Decision Maker: Cabinet Spokesperson Place Health and Adult Social Care
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
The decision has been taken to support the new contract covering the period 1st April 2022 to 31st March 2025.
Washroom servicing and consumables are essential to the operation of BMBC buildings. Without these the sites would not be fit for purpose and could not be used by the public or BMBC staff.
These services are currently provided by PHS under multiple agreements across the BMBC estate, with various contract end dates, therefore impacting the way in which the Council can reprocure. To co-terminate these arrangements, the Council would incur significant financial penalties in the sum of £44,000. Although one single provider under one contract is the optimum position.
Liaison with procurement colleagues has determined that, taking these penalties into account, the most favourable option would be to enter a new contract with PHS, as the incumbent supplier, through the ESPO framework. This will enable all existing agreements to be terminated without penalty and all equipment shall be placed under the umbrella of this new agreement which will then be subject to the same coterminous contract end date, removing the timing complication from future tenders.
Following an audit and rationalisation of existing BMBC assets, the contractual spend with PHS will reduce from £133k to £84k per annum. This is a spend reduction of £49k per annum. Prices shall be fixed for the duration of the agreement (up to 5 years).
Although difficult to quantify as a monetary value, given the current economic inflationary pressures in the UK, it could reasonably be expected to be beneficial, to have pricing which was developed in 2020, being held and fixed until 2027
Companies included on the ESPO framework have already been through a competitive tendering exercise and the resulting rates will be used in the BMBC contract. PHS also hold contracts with other local government organisations in the Yorkshire and Humber area, (Leeds, Wakefield, Sheffield, York, Bradford, Doncaster), with a total value of circa £535k per annum, demonstrating that they are an established provider in the BMBC area/region.
Were this contract not to be extended BMBC would incur significant costs in terminating all these agreements to enable procurement through a single provider and there is no guarantee that a new procurement would result in more beneficial rates.
Publication date: 21/06/2022
Date of decision: 15/06/2022