Content

Salford City Council – Record of
Decision
 
I, Paul Dennett, City Mayor, in
exercise of the powers contained within the City Council’s
constitution do hereby:
 
·     
approve the extension of the Contract forthe
Framework Agreement for Demolition and Associated Works, as
detailed in the table below:
 

Detail required

Answers

Contract
Reference

Title/Description of Contracted
Service/Supply/Project

Framework Agreement for Demolition and
Associated Works

Name
of Contractor

Connell Brothers Lot 1 & Lot
2

Type of
organisation
(to be supplied by Corporate
Procurement)

Private Limited
Company

Status of
Organisation
(to be supplied by Corporate
Procurement)

SME

Ethical Contractor (EC):
Mayor’s Employment Charter

EC: Committed to sign the
Charter

EC: Accredited Living Wage
Employer

Name of Contractor

Frank O’Gara & Sons –
Lot 1 only

Type of
organisation
(to be supplied by Corporate
Procurement)

Private Limited
Company

Status of
Organisation
(to be supplied by Corporate
Procurement)

SME

Ethical Contractor (EC):
Mayor’s Employment Charter

EC: Committed to sign the
Charter

EC: Accredited Living Wage
Employer

Name
of Contractor

J Freeley
Limited – Lot 1 only

Type of
organisation
(to be supplied by Corporate
Procurement)

Private Limited
Company

Status of
Organisation
(to be supplied by Corporate
Procurement)

SME
 

Ethical Contractor (EC):
Mayor’s Employment Charter

EC: Committed to sign the
Charter

EC: Accredited Living Wage
Employer

Name
of Contractor

Rhodar Industrial Services – Lot
1 only

Type of
organisation
(to be supplied by Corporate
Procurement)

Private Limited
Company

Status of
Organisation
(to be supplied by Corporate
Procurement)

SME
 

Ethical Contractor (EC):
Mayor’s Employment Charter

EC: Committed to sign the
Charter

EC: Accredited Living Wage
Employer

Name
of Contractor

Coleman & Company – Lot 1
only

Type of
organisation
(to be supplied by Corporate
Procurement)

Private Limited
Company

Status of
Organisation
(to be supplied by Corporate
Procurement)

SME
 

Ethical Contractor (EC):
Mayor’s Employment Charter

EC: Committed to sign the
Charter

EC: Accredited Living Wage
Employer

Name
of Contractor

Alan Franklin – Lot 3
only

Type of
organisation
(to be supplied by Corporate
Procurement)

Private Limited
Company

Status of
Organisation
(to be supplied by Corporate
Procurement)

SME
 

Ethical Contractor (EC):
Mayor’s Employment Charter

EC: Committed to sign the
Charter

EC: Accredited Living Wage
Employer

Value of Contract Extension
(£)

£1,800,000 Per annum (estimated
average)

Existing Contract
Term

31/08/2022 to 30/08/2024

Extension
Period

31/08/2024 to 30/08/2026

Contact Officer (Name &
number)

Jonathan Phillips

Lead Service
Group
 

Place

Funding
Source

Capital Programme

 
The reasons are:
The existing framework
suppliers have demonstrated their ability and commitment in
undertaking the Councils requirements over the period of the
existing contract. They have confirmed that they are willing to
continue their contract for a period of a further twenty four
months.
 
Options considered and rejected were:
None. All procedures are in
full compliance with Contractual Standing Orders.
 
Assessment of risk:
High:
If
the framework agreement is not awarded buildings across the city
that are in a dangerous condition and others that are scheduled to
be demolished, will remain exposed to risk of anti-social behaviour
activities in these areas. The potential is to put the public at
risk of harm and have a detrimental impact on local residents. The
City Council will need to find an alternative procurement route at
short notice to carry out works to make safe any dangerous
buildings.
 
The source of funding is:
The source of funding
will vary from scheme to scheme although most will be
capital.
 
Legal advice obtained:
Tony Hatton
When commissioning
contracts for the provision of goods, services or the execution of
works, the Council must comply with the provisions of the Public
Contracts Regulations 2015 (PCR) and its own Contractual Standing
Orders (CSO’s) as set out in the Constitution, failing which
the award of a contract may be subject to legal challenge. In that
regard, the Framework Agreement was set up following a compliant
tender process in accordance with public procurement regulations in
force at the time and CSO’s.
 
It is an established
principle that an existing public contract is capable of being
extended where the original agreement makes provision for the
extension, and CSO’s allow for contract extensions to be made
where the original contract makes provision for such an extension
of the original term. The purpose of a framework agreement is to
select through procurement/evaluation process a number of providers
who can meet the service requirements of the Council, as and when
those services are required.
 
When the Framework
Agreement was originally put out to tender, it was made clear that
the initial term would be subject to a potential extension of a
period of up to twenty four months, hence any risk that any
extension granted could be subject to realistic challenge by an
aggrieved provider, on the basis that it ought to have been put out
to tender and advertised in accordance with public contract
regulations and CSO’s, is extremely low, and the option to
extend within the agreement is now being properly
exercised.
 
The maximum term for
the framework agreement is a 4-year period (2 years plus the option
to extend for 24 months), and the terms and conditions established
under the framework govern the contracts let under it, although
each contract will inevitably have some differences to reflect the
agreement struck between the parties to the contract. At the end of
the potential 4-year period, the framework must be dissolved and
competition for the goods or service re-opened, and a new framework
can then be established where appropriate. This ensures that value
for money can be periodically tested, and open competition
maintained. The period of the individual contracts established
under the framework can be as long or as short as the authority
requires and may be entered into at any time during the period of
the framework agreement.
 
Also in accordance
with CSO’s, where provision is made within an existing
contract for an extension to the term, and the value is over
£150,000, approval should be sought from Procurement Board,
and if over £1million by the City Mayor on the recommendation
of Procurement Board.
 
Financial advice obtained: Daniel Hillman, Senior Accountant
The procurement board report details the request to approve the
extension of the contract for the framework agreement for
demolition and associated services. The contract value is an
estimated average of £1.800m.
 
There will be variation of
funding on a scheme by scheme bases. The financial implications of
contracts let under the framework will continue to be considered as
part of the capital monitoring process.
 
Procurement advice obtained: Deborah Derbyshire
The framework was advertised through the Find a Tender Service
(replacement for the European Journal) the Northwest Portal and
Contracts Finder (central government advertising tool for a two
year period with an option to extend for a further two years,
therefore continuing and entering in to
the extension complies with the Procurement Contract Regulations
and the City Councils contractual standing orders.
 
As
part of the Council’s Innovate programme and budget
challenges over the next three years, the service group should
consider efficiencies, revenue saving opportunities and enhanced
contract management KPI’s as part of this
contract.
 
HR advice obtained: N/A
 
Climate change implications obtained:
No
significant Climate Change implications in this project. All
projects are developed to meet or exceed current legislation and
requirements relating to energy efficiency and carbon reduction
targets. Projects are required to support the Council’s
objectives of becoming carbon neutral by 2038.
 
Documents used:
·     
Report to Procurement Board dated 14th
October 2024 titled Framework Agreement for Demolition and
Associated Works
 
Contact details:
Contact Officer: Jon Phillips         
Telephone number: 07733 322371
 
·     
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 and the
Overview and Scrutiny Board.
 
 

Signed:    Paul
Dennett       Dated:    14 October 2024.
           
       City
Mayor
 

FOR DEMOCRATIC SERVICES USE ONLY
 
*          
This decision was published on 14 October 2024
*          
This decision will come in force at 4.00 p.m. on 21 October
2024 unless it is called-in in
accordance with the Decision Making
Process Rules.