Purpose

The exiting electrical repair and testing
contracts expired on 31 October 2023. At the time and due to
operational pressure, the contracts were extended to 29 February
2024 following Cabinet approval allowing sufficient time, as was
thought at the time, to procure new contracts through a framework
agreement. Having commenced engagement with EEM, they advised just
prior to the Christmas and New Year Holiday that the current EEM
framework was due to expire on 26 January 2024 and that as such it
would not be possible to market test / tender using the exiting
framework due to time constraints. EEM advised that the new
framework was being market tested but would not be in place
operationally until the beginning of April 2024, however by, late
February 2024 the new list of contractors on the new framework
would be known.

The decision to procure via an open process, wait for the new
framework and extend the existing contracts was then discussed
between the various interested parties within SMBC.

At this time Asset Management were contacted by C&S Electrical
Ltd (The incumbent electrical testing contractor- South) who were
aware that the EEM framework was being considered, but were not a
contractor on the existing framework. The Managing Director argued
the case that a local business and local people would be
detrimentally affected if SMBC used the EEM framework. He was aware
that the framework was being re-tendered and advised that he was
applying to become a nominated contractor on the new framework and
if the Council would consider deferring its own contract until the
new framework was in place. It should be noted that acceptance to
the framework is not guaranteed, however, this would be confirmed
by EEM in February.

Internal deliberations included the concerns from C&S
Electrical Ltd and the impact not allowing them the opportunity to
bid for the works should they be accepted onto the framework would
have. This extends to the collateral damage that might extend to
the Council if Sandwell based business denied the opportunity to
bid for contracts.

The LOT 3 Works originally tendered with the LOT 1 & LOT 2
Works has been overlooked in terms of Contract extension and
re-tendering and as such this report looks to align the LOT 3 Works
with those of LOT 1 & LOT 2 both in terms of an extension and
re-tendering exercise.

At the beginning of March 2024 SMBC were made aware that two of the
incumbent Contractors working for SMBC had not been selected to the
Framework.

Given the impact on the local economy and the reputational damage
that could be levied on SMBC a review of self-delivering the tender
was undertaken, the conclusion being an additional extension of one
month to all three existing contracts to allow the procurement
exercise to be undertaken.

Content

(1) That the existing Electrical Repairs &
Testing Contracts (LOT 1,LOT 2 & LOT 3 ) be extended to the
incumbent contractors Newey Electrical Installations Ltd, C&S
Electrical Installations Ltd & Midwest Electrical for the
period 1 May 2024 until 31 May 2024 at a combined value not
exceeding £200k;

(2) That any necessary exemptions be made under the Council’s
Procurement & Contract Procedure Rules to enable the course of
action referred to in 2.1 above to proceed.