Agenda item

Joint report of the Corporate Director Community, Health and Wellbeing and Divisional Director Environmental Services.

RESOLVED:  That

(1)               the Domestic Gas Heating Contract be awarded to Quality Heating Systems, with any final contractual matters delegated to the Corporate Director Community, Health and Wellbeing, in consultation with the Portfolio Holder for Housing;

(2)               the Commercial Gas Heating Systems Contract be awarded to T Brown Ltd, with any final contractual matters delegated to the Divisional Director Environmental Services, in consultation with the Portfolio Holders for Property and Major Contracts and Housing;

(3)               once the Contracts have commenced, they be monitored quarterly (including customer scrutiny), the results of which be reported to the relevant Council Improvement Board and Tenants’, Leaseholders’ and Residents’ Consultative Forum (TLRCF).

Reason for Decision:  To ensure appointment of contractors offering to meet the quality requirements and those that have provided the best prices.

Cabinet received a joint report of the Corporate Director Community, Health and Wellbeing and Divisional Director Environmental Services, which set out the results of the tender process for the provision of Gas Servicing and Repairs together with the renewal of Council house Gas Heating Systems.  A confidential appendix analysing the tenders received was also considered by Cabinet.

The Portfolio Holder for Housing informed Cabinet that the existing contract with Kier Group would expire on 30 June 2012.  A fresh approach focusing on customer care and encouraging a local supply chain involvement to produce financial benefits in the current economic climate was being proposed.  Also, a previous analysis had shown that there was scope for lower overheads by using smaller contractors.  The main objectives of the proposal included in the Tender Strategy were:  improved customer satisfaction, greater use of local labour, improving the accuracy of invoicing and the use of improved technology in service delivery.  The proposed contractors together with an internal restructure and streamlining of procedures would help meet these objectives.  Whilst the contracts proposed were for a period of four years, there was an option to extend these beyond this time.

The Portfolio Holder outlined the potential savings that would arise as a result of the proposed new contracts, and that, in relation to servicing of gas appliances, Quality Heating Services had indicated a willingness to offer this service to leaseholders for a small additional administrative charge, thus allowing leaseholders to access the benefits brought by this larger contract.  Moreover, both contractors had undertaken to prioritise employment opportunities for Harrow residents, ex-offenders and those with learning difficulties, within any recruitment relating to these contracts.  

Cabinet was informed that, based on the tender from Quality Heating, it was anticipated that there would be a reduction of around 14% in relation to the revenue spend.  Further savings were anticipated in respect of the capital spend, and spend on heating and boiler replacement programmes for Council dwellings.  This was anticipated at £650k for 2012/13. 

In concluding his remarks, the Portfolio Holder referred to the Project Board which had overseen the work culminating in the proposals before Cabinet and he thanked Councillor Camilla Bath for her participation, including representative(s) from the local Tenants’ Association(s).

RESOLVED:  That

(1)               the Domestic Gas Heating Contract be awarded to Quality Heating Systems, with any final contractual matters delegated to the Corporate Director Community, Health and Wellbeing, in consultation with the Portfolio Holder for Housing;

(2)               the Commercial Gas Heating Systems Contract be awarded to T Brown Ltd, with any final contractual matters delegated to the Divisional Director Environmental Services, in consultation with the Portfolio Holders for Property and Major Contracts and Housing;

(3)               once the Contracts have commenced, they be monitored quarterly (including customer scrutiny), the results of which be reported to the relevant Council Improvement Board and Tenants’, Leaseholders’ and Residents’ Consultative Forum (TLRCF).

Reason for Decision:  To ensure appointment of contractors offering to meet the quality requirements and those that have provided the best prices.