Decision

RESOLVED:

That Hackney Procurement Board approve the award of a contract for electrical testing & inspection to Supplier A via a call-off following mini-competition on the Fusion 21 - Heating, Renewables and Electricals Framework, Lot 7, for a value of £2.2m including VAT over the contract period, for 1 year with the option to extend for 1 further year, with a total contract period of 2 years.

RELATED DECISIONS

1. The original Business Case can be found in Background Papers.
2. The 'hybrid' operating model for electrical testing, which involves both the Direct Labour Organisation (DLO) and external organisations, has been successfully piloted through external contractors. This allowed for the assessment of key operational risks before committing to a longer-term contract.
3. A commitment has been made to the Housing Regulator to recover the domestic electrical testing and inspections over the next two years. External resources are essential to increase delivery capacity to achieve this. Following this recovery period, the DLO will manage the program entirely. A framework of back-up contractors will be established within a defined lot under the M&E Framework, to provide supply chain resilience and mitigate the risk of future delays.
4. The backlog of domestic electrical tests has grown during this tender process. To provide the necessary support and capacity to the Direct Labour Organisation (DLO) and efficiently address this backlog within a timely timeframe, an additional external contract is required alongside the award detailed within the report. Given the urgency and time constraints, it is proposed that a direct award be made via the Fusion 21 framework to the contractor who successfully completed the pilot contract for this work last year. This measured Term contract is anticipated to be up to the value of £900k, to provide the required level of capacity to deliver the Regulator's targets. This will be addressed under a separate tender process and approval report.