Purpose

A full tender exercise was undertaken in December 2021 and a contract award for the Council’s insurances was awarded for a 3-year period with an option to extend for a further 2 years. The extension was agreed and the current contract is due to end on 30 December 2026.

Ordinarily Dacorum would undertake a new tender exercise for cover to be in place from 31 December 2026, however, with Local Government Reorganisation means that the contract length would be 15 months.

Advice from the Council’s broker is that there will be no appetite in the insurance market for a tender for a 15-month period, to cover the period up to vesting date of 01 April 2028.

The existing contract can be modified under section 72 1c of the Procurement Act. The extension will not exceed 50% of the value of the existing contract. Therefore, the service is looking to modify the existing contract with current insurers for a 15-month period.

With Local Government Reorganisation, the new authority will be tendering for its own insurance programme with effect 01 April 2028

Decision

A full tender exercise was undertaken in December 2021 and a contract award for the Council’s insurances was awarded for a 3-year period with an option to extend for a further 2 years . The extension was agreed and the current contract is due to end on 30 December 2026.

Ordinarily Dacorum would undertake a new tender exercise for cover to be in place from 31 December 2026, however, with Local Government Reorganisation means that the contract length would be 15 months.

Advice from the Council’s broker is that there will be no appetite in the insurance market for a tender for a 15-month period, to cover the period up to vesting date of 01 April 2028.

The existing contract can be modified under section 72 1c of the Procurement Act. The extension will not exceed 50% of the value of the existing contract . Therefore, the service is looking to modify the existing contract with current insurers for a 15 month period.

With Local Government Reorganisation, the new authority will be tendering for its own insurance programme with effect 01 April 2028

Reasons for the decision

That the broker contract be extended until 31 March 2028

That the insurance contract is modified to extend the expiring insurance programme for a 15-month period until 31 March 2028

Alternative options considered

Options considered and reasons for rejection:

Option 1 15-month modification to existing contract

Agreement to extend with existing insurers to take the authority to LGR

Option 2 Full tender exercise

Undertake a full tender process to test the insurance market to award a 15-month contract for insurance cover. As detailed above there is a risk and expectation that there will