Content

Salford City Council – Record of
Decision
 
I Paul Dennett, City Mayor, in exercise of the powers contained within the
Council Constitution
do hereby approve:
 
·     
the award of the contract for Dérive Housing Management Services, as
detailed in the table below:
 

Detail required

Answers

Title/Description of Contracted
Service/Supply/Project

Dérive
Housing Management Services

Name of Successful
Contractor

Together Housing Association

Supplier Registration Number

(to be supplied by Corporate
Procurement)

CCBS No: 28687R

Type of organisation

(to be supplied by Corporate
Procurement)

Other

Status of Organisation

(to be supplied by Corporate
Procurement)

Non-SME

Contract Value (£)

£         
1,991.46 per unit/per
annum

Contract Duration

60 months

Contract Start Date

31/08/2023

ontract
End Date

31/08/2028

Optional Extension Period 1

0 months

Optional Extension Period 2

0 months

Who will approve each Extension
Period?

Choose an item.

Contact Officer (Name &
number)

Andrew Leigh 0161 793 2155

Lead Service Group

Place

How the contract
was procured?

(to be supplied by
procurement)

Open Procedure via the Chest

Framework Details (where
applicable)

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

N/A

Funding Source

External Funding Source (please identify
below)

Ethical Contractor (EC): Mayor’s
Employment Charter

 

EC: Committed to sign Charter

X
 

EC: Accredited Living Wage
Employer

 
The Reasons are: The current
housing management agreement with Salix Homes reaches the end of
its term on the 31st August
2023.  To ensure the continuity of the
essential provision of a housing management service for
Dérive tenants the council has
undertaken a competitive procurement process to identify a
preferred housing management contractor for the next 5
years.
 
Options considered and rejected were:
Option 1 – Establish a
Housing Management Service in Dérive to manage the homes
Option 2 – Extending the
current agreement with Salix Homes
 
Assessment of Risk: High
 
The source of funding
is: Dérive Group and Dérive RP have
provision within their Business Plans for delivering these
services.
 
Legal Advice
obtained:
When commissioning contracts for the procurement of
goods, services, or the execution of works the City Council as a
‘contracting authority’ must comply with the Public
Contract Regulations 2015 as well as the provisions of its own
Contractual Standing Orders (CSO’s), Financial Regulations
and the duties of Best and Social value. In addition, the
Regulations require that contracting authorities treat candidates
equally and in a non-discriminatory way and act in a transparent
manner, failing which the award of a contract may be subject to
legal challenge.
 
The
report sets out that the Council has undertaken a compliant
procurement process using an open procedure on the northwest portal
(the Chest) which is compliant with the requirements of CSO’s
and public procurement legislation. Undertaking the tender exercise set out in the report
resulting in the recommendation to award the service to Together
Housing will give some comfort to the Council in
ensuring that value for money is being obtained and
periodically tested, with open competition maintained. The
carrying out of this procurement exercise in compliant manner will
ensure that the risk of challenge to the award of the contract to
the selected contractor is minimal and that any challenge, should
it materialise, is unlikely to be successful.
 
As
referred to in the earlier report to Procurement Board
(15th February 2023), as Derive Group and Derive RP are both Teckal companies under Reg 12 of the PCR, they are
subject to the statutory procurement rules and need to let their
own contract(s) in accordance with the rules in their own name(s)
(or do a joint exercise with the Council), so any contract
notice/advert published should reflect Dérive's name (or a
joint one), and the Council can run the procurement exercise and
let the contract on their behalf.
 
Financial Advice
obtained:
There is an allowance per property within the
current business plan for the Derive companies. As a result of
inflation, the expected cost of this service is around £700 higher than that built into the
plans. The
Boards of both Derive Companies will have to approve the Preferred
Bidder costs. Whilst the costs are higher than envisaged in
the current business plan, these can be accommodated, and the
business plan can be revisited for future years when there are more
significant economies of scale.
 
Procurement Advice
obtained: The procurement process
undertaken is set out in the report above. This complies with the
Procurement Contract Regulations and the Council’s
Contractual Standing Orders
 
HR Advice
obtained: There are no employees eligible
for TUPE
 
Climate Change Implications
obtained: A number of the Derive
properties are built to Passivhaus and
have adopted non-standard fixtures and fittings. The Preferred
Bidder will need to ensure that the properties are managed and
maintained to continue to achieve the high levels of energy
performance, including management of tenant behaviour
 
The following documents have
been used to assist the decision process:

·     
A report ‘Approval to go out to competition
for the appointment of a housing management contractor for
Dérive
Group and Dérive
RP (registered Provider)’ was presented to Procurement Board
on 15th February 2023. This approval was
granted.

Contact Officer: Jane Barlow
Telephone number: 0161 7932372
 
Please delete from the bullets
below any which are not relevant:
·     
This matter is not subject to consideration by
another Lead Member.
·     
The appropriate Scrutiny Committee to call-in the
decision is the Growth & Prosperity Scrutiny Panel
 
 

Signed:    Paul
Dennett       Dated:     28 June 2023.
           
       City
Mayor
 

FOR DEMOCRATIC SERVICES USE
ONLY
 
*          
This decision was published on 28 June 2023
*          
This decision will come in force at 4.00 p.m. on 6 July 2023
unless it is called-in in
accordance with the Decision Making
Process Rules.