Issue - meetings

That the following be agreed:

1)      To procure, award and enter into a contract / contract(s) to undertake retrofit, cyclical, planned, voids and reactive works to Winchester City Council owned housing properties within the parameters set out in this report and to delegate authority to the Strategic Director to conduct the procurement exercise and to finalise and agree the terms of the contract(s).

2)      To incorporate and design a dialogue phase(s) within the procurement procedure as permitted under the Public Contract Regulations 2015 (PCR 2015).

3)      To use the Competitive Dialogue Procedure under PCR 2015 to carry out the procurement.

4)      To ensure best value, adopt a 60:40 (quality:price) evaluation model with a quality bias (60%).

5)      To commission following the satisfactory completion of the procurement exercise a Term Alliance Contract to be awarded to a single provider for an initial term of up to 10 years with an option to extend for a further 5 years.

6)      To agree to evaluate tendered prices using the Optimum Price model rather than a lowest price model.

7)      To approve the use of the Term Alliance Contract TAC-1 (as amended) form of contract for the HRA repairs and maintenance contract.

Councillor Westwood introduced the report which contained proposals for the procurement of the new contract acknowledging the level of tenant satisfaction with the existing contract and stated that it was intended to expand the service offered.  It was proposed that the contract be offered on a 60:40 quality/price basis to recognise the importance of quality.

At the invitation of the Leader, Councillors Horrill and Lee addressed Cabinet as summarised briefly below.

Councillor Horrill

She emphasised the importance of the contract and queried how it was possible for a decision to be made without the details of the repair programme being available.  She reiterated the request from Scrutiny Committee that a breakdown (by number and type) of repairs currently undertaken on the council’s housing stock be provided.

Councillor Lee

He had concerns that the 10% minimum for environmental social criteria was too low.  He welcomed the emphasis on quality in the contract procurement.  He reiterated requests made at previous meetings that nature based products be used wherever possible.

Councillor Westwood responded to the comments made including emphasising that the contract would deliver the requirements of the new Council Plan in terms of the commitment to tackle the nature and climate emergency.

Councillor Tod referred to the discussion of the report at Scrutiny Committee on 12 November and the draft minutes had been circulated to Cabinet and other members present prior to the Cabinet meeting.  The Strategic Director confirmed that the data requested on the breakdown of repairs would be made available to all councillors within the next week.  The Chief Executive emphasised that the report’s recommendations related to the process of procurement and consequently the data was not essential for a decision to be made by Cabinet.

Cabinet agreed to the following for the reasons set out in the report and outlined above.

RESOLVED:

That the following be agreed:

1.           To procure, award and enter into a contract / contract(s) to undertake retrofit, cyclical, planned, voids and reactive works to Winchester City Council owned housing properties within the parameters set out in this report and to delegate authority to the Strategic Director to conduct the procurement exercise and to finalise and agree the terms of the contract(s).

2.           To incorporate and design a dialogue phase(s) within the procurement procedure as permitted under the Public Contract Regulations 2015 (PCR 2015).

3.           To use the Competitive Dialogue Procedure under PCR 2015 to carry out the procurement.

4.           To ensure best value, adopt a 60:40 (quality:price) evaluation model with a quality bias (60%).

5.           To commission following the satisfactory completion of the procurement exercise a Term Alliance Contract to be awarded to a single provider for an initial term of up to 10 years with an option to extend for a further 5 years.

6.           To agree to evaluate tendered prices using the Optimum Price model rather than a lowest price model.

7.           To approve the use of the Term Alliance Contract TAC-1 (as amended) form of contract for the HRA repairs  ...  view the full minutes text for item 9

RECOMMENDATION:

It is recommended that the committee scrutinise and comment on the proposals within the attached draft cabinet report, ref CAB3463 which is to be considered by cabinet at its meeting on the 20 November 2024.

Councillor Chris Westwood Councillor, Cabinet Member for Housing introduced the report, ref CAB3463 which set out proposals for the Housing Procurement of HRA Repairs and Maintenance Term Contract, (available here).  The introduction included the following points.

1.             The current repairs and maintenance service carried out approximately 19,000 jobs to 5,500 homes and refurbished around 300 void properties annually, alongside day-to-day repairs.

2.             The council invested around £14 million annually into refurbishment and maintenance, renewing key building components and retrofitting various energy-efficient measures.

3.             The current contract with Cardo had run for around 13 years, necessitating a review to understand how best to meet current requirements.

4.             A recent survey showed that 80% of tenants were satisfied with the repairs and maintenance service, and 78% were happy with the timeliness of the service.

5.             The council aimed to improve the ease of doing business with the housing team.

6.             Consultations were conducted with tenants, staff, members, major service providers, and other local authorities to gather insights and best practices.

7.             Key outcomes included seeking a partner, to represent the council and its tenants, improve customer service and experience, and ensure continuous customer feedback.

8.             The focus was on delivering value for money, not just the lowest cost, and fostering continuous innovation to improve services.

9.             The council planned to expand services beyond repairs and maintenance to include planned upgrades, retrofit activities, decarbonisation of housing stock, voids refresh, and other potential services.

10.          A procurement process was to be conducted over the next 18 to 24 months, with the new contract expected to start on 1 August 2026.

11.          The evaluation model would reward the highest quality bid at the right price.

12.          In summary, the contract aimed to drive change, improve the standard of council-owned housing, enhance residents' lives, regenerate communities, and tackle climate change.

Councillor Danny Lee addressed the committee and highlighted the following points. Councillor Lee questioned the risks of consolidating multiple budgets into a single 10-year contract and the lack of nature and whole-life considerations in the recommendations. He stressed the need for balanced environmental key performance indicators (KPIs) and found the 10% minimum for environmental social value criteria too low. He also raised concerns about the accuracy of data for estimating repair costs and the difficulty of annual budgeting predictions.

Councillor Caroline Horrill addressed the committee and highlighted the following points. Councillor Horrill noted the consultation process and the proposed 60/40 split of quality and cost in the contract. She sought clarification on the flexibility of subcontracting, the setting and use of KPIs, and the definition of a term alliance contractor. She also raised concerns about the lack of detailed data on the number and types of repairs currently performed on the council's housing stock.

The committee was recommended to scrutinise and comment on the proposals within the attached draft cabinet report, ref CAB3463 which was to be considered by the Cabinet at its meeting on 20 November 2024.

The committee proceeded to ask questions  ...  view the full minutes text for item 8

RECOMMENDATION:

1.    That the Policy Committee notes the contents of the presentation.

2.    That the views and comments of the committee are sought to inform the Cabinet Member for Housing prior to the Cabinet meeting on the 20^th November 2024.

Councillor Chris Westwood, Cabinet Member for Housing introduced the agenda item on the Housing, Repairs and Maintenance Contract Procurement. He highlighted that the repairs and maintenance contract with Cardo had been in place for around 13 years, during which much had changed. He emphasised the necessity of reviewing the council's requirements and identifying the best partner to deliver these services moving forward. Acknowledging that 80% of tenants were satisfied with the repairs and maintenance service and 78% were happy with its timeliness, he expressed that there was still room for improvement.

He stated his desire for Winchester City Council Housing to be easier to do business with, noting that this could mean different things to different people and outlined several key outcomes desired from the new contract:

1. Establishing a partnership rather than a supplier relationship, with the chosen partner representing the council's values in tenants' homes.
2. Improving customer service and experience, including a strong digital offering and continuous customer feedback at all interactions.
3. Enhancing the quality of service to ensure repairs were done right the first time, every time.
4. Ensuring transparency and visibility for both tenants and internal management to effectively oversee operational processes and the contract.
5. Reducing repair costs to deliver value for money to the council and tenants.
6. Fostering continuous innovation to improve services and drive further value.
7. Expanding services beyond repairs and maintenance to potentially include planned upgrades, retrofit activities, decarbonisation of housing stock, voids management, and other future services.

He emphasised that this contract was one of the most important and valuable for the council and sought feedback on the work completed to date to inform the procurement process over the next 18 to 24 months.

Simon Hendey, Strategic Director, Yvonne Anderson, Service Lead - Housing Landlord Services and Jamie Butt, Procurement Officer further introduced the item and provided a presentation and explained the procurement process planned for the next two years leading up to the selection of a new contractor. They detailed the stakeholder engagement activities undertaken:

1. Conducted a resident survey sent to all households in the council's stock, receiving 823 responses, which was considered a positive level of engagement.
2. Hosted resident workshops, although attendance was lower than anticipated, with efforts made to encourage participation.
3. Held discussions with Cardo and CCS to understand what worked well and areas needing improvement.
4. Engaged with housing staff to gather their insights, given their close involvement with the service.
5. Consulted with members to obtain valuable feedback.
6. Reached out to contractors to gauge their interest in the contract, following an advertised invitation and an online event to attract further interest.

They further described the proposed scope of the contract, which would include:

1. Repairs and maintenance services.
2. Voids management to prepare empty homes for new tenants promptly.
3. Compliance services, particularly focusing on the "big six" regulatory requirements.
4. Cyclical and planned programmes.
5. Potential inclusion of the retrofit programme.
6. Consideration of whether the repairs hub would continue to be operated by the council or managed by the provider.
7. Co-location of the provider's team  ...  view the full minutes text for item 9