Decision details

Expert support for demobilising the Mitie contract and implementing a new repairs model

Decision Maker: Cabinet Member for Housing

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Purpose:

The Cabinet Paper ‘Mitie Partnership Progress Update’ of 8th October 2018 approved the termination of the Council’s Housing Repairs and Maintenance Contract with Mitie Property Services (UK). Demobilising the Mitie contract and implementing a new repairs and maintenance model involves a significant volume of complex work, and there is not sufficient capacity and capability within Growth and Place to carry it out without commissioning outside support. This report seek authorisation to directly appoint consultants to provide this support.

Decision:

That the Cabinet Member:

 

1.    Approve the allocation of £90,000 for consultancy support for the next phase of the notice/demobilisation period to support the orderly demobilisation of the Mitie contract and the implementation of a new repairs and maintenance model, funded from the HRA Transformation earmarked reserve.

 

2.    Waive pursuant to Contract Standing Orders (CSO) 3 the usual tendering requirements of CSO 10 to seek competitive tenders, to enable direct appointment of consultants to deliver the services outlined in paragraph 2.1, on the grounds that this is in the Council’s overall interests.

 

3.    Approve the appointment of Just Housing Group for the services outlined in paragraph 2.1 in the sum of £90,000.

Reasons for the decision:

The Cabinet Paper of 8th October, featured a commitment to bring, in a future Cabinet Paper, further details of the DLO and the wider repairs delivery model that will replace the Mitie contract.

 

Demobilising the Mitie contract and implementing a new repairs and maintenance model involves a significant volume of complex work, and there is not sufficient capacity and capability within Growth and Place to carry it out without commissioning outside support. The set-up of IT and call centre systems, operational demobilisation/mobilisation and the set-up of a Direct Labour Organisation are particular areas where the department lacks experience and expertise.

 

Following a competitive tender in August 2018 (procured using the capitalesourcing portal), the department has already drawn on consultancy support to prepare contingency plans that have, subsequent to the Cabinet decision to terminate the Mitie contract, evolved into detailed demobilisation and service design/implementation plans. The work required under this tendered contract is now completed. However, the department needs ongoing support to deliver these plans.

 

The consultants who won the August tender, Just Housing Group, have continued to support the department to deliver the demobilisation plans, utilising the remaining number of days committed to in their bid. This is despite the fact that the appointment was for contingency planning/ design of implementation plans. At the current utilisation rate, the remaining days of support will be exhausted by early January. There is a need for a new contract for consultancy support for demobilisation until the end of April 2019, to ensure an effective implementation of the new repairs model (due to go live in mid-April 2019).

 

Based on the current day rates charged by the consultants, and forecasts of the amount of support required – it is expected that a new award of £90,000 for the new services (demobilisation) will secure two months of support, lasting until the end of February 2019. Another award will be required to support the final stage of the project (March and April 2019) – authorisation for this will be sought through a Cabinet paper to be taken to the Cabinet meeting of 4th February.

 

A Direct Award is sought as the disruption of changing consultants in the middle of a very time pressured project means it is not in the Council’s interests to run another competitive tender for the next stage of the project. Consequently, a waiver of the usual tendering requirements is sought as well as authority to award.

Alternative options considered:

Not applicable.

Interests and Nature of Interests Declared:

None.

Publication date: 10/01/2019

Date of decision: 10/01/2019

Accompanying Documents: