Purpose

A Key Decision is required in relation to the
Fruit and Veg Products contract in order to extend the contract,
from 1 April 2026 to 31 March 2027.

A Key Decision for the initial term and extension periods of this
contract was taken on 15 November 2021. The contract was put in
place for North Yorkshire Education Services in order for them to
deliver their traded service to educational establishments.

The final extension period is due to come to an end on 31 March
2026, however, Local Government Reorganisation has brought
additional requirements around the provision of food / ingredients
into the Council including large venues, leisure centres and cafes
and the extension(s) will allow time for the most appropriate
contracting arrangements and routes to market to be undertaken in
order to achieve the best value for money.

A Key Decision is being taken as the anticipated cost of the 12
month extension is in the region of £1.2m.

Decision

To extend the contract for the Supply of Fresh
fruit and vegetable Products from 1 April 2026 to 31 March
2027.

Reasons for the decision

The Council’s existing contract is due
to expire 31st of March 2026. The initial term of the contract was
from 22 February 2022 to 31 March 2024, with an option to extend
for 24 months to 31 March 2026.

Since the contract was awarded, Local Government Reorganisation has
brought additional requirements around the provision of food /
ingredients into the Council including large venues, leisure
centres and cafes.

A Request for Information was issued to the market between May and
June 2025, to establish market capability and understand the most
appropriate approach to future requirements and contracting
arrangements. 18 responses were received and 10 of those were from
Small to Medium Enterprises (SMEs). Off the back of that, a
procurement strategy has been developed and procurement processes
are to commence imminently.

This is a significant piece of work, requiring a large amount of
resource across multiple service areas so procurement processes are
being prioritised. The extensions to this contract will ensure the
Council is able to meet its commitments through the Traded Service
and ensure the nutritional requirements of school children /
students meet the required standards.

Alternative options considered

None.