Content

DECLARATIONS OF INTEREST FOR THIS ITEM:
 
None

 

RESOLVED:
 
That
Cabinet:

Approved the
provisional award of MDC (Multi-Disciplinary Consultants) Contracts
across four geographical lots to four separate successful bidders
identified as Bidders 1, 2, 3, and 4 in the exempt portion of this
report, in accordance with CSO2.01(C).

Noted that following
this provisional award, the second stage of Section 20 consultation
would take place by issue of a Notice of Proposal and that
following the consultation, a report would be brought back to
Cabinet for decision, taking account of any observations made in
that consultation.

Noted that the award
would be for a period of 12 years with a 5-year break clause. The
12-year period considered the recently procured 10-year partnering
contracts and the time required to support the contract by
completing and agreeing final accounts during the final years of
the partnering contracts.

Noted that the
approximate value of the contract award to the four selected
bidders was determined based on a fee percentage, as outlined in
Appendix A – Part A – Exempt Report, Sections 1.7.2 and
2.1.1.

Approved delegated
authority for the Director of Housing, in consultation with the
Corporate Director of Finance and Resources, to issue task orders
under the contract in line with the annual Cabinet-approved Housing
Revenue Account Housing Capital Programme.

Reasons for
Decision
Haringey Council owned and managed approximately 20,500 properties
within the London Borough of Haringey.

The award of the four
MDC (Multi-Disciplinary Consultants) Contracts supported the
strategy approved by Cabinet in July 2022, ‘Partnering
Contracts Strategy for Housing Major Works,’ and established
four long-term contracts identified as the best way to support the
major works programme and address decency issues. This approach
adopted a holistic method to refurbishing properties and blocks
(both tenanted and leasehold) and maximized the social value
benefits of the Council’s investment. Key objectives of these
contracts included:

Ensuring that all
stock met the Decent Homes Standard and that this was maintained
going forward.
Ensuring that all
Council-owned homes had a minimum of an EPC B by 2035.
Ensuring that
statutory safety standards were maintained in all blocks.
Providing employment
and training opportunities; supporting and enabling SME supply
chains in the borough to benefit from the investment; and involving
residents at all stages in the procurement and delivery
process.

In December 2023,
Cabinet approved a new Housing Asset Management Strategy. This
strategy established a clear process for prioritizing investment in
the Council’s housing stock, set a new Haringey Investment
Standard, and defined the framework for the delivery of investment.
This framework was created through the establishment of the
long-term partnering contracts and the Cabinet-approved strategy
(July 2022) and provided a robust, streamlined framework to enhance
commissioning and delivery of housing investment, contract
administration and management of contracts and contractors, and
realization of value for money and social value.

The MDC
(Multi-Disciplinary Consultants) Contracts supported the delivery
of housing capital investment works to properties owned and managed
by the Council, including but not restricted to:

Decent Homes-related
works
Building safety and
fire safety-related works
Block refurbishment
works
Mechanical and
electrical works

Decarbonisation-related works
Neighbourhood and
estate improvement works
Internal and external
cyclical works

A procurement process
was undertaken via Haringey’s Dynamic Purchasing System (DPS)
to find four suitably qualified Multi-Disciplinary Consultants to
support the partnering contractors in delivering the
Council’s Housing Capital Investment Programme. A separate
contractor for each of the four geographical lots was awarded for
MDCs to provide professional services to draft specifications,
compile scope of works, and administer the agreed contract for
capital repairs and maintenance services to the Council’s
housing stock. It was recommended that four contracts be awarded,
one to each of four separate recommended bidders identified through
the tender evaluation process.

As part of the
procurement, bidders could apply for multiple lots but be awarded a
maximum of one lot and were required to set out their lot
preferences in their tender submission.
 

Alternative Options Considered
 

Contractual Options
 

Continue with procuring MDC services individually

This route did not support wider corporate objectives as it limited
opportunities for co-production and delivery of social value. This
approach was at risk of uncertain market conditions in the
construction industry. When consultants had the certainty of
longevity, it enabled them to invest in the contract, implement
social value, and offer competitive fees for their key services.
This could not be achieved when contracts were let
individually.
 
There was also the
management cost of continuously producing scope of services for
procuring consultants, and the time and costs associated with
managing the tender period as well as running leaseholder
consultation processes. The approach of procuring a long-term
agreement allowed officers to concentrate resources on contract
management, which in turn resulted in better value for the
Council.

 
Retain the existing
framework agreement
The Council held a framework agreement with a single
multi-disciplinary consultant, established to support the delivery
of a broad range of services. This agreement was originally entered
into following Cabinet approval on 13 February 2018 for an initial
term of five years, with an option to extend for a further five
years.
In line with this
provision, the agreement was first extended for a period of two
years from April 2023 to April 2025. Subsequently, on 03 March
2025, a further extension was approved via Delegated Authority for
the remaining three years, bringing the total duration of the
framework agreement to ten years, concluding in April 2028.
 
Although retaining the
existing framework ensured continuity of service, preserved
institutional knowledge, and maintained efficiency and value
established through the long-standing relationship with the
appointed consultant, the existing agreement would expire in 2028,
and the Council would generally seek to procure these services via
the wider open market. However, considering the £570m
investment in the Council’s housing stock and the procurement
of four partnering contractors, this provided an opportunity to
invite other consultants to tender for these services, which would
not only ensure the Council was receiving best value for these
services, but also provide an opportunity to procure a single
consultant for each of the four lots, limiting the exposure to the
risk of having one supplier for multi-disciplinary services across
the borough.
Considering this paper
sought approval to award a contract to four multi-disciplinary
consultants, it was important to note that the existing framework
agreement with the current multi-disciplinary consultant would be
terminated upon the appointment of the new consultants. However,
their contract would remain in effect until April 2028.
While no further
commissions would be issued beyond the date the new consultants
were in place, the incumbent consultant would be required to
complete and hand over all ongoing projects.

 
Deliver the MDC
services in-house
The Asset Management team did not have the staffing structure or
expertise to deliver the MDC services in-house. The capital
programme had a significant level of complexity that was best
managed by external partners. For example, the programme included
works to high-risk buildings which required expertise in the design
and delivery of these works to ensure compliance with current fire
and building safety regulations.
Using
multi-disciplinary consultants limited the Council’s exposure
to financial and operational risks. Also, had the Council opted for
delivering the services in-house, it could have lost the
competitive pressure and potential for innovation that came from
market-driven competition. Outsourcing encouraged fresh thinking
from experienced consultants who were tuned to changes in the
industry.
 
It should also be
noted that working with multi-disciplinary consultants in a
partnering arrangement enabled staff to develop key skills, which,
if at a future date it was seen as appropriate to move to an
in-house delivery model, would have provided considerable learning
from commercial partners in delivering services of this nature.

 

Partnering Approach

 
Period of the
Contract
The Council appointed four partnering contractors across four lots
for a period of 10 years. This followed a review of recently
awarded partnering contracts for several local authorities and
registered social housing providers. It was noted that the 10-year
term with a 5-year break clause was considered appropriate for
Haringey’s capital works programme.

 
To support the 10-year
partnering contracts, it was noted that the Council required
professional support to administer the partnering contracts and
protect the interests of the Council. It was therefore agreed that
the procurement of four independent multi-disciplinary consultants
was necessary for a period of 12 years with a 5-year break clause.
The 12-year period considered the time required to complete and
agree final accounts during the final year of the partnering
contracts.

 
Number of
Contracts
To align with the partnering contractors, it was agreed that the
Council would appoint four multi-disciplinary consultants—one
for each of the four partnering contractor lots. Appointing one or
two multi-disciplinary consultants was ruled out due to the
capacity of one or two consultants to provide services across all
four lots and the risks associated with working with fewer
consultants, including poor performance and insolvency. Appointing
more than four consultants was ruled out as it was felt that this
would not align with the partnering contracts and could dilute the
benefits of long-term agreements, particularly around social value
benefits.