Agenda item

Councillor Barry Tebbutt, Cabinet Member for Client Services, introduced the report

The report described the future options available to the Council for the procurement of a number of highway, street lighting and environmental related maintenance works.

The report also sought approval to extend the existing highways & street lighting term maintenance contract for 2.5 years pending further service integration with the LoHAC framework.

Cabinet was informed that the LoHAC contract would allow the Council to make informed choices about highway works and gave it the flexibility to have multiple works undertaken at the same time in order to ensure there was a minimum of disruption to highways across the borough whilst the street lighting provision would bring savings to the Council whilst ensuring that the borough was provided with the latest technology in the field.

There was some discussion about the start/finish dates of the contract by Cabinet especially as it was maintained that the contract was for a period of eight years.

Reasons for the Decision

The London Highways Alliance Contract (LoHAC) would offer savings on some areas of work (up to 5%, although this would be benchmarked against the Council’s current term contract rates) and further year-on-year savings.  The procurement costs of going through the traditional tendering exercise would also be saved.  By negotiating extensions to the Council’s existing contracts, staff would be able to choose the most economically advantageous option on a scheme-by-scheme basis.  In addition this approach would assist in business continuity planning.

Alternative Options Considered

To procure these services in the traditional method either solely, or to seek other partnership opportunities.

Cabinet agreed:

1.            To extensions to the Council’s existing term maintenance contracts for Highways and Street Lighting maintenance for 2.5 years in accordance with the current contract conditions.

2.            To enter the procurement framework contract and use the framework as and when required for highways maintenance, street lighting and environmental works through the London Highways Alliance Contract (LoHAC) established by Transport for London and it approved the appointment of Ringway Jacob’s as the North East London Area LoHAC partner.

3.            To review the LoHAC framework rates after 1 year to determine if the rates were favourable and to explore the greater opportunities available prior to commencing any retender exercise for the existing highways and street lighting contracts. 

4.            Delegated authority to the lead Member for StreetCare to take advantage of the range of individual service contracts available within the LoHAC procurement framework as and when required.

5.            Approved the framework contract to run for a period of 8 years from either April 2013 or April 2014 subject to agreement.

NOTE: Subsequent to the meeting, it was confirmed that the LoHAC framework contract was for 8 years and commenced on 1 April 2013 and would run until 31 March 2021.