Issue - meetings

This report explains a recent issue associated with the proposed award of the Lot 1 contract to Bouygues E&S Infrastructure UK Limited (Bouygues) for the supply of LED (Light Emitting Diode) street lighting luminaires, as recommended to Cabinet in January 2016. This report proposes a method for effectively managing the issue and associated risks, whilst minimising the delay in realising carbon and energy savings.

(i)         Cabinet rescinded the decision made in the Cabinet meeting of the 20 January 2016 to award the contract for the supply of LED (Lot 1 Light Emitting Diode) street lighting luminaires to Bouygues E&S Infrastructure UK Limited, noting that all other recommendations made in that report remain unaffected;

(ii)        Cabinet authorised officers to revert to the invitation to submit a Best and Final Offer (BAFO) stage in the Lot 1 tendering process for the supply of LED (Light Emitting Diode) street lighting luminaires using a revised specification, as detailed in paragraphs 3.12 to 3.22; and

(iii)       Cabinet delegated authority to the Strategic Director (Regeneration & Environment), in consultation with the Chief Legal Officer, Chief Finance Officer and the Lead Member for Environment, to sanction the award of a contract to the Most Economically Advantageous Tender, based upon the criteria set out in paragraphs 3.22 to 3.25.

Councillor Southwood, Cabinet Member for Environment, introduced the report explaining a recent issue associated with the proposed award of the Lot 1 contract to Bouygues E&S Infrastructure UK Limited (Bouygues) for the supply of LED (Light Emitting Diode) street lighting luminaires, as recommended to Cabinet in January 2016.

Councillor Southwood explained that during the mandatory standstill, sometimes referred to as the ‘Alcatel’ period, which allows bidders to informally challenge tender results or seek clarity in how decisions were reached, a formal request was received by officers for clarification from an unsuccessful bidder.

Councillor Southwood explained that the main query concerned the calculations used by Bouygues to formulate their price. Subsequent technical analysis, and dialogue with Bouygues, revealed that arithmetical errors had indeed been made which prejudiced the savings proposals cited in their bid. The clarification also revealed some ambiguities in the council’s specification which had been interpreted by bidders in different ways.

Councillor Southwood stated that this report proposed a method for effectively managing the issue and associated risks, whilst minimising the delay in realising carbon and energy savings.

Conrad Hall, Chief Finance Officer, highlighted to members that due to the delay in commencing this project, it is unlikely to achieve additional savings in 2016/17.

He stated that, if the proposal in this report was agreed, the anticipated savings of £0.75m per annum would still be achieved from 2017/2018 year onwards.

RESOLVED:

(i)         that the decision made in the Cabinet meeting of the 20 January 2016 to award the contract for the supply of LED (Lot 1 Light Emitting Diode) street lighting luminaires to Bouygues E&S Infrastructure UK Limited be rescinded, noting that all other recommendations made in that report remain unaffected;

(ii)        that officers be authorised to revert to the invitation to submit a Best and Final Offer (BAFO) stage in the Lot 1 tendering process for the supply of LED (Light Emitting Diode) street lighting luminaires using a revised specification, as detailed in paragraphs 3.12 to 3.22; and

(iii)       that authority be delegated to the Strategic Director (Regeneration and Environment), in consultation with the Chief Legal Officer, Chief Finance Officer and the Lead Member for Environment, to sanction the award of a contract to the Most Economically Advantageous Tender, based upon the criteria set out in paragraphs 3.22 to 3.25 in the report.