Agenda item

RESOLVED: That Cabinet:

a)    Noted the continued progress to procure new arrangements for highways and transport services and the readiness to make an award post Final Tender submission and evaluation in May 2022;

b)    Agreed to delegate authority to the Executive Director Place, Economy and Environment and Executive Director Finance, in consultation with the Portfolio Holder for Environment, Transport, Highways and Waste Services, and the Portfolio Holder for Finance to award the contract.

REASONS RESOLVED:

a)    The Council had a statutory duty to provide highways services as set out in the Highways Act 1980.

b)    The Council must provide these services and the Council is procuring a new contract in order to do so in the future.

c)    Failure to make an award would have a number of implications for the Council, not least the need to establish and mobilise alternative delivery arrangements from the end of the KierWSP contract in September 2022 and the cost and risk associated with commissioning and /or delivering an alternative solution in the medium to long term.

d)    The delegations requested would enable the procurement process to proceed with appropriate governance through to its conclusion.

ALTERNATIVE OPTIONS:

None

At the Chair’s invitation Councillor Phill Larratt presented the report, copies of which had been previously circulated. Members were advised that the procurement process had been a competitive one and that two separate contracts would be awarded. The final decision would be taken in consultation with the portfolio holder for finance, Councillor Malcolm Longley, and there was a plan in place arrange an all-member briefing on the subject. It was advised that the team was evaluating the tenders of the final 3 bidders with a decision due in early June and the new contract starting in September of 2022.

The Monitoring Officer advised that the delegation of the decision would be given to those who would have direct involvement in the bidding process.

Councillors made the following comments.

• It was questioned whether this item should also be presented at the Scrutiny Committee.
• What inflation rate had been built into the contract? The previous one had built in 3%.
• It was queried whether the council was confident in their capacity monitor the contractor.
• Would the council be leading in the promotion of the net zero emission promise for this project, or would that be the contractor? It was important to make demands on of the contractor on environmental standards.
• It was noted that the Central Government had reduced local authority funding for highways projects, how constrained would the council be by this?
• Would the contract include provision for the bringing of roads up to standard, such as the filing of potholes or resurfacing, the investment in this had been stopped in the past.
• What penalties if any would be in place?
• Public maintenance schedules seemed to be different to the information that the public sees. 

Nick Henstock, Head of Highways and Transport, made the following comments.

• The contract did include movement for inflation, this would be reviewed on an annual basis.
• Environmental standards had been part of the bidding process.
• Contractors were aware of the importance of communication and the consistency of service to the council.
• It would be possible for contracts to be extended, this would be based on the relationship created between the council and the contractor.

Councillor Phil Larratt made the following comments.

• The restoration of standards was important, and it was hoped that some would be able to be included in the work due to be carried out.
• Scrutiny could be provided with a briefing, but it was important to follow due process.
• It was important to have a strong contract management team in place.
• It was advised that the council had its own net zero emissions ambitions in place but was open to the contractors being innovative about this.

RESOLVED: That Cabinet:

a)    Noted the continued progress to procure new arrangements for highways and transport services and the readiness to make an award post Final Tender submission and evaluation in May 2022.

b)    Agreed to delegate authority to the Executive Director Place, Economy and Environment and Executive Director Finance, in consultation with the Portfolio Holder for Environment, Transport, Highways and Waste Services, and the Portfolio Holder for Finance to award the contract.