Decision details

Contract award to ARC Group for provision of disrepair and void works. Contract award to MLCS3 for provision of disrepair surveying.

Decision Maker: Strategic Director of the Economy Department

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

This Procurement Report recommends two contract awards to assist with accelerating our rate of repairs of homes, particularly where the property is empty, ‘a void’, or where the resident is working with the council on the resolution of a repair via a legal advisor, cases that are known as ‘legal disrepair’. These contracts will help ensure that our residents have the homes they deserve and reduce payments from the council to external legal firms from funds that could be used to ensure high-quality properties and resident services.

 

1)    Using the Procurement for Housing ‘Responsive Repairs and Voids’ framework, Lot 2 ‘Void property refurbishments’ to award a general build contract to ARC Group London. The direct award is intended to support an overarching strategy to improve outcomes from the responsive repairs service – specifically by providing additional general building capacity to support on the delivery of legal disrepair cases and void works.

 

2)    Using the NMHF Framework ‘Asset Management Consultancy’ framework to award a contract to MLCS3 for the provision of disrepair surveying services.

 

Both awards are value and time limited award to support the effective delivery of legal disrepair case outcomes and void works over a one-year period. 

 

Decision:

1.    Appendix 1 is not for publication on the basis that it contains information relating to the financial or business affairs of any particular person (including the authority holding that information) as set out in paragraph 3 of Schedule 12A of the Local Government Act 1972 (as amended).

 

2.    Direct award a ‘General Building Works’ contract for a maximum value of £1,500,000 for a contract period of 1 year to ARC Group London via the Procurement for Housing framework.  We aim to incept the contract as soon as allowable.

 

3.    Direct award a contract for disrepair surveying to MLSC3 for a maximum value of £130,000 for a contract period of 1 year via the NMHF Framework Asset Management Framework. We aim to incept the contract as soon as allowable.

 

Reasons for the decision:

To accelerate the performance of the Responsive Repairs service relating to disrepair and voids works.

 

Alternative options considered:

Procurement Route Analysis of Options

 

1.          There are a range of procurement options available to procure providers for these contracts:

 

·       Competitive tender

·       Mini-competition from a suitable framework or Dynamic Purchasing System (DPS)

·       Direct award from a suitable framework

 

2.          The disadvantage with the first two options is the time it takes to deliver them. Competitive tender can take between 6 and 12 months and mini-competition between 3 and 6 months.

 

3.          In this instance, the service urgently requires additional capacity for complex, structural and disrepair works to prevent further negative outcomes for residents and costs to the council. They have ruled out the first two options because of the time required to deliver them.

 

4.          The preferred option therefore is to direct award from a suitable framework. In this case the proposal is to:

 

a.    Award to ARC Group via the PfH ‘Responsive Repairs and Voids framework’ via Lot 2 ‘Void property refurbishment works’. This is a compliant procurement route in line with our Contract Standing Orders, and which adheres to the requirements of the framework provider.

b.    Award to MLSC3 via the NMHF Frameworx ‘Asset Management Framework’

 

Publication date: 27/11/2023

Date of decision: 24/11/2023

Effective from: 01/12/2023

Accompanying Documents: