Content

Salford City Council – Record of Decision
 
I Councillor Jack Youd, Deputy City Mayor,
Lead Member for Finance, Support Services and Regeneration and
chairman of the Procurement Board, in exercise of
the powers contained within the Council Constitution do hereby approve:
 

the award of the Contract to
Aecom for the provision of 2
full-time/1 part-time project and programme managers to take a
client lead on infrastructure projects, as detailed in the
table below:

 

Detail required

Answers

Title/Description of Contracted
Service/Supply/Project

Provision of 3 x programme managers (2x FT
& 1 PT)

Name
of Successful Contractor

AECOM Ltd.

Supplier
Registration Number

(to be supplied by Corporate Procurement)

01846493

Type of
organisation

(to be supplied by Corporate Procurement)

Private Limited Company

Status of
Organisation

(to be supplied by Corporate Procurement)

Non-SME

Contract Value
(£)

£349,871

Contract
Duration

12 months

Contract Start
Date

21/10/2024

Contract End
Date

17/10/2025

Optional Extension
Period 1

n/a

Optional Extension
Period 2

n/a

Who will approve
each Extension Period?

Choose an item.

Contact Officer
(Name & number)

Perry Twigg (07966 316309)/Lee Evans

Lead Service
Group

Choose an item.

How the contract was
procured?

(to be supplied by procurement)

Direct Award

Framework Details
(where applicable)
(procurement body,
framework reference & title, start/ end date

ESPO Consultancy Services Framework
Ref 664_21
Lot 5 Highways, Traffic and Transport

Funding Source

Grant

Ethical Contractor
(EC): Mayor’s Employment Charter

?

EC: Committed to
sign Charter

 

EC: Accredited
Living Wage Employer

?

 
The Reasons are

Salford City Council’s
Regeneration/Infrastructure Team has successfully made submissions
for external funding for a range of infrastructure projects through
Growth Deal, the Greater Manchester Mayor’s Cycling and
Walking Challenge Fund (MCF), Active Travel Fund (ATF) and City
Region Sustainable Transport Settlement (CRSTS).

 

Salford City Council’s
Regeneration/Infrastructure Team are also looking ahead and
progressing bidding opportunities for additional grants.

 

The City Council’s
Regeneration/Infrastructure Team has insufficient resource to
adequately prepare the necessary business cases, project manage
TfGM governance and the project procurement process associated with
the funding requirements.

 
Options considered and rejected were

Consideration was given to seeking
suitable resource from within the Council’s technical
services team.  However, this was
discounted on the basis that technical services already have
inadequate resource to deliver projects in their programme of work
and are currently using external consultants to support the
delivery of the capital programme.

 

A major recruitment exercise to try
and fill vacant posts in the Infrastructure team was also
undertaken in April 2024. This involved advertising three vacant
posts and included more targeted advertising of the posts compared
to a exercise to advertised for the same posts which was
unsuccessful in 2023. However, despite an extensive advertising
campaign and interviews no suitable experienced candidates were
appointed to these roles.

 
Assessment of Risk
Low risk with award of contract to
Aecom, as the specific infrastructure
project and programme managers, that would be provided to the
Council, already have the detailed knowledge and understanding of
the projects and associated processes.
 
Medium to high risk if the contract is not
awarded as the Council does not have the ability to
progress/deliver the infrastructure projects against which it has
already secured funding or submit funding bids to secure new
projects that benefit the City. 
 
The source of funding is
The City Council will cash flow the costs and
claim in arrears, on a staged basis, from the grant funding body at
the Greater Manchester Combined Authority (GMCA).
 
There may also be a call on the
Place Capital Programme to fund the posts in cases where
applications for future grants are being developed to fund new
projects that will benefit the City. This will be met from an
existing allocation with the capital programme for strategic
management costs.
 
 
Legal Advice obtained
Tony Hatton – 01/08/2024
When commissioning contracts for the
procurement of goods, services or the execution of works, the
Council must comply with UK public procurement law and its own
Contractual Standing Orders (CSO’s), failing which a contract
may be subject to legal challenge from an aggrieved provider.
CSO’s apply to every contract, including temporary ones, for
the procurement of supplies, services and the execution of works
undertaken by or on behalf of the Council, subject to certain
exceptions listed in the Orders. CSO’s stipulate that where a
suitable framework agreement exists, this must be used unless there
is an auditable reason not to.
 
Reasons for requesting the award of the
contract under the ESPO framework are set out in the report, namely
the lack of available resource within the Council, and within the
competitive market following attempts to recruit to the posts There
is also some urgency due to timescales involved in delivery of some
of the proposed schemes, but as this is a call off contract let
under a framework and a compliant route to market, any risk would
be considered to be very low, assuming always that the Council
has  followed the procedure set out in
the Framework Agreement to ensure the award is compliant.
 
The terms of any grant funding received in
accordance with the GMCA (or other funding body from which the
Council may benefit) grant funding agreement will need to be
adhered to in the event that there are clawback provisions for
failure to comply with timescales and any other relevant
conditions.
 
Financial Advice obtained
Daniel Hillman -Senior Accountant-  07/08/2024
The Procurement board report details the
requirement to award a contract to AECOM Ltd for the secondment of
skilled consultants, at a maximum cost of £349,871. The costs
will primarily be funded from MCF, Growth
Deal,  ATF and CRSTS as
additional grant funding has been secured. This will be
reclaimed from the grant funding body (GMCA) as a
legitimate project cost on a quarterly grant return
basis.
 
There may also be a call on the
Place Capital Programme to fund the posts in cases where
applications for future grants are being developed to fund new
projects that will benefit the City. This will be met from an
existing allocation with the capital programme for strategic
management costs. The secondments are for 12 months. Within the
terms of the agreement there is a clause that will allow the
Council to end the secondments should the funding allocation be
fully realised. 
 
The consultant project/programme managers will
be working to prepare the necessary business cases, project manage
TfGM governance and the project procurement process associated with
the funding requirements.
 
Despite an extensive advertising campaign no
suitable experienced candidates applied to fill these roles which
has resulted in the need for an award of contract to fulfil the
programme of improving infrastructure, this is to a max date of
17th October 2025, a longer term solution will need to be
considered for future programmes and value for money revisited.
 
 
Procurement Advice obtained
Emma Heyes, Category Manager 06/08/2024
ESPO Consultancy Services framework 664_21 was
established through a collaborative procurement exercise with
Yorkshire Purchasing Organisation (YPO) in 2021. The framework is
in place until 31st August 2025. Call-off contracts from
the framework can be done via further competition or direct award.
When making a direct award, contracting authorities should maintain
an audit trail that demonstrates the call-off represents the most
economically advantageous solution for its requirements.
 
Without this there is a risk of challenge from
any other supplier based on insufficient justification for making
the direct award.
 
Framework Schedule 3, Customer Call Off Terms,
should be completed to form the contract between the Council and
AECOM.  The Customer Call Off Terms will
form the basis of the legal agreement and cannot be changed or
added to.
 
HR Advice obtained
Neelum Mahmood – 06/08/2024
The reasons that the council went down the
contractor route were:
-         
The council had been very successful at securing significant grant
funding from the GMCA for a range of infrastructure projects
-         
The council had insufficient/suitably skilled resource to develop
the schemes/business cases within the then short time scale.
-         
The council was under pressure from the GMCA to deliver within
tight deadlines.
-         
Appointing a consultant has historically been cost neutral to the
council as the cost can be claimed back from the GMCA.  This will primarily continue.  However one element of the role will involve
supporting in developing a pipeline of schemes to prepare for grant
funding opportunities. This will be funded from the City
Council’s Capital Programme.  This
will impact on public funding.
-         
The funding programmes have a limited duration and therefore this
would not be a permanent role. However as contract awards have been
in place for over 5 years with the potential for a further
extension, fixed term/permanent Contracts would be an option and
should be considered for the future.
 
The council is paying AECOM Ltd and they are
supplying services to the council. AECOM Ltd are responsible for
all tax and NI implications, the services they are supplying are
not about an individual it is about the service and therefore IR35
does not apply.
 
Awarding this contract to 17th October 2025
through the ESPO Consultancy Services Framework, does not have any
direct HR implications.
 
The original reports requested contracts for
12 months with options to extend. This requested award will take
the contracts to over 6 years. If there is consideration that this
service is required beyond that time then alternative delivery
models should be considered including market testing and market
supplements.
 
The length of the awards now gives rise to
question whether alternative arrangements should be considered and
the report advises of the work underway within the council
exploring future service delivery models. A review may be needed to
determine whether an alternative arrangement is required beyond
17th October 2025. HR therefore recommend that
consideration should be given over the next 12 months to
alternative employment routes to deliver this project including
exploring market supplements.
 
The report advises that an alternative
employment route was considered through the Councils Technical
Services team.  However, this was
discounted by Technical Services on the basis that they already
have inadequate resource to deliver projects in their current
programme of work. 
 
Whilst the majority of the costs are
recoverable through the GMCA there is still a cost to public funds,
alternative employment options could reduce the overall costs.
 
HR recognise the national recruitment shortage
in available skilled engineers. The roles advertised in the
targeted campaign consisted of grade 4B Transport Planner and
Senior Engineer posts.  Although the
roles to be provided by Aecom are not a
direct comparison, the roles require suitably qualified and
experienced Infrastructure Project and Programme Managers with
specific transport planning/engineering skills to deliver the
programme in line with the requirements of the grant funding and
governance processes.
 
Climate Change Implications obtained
Mike Hemingway, Principal Officer Climate
Change - 06/08/2023
The MCF/ Growth Deal/ ATF/ CRSTS programme
will improve the cycling and walking facilities across the
city.  Improved infrastructure will
encourage more sustainable trips, reducing emissions.
 
The following documents have been used to
assist the decision process:

Report of the Executive Director for
Place 09 September 2024 – Approval to award contract
through the ESPO Consultancy Services Framework
for the appointment of Aecom to
provide 2 full time/1 part time project and programme managers to
take a client lead on infrastructure projects

Contact Officer: Perry Twigg/ Lee Evans
Telephone number: 07966 316309
 
This matter is not subject to consideration by
another Lead Member.
 
The appropriate Scrutiny Committee to call-in
the decision is the Growth and Prosperity Scrutiny Panel.
 
Signed: Councillor Jack Youd
Deputy City Mayor, Lead Member for Finance,
Support Services and Regeneration Dated: 9 September
2024
 
 
*          
This decision was published on 12th September 2024
*          
This decision will come in force at 4.00 p.m. on 19th September 2024 unless it is
called-in in accordance with the Decision Making Process
Rules.