Decision Maker: Procurement Board

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: June 9, 2025

Purpose:

Content: Salford City Council – Record of Decision     I Paul Dennett, City Mayor, accept the recommendation of the Procurement Board and in exercise of the powers contained within the Council Constitution, do hereby approve:   ·      the award of a 36-month contract for the supply of natural gas to SEFE Energy Limited,as detailed in the table below:     Detail required Answers Title/Description of Contracted Service/Supply/Project Contract for the supply of natural gas Name of Successful Contractor SEFE Energy Ltd Supplier Registration Number (to be supplied by Corporate Procurement) 3904624 Type of organisation (to be supplied by Corporate Procurement) Public Limited Company Status of Organisation (to be supplied by Corporate Procurement) Non-SME Contract Value (£) £5,503,320 full project Contract Duration 36 months Contract Start Date 01/07/2025 Contract End Date 30/06/2028 Optional Extension Period 1 0 months Optional Extension Period 2 0 months Who will approve each Extension Period? Procurement Board (extension > £150k) Contact Officer (Name & number) Majid Maqbool Lead Service Group Place How the contract was procured? (to be supplied by procurement) Manchester Framework Framework Details (where applicable) (procurement body, framework reference & title, start/ end date TC973 – Supply of Gas Funding Source Revenue Budget Ethical Contractor (EC): Mayor’s Employment Charter   EC: Committed to sign Charter   EC: Accredited Living Wage Employer   The Reasons are: following the procurement of gas renewal supply contract via a fully compliant Manchester Framework, prices were obtained from the direct award supplier, SEFE Energy Ltd for 12, 24 and 36-month contract durations. The 36-month contract will result in a cost of £1,834,440 per annum. This amounts to a reduction in annual costs of £502,720 (27.4%).   Options considered and rejected were: a 12-month contract duration which would have seen a reduction of 25.3%, and 24-month contract duration which would have seen a reduction of 26.2%.   The 36-month contract therefore provides budget certainty for the next 3-years, thereby easing budget pressures and offering protection from short term price fluctuations arising from any geopolitical events.   Assessment of Risk: Low.   The source of funding is: General fund revenue budget and school budgets.   Legal Advice obtained: Tony Hatton, Principal Solicitor.   Financial Advice obtained from: Grace Rogerson, Senior Accountant.   Procurement Advice obtained from: Heather Stanton, Category Manager.   HR Advice obtained: N/A   Climate Change Implications obtained from: Majid Maqbool, Energy Manager.   Contact Officer: Majid Maqbool Telephone number:0161 6076987   ·      The appropriate Scrutiny Committee to call-in the decision is the Growth and Prosperity Panel and overview Scrutiny Panel.     Signed:     Paul Dennett                 Dated:    9 June 2025.                   City Mayor   FOR DEMOCRATIC SERVICES USE ONLY   *           This decision was published on 9 June 2025 *           This decision will come in force at 4.00 p.m. on 16 June 2025 unless it is called-in in accordance with the Decision Making Process Rules.