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Joint procurement of vehicles for street cleansing and refuse

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									                                                                      Agenda Item: 8

JOINT PROCUREMENT OF VEHICLES FOR STREET CLEANSING AND REFUSE
         COLLECTION WITH RUNNYMEDE BOROUGH COUNCIL

                         Management Team – Urgent Item
                       Committee Name – 7 December 2004
                                Resolution required
                  Report of the Strategic Director (Community)
Runnymede Borough Council are poised to send out their invitation to tender
    and require a decision from Spelthorne next week to ensure that their
 procurement is not delayed. The Chairman, therefore, has agreed that this
matter can be dealt with as an urgent item so that this matter can be dealt with
                          before the next executive.

                     Executive Summary
This report seeks agreement for working with Runnymede Borough Council for a joint
procurement of vehicles for street cleansing and refuse collection.

Runnymede Borough Council are in the process of undertaking a tendering exercise
to procure either the purchase of or the contract hire of a new fleet street cleansing
and refuse vehicles. Direct Services have recognised that we require similar vehicles
for the operation of these core services and following discussions with Runnymede’s
Direct Services the opportunity for joint working has been identified.

Main Issues
Whether Spelthorne Borough Council wants to work in partnership for procurement of
        vehicles with Runnymede Borough Council
Entering into agency arrangements with Runnymede Borough Council
Identification of added value and potential costs savings from a joint procurement

Options
To enter into an agency arrangements with Runnymede Borough Council for the joint
      procurement of these vehicles
Continue the Council’s tender exercise for the purchase of or the contract hire of
      these vehicles.

Officer Recommendations
The Executive is asked to:
1.    Agree in principle with the joint working with Runnymede Borough
      Council to procure vehicles for street cleansing and refuse collection or
      to
2.    Agree in principle with the joint working and to authorise the Strategic
      Director (Support) in consultation with leader negotiate the exact terms
      of working with Runnymede.




99925140-b199-4943-9dca-40cd80ba36b6.doc   i                    Last Updated: 25/02/2010
                                                                           Agenda Item:

                                        REPORT

BACKGROUND
1.1    On the 11 February 2003 Executive were advised that some of the Council’s
       vehicles for street cleansing and refuse collection are reaching the end of their
       operational lives and that they need replacing.
1.2    It was resolved by Members of the Executive to approve the acquisition of four
       refuse vehicles and three street cleansing vehicles on a three-year contract.
1.3    A tendering exercise was undertaken but the tender submissions were
       received the tender costs were not within the budget set and unfortunately the
       acquisition of such vehicles has not taken place. Direct services have been
       exploring alternative procurement initiatives to provide vehicles for hire or
       purchase within the originally agreed budget.
1.4    Discussions have recently been held between the Direct Services at
       Spelthorne Borough Council and Runnymede Borough Council and it was
       recognised that both Council’s require the replacement of similar vehicles.
       Initial assessments of the benefits of joint working have been identified and
       these may be viable.
1.5    Runnymede Borough Council have commenced their procurement exercise
       and have advertised the tender for their vehicles in the Official Journal of the
       European Union and have selected a shortlist of tenderers from which they will
       request full tender submissions.
1.6    Runnymede Borough Council are poised to send out their invitation to tender
       when discussions with Spelthorne proved that there may be an opportunity to
       include the vehicles required by Spelthorne. Runnymede requires a decision
       from Spelthorne next week to ensure their procurement is not delayed.
1.7    As the decision on this matter could not wait and it is a key decision, it is being
       brought to Executive as urgent item.


MAIN ISSUES
1.8    The vehicles that need to be acquired are:
             4 refuse collection vehicles
             3 mechanical sweeper
             additional vehicles to be identified
1.9    Having identified there may be an option for Runnymede’s invitation to tender
       to include Spelthorne’s vehicles requirements there is the opportunity to gain
       added value benefits and perhaps some costs savings for both Councils.
1.10   Due to the advanced stage of Runnymede’s tender exercise, Runnymede
       would have to tender on behalf of Spelthorne and therefore any contract
       entered into as a result of the tender will be between Runnymede and the
       provider of the vehicles.
1.11   To ensure that both Council’s fulfil their obligations with regards to the
       performance of the Contract and payment of the service, an agency


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       agreement, pursuant to Section 101 of the Local Government Act 1972 (Or
       similar legislation), is likely to be only option available to the Council to take
       advantage of this opportunity.
1.12   Runnymede are seeking tenders for either all the vehicles or those in one or
       more of the specialised groups of:


       Group 1 – Refuse Vehicles
       Group 2 – Street Cleansing Vehicles
       Group 3 – Sweepers


       on the basis of either:
       (a)   Contract hire with full maintenance, repair and fleet management for a
             period of 5 years, or
       (b)   Outright purchase with maintenance, repair and fleet management for 5
             years


       It is hoped this will achieve as wide as possible test of the market.
1.13   If the Council are minded to join this tender exercise Spelthorne’s vehicle
       options would be included and tenderers will be able to tender on the same
       basis for spelthorne’s vehicles, again to test the market and to assess any
       costs benefits that are available for both Authorities.
1.14   The benefits to Runnymede to join Spelthorne’s vehicles are that they could
       use the Council’s workshop facilities, a facility that Runnymede do not have at
       present. It could be advantageous for any tenderer to use these facilities to
       repair and maintain all vehicles at the Council’s depot and this it is hoped this
       would ensure a quicker repair time and reduce the time that any vehicle is out
       of service.
1.15   It is hoped if a tenderer had a greater number of vehicles to repair and
       maintain then it would be more advantageous to them to provide a dedicated
       team of trained employees to undertake works on these specialist vehicles
       and would again reduce the amount of time that vehicles are out of service.
1.16   If the Council do not enter into any arrangement with Runnymede Borough
       Council, then it is likely a new tender exercise will need to be undertaken,
       including advertising in the Official Journal of The European Union and the
       associated costs will have to be incurred. If our vehicle requirements are
       included in the Runnymede tender then these costs will be considerably lower
       and tenders might come within the agreed budget.


OPTIONS
       (a)   To allow Spelthorne Borough Council’s requirements for vehicles to be
             included within Runnymede Borough Council’s invitation to tender and to
             agree to the joint working for the provision of any contract entered into



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       (b)   To re-tender for the provision of Spelthorne’s vehicle requirements.


PROPOSALS
1.17   The proposal is that Spelthorne Borough Council’s vehicle requirements are
       included in Runnymede Borough Council’s tender and subject to the tender
       results and evaluations for Runnymede to contract with the provider of all the
       vehicles and for an agency arrangements agreed between the Authorities to
       ensure the effective operation of that contract for all parties. It is hoped and
       anticipated that this arrangement will provide added value in terms of the
       services provided by the tenderer as detailed above.


FINANCIAL IMPLICATIONS
1.18   It is hope that this joint working would ensure that the procurement for
       Vehicles would fall within the agreed budget.


LEGAL IMPLICATIONS / OTHER CONSIDERATIONS
1.19   The Council have the power to enter into an agency agreement with
       Runnymede Borough Council by virtue of Section 101 of the Local
       Government Act 1972.
1.20   This joint working supports the principles of the CPA.


SUPPORT FOR CORPORATE PRIORITIES
1.21   This supports the Council’s priority of Making Spelthorne a better place and
       improving customer satisfaction by ensuring that we have the necessary
       resources to ensure that the refuse collection and other such services are
       provided to the best of our abilities.


Contact:
Steve Connor, Head of Direct Services, (01784) 446412

Report Author:
Victoria Monk, Principal Solicitor, (01784) 446241

Portfolio Holder:
Councillor E. Searancke

Background papers:
There are none.




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