Decision Maker:

Outcome:

Is Key Decision?: No

Is Callable In?: Yes

Date of Decision: September 9, 2024

Purpose:

Content: Salford City Council – Record of Decision   I Councillor Jack Youd, Deputy City Mayor, Lead Member for Finance, Support Services and Regeneration and chairman of the Procurement Board, in exercise of the powers contained within the Council Constitution do hereby approve:   the award of the Contract to Aecom for the provision of 2 full-time/1 part-time project and programme managers to take a client lead on infrastructure projects, as detailed in the table below:   Detail required Answers Title/Description of Contracted Service/Supply/Project Provision of 3 x programme managers (2x FT & 1 PT) Name of Successful Contractor AECOM Ltd. Supplier Registration Number (to be supplied by Corporate Procurement) 01846493 Type of organisation (to be supplied by Corporate Procurement) Private Limited Company Status of Organisation (to be supplied by Corporate Procurement) Non-SME Contract Value (£) £349,871 Contract Duration 12 months Contract Start Date 21/10/2024 Contract End Date 17/10/2025 Optional Extension Period 1 n/a Optional Extension Period 2 n/a Who will approve each Extension Period? Choose an item. Contact Officer (Name & number) Perry Twigg (07966 316309)/Lee Evans Lead Service Group Choose an item. How the contract was procured? (to be supplied by procurement) Direct Award Framework Details (where applicable) (procurement body, framework reference & title, start/ end date ESPO Consultancy Services Framework Ref 664_21 Lot 5 Highways, Traffic and Transport Funding Source Grant Ethical Contractor (EC): Mayor’s Employment Charter ? EC: Committed to sign Charter   EC: Accredited Living Wage Employer ?   The Reasons are Salford City Council’s Regeneration/Infrastructure Team has successfully made submissions for external funding for a range of infrastructure projects through Growth Deal, the Greater Manchester Mayor’s Cycling and Walking Challenge Fund (MCF), Active Travel Fund (ATF) and City Region Sustainable Transport Settlement (CRSTS).   Salford City Council’s Regeneration/Infrastructure Team are also looking ahead and progressing bidding opportunities for additional grants.   The City Council’s Regeneration/Infrastructure Team has insufficient resource to adequately prepare the necessary business cases, project manage TfGM governance and the project procurement process associated with the funding requirements.   Options considered and rejected were Consideration was given to seeking suitable resource from within the Council’s technical services team.  However, this was discounted on the basis that technical services already have inadequate resource to deliver projects in their programme of work and are currently using external consultants to support the delivery of the capital programme.   A major recruitment exercise to try and fill vacant posts in the Infrastructure team was also undertaken in April 2024. This involved advertising three vacant posts and included more targeted advertising of the posts compared to a exercise to advertised for the same posts which was unsuccessful in 2023. However, despite an extensive advertising campaign and interviews no suitable experienced candidates were appointed to these roles.   Assessment of Risk Low risk with award of contract to Aecom, as the specific infrastructure project and programme managers, that would be provided to the Council, already have the detailed knowledge and understanding of the projects and associated processes.   Medium to high risk if the contract is not awarded as the Council does not have the ability to progress/deliver the infrastructure projects against which it has already secured funding or submit funding bids to secure new projects that benefit the City.    The source of funding is The City Council will cash flow the costs and claim in arrears, on a staged basis, from the grant funding body at the Greater Manchester Combined Authority (GMCA).   There may also be a call on the Place Capital Programme to fund the posts in cases where applications for future grants are being developed to fund new projects that will benefit the City. This will be met from an existing allocation with the capital programme for strategic management costs.     Legal Advice obtained Tony Hatton – 01/08/2024 When commissioning contracts for the procurement of goods, services or the execution of works, the Council must comply with UK public procurement law and its own Contractual Standing Orders (CSO’s), failing which a contract may be subject to legal challenge from an aggrieved provider. CSO’s apply to every contract, including temporary ones, for the procurement of supplies, services and the execution of works undertaken by or on behalf of the Council, subject to certain exceptions listed in the Orders. CSO’s stipulate that where a suitable framework agreement exists, this must be used unless there is an auditable reason not to.   Reasons for requesting the award of the contract under the ESPO framework are set out in the report, namely the lack of available resource within the Council, and within the competitive market following attempts to recruit to the posts There is also some urgency due to timescales involved in delivery of some of the proposed schemes, but as this is a call off contract let under a framework and a compliant route to market, any risk would be considered to be very low, assuming always that the Council has  followed the procedure set out in the Framework Agreement to ensure the award is compliant.   The terms of any grant funding received in accordance with the GMCA (or other funding body from which the Council may benefit) grant funding agreement will need to be adhered to in the event that there are clawback provisions for failure to comply with timescales and any other relevant conditions.   Financial Advice obtained Daniel Hillman -Senior Accountant-  07/08/2024 The Procurement board report details the requirement to award a contract to AECOM Ltd for the secondment of skilled consultants, at a maximum cost of £349,871. The costs will primarily be funded from MCF, Growth Deal,  ATF and CRSTS as additional grant funding has been secured. This will be reclaimed from the grant funding body (GMCA) as a legitimate project cost on a quarterly grant return basis.   There may also be a call on the Place Capital Programme to fund the posts in cases where applications for future grants are being developed to fund new projects that will benefit the City. This will be met from an existing allocation with the capital programme for strategic management costs. The secondments are for 12 months. Within the terms of the agreement there is a clause that will allow the Council to end the secondments should the funding allocation be fully realised.    The consultant project/programme managers will be working to prepare the necessary business cases, project manage TfGM governance and the project procurement process associated with the funding requirements.   Despite an extensive advertising campaign no suitable experienced candidates applied to fill these roles which has resulted in the need for an award of contract to fulfil the programme of improving infrastructure, this is to a max date of 17th October 2025, a longer term solution will need to be considered for future programmes and value for money revisited.     Procurement Advice obtained Emma Heyes, Category Manager 06/08/2024 ESPO Consultancy Services framework 664_21 was established through a collaborative procurement exercise with Yorkshire Purchasing Organisation (YPO) in 2021. The framework is in place until 31st August 2025. Call-off contracts from the framework can be done via further competition or direct award. When making a direct award, contracting authorities should maintain an audit trail that demonstrates the call-off represents the most economically advantageous solution for its requirements.   Without this there is a risk of challenge from any other supplier based on insufficient justification for making the direct award.   Framework Schedule 3, Customer Call Off Terms, should be completed to form the contract between the Council and AECOM.  The Customer Call Off Terms will form the basis of the legal agreement and cannot be changed or added to.   HR Advice obtained Neelum Mahmood – 06/08/2024 The reasons that the council went down the contractor route were: -          The council had been very successful at securing significant grant funding from the GMCA for a range of infrastructure projects -          The council had insufficient/suitably skilled resource to develop the schemes/business cases within the then short time scale. -          The council was under pressure from the GMCA to deliver within tight deadlines. -          Appointing a consultant has historically been cost neutral to the council as the cost can be claimed back from the GMCA.  This will primarily continue.  However one element of the role will involve supporting in developing a pipeline of schemes to prepare for grant funding opportunities. This will be funded from the City Council’s Capital Programme.  This will impact on public funding. -          The funding programmes have a limited duration and therefore this would not be a permanent role. However as contract awards have been in place for over 5 years with the potential for a further extension, fixed term/permanent Contracts would be an option and should be considered for the future.   The council is paying AECOM Ltd and they are supplying services to the council. AECOM Ltd are responsible for all tax and NI implications, the services they are supplying are not about an individual it is about the service and therefore IR35 does not apply.   Awarding this contract to 17th October 2025 through the ESPO Consultancy Services Framework, does not have any direct HR implications.   The original reports requested contracts for 12 months with options to extend. This requested award will take the contracts to over 6 years. If there is consideration that this service is required beyond that time then alternative delivery models should be considered including market testing and market supplements.   The length of the awards now gives rise to question whether alternative arrangements should be considered and the report advises of the work underway within the council exploring future service delivery models. A review may be needed to determine whether an alternative arrangement is required beyond 17th October 2025. HR therefore recommend that consideration should be given over the next 12 months to alternative employment routes to deliver this project including exploring market supplements.   The report advises that an alternative employment route was considered through the Councils Technical Services team.  However, this was discounted by Technical Services on the basis that they already have inadequate resource to deliver projects in their current programme of work.    Whilst the majority of the costs are recoverable through the GMCA there is still a cost to public funds, alternative employment options could reduce the overall costs.   HR recognise the national recruitment shortage in available skilled engineers. The roles advertised in the targeted campaign consisted of grade 4B Transport Planner and Senior Engineer posts.  Although the roles to be provided by Aecom are not a direct comparison, the roles require suitably qualified and experienced Infrastructure Project and Programme Managers with specific transport planning/engineering skills to deliver the programme in line with the requirements of the grant funding and governance processes.   Climate Change Implications obtained Mike Hemingway, Principal Officer Climate Change - 06/08/2023 The MCF/ Growth Deal/ ATF/ CRSTS programme will improve the cycling and walking facilities across the city.  Improved infrastructure will encourage more sustainable trips, reducing emissions.   The following documents have been used to assist the decision process: Report of the Executive Director for Place 09 September 2024 – Approval to award contract through the ESPO Consultancy Services Framework for the appointment of Aecom to provide 2 full time/1 part time project and programme managers to take a client lead on infrastructure projects Contact Officer: Perry Twigg/ Lee Evans Telephone number: 07966 316309   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.   Signed: Councillor Jack Youd Deputy City Mayor, Lead Member for Finance, Support Services and Regeneration Dated: 9 September 2024     *           This decision was published on 12th September 2024 *           This decision will come in force at 4.00 p.m. on 19th September 2024 unless it is called-in in accordance with the Decision Making Process Rules.