of framework
award and found to fully compliant.
9.
Procurement
The procurement procedures outlined within this report shall ensure that the
Council meets its statutory requirements in respect of procurement procedures,
efficient and modern Government.
10. Risk Implications
The existing underground cable network in Johnstone has been subject to a
number of faults leading to the installation of temporary overhead power
supplies. If the award of this contract does not progress, the Council may incur
additional costs in terms of ongoing maintenance and repair of near redundant
cabling and increased energy costs.
11. Privacy Impact
Not applicable.
Author: Bridget Lambert, 0141 618 6073
Page 3 of 3