Decision Maker: Executive Director: Delivery
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: No
To approve a new 4 year contract with an advertising and marketing agency to administer the commercial sponsorship scheme for locations that have been identified as available or becoming available for sponsorship in the future, for example roundabouts. This is a concession contract where the contractor contributes back to Bracknell Forest Council an agreed proportion of the income. It is zero cost and the estimated income over the 4 years is £145k.
To approve a contract waiver in relation to clauses 4.1 and 4.2 of the Council’s Contract Standing Orders to enable the extension of the existing commercial sponsorship contract to be extended for a period of four years.
The existing commercial sponsorship contractor has always performed well, the majority of the available locations have sponsorship deals associated to them, to achieve this they have built relationships with those customers. During lockdown the customers were given payment holidays due to businesses being closed, this goodwill through what has been a tough year for small and medium size businesses could go some way to managing to retain that business in what is likely to be a difficult time in the coming years as the economy struggles to recover. The income from this contract over the four years is expected to build up as the economy recovers after the impact of Covid-19.
From March to September along with the businesses having payment holidays, there was also a pause on the income the Council was receiving from the contractor, they have committed to paying this money over the next 12 months alongside other income due.
The current contract begun in 2017 and at that time there was only the existing contractor and one other company that bid for the contract and, at that time, the current contractor was the stronger candidate by some way. Given all the circumstances extending the existing contract is considered the best option for the Council.
Future waivers are not anticipated as it is hoped the advertising market will recover sufficiently by the end of 2024.
The Council could have re-tendered the contract but in the current difficult market environment, any new arrangement was unlikely to be offer more than the current arrangement to the Council.
Wards Affected: (All Wards);
Financial Impact: This is an income contract, estimated income is £145k over 4 years
Subject to Urgent Proceedings: No.
Making Representations: In writing to the Executive Director: Delivery
Contact: Claire Pike, Head of Environmental Services Email: firstname.lastname@example.org Tel: 01344 352520.
Publication date: 18/12/2020
Date of decision: 30/11/2020