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Cabinet Procurement and Insourcing Committee - Monday 6 October 2025 2.00 pm
October 6, 2025 View on council websiteSummary
The Cabinet Procurement and Insourcing Committee met on 6 October 2025, and approved the procurement of Google Workspace licences, planned internal and external works, communal works, and void works. The committee also noted the minutes of the Hackney Procurement Board meeting held on 8 July 2025, and approved the minutes of the Cabinet Procurement and Insourcing Committee held on 1 September 2025.
Google Workspace Licences Renewal
The committee approved the procurement of Google Workspace licences through the Crown Commercial Services G-Cloud 14 Framework Agreement Digital Marketplace (RM1557.14) for a term of up to three years (2+1).
The report before the committee noted that Google Workspace has been the council's primary software platform and central Identity Access Management (IAM) solution since December 2018, and that securing new licences is crucial to ensure uninterrupted access to these core productivity tools and prevent service disruption.
The report considered and rejected the following alternative options:
- Mini Competition: This was rejected due to strict timelines and imminent contract expiry.
- Direct Award: This was rejected on the basis that it does not constitute a compliant procurement route and would have made it challenging for the council to demonstrate value for money.
- Migration to Microsoft 365: This option was rejected because the council needs more time to make the right decision and create a platform that's truly future-proof and will enable it to meet its long-term objectives. The report noted that a preliminary analysis suggests that a comparable Microsoft licensing package would be more expensive than the council's current Google Workspace costs.
The report noted that the price for Google Workspace licences has increased due to the inclusion of Gemini AI as standard for all Google Workspace Enterprise Licences.
Planned Internal and External Works Framework 2026
The committee resolved to approve the establishment, via the use of a competitive flexible procurement procedure, of a £180m framework consisting of 3 contractors and for a contract term of up to 4 years (2+1+1), to enable Hackney to deliver Planned Internal and External Works across the Hackney housing stock.
The report before the committee noted that under the Landlord and Tenant Act, the Building Safety Act 20221, the Fire Safety Act 20212 and the Housing Health and Safety Rating System (HHSRS)3, the council has a legal duty to provide safe, well-maintained homes for tenants and leaseholders. It also noted that the Regulator of Social Housing has given the council a C3 consumer grading, indicating that tenants and leaseholders may be seriously disadvantaged if urgent corrective action is not taken.
The report considered and rejected the following alternative options:
- Moving to a Long-term Capital Work Partnering Contracts: This approach was discounted at this stage because of the lengthy mobilisation period, which would delay contractor start dates and create unacceptable risks to residents' safety and to the delivery of essential improvement and fire safety works.
- Procuring a Stand Alone Contract for each Project: This approach was rejected because it would require substantial additional staff time and administrative resources to manage multiple concurrent procurement processes.
- Insourcing the Works to the DLO: This approach was rejected because the scale and complexity of the planned capital works programme exceed the current operational capacity of the DLO.
The report stated that the works will contribute to Hackney Council's environmental commitments, including the Air Quality Action Plan, carbon reduction targets and initiatives aimed at improving the energy efficiency of homes and reducing fuel poverty.
The report also stated that the procurement will secure additional benefits such as local employment and apprenticeships, community investment projects that improve estates and public spaces, and skills training for local residents to support long-term economic resilience.
General Building Contract 3 - Voids
The committee approved the contract award of specialists contractors for Void Works for the Building Maintenance and Regeneration Voids as follows:
- Voids Lot 1, Regeneration Voids of a budget value of approximately £1.97m per year, and over the whole contract term, a value of approximately £7.88m (Excl VAT), £9.45M (Incl Vat)
- Voids Lot 2, Building Maintenance Voids of a value of approximately £1.85m per year and, over the whole contract term, a value of approximately £7.40m (Excl VAT), £8.88M (Incl Vat)
The report before the committee noted that following a compliant procurement process under the Public Contracts Regulations 20154, the recommendation is to award contracts for specialist void works to the two highest scoring bidders for Lot 1 and Lot 2 respectively. These medium-term contract arrangements will replace the previous expired contracts and address the increased demand for void works whilst supporting the in-house service to ensure continuity of service delivery.
The report considered and rejected the following alternative options:
- Open Procedure: This route was rejected due to the potential to receive submissions from over 30 suppliers, creating an unmanageable evaluation burden within the available timeframes.
- In-house Delivery/Insourcing: Utilising the DLO exclusively was considered but rejected as the DLO lacked capacity to perform works ranging from small to large scale.
- Framework Utilisation: Framework procurement was considered during the business case but rejected as it failed to demonstrate best value for money.
- Existing Contract Utilisation: Incorporating these works within General Build Contract 2 was considered during the business case but rejected because the size and value would have prevented permissible variation under Regulation 72 of the Public Contracts Regulations 2015.
- Do Nothing: This option was rejected during the business case as external contractor support was essential.
The report stated that the selected restricted procedure has successfully addressed these constraints whilst ensuring service continuity and delivering the anticipated value for money through the identification of two preferred bidders for contract award.
Communal Works Repairs & Maintenance Contract
The committee approved the procurement of communal works and repairs & maintenance provision as follows:
- Two Contractors for Lot 1, Playground - Repairs, Hard Landscaping, Boundary Fencing (Metal Works), Drainage and Water Mains of a combined value of approximately £2.17m per year (Excl VAT), and a combined value of approximately £17.35m (Excl VAT) over the maximum contract term.
- One Contractor for Lot 2, Playgrounds Inspection of a value of approximately £61k per year and, a value of approximately £0.47m (Excl VAT) over the maximum contract term.
The report before the committee noted that the recommendation is to undertake a competitive flexible procedure under the Procurement Act 2023 to procure specialist contractors for Communal works under Lot 1 and Lot 2. A long term contract arrangement to undertake the Communal works brought about by expiration of the previous contract. There has been a rise in demand for communal repairs & maintenance works, the procurement of this contract will support the in-house service to deliver this provision and provide continuity for delivery of works in the service area.
The report considered and rejected the following alternative options:
- Continuity: The current arrangement was the use of a single main contractor who subcontracts the works. The use of the principal contractor may result in increased costs due to profits and overheads, repassing of costs and added communication layers. This option is not viable for the re-procurement as this will not enable small and medium sized enterprises to bid for the contract due to financial compliance with the contract value.
- Framework Route: This option was considered but rejected as all works carried out under the contract will be communal works, which are subject to statutory consultation requirements under Section 20 of the Landlord and Tenant Act 19855.
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The Building Safety Act 2022 is a law passed in the United Kingdom to improve building safety, particularly for high-rise residential buildings, following the Grenfell Tower fire. It introduces stricter regulations, accountability, and oversight for the construction and management of buildings. ↩
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The Fire Safety Act 2021 is a law passed in England and Wales that clarifies the scope of the Fire Safety Order 2005. It specifies that the responsible person for a building must manage and reduce fire risks for the structure, external walls, and individual flat entrance doors. ↩
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The Housing Health and Safety Rating System (HHSRS) is a risk-based assessment tool used in England and Wales to identify and evaluate potential hazards to health and safety in residential premises. It helps local authorities enforce housing standards and protect occupants. ↩
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The Public Contracts Regulations 2015 were the regulations in force in the UK implementing European Union procurement directives. They set out rules for how public authorities must award contracts for goods, works and services. ↩
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Section 20 of the Landlord and Tenant Act 1985 is a provision that requires landlords to consult with leaseholders before carrying out major works or entering into long-term agreements for services where the leaseholders will be required to contribute more than a certain amount (currently £250 for works and £100 per year for agreements) through service charges. The consultation process involves providing notices, obtaining estimates, and considering leaseholders' observations. ↩
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