The report set out the outcome of the recent joint tendering exercise completed with London Borough of Barking & Dagenham for a term contract of five years with the option to extend for a further two years for the Reactive & Planned Highway Maintenance and Construction of Improvement Schemes Contract and the Maintenance Contract and the Repair and Replacement of Street Lighting, Other Illuminated Signs and Associated Electrical Equipment Contract.

Reasons for the decision:

The Highways and Street lighting contracts had been extended and the extension periods are nearing their end dates of 31st March 2017.

The tender process secured new contracts that would deliver value for money for the next five years with the option to extend for a further two years if required.

Other options considered:

Tendering both the Highways and Street Lighting contracts separately was considered, however the purchasing power of two large scale contracts through collaboration with the London Borough of Barking & Dagenham was considered to represent better value for money, especially during times of austerity.

Utilising a Framework agreement was also considered but this only provided a contract over a period of 4 years. A contract with a longer term would be the preferred option to incorporate leasing agreements and capital investments being spread over a longer period to keep tendered prices down.

Following a joint procurement exercise with London Borough of Barking and Dagenham, Cabinet:

1.         Approved the award of the Reactive & Planned Highway Maintenance and Construction of Improvement Schemes Contract to the successful bidder, Marlborough Surfacing Ltd (company registration number 02765630) for the period 1st April 2017 to 31st March 2022.

2.         Approved the delegation of authority to the Director of Neighbourhoods to exercise the option to extend the Reactive & Planned Highway Maintenance and Construction of Improvement Schemes Contract for a further two years as permitted under contract beyond March 2022, subject to satisfactory performance.

3.         Approved the award of the Repair and Replacement of Street Lighting, Other Illuminated Signs and Associated Electrical Equipment Contract to Volker Highways Ltd (company registration number 638559) for the period 1st April 2017 to 31st March 2022.

4.         Approved the delegation of authority to the Director of Neighbourhoods to exercise the option to extend the Repair and Replacement of Street Lighting, Other Illuminated Signs and Associated Electrical Equipment Contract for a further two years as permitted under the contract beyond March 2022, subject to satisfactory performance.