Decision

Salford City Council – Record of Decision

I Paul Dennett, City Mayor, accept the recommendation of the Procurement Board and in exercise of the powers contained within the Council Constitution, do hereby approve:

·      the award of a 36-month contract for the supply of natural gas to SEFE Energy Limited,as detailed in the table below:

Detail required

Answers

Title/Description of Contracted Service/Supply/Project

Contract for the supply of natural gas

Name of Successful Contractor

SEFE Energy Ltd

Supplier Registration Number

(to be supplied by Corporate Procurement)

3904624

Type of organisation

(to be supplied by Corporate Procurement)

Public Limited Company

Status of Organisation

(to be supplied by Corporate Procurement)

Non-SME

Contract Value (£)

£5,503,320 full project

Contract Duration

36 months

Contract Start Date

01/07/2025

Contract End Date

30/06/2028

Optional Extension Period 1

0 months

Optional Extension Period 2

0 months

Who will approve each Extension Period?

Procurement Board (extension > £150k)

Contact Officer (Name & number)

Majid Maqbool

Lead Service Group

Place

How the contract was procured?

(to be supplied by procurement)

Manchester Framework

Framework Details (where applicable)

(procurement body, framework reference & title, start/ end date

TC973 – Supply of Gas

Funding Source

Revenue Budget

Ethical Contractor (EC): Mayor’s Employment Charter

EC: Committed to sign Charter

EC: Accredited Living Wage Employer

The Reasons are: following the procurement of gas renewal supply contract via a fully compliant Manchester Framework, prices were obtained from the direct award supplier, SEFE Energy Ltd for 12, 24 and 36-month contract durations. The 36-month contract will result in a cost of £1,834,440 per annum. This amounts to a reduction in annual costs of £502,720 (27.4%).

Options considered and rejected were: a 12-month contract duration which would have seen a reduction of 25.3%, and 24-month contract duration which would have seen a reduction of 26.2%.

The 36-month contract therefore provides budget certainty for the next 3-years, thereby easing budget pressures and offering protection from short term price fluctuations arising from any geopolitical events.

Assessment of Risk: Low.

The source of funding is: General fund revenue budget and school budgets.

Legal Advice obtained: Tony Hatton, Principal Solicitor.

Financial Advice obtained from: Grace Rogerson, Senior Accountant.

Procurement Advice obtained from: Heather Stanton, Category Manager.

HR Advice obtained: N/A

Climate Change Implications obtained from: Majid Maqbool, Energy Manager.

Contact Officer: Majid Maqbool

Telephone number:0161 6076987

·      The appropriate Scrutiny Committee to call-in the decision is the Growth and Prosperity Panel and overview Scrutiny Panel.

Signed:     Paul Dennett                 Dated:    9 June 2025.

                  City Mayor

FOR DEMOCRATIC SERVICES USE ONLY

*           This decision was published on 9 June 2025

*           This decision will come in force at 4.00 p.m. on 16 June 2025 unless it is called-in in accordance with the Decision Making Process Rules.