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Decision details

Cleaning Services for Sheffield City Council's Buildings and other Premises.

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

Decision regarding the future delivery of cleaning services for Sheffield City Council’s buildings and other premises.

 

Decision:

10.1

The Executive Director, Place, submitted a report setting out options and recommendations to Cabinet on future delivery options for its Cleaning Services contract.

 

 

10.2

RESOLVED: That Cabinet:- 

 

 

 

(a)

For the short term - notes that the Executive Director, Resources in consultation with the Director of Finance and Commercial Services, the Director of Legal and Governance and the Cabinet Member for Finance, Resources and Governance, will use the delegation (given in a decision taken by the Cabinet on 16 September 2015) to consider and approve an extension of the current Cleaning Contract with Cordant for 12 months from 1 July 2019 until 30 June 2020 (inclusive);

 

 

 

 

(b)

For the long term :-

 

 

 

 

(i)

notes the contents of the report including the principles and assumptions for the purpose of making recommendations and risks and mitigations set out in the report and Appendix;

 

 

 

 

(ii)

approves the insourcing of the cleaning service to the Council within Transport & Facilities Management in the Place Portfolio, after the extension of the Contract expires;

 

 

 

 

(iii)

delegates authority to the Executive Director, Place, in consultation with the Director of Human Resources, the Director of Finance and Commercial Services and the Director of Legal and Governance:

 

 

 

 

 

(A)

to undertake formal consultation with Trade Unions regarding the transfer of staff engaged by Cordant who, under the TUPE Regulations 2006 (Amended), would transfer into the Council and any other transfer and transition arrangements (where applicable);

 

 

 

 

 

(B)

to make arrangements to monitor the performance and delivery of the new service arrangements; and

 

 

 

 

 

(C)

to take all other necessary steps not covered by existing delegations to achieve the outcomes outlined in the report.

 

 

 

10.3

Reasons for Decision

 

 

10.3.1

12 Month Extension

 

 

 

·           Despite the issues outlined in section 1, steps are being taken to address the current performance. 

 

·           Cordant has appointed a new operational manager for the service which is starting to have an impact as there is a much stronger focus on performance management. 

 

·           A specific performance indicator has been implemented which addresses the payroll performance and again this is starting to have an impact as levels have started to reduce. 

 

·           This option will provide continuity of service and a value for money solution for the next 12 months whilst plans can be put in place to deliver the longer term solution for the service.

 

 

10.3.2

Insourcing

 

 

This option is recommended as, by insourcing the service, the following benefits could be achieved:-

 

 

 

·           It will increase the ability to support some of the lowest paid staff.  More often than not these are part time female workers.

 

·           A working environment which values staff, has effective consultation, good terms and conditions, effective training and offers increased opportunity for development.

 

·           The flexibility to respond positively to changing policies to help meet strategic goals such as addressing low pay inequalities.

 

·           It also gives the Council the ability to be more flexible in its service delivery i.e. by shifting resources quickly to tackle changing local needs and emergencies which can be more challenging with outsourced contracts.

 

·           It will allow the Authority an influence over procurement and supply chains which with outsourced services rests with the contractor.  By doing this, decisions can be made which reflect the Councils ambitions for local supply and the environment.

 

·           Insourced services have the potential to deliver significant social value benefits and boost the local economy through the employment of staff with a clear workforce development strategy, payment at a minimum of the ‘real Living Wage’, providing added value to services such as supporting local communities; improving environmental performance and sustainability and offering opportunities for vulnerable groups.

 

·           Bringing the service back in house will also give the Council greater control of being able to deliver efficiency savings.

 

 

10.4

Alternatives Considered and Rejected

 

 

10.4.1

Option 3 – Retendering

This option is considered to be viable and also a cost effective way to move forward in the short term.  However, taking into account the benefits of insourcing for the long term and also for community, this option is not recommended.

 

 

10.4.2

Option 4 – Hybrid Model

This option is not recommended at this stage as more internal resources may be required to monitor both insourcing and outsourcing service delivery models.

 

 

10.4.3

Option 5 – Teckal company

This option will need more time to review and establish due to its complexity, so it is not recommended at this stage.

 

 

10.4.4

Option 6 – Collective Ownership Model

This option is not recommended as it is not clear to Officers whether it would bring any additional benefits to the Council other than those being covered in insourcing and Teckal company.  

 

 

10.5

Any Interest Declared or Dispensation Granted

 

 

 

None

 

 

10.6

Reason for Exemption if Public/Press Excluded During Consideration

 

 

 

None

 

 

10.7

Respective Director Responsible for Implementation

 

 

 

Laraine Manley, Executive Director, Place

 

 

10.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

 

 

 

Economic and Environmental Wellbeing

 

Report author: Andrew Kemp

Publication date: 30/05/2019

Date of decision: 29/05/2019

Decided at meeting: 29/05/2019 - Cabinet

Effective from: 06/06/2019

Accompanying Documents: