Decision details

That the Cabinet Members approve utilising the Laser (Y22013) framework to   direct award the contract to Water Plus for a four-year period at a total contract value of £1,141,714.

The current Council water utilities supply and sewage removal contract for the non-residential portfolio is coming to an end on 28^th February 2023, to which a new contract is required.

Over the last four years, Water Plus have provided a high-quality service in meeting LBH&F water supply and sewage requirements. Hence it is recommended that LBH&F direct award to Water Plus through a framework for another four years, commencing 28^th February 2023 to 27^th February 2027.

The overall options that LBH&F considered as part of this procurement exercise are as follows:

1)    Do nothing – this is not ideal as we will be out of contract rates with our current provider for water and sewage and this would prove very expensive to LBH&F.

2)    Extend the existing contract with Water Plus under the old Water Services Framework for a maximum of two years. The existing contract terms and conditions will remain the same i.e. payment terms, pricing etc. as price of supply already went up, after two years, there would be a sharp increase in water supply to meet then the market value. To minimise the price jump, this option is not recommended however advised to fix the price at current market value for next 4 years.

3)    Carry out a new procurement exercise (mini-competition) under a new Framework, through which a mini-tender process will be followed (DIY Tender). This will incur significant cost of resources and time, which is not ideal as the supply of water is not based on savings hence little would be achieved by this exercise, all suppliers on the framework are very similar.

4)    Join the London Boroughs collaborative contract, accepting the specification and terms and conditions of this contract. However, it will be rigid with other council’s terms and conditions. This will not truly represent LBH&F values and therefore this is not a viable option.

5)    Direct Award through the new Laser framework which Laser have ruthlessly benchmarked and completed detailed analysis of top water suppliers which all meet high industry standards. LBH&F have decided to select this option as it is the most feasible and best suited for our portfolio and choose Water Plus as one of the winning suppliers.