Purpose

This report seeks approval of the award of contract for
the commissioning of the installation and maintenance of a
Compressed Natural Gas (CNG) filling station at York Way depot,
Freight Lane, London, N1C 4BE (7 York Way).
 
The Council currently has a contract with Air Liquide for
the provision of Bio-CNG through a suitable high pressure CNG
filling station at 7 York Way, which provides fuel for an existing
fleet of 32 CNG vehicles owned and operated by the
Council.  Air Liquide originally supplied and
installed the filling station, and currently maintain and operate
the site.  The current Contract is due to expire
on 14th  February 2025.
 
Following an Open Procurement process, Officers are
proposing to award a contract to TSG UK Solutions
Limited to install a new filling station and to provide the ongoing
maintenance from 14th February 2025 for an initial
period of five years until 13th February 2030, with the
option to extend for an additional two years in twelve monthly
increments until 13th February 2032. 
The initial capital cost for the purchase and installation of the
equipment will be £497,870, and the total cost of the ongoing
maintenance over the initial five year period will be
£100,396.07, for a total combined contract value of up to
£598,266.09 for a period of 5 years (£643,516.07) in
aggregate including contract extensions).  As the
Council will be decommissioning the current station, there will
also be an additional cost of approximately £26,500 to remove
the existing equipment. 
 
The contract award report is being presented to Executive
Director Supporting Communities for approval in line with Contract
Standing Orders. 
 

Content

RESOLVED –
 
THAT a contract be awarded for the commissioning of the
installation and maintenance of a Compressed Natural Gas (CNG)
filling station at York Way depot, 7 York Way, Freight Lane,
London, N1C 4BE to TSG UK Solutions Limited for a period of 5 years
(including 2 contract extensions of 12 months each)
for the total sum of £598,266.09 (£668,516.07) in
aggregate including contract extensions).