Issue - meetings

Report of the Executive Director – Regeneration, Economy and Assets

The Cabinet considered the report of the Executive Director – Regeneration, Economy and Assets seeking approval for the award of the gas supply contract through the North-East Purchasing Organisation (NEPO) Gas Framework for a three year plus one year contract, in order to secure value for money and excellent customer service.

The following appendix was attached to the report:

Appendix 1 – Evaluation questions and weightings.

Decisions Made:

That

(1)           the Council remain on the North-East Purchasing Organisation (NEPO) framework contract for the supply of gas to cover the period 1 April 2026 – 31 March 2029, with a possible 1-year extension to 31 March 2030;

(2)           the Executive Director - Regeneration, Economy and Assets be granted delegated authority to award any extension in consultation with the Cabinet Member - Regeneration, Economy and Skills; and

(3)           authority be delegated to Executive Director - Regeneration, Economy and Assets to approve purchasing decisions and approve any contractual requirements within the contract term, including the signing of all contract documents.

Reasons for the Decisions:

It was recommended that the Cabinet approve the award of the gas supply contract through the NEPO Gas Framework for a three year plus one year contract, in order to secure value for money and excellent customer service. Also, that the recommended delegations of authority be authorised to enable timely contract management.

Alternative Options Considered and Rejected:

Option 1

Do nothing – In order to comply with UK Procurement Legislation, and due to the 12- 18-month lead in times, it was necessary to either re-procure the above contract directly to market by Sefton Council via the Public Contract Regulations route, or to receive a supply contract available from a Public Contract Regulations compliant Energy Procurement Framework with a Central Purchasing Body (CPB). Therefore, this option was rejected.

Option 2

Delay the decision - The lead time for making a change to the current gas supply arrangements was significant, so any delay in decision making would shorten the window for purchasing gas in advance. This would reduce the Council’s options and increase the risk associated with market conditions during that time. Therefore, this option was rejected.

Option 3

Adopt a different procurement strategy – for example purchasing all gas supplies at a fixed price. Whilst the Council had used this strategy in the past and made savings from it, it did internalise the risk associated with achieving the best prices, increased staff workload and given current volatility in the wholesale gas market increases the risks associated with achieving a competitive price. Therefore, this option was rejected.