Environment and Community Safety Directorate

Community Safety

Approval Form

Report of: / Stephen Kearney
Report to: / Assistant Mayor Finance & Support Services and Assistant Mayor Communication and Community Engagement
Date of meeting: / 11.04.13
Forward Plan: / 04.04.13

TITLE:CCTV, City Watch and Quay Watch staffing contract – CSO waiver request.

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RECOMMENDATION:

  • That approval be given to a waiver to the Councils Standing orders for the purposes of implementing acontract extension with MITIE Security Services for the provision of security staff (CCTV, Quay Watch, City Watch and Out of Hours night shifts) for a period of five months effective 1st April 2013 to 31stAugust 2013.

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EXECUTIVE SUMMARY:

Salford City Council currently employs MITIE Security Services for the provision of CCTV monitoring services, with an interim contract in place until 31st March 2013 (lead member CSO Waiver report dated 26.07.12 attached). MITIE Security Services are also employed by the City Council to provide Quay Watch and City Watch manned guarding services, with these services currently provided via a rolling over Urban Vision contract.

The City Council had intended to advertise a merged security staffing contract with an effective from date of 1st April 2013 but the procurement exercise was delayed for the purposes of being able to rationalise wider security staffing requirements including the City Watch, Quay Watch andOut of Hours servicesplus exploration in regards opportunities for a shared resource CCTV Control Room with City West Housing Trust. Following Deputy City Mayor approval on the 13.02.13 to proceed with the proposed out of hours service changes, Urban Visions recent transfer of the Quay Watch and City Watch service to Property Services and ongoing discussions with City West Housing Trust we are now in a more informed position in regards our overall requirements.

Corporate Procurement have advised us that a waiver is deemed the most suitable means to protect the interests of the City Council, taking into account the estimated value of a one year contract which would exceed the £100k financial regulations limit and the impact of TUPE arrangements in regards to current staff. Corporate Procurement have advised that a five month waiver should provide sufficient time in order to conclude the formal advertisement process, for which a proposed timeframe is attached in Appendix one.

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BACKGROUND DOCUMENTS: MITIE Contract with Salford City Council for CCTV monitoring services (available SK), Proposed Out of Hours Service Changes Report (available SK), CCTV Strategy (available SK).

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KEY DECISION:YES

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DETAILS: By way of special exemption to implement a five month contract extension with an existing service provider.The current contract (please see executive summary above for full details) does not provide for a contract extension.

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KEY COUNCIL POLICIES: Salford Community Safety Strategy, Salford CCTV Strategy

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EQUALITY IMPACT ASSESSMENT AND IMPLICATIONS:- N/A

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ASSESSMENT OF RISK: Low

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SOURCE OF FUNDING: Existing CCTV, Quay Watch and City Watch funding sources

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LEGAL IMPLICATIONS: Supplied by Melinda Edwards, Solicitor Tel: 0161 219 6286

MITIE Security Services currently provides CCTV monitoring services for the City Council by way of an extended contract which expired on 31st March 2013.

MITIE Security Services also provide the Quay Watch and City Watch manned guarding service for the City Council by way of a contract which has rolled over its original expiry date.

The City Council wishes to re-tender the above contracts - the Quay Watch, City Watch and CCTV monitoring elements will be combined to form one service specification. The new contract will not commence until 1st September following a procurement exercise and it is proposed that the current contracts therefore be extended for a period of five months to ensure continuity of service provision in the meantime.

When commissioning contracts for the procurement of goods, services or the execution of works the City Council must comply with the requirements of the public contracts regulations and its own Contractual Standing Orders, failing which the award of a contract may be subject to legal challenge from an aggrieved provider.

If a contract is extended or awarded without a competitive exercise, there is a risk of challenge from aggrieved providers even when the requirements of the Contractual Standing Orders have been waived in accordance with paragraph 2 therein. The value of the extended contracts is significant but the length of extension sought and the fact that the procurement exercise will be undertaken this year may be considered to reduce the level of risk.

The current contracts can only be terminated in accordance with the provisions therein. As both are ‘rolling over’ their original expiry dates, the notice provisions required for termination are less clear. It may be the case that the notice provisions from the original contracts are applicable or alternatively, the contracts may be deemed to continue for an indeterminate period subject to the right to terminate on ‘reasonable’ notice.

What is ‘reasonable’ has been considered extensively by the courts and depends on the circumstances of each case. However, guiding factors include the degree of financial dependence of the terminated party on the contract, the commitments of both parties which exist at the date of notice to terminate and the time required by the terminated party to replace the lost business represented by the contract. If the terminated party does not consider the notice to be ‘reasonable’ there is a risk of challenge. Legal Services can provide further advice regarding the notice periods required to terminate these contracts as required.

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FINANCIAL IMPLICATIONS: The CCTV monitoring and Quaywatch/Citywatch services are currently provided by an external contractor. Sufficient budgets for these services are currently in place. Approval of a five month contract waiver will allow sufficient time to put together a combined single service tender specification, together with cover for the Out of Hours Service, for which it is hoped that more competitive contract rates can be achieved leading to potential revenue savings.

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Procurement Implications: (Information supplied by Christine Flisk). There is always a risk that any award of business, if made outside of the full competitive processes, could be subject to challenge by an aggrieved supplier on the basis that it ought to have been advertised and put out to competition.

In view of the high value of the contract in question the request to exempt this contract from complying with Contractual Standing Orders does represent a risk to the Council. This risk cannot be eliminated but is mitigated somewhat by the following:Security Services are a Part B service and are not subject to the full remit of Public Contract Regulations. We would defend a challenge on the basis that a competitive procurement process has been delayed rather than avoided.

In order to mitigate these risks further it is essential that the new procurement process is commenced and delivered in line with the schedule attached.

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OTHER DIRECTORATES CONSULTED:Property Services (David Horsler), Corporate Procurement(Christine Flisk), Legal Services (Melinda Edwards), Finance (Nikki Bishop, Gary Morris, Paul Guest).

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CONTACT OFFICER:Stephen KearneyTEL. NO. 0161 686 5810

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WARD(S) TO WHICH REPORT RELATE(S): All Wards

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AUTHORISATION:

Approved by Assistant Director / Signature:
Date:
Approved by Strategic / Deputy Director / Signature:
Date:

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