The committee agreed to join the LASER¹ framework agreement for a further four years and to appoint TotalEnergies Gas and Power as the energy supplier for the first year. The committee also agreed to award a new barrister's framework contract, to be procured by Ealing Council on behalf of the London Boroughs' Legal Alliance (LBLA), and to award a four-year framework agreement for capital lift works to a minimum of three contractors.

Energy Procurement

The committee reviewed a report by Jeremy Martin, Head of Carbon & Energy Management on the procurement of gas and electricity, which recommended that the council continue to use the services of a Public Buying Organisation (PBO)² to purchase its energy. The current delegated authority given to the Group Director of Finance to engage LASER to procure energy supplies expires this year.

It was noted that there had been dramatic instability in worldwide energy markets, but that the council has been able to buy energy cost-effectively and to secure 100% of its electricity supply from renewable sources by working with other public sector organisations.

The committee discussed the potential for the council to enter into a Power Purchase Agreement (PPA)³ which may provide greater transparency and certainty regarding the provenance of the Council’s - and other bodies that procure energy jointly with the Council, such as local schools - electricity, and may provide a hedge against future price volatility. However, it was noted that such an agreement could lock the council into a contact price that is above the market.

The committee heard that the council had been exploring the potential for a Power Purchase Agreement by conducting a Soft Market Test, asking whether there was a market for the council's appetite for a 30GWh generation. It was reported that the market indicated a preference for long term contracts with a pricing structure linked to CPI increases year on year.

A proposal from the Renewable Power for London Group (RP4L) of Councils to work towards a joint procurement, which may yield a PPA starting around 2029-2030, was also discussed.

If the Council chooses to pursue a PPA in the future, LASER advises that the processes within TotalEnergies are much more compatible and likely to reduce costs compared with others.

It was agreed that the Chief Executive may exercise delegated authority to engage TotalEnergies Gas and Power for provision of up to 30GWh zero carbon electricity per annum through a negotiated PPA procured through the LASER Framework, provided the price per MWh falls within the range proposed in Appendix 2 of the report, CED S358 - Energy Procurement Report and Framework Renewal.

London Boroughs' Legal Alliance (LBLA) Barrister’s Framework 2024

The committee reviewed a report by Sandra Smith, Legal Practice and Business Manager, on the procurement of a new barristers framework to replace the framework that expired on 31 December 2023.

The committee heard that the London Borough of Ealing was procuring the framework on behalf of the LBLA, which has collectively negotiated reduced pricing rates for barristers services.

This collaborative approach not only ensures cost-efficiency but also guarantees the engagement of high-quality chambers.

The committee heard that the new framework will cover 11 areas of law: Adult Social Services, Children Services, Governance and Public Law, Criminal litigation and Prosecution, Housing, Planning, Property, Civil Litigation, Employment, Education, and Licensing.

It was noted that the LBLA has saved the council £791k over the four years of the previous framework.

The LBLA Barrister framework requires all panel barristers to ... comply with the Living Wage policy and Living Wage (and LLW if within the Greater London area)

It was agreed to approve the council's use of the new LBLA Barristers Framework and to enter into an access agreement with Ealing Council.

Lifts Capital Framework Agreement

The committee reviewed a report by Denise Hill, Mechanical & Electrical Manager, on the procurement of a framework for lift capital works.

The committee heard that the council has renewed only 61 of the 615 lifts in its housing stock since 2008 and that many of the lifts are now operating past their natural life cycle.

Unfortunately many of our lifts have been in operation past their natural life cycle. This has presented the council with operational issues such as having to deal with an increase in lift breakdowns, and obtaining defective parts which are either obsolete or are now manufactured outside the UK.

The committee heard that 39 priority lifts have been identified for renewal, and that these will be split into three programmes of work and allocated to the top scoring bidders at the contract award stage.

It was agreed that a four-year framework agreement, with an option to extend, will be let for the works, and that three contractors will be appointed to the framework.

The Chair requested that an update paper be provided before the end of the two years period on the Group Director’s delegation of the awarded Framework Agreement and first year call off contract.

Integrated Housing Management System Procurement

The committee considered a report by Tom Harrison, Assistant Director of Housing Transformation, which sought to secure agreement for the contract award and implementation of an integrated housing management system (IHMS)⁴.

The committee heard that the council was already working to develop its own in-house system, Modern Tools for Housing, but that work on the system had been set back by the cyberattack in 2020.

The committee discussed the fact that only one bid had been received for the contract, from Supplier A, but that the price per property in the bid is the second lowest offered by Supplier A, behind one other landlord with over three times as many homes as LBH.

We will see improvements in the quality of our tenancy and property data and will be better able to monitor and manage cases across a range of services while documenting each step of the process.

The committee agreed to award a five-year contract, with an option to extend for another five years, to Supplier A, at a cost of £3.4m.

The Chair requested an update on the social value and diversity factors following the contract negotiation.