Agenda item

To note preparations for the procurement of the above services and make contributions to inform the Executive.

The Panel considered a report on the work that had been undertaken to help inform how the Council should procure a range of council services, some of which were currently contracted to external partners and were due to expire in 2014. The Panel’s comments were sought on the component parts of any contracts and outline agreement to length of contract and price / quality threshold. A detailed procurement plan was scheduled to be presented to the Borough Council’s Executive in December.

A project group had considered the options. The Borough Council had met with four major suppliers and three councils to explore service delivery models. Highway Services were the biggest area of public realm services.

The drivers for the review were considered as follows:

• To continue to drive out inefficiencies to give Members a choice post 2014; current service level at reduced cost or improved service at current cost. 
• Current strategy of investing in highways maintenance was unsustainable in that it was set to simply minimise the decline of Bracknell’s highways network.
• Improving safety of the highway network was a national driver.
• An increasing public demand for better quality public realm.
• The impact of the Special Protection Area (SPA) on the borough’s development.

Observations were included in the report. Flexibility would be built into contracts to reflect, for example, changes in technology over time. Efficiencies had been made in relation to landscape services. If contracts were committed to longer term, savings could be made, and seven years was considered to be the most efficient time frame for contracts. While a detailed methodology had yet to be developed, the award of a contract should be based on 60% price and 40% quality.

While there were several possible configurations possible, it was thought that the most effective combination would be to offer four bundles to the market with the possibility of combining Street Cleansing and Grounds Maintenance: (1) Highways maintenance/street lighting; (2a) Street cleansing; (2b) Grounds maintenance; (3) Highway consultancy. In addition to allowing a stand alone contract for landscape services, this option encouraged a joint bid to include street cleansing.

Bundle 1: Highways maintenance and improvement works/street lighting

Bundle 2a : Street Cleansing, with the option of combining with 2b

Bundle 2b: Grounds Maintenance, with the option of combining 2a

Bundle 3: Highway consultancy services

In response to Members’ questions, the following points were made:

• Contracts were being procured in a competitive market.
• Street Cleansing, Landscape Services, and Parks and Countryside could not be merged to be managed together as they were completely separate and unrelated services. Open spaces needed to be managed and direct management of some sites retained. Landscape Services were a maintenance function.
• It was suggested that 5.25 of the report be referred to when the report was considered by the Borough Council’s Executive. Larger contracts could enable better working relationships.
• Reference was made to the highway maintenance review previously undertaken by a working group of the Panel which had found that longer term contracts provided certainty, increased value for money and economies for both parties. Contracts could be awarded on a 7 year with a 7 year extension clause basis, based on performance.
• Council Staff would continue to be employed by a contractor if services transferred to a private contractor.
• Schemes were being delivered more quickly and efficiently. There could be possibly 10-15% savings, for example, with the purchase of tarmac over a longer term.
• Consultancy contracts were a maximum of four year due to a legal restriction.
• A 5 year contract with a 5 year extension clause was the previous Highway contract time frame.

The Panel:

1. NOTED the research undertaken and highlighted in the report which informed the Officer conclusions primarily detailed in paragraphs 5.22 to 5.26, and 5.36 to 5.42;
2. AGREED that the matters and observations highlighted above be identified to the Executive meeting on 11 December 2012.