Decision Maker: Procurement Board

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: July 14, 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 extension of Contract for Home to School transport services for the Alder Brook Primary Partnership Centre, as detailed in the table below:   Detail required Answers Contract Reference  (to be supplied by procurement) S1413 Title/Description of Contracted Service/Supply/Project Home to school transport services for the Alder Brook Primary Partnership Centre  Name of Contractor MDS Minibuses Ltd Type of organisation (to be supplied by Procurement) Private Limited Company Status of Organisation (to be supplied by CoProcurement) SME Value of Contract Extension (£) £          687,960   Total value of Awarded (including extension period) £          Contract awarded (to date) £1,014,000, 000 Existing Contract Term 06/09/2022 to 20/07/2025 Extension Period 21/07/2025 to 20/07/2027 Contact Officer (Name & number) Steve Titley 0161 793 2435 and Geoff Catterall 0161 793 3312 Lead Service Group Children's Services Funding Source Revenue Budget Ethical Contractor (EC): Mayor’s Employment Charter No EC: Committed to sign the Mayor’s Employment Charter Yes EC: Committed to the principles outlined in the Mayor’s Employment Charter Yes EC: Accredited Living Wage Employer No EC: Committed to becoming Accredited Living wage Employer No   The reasons are: Background ·         Pupils attending Alder Brook Primary Partnership Centre have either been excluded from mainstream provision or have an Education Health Care Plan with support needs relating to their social emotional health and wellbeing. The Local Authority is obliged, under the Education Act 1996 and the Education and Inspections Act 2006, to facilitate transport for these pupils from school, between mainstream education. The current contract award for MDS Minibuses to provide Home to school transport services for the Alder Brook Primary Partnership Centre, was agreed at Procurement Board on 13.07.22, following a compliant procurement process which resulted in MDS Minibuses being the sole bidder, but scoring highly (90%). The original award on 13.07.22, was for a contract from 06.09.22 to 20.07.25 (with a two-year potential extension from 21.07.25 to 20.07.27) at a forecasted total cost (calculated on pupil numbers and need at the time, and allowing for potential future expansion) of £202,800 per annum, or £1,014,000 in total for a potential five years, including the potential extension.     Recent developments and current request Recent developments have seen an expansion of school provision at a satellite centre provision at Fiddler’s Lane Primary School from academic year 2025/26, which will result in the need for an additional 3 minibus routes (part of the 11 routes for the whole contract). Both Passenger Transport Unit and Finance colleagues have judged the cost for this amended provision to be cost-effective in meeting the Council’s statutory transport obligations in this case. The transport provider also contributes added social value as part of contract delivery. Children’s Services Commissioning will continue to liaise with Alderbrook School to monitor the performance of the contract through the proposed extension period. Consequently, Procurement Board is requested to approve the planned two-year extension in the contract with MDS Minibuses Ltd from 21.07.25 to 20.07.27. A further report will then be taken to Procurement Board in good time to plan and provide for pupil transport for Alderbrook School from 21.07.27 onwards.   Options considered and rejected were: re-commission or end the contract.   Assessment of risk: If this contract is not extended, then the school will not be in a position to provide home to school transport, in line with the demands of legislation.   The source of funding is: core budget within the SEN Access and Delivery area.   Legal advice obtained: submitted by: Tony Ha?tton, Solicitor, Group Leader, Commercial Legal and Democratic Services 0161 219 6323 on 12/06/2025 The main contract for Home to school transport services for the Alder Brook Primary Partnership Centre was awarded by Procurement Board in July 2022 for a period of 3 years with the option to extend for two further periods of 12 months, following a compliant procurement and commissioning process which was carried out by a mini competition under the Dynamic Purchasing System for Transport framework.   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. 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.   However, in addition to the extension, additional services and costs have been added to the contract, but these are permissible under Regulation 72 of the Public Contracts Regulations 2015, which provides: (i)            “Where there is an unequivocal review clause or option to do so within the agreement”; or (ii)          “(b) for additional works, services or supplies by the original contractor that have become necessary and were not included in the initial procurement, where a change of contractor: (iii)         1.   (i)Cannot be made for economic or technical reasons such as requirements of interchangeability or interoperability with existing equipment, services or installations procured under the initial procurement, or (iv)         2.    (ii) Would cause significant inconvenience or substantial duplication of costs for the contracting authority, provided that any increase in price does not exceed 50% of the value of the original contract.”   Financial advice obtained: submitted by: Beth Mitchell, Senior Accountant 0161 793 3205 on 30/6/2025.   The additional cost of £102,060 per academic year arising from the provision of three additional minibuses for the Fiddlers Lane route will be funded from the core budget within the SEN Access and Delivery area. For the 2025–26 financial year, this equates to a part-year cost of £69,120 (September 2025 to March 2026). This expenditure will be closely monitored throughout the year, alongside ongoing savings initiatives and any fluctuations in demand, to ensure effective budget management and value for money. The cost has been benchmarked and deemed reasonable and is expected to be more cost-effective than alternative transport arrangements required to meet statutory obligations.   Procurement advice obtained: submitted by: Deborah Derbyshire, Procurement Officer, 0161 686 6244 on 11/06/2025 There was provision in the tender to extend for a further two years to which this option is being taken, however there has been an increase in the service as the  school are having to utilise Fiddlers Lane due to there not being enough capacity at Alderbrook. The overall total including extensions does not go over the original contract value by more than 50% therefore regulation 72 applies.   There was provision in the tender to extend for a further two years to which this option is being taken, however there has been an increase in the service as the  school are having to utilise Fiddlers Lane due to there not being enough capacity at Alderbrook. The overall total including extensions does not go over the original contract value by more than 50% therefore regulation 72 applies.   Going forwards, once the extension has been completed and as the school has become an academy, the procurement may no longer sit with SCC as the  school may choose to  follow their own governance and procurement procedures.   HR advice obtained: N/A   Climate change implications obtained: supplied by: Michael Hemmingway, Principal Officer, Climate Change, 0161 793 3209 on 11/06/2025.   MDS Minibuses Ltd, is currently upgrading all of its vehicles to make sure that they are Euro 6 Compliant as part of its wider plans to address Clean Air legislation and the need to reduce carbon emissions.  All new vehicles purchased are Euro 6 compliant. They have also switched fully to paperless for invoices and communication.   Documents used: Record of Decision to approve the award of a contract to MDS Minibuses Ltd for Home to School transport services for the Alder Brook Primary Partnership Centre, 13/07/2022. Home to School Transport Policy 2018 and Notice of Executive Decisions, Cabinet, Salford City Council 10/06/2025.   Contact details: Steve Titley 0161 793 2435, Commissioning Manager, Children’s Services  and Geoff Catterall, Head of Complex Needs SEN, Children’s Services 0161 793 3312.   This matter is also subject to consider by the Lead Member for Children’s and Young People’s Services The Lead Member has been consulted and is supportive of the proposed contract. This matter is not subject to consideration by another Lead Member. The appropriate Scrutiny Committee to call-in the decision is the Children’s Service Scrutiny Committee     Signed:    Paul Dennett       Dated:    15 July 2025.                City Mayor     This decision was published on 15 July 2025 This decision will come in force at 4pm on 22 July 2025 unless it is called-in in accordance with the Decision Making Process Rules.