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RESOLVED:
 
a) approve the award
of Contract 1A for General Building Works - Area Surveying
Managers, to Bidder A for an initial term of four (4) years General
Buildings Contract 1 for Area Surveying Managers (ASM) - Award
Report Page 128 with the option to extend for two (2) years and a
further option to extend for an additional two (2) years.
 
b) approve the award
of Contract 1B for General Building Works - Area Surveying
Managers, to Bidder B for an initial term of four (4) years with
the option to extend for two (2) years and a further option to
extend for an additional two (2) years.
 
Reason(s) For Decision
 
This report outlines the process that has been
followed to identify preferred contractors for the General Building
Contract 1. 
 
The business case for CPIC was written due to
the incumbent contractor  failing to deliver general building works
satisfactorily across building maintenance.
The approach taken is to appoint 4 different
contractors; two contractors on General Building Contract 1 and two
contractors on General Building Contract 2. This award report is
for General Building Contract 1 only. This will provide the
contingency of having more than one contractor in the case of one
failing. Also, with more than one contractor servicing the
contract, it allowed for increased competition during the tendering
process. This ensures that London Borough of Hackney received bids
taking into account value for money in relation to cost, quality of
works/ delivery and sustainability.
 
The principle works which fall under this
commission include but are not limited to:
· 
Reactive Repairs
· 
Voids
· 
Legal Disrepair
· 
Electrical works & scaffolding in association with above.
 
The contract duration is four years, with the
option to extend twice by two yearly increments, totalling eight
years. The combined contract value per year is approximately
£6M, totalling £48M over the 8
year duration.
 
This contract is split into two, Contract 1A
and Contract 1B. Contract 1A comprises approximately £3.6M
per year with 60% of the works allocation. Contract 1B comprises
approximately £2.4M per year with  40% of the works
allocation. The allocation corresponds to a borough wide split
between North and South of Hackney.
 
A separate tender exercise is being conducted
for the general building contractor 2 to undertake works in support
of the Direct Labour Organisation (DLO).
 
It is proposed that the Council will enter
into a JCT Measured Term Contract 2016 with Hackney Council
amendments utilising the National Housing Federation (NHF) v7.2
Schedule of Rates. Supporting documents will include the Council
requirements, preliminaries  and specification. This is proposed for
Bidder A and Bidder B.
 
Core requirements in accordance with the
Council's goals in relation to sustainability and social value have
been included in depth within the quality section of the
procurement. This is to support the Council's target of reaching
net zero, ensuring all the bidders offer the London living wage to
all employees and provide opportunities for individuals within the
borough. More information is available in Section 8.
 
Alternative Options (Considered and
Rejected)
 
Extend Current Arrangements: (Rejected)
Continue with the current arrangement of using
a specialist contractor engaged through other contract mechanisms
such as a Single Tender Award.
 
This would delay repairs due to the complexity
of the arrangements and would result in the Council’s client
team having to coordinate the management of multiple contractors,
increasing administration time and costs.
 
In addition there
have been service issues with these types of arrangements and It
will not resolve the quality of the repair service currently being
experienced by this arrangement.
 
Do nothing: (Rejected)
Doing nothing will result in the Council
declining those works requiring external contractor support. This
would compromise the Council’s position as a Public Sector
landlord and therefore its duties as defined under section 96 of
the Housing Act 1985. The aim of the Council is to provide
accommodation which the residents are proud of. Doing nothing will
negatively impact the quality of the facilities throughout homes
across the borough.
 
Insourcing (Rejected)
The DLO is currently not resourced to deliver
the quantum and sophistication of works that would be allocated to
the General Building Contractors - scope of services and works.
Developing the required capacity would take a considerable amount
of time and effort and is not the subject of this proposal.
 
External contracts are required to support the
in-house service to deliver effective housing repairs. This is in
line with the insourcing strategy already implemented.
 
This procurement will enable us to appoint 4
contractors against the two packages; 2 contractors for the Area
Surveyor Managers and 2 contractors for the Direct Labour
Organisation to ensure that there is sufficient capacity and
capability whilst the in house service continues to grow. Failure
to have the contracts in place would result in poor services for
residents.