Purpose

A benchmarking exercise against other
framework suppliers was undertaken by PfH based upon a schedule of
basket rates supplied by Sandwell Metropolitan Borough
Council.

The incumbent supplier PHC Limited priced the basket rates against
tendered and agreed variation rates.

Six further suppliers were given the opportunity to price the
basket rates to be benchmarked against the rates supplied by PHC
Limited.

In all but one case the rates exceeded those supplied by PHC
Limited between 4 and 11%.

The use of ad hoc purchasing as an alternate would result in
increased costs as discounts would be limited. Using more than one
supplier would also increase administration time and cost in
managing multiple suppliers.

It was therefore agreed by the Council’s evaluation team to
call off from the PfH Framework for a further 18 months during
which time the schedule of requirements would be expanded to
include those items currently being procured but not on the PfH
schedule and a mini competition exercise undertaken
thereafter.

This recommendation was accepted by all parties.

Content

(1) To make a call off from the existing PfH
Framework with PHC Limited as sole provider of Gas Spare Parts. The
call off to be initially for a 12-month period commencing 01 July
2024 with an option to increase by a further 6 months until 31
December 2025, in the event that the SMBC market testing is
incomplete and subject to satisfactory performance;

(2) Estimated expenditure for the period 01 July 2024 to 30 June
2025 is £499,317.17. Prices will remain fixed for this
period. If the six month extension option is exercised prices will
be subject to the agreed PfH indexation rates.