Purpose

To proceed with the procurement and award of
three new contracts for Domestic Gas Works for the North Area to
undertake servicing, safety checks and repairs and maintenance by
accessing the London Borough of Lambeth’s Dynamic Purchasing
System.
The proposed works are divided into the following Lots:
Lot 1 – Domestic Gas Works – geographical areas of
Clapham Common & Abbeville, Clapham East, Clapham Park, Clapham
Town - £6m.
Lot 2 – Domestic Gas Works – geographical areas of
Stockwell East, Stockwell West & Larkhall, Brixton Acre Lane,
Brixton North, Brixton Rush Common, Brixton Windrush- £6m;
and
Lot 3 – Domestic Gas Works – geographical areas of
Vauxhall, Oval, Myatt’s Field, Kennington, Herne Hill &
Loughborough Junction - £6m.
The council seeks to procure three contracts with each of the
primary contractor acting as a reserve (back -up) contractor on
another Lot.
The works are currently estimated at £18m and are anticipated
to start in April 2023 with a contract duration of four years (4)
and four (4) months as the initial contract period, with two
possible extension periods of four years.

Decision

To approve the award
of three Domestic Gas Works Contracts from June 2024 to June 2028
for an amount of £17,967,960 with the option to extend for
two discretionary periods for four years initially and then
subsequently for a further period of three years (4 + 4 + 3). The
first extension shall be from June 2028 to June 2032 and the final
extension from June 2032 to June 2035 for a maximum contract value
of £49,411,890 (amounts will be subject to annual
inflationary adjustments as determined by the Consumer Prices
Index). The total contract period is 11years (4 + 4
+3).

 

To approve the award
of Domestic Gas Works contract to T Brown Group Ltd in the North of
the Borough for the annual contract value of £1,376,511
commencing in June 2024 to June 2028 with the option to extend for
two discretionary periods for four years initially and then for a
further period of three years, up to a maximum period of June 2035.
The North area wards for Lot 1 T Brown contract includes: Clapham East Ward, Clapham
Common and Abbeville, Clapham Town, Clapham Park, Streatham Hill
West and Thornton, Stockwell East, Kennington and Oval
Ward.

 

To
approve the award of Domestic Gas Works contract to Gas Call
Services Ltd in the North of the Borough for the annual contract
value of £1,415,720 commencing in June 2024 to June 2028 with the option
to extend for two discretionary periods of four years initially and
then for a further period of three years, up to a maximum period of
June 2035. The North area wards for Lot 2 Gas Call contract
includes: Brixton
North ward, Stockwell East ward, Myatts Fields
Ward, Stockwell West and Larkhall Ward, Kennington, Oval, Clapham
East, Clapham Town and Stockwell East.

 

To approve the award
of Domestic Gas Works contract to OCO Ltd in the North of the
borough for the annual contract value of £1,699,759
commencing in June 2024 to June 2028 with the option to extend for
two discretionary periods of four years initially and then for a
further period of three years, up to a maximum period of June 2035.
The North area wards for Lot 3 OCO Ltd contract includes: Waterloo and South Bank
Ward; Oval, Kennington, Vauxhall, Stockwell East and
Myatts
Field ward.

 

To approve the award
of three Reserve Contracts for Domestic Gas Works as per the Lots
Strategy, from June 2024 to June 2028 for the tendered sums as set
out, with the option to extend for two discretionary periods,
initially for four years and then subsequently for a further period
of three years (4+4+3), subject to annual inflationary
adjustments.