Decision details

Facilities Management – Leasing Of Post Room Specialist Equipment And Machinery

Decision Maker: Cabinet Member for Finance and Commercial Services

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No


It is recommended that the Cabinet member for Finance and Commercial Services agrees to award a direct award through the Crown Commercial Services framework agreement (RM1063) to Neopost Limited from 01 September 2019 for 4 years, the annual cost is £24,677.44 per annum with a total overall value of £98,709.76


Items which will be procured within this contract are:


·         Letter folder and inserter

·         Franking machine

·         Onsite parcel tracking system

·         Electronic letter opener

·         All associated furniture and supplies for the above items



Reasons for the decision:

Following review and assessment of several options it was decided that a call off contract using a pre procured framework is deemed the most appropriate to allow the council to access the lease of specialist machinery at pre-approved rates as an alternative to a stand-alone open market tender. This option will also consider economies of scale and would the most economically advantageous.


Alternative options considered:

Option 1


1.1.        To continue with using the existing machinery, this option was excluded as the equipment is now at the end of its life and is constantly breaking down and jamming. The machinery also does not allow for modern ways of franking to allow for financial savings using new technologies.


Option 2


1.2.        To write and let an open tender and put it on the open market. The foreseeable issue with this is the council will not be able to take advantage of economies of scale from accessing the benefits and financial aspects of a framework agreement.


Option 3


1.3.        To explore the use of framework agreements which have been pre-approve and procured through a Public Contract Regulation compliant exercise and provide local authorities with buying discounts and relevant products.


1.4.        Option 3 is the recommended route to take which will provide the council with buying discounts and relevant products in line with its own procurement guidelines.


Publication date: 04/09/2019

Date of decision: 04/09/2019

Accompanying Documents: