Purpose

This report seeks approval for
a variation of the previously agreed procurement strategy (Appendix
A) for housing lift modernisation programme to allow for the
retendering of the remaining two Lots to complete the modernisation
of housing’s passenger lifts.
 
The reasons for the variation
of the original strategy and therefore the retendering of the two
‘Lots’ are:
 
The initial procurement
resulted in both tenderers failing to meet the council’s 10%
social value requirement and as a result, no contract was
awarded.
 
Inflationary cost increases are
likely to impact the original tendered values and therefore the sum
is now likely to be much higher. The initial values for Lots 1 and
2 were £715,000 and £691,200 respectively.
 
Lot 1
- Lift Modernisation of Lytton Estates (Pelham
house, Glenallan house and Mortimer House) at a cost of
£900,000.
 
Lot 2
- Lift Modernisation of Various Fulham Sites
(Pearscroft Court, Seagrave Lodge, Wheatsheaf Wharf and Rainville
Court) at a cost of £900,000.
 
The works to the 10
lifts contained within the two lots will complete the modernisation
programme of the entirety of H&F housing’s 213 passenger
lifts, which commenced in 2010. The works need to be undertaken as
major components of the existing equipment are obsolete having
reached their economical usable life span of 25 years.
This  results in an unacceptable service
level for residents with increasingly frequent lift breakdowns. The
upgrade will incorporate the latest technical components ensuring a
longer life span and reliability for residents within the
blocks.
 
This report has been approved
by Contracts Assurance Board on 18 October 2023 and the
recommendations have the support of the Departmental Management
Team including the Director of Housing and the Assistant Director,
Residents and Building Safety.
 

Decision

 

1.   
Approve a variation in the original procurement
strategy for ‘house lift modernisation programme’ to
allow for the retendering of 2 lots.
 

2.   
Approve the retendering of 2 lots from the initial
Procurement Strategy via an Open Tender. The value of the 2 lots is
estimated to be £1.8million.