Conrad Hall, Director of Resources for the London Borough of Newham, approved the reprocurement of water, wastewater, and ancillary services for the council's estate. This decision ensures the continuation of essential services through the existing supplier, Wave, for a further 12 months.

LBN Water, Wastewater and Ancillary Services Procurement 2024 - 2025

Conrad Hall, Director of Resources, approved the reprocurement of water, wastewater, and ancillary services for the London Borough of Newham. The decision was made to continue the contract with the current supplier, Wave, for a period of 12 months. This reprocurement was executed through the YPO Water Framework YPO1181, which allowed for a direct award to Wave, as they had already been identified as the sole supplier under this framework.

The primary driver for this decision was the impending expiration of the existing contract with Wave in October 2024. The YPO framework was chosen as it is a pre-tendered public procurement route that streamlines the process, saving time and resources compared to a full competitive tendering exercise. Key advantages highlighted included the continuity of service, cost efficiency through competitive framework rates, compliance with procurement regulations, and time savings.

Wave's service offering includes competitive rates, with potential savings of over £19,701 compared to default rates. The contract also incorporates an Active Water Management service, which monitors consumption and could reduce water usage by up to 10% at no additional cost. Other benefits include flexible billing, proactive account management, comprehensive reporting, and access to ancillary services such as leak detection and water management. Wave also provides guidance on reducing pollution and water consumption, aligning with the council's environmental and social responsibility goals.

This reprocurement directly supports the London Borough of Newham's commitment to maintaining essential services across its estate portfolio and aligns with the council's priorities of financial prudence and environmental stewardship. The Active Water Management service, in particular, supports the council's broader sustainability goals by promoting water efficiency and resource management.

No alternative options were considered for this procurement, as the direct award through the YPO framework was deemed the most efficient and effective approach. The framework itself has already undergone a thorough competitive tendering process, ensuring that Wave met all necessary criteria.

Financially, the decision secures value for money through pre-negotiated competitive rates and avoids the costs associated with a separate tender process. The inclusion of services to optimize water usage and reduce costs, such as leak detection and active water management, is expected to lead to further savings. The report also noted that overall costs might increase if more supplies are added to the contract, but this would ensure they benefit from competitive rates rather than higher, non-contractual deemed rates ¹. The contract needed to be reprocured before its expiry to avoid these less favourable rates.

Legally, the use of the YPO framework ensures full compliance with UK public procurement regulations, minimising the risk of legal challenges. The continuity of service with Wave also reduces the likelihood of contractual disputes.

There were no significant equalities implications anticipated, as the procurement focuses on essential services across the council's estate and does not involve direct interaction with specific communities or individuals.

The decision has implications for the Property team, who will need to collaborate with Wave to address any identified inefficiencies or issues within the council's buildings to maintain operational integrity and contribute to cost savings.