Decision details

The Cabinet considered the report of the Executive Director of Corporate Resources and Customer Services which sought approval to the proposed approach for the procurement of Liquid Fuels with effect from 22November 2023.

Decision Made: That

(1)      approval be given to Sefton Council sourcing the supply of Liquid Fuels via the new Yorkshire Purchasing Organisation (YPO) Liquid Fuels supply framework to be established with effect from 22 November 2023, for a maximum period of four years to 21 November 2027. The contract will be for two years with options for two one-year extensions.

(2)      the Assistant Director Corporate Resources and Customer Services (Strategic Support) be authorised in consultation with the Cabinet Member Regulatory, Compliance and Corporate Services to approve and implement the resulting supply arrangements to ensure uninterrupted service.

Reasons for the Decision:

The Council must procure quantities of liquid fuels to operate its daily business. Under the Council’s Contract Procedure Rules, the level of expenditure involved (approximately £965,300.00 per annum) requires that Pre-Procurement Approval is sought from Cabinet.

It is considered that the Council can best be assured of value for money, in terms of price and security of supply, by continued procurement through an external framework contract that is able to offer considerably more collaborative usage volume to the market than Sefton Council alone can offer.

Alternative Options Considered and Rejected:

The Council could decide not to continue procuring Liquid Fuels through an external framework and instead undertake its own procurement process. This process would need to be a procurement process compliant with the Public Contract Regulations and would take approximately six months to complete.

The significant risk in that, and the reason this option has not been recommended, is that it is considered that the separate procurement of lower volumes of fuel (i.e., Sefton Council procuring fuel alone) is certain to result in much higher unit prices, potentially greater fluctuation in price, and potentially less reliable supply, than if the Council pools its requirement with a significantly wider user group.