057/2013 – Contract for the provision of Capital Works Contract (2102-558) – 22 June 2013

Executive Summary and recommendation:

Part of the delivery vehicle for the Estates Capital Rolling Programme is based on procuring the services of a Capital Works Contractor. The contract for the identified works has been in place since 2010 for a duration of 3 years and has successfully delivered refurbishment of various buildings across the NYP Estate. A tender exercise has just been completed and it is the intention to award for a 5 year duration with the option of a further 2 year extension to Interserve Construction.

Whilst unit costs within the contract have varied up and down, depending on the activity, the overall position with this contract is that it is marginally cheaper than the previous Major Works contract. This is likely to be as a direct result of competition in an austere economic climate.

It is recommended that approval be granted to enter into a contract with Interserve for the provision of these services for a period of five years from 1st July 2013.

Police and Crime Commissioner decision:

Approved

Signature Date 22 June 2013
Title Police & Crime Commissioner for North Yorkshire

Part 1

Unrestricted facts and advice to the PCC

Introduction and background

The organisation undertook a full Stock Condition Survey of all property assets, and the information from that Stock Condition Survey was used as a basis to plan the Estates Capital Rolling Programme. The methodology and approach was originally approved by the Police Authority on 7th May 2010.

Part of the delivery vehicle for the Estates Capital Rolling Programme was based on procuring the services of a Capital Works Contractor, thus the contract for the identified works has been in place since 2010 for a duration of 3 years and has successfully delivered refurbishment of various building across the NYP Estate.

A tender exercise has just been completed for a 5 year duration contract with the option of a further 2 year extension to Interserve Construction. The duration of the contract has been increased due to the level of spend. The initial contract had an expected contract spend in excess of £7.5 million over a 3 year period. As work has progressed on addressing the backlog of capital work, the annual value of works has decreased. On order to ensure that the package put out to contract was attractive to potential suppliers and the organisation secured Best Value, the number of years of work has been increased.

Whilst the contract is for the refurbishment works for the 5 year period, each of the individual ‘work packages’ is subject to a separate contract and costing exercise with the supplier to ensure that we continue to secure Best Value through the contract.

The contract was evaluated on a matrix that included assessment of both the quality and the cost of supplied services.

The procurement process has been openly conducted in accordance with procurement legislation.
The proposed total contract spend is estimated to be £7.5m over a 5 year period and at this level will be within the approved capital budget.

Matters for consideration

Entering into this contract will enable the organisation to deliver their planned Estates works, ensuring that premises are proactive managed and maintained in line with our planned Capital Rolling Programme and approved budget.

Other options considered, if any

Utilise the Measured Term Maintenance Contractor to deliver the Capital Rolling Programme. It is recognised that this would not comply with NYP Contract Regulations and this would not be a recommended option, nor has it been further considered.

Contribution to Police and Crime Plan outcomes

Goal 3: More With Less. Tendering this contract at this time demonstrates that the best market value has been achieved based on NYP’s current and foreseeable requirements.

Consultations carried out

This procurement process has been carried out in collaboration with The Yorkshire and the Humber (YaTH) regional procurement team. The contract, if approved, will be open to other YaTH partners to use should they wish to do so.

Financial Implications/Value for money

The maximum spend quoted against this contract is within the current MTFP provision for the Estates Rolling Programme. Call off against the contract will be maintained within the available budget.

Legal Implications

Having read this report and having considered such information as has been provided at the time of being asked to express this view, the Force Solicitor is satisfied that this report does not ask the Police & Crime Commissioner for North Yorkshire to make a decision which would (or would be likely to) give rise to a contravention of the law. The proximity of the contract signature date to the date of this Decision Notice has been explained to the Chief Executive Officer (and to me) by the Head of Workforce Support Services.

Equality Implications

No equality implications as a result of this contractual arrangement

Originating Officer Declaration