Agenda item

12.1

The Executive Directors, Place and Resources submitted a joint report outlining future options for SCC Property and Facilities Management Services.

12.2

RESOLVED: That Cabinet:-

(a)

notes the contents of the report including the principles and assumptions described and have regards to the risks and mitigations as set out in the report and Appendix A to the report;

(b)

approves the budget required to cover the one-off implementation and set-up costs, as described in Appendix A of the report;

(c)

approves the identified insourcing of Property Management, FM Service Delivery and Security and Events;

(d)

notes the potential contracting-out of a small proportion of specialist property and catering services;

(e)

approves the identified service retendering of Cleaning and Catering services;

(f)

delegates authority to the Executive Director, Resources, in consultation with the Cabinet Member for Finance and Resources:-

·         to carry out the appropriate contractual mechanisms to give notice to Kier Ltd to notify that the contract will not be extended and to carry out all necessary steps to identify and carry out the exit obligations

·         to undertake formal consultation with Trade Unions regarding the transfer of staff engaged on the Kier Ltd contract into the Council and other transfer and transition arrangements (in consultation with the Director of Human Resources as necessary)

·         in consultation with the Director of Human Resources to develop the future structures of in sourced services within his portfolio

·         in consultation with the Director of Commercial Services, Director of Finance and the Director of Legal and Governance to improve a business case for the creation of joint venture arrangements for the Cleaning and Catering services

·         in consultation with the Director of Commercial Services, Director of Finance and the Director of Legal and Governance to approve the procurement strategy and subsequent, contract awards for the outsourced Cleaning and Catering services including where a business case has been approved a joint-venture arrangement

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

·         any other actions he sees appropriate for the effective preparation for and implementation of the insourcing and future delivery of the identified service elements within his portfolio; and

(g)

delegates authority to the Executive Director, Place, in consultation with the Cabinet Member for Finance and Resources:-

·         in consultation with the Director of Human Resources to develop the future structures of insourced services within his portfolio

·         approving the final procurement strategy, contract awards, joint-venture arrangements and agreeing contract terms and entering into the contracts for all necessary associated goods and services (in consultation with the Director of Commercial Services and the Director of Legal and Governance as necessary)

·         any other actions he sees appropriate for the effective preparation for and implementation of the insourcing and future delivery of the identified service elements within his portfolio.

·         ensuring compliance with all relevant legislation to minimise the risk of disruption to the organisation or the public

·         to make arrangements to monitor the performance and delivery of the new service arrangements.

12.3

Reasons for Decision

12.3.1

Each element of the proposed package has been considered on its merits. The proposals are being recommended as providing an appropriate balance between:-

·         Providing quality services, which meet the expectations of customers (both internal customers and the public)

·         Making a considerable, and ongoing contribution to the Council’s savings target, over and above what was envisaged as part of the 2008 contract

·         Maintaining risk (financial, legal, reputational and delivery) within acceptable limits

·         Being affordable and representing best value to the organisation within the short and long term

·         Supporting the organisation to transform its services and deliver differently

12.4

Alternatives Considered and Rejected

12.4.1

To extend the full contract with Kier Ltd based on the service improvements and savings offered within the contract renewal dialogue.

12.4.2

To offer to extend elements of the contract with Kier Ltd based on the service improvements and savings offered within the contract renewal dialogue.

12.4.3

To extend elements of the contract of sufficient duration to enable a specification for retender to be produced and evaluated.

12.5

Any Interest Declared or Dispensation Granted

None

12.6

Reason for Exemption if Public/Press Excluded During Consideration

None

12.7

Respective Director Responsible for Implementation

Eugene Walker, Interim Executive Director, Resources and Simon Green, Executive Director, Place

12.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Overview and Scrutiny Management Committee

12.1

The Executive Directors, Place and Resources submitted a joint report outlining future options for SCC Property and Facilities Management Services.

12.2

RESOLVED: That Cabinet:-

(a)

notes the contents of the report including the principles and assumptions described and have regards to the risks and mitigations as set out in the report and Appendix A to the report;

(b)

approves the budget required to cover the one-off implementation and set-up costs, as described in Appendix A of the report;

(c)

approves the identified insourcing of Property Management, FM Service Delivery and Security and Events;

(d)

notes the potential contracting-out of a small proportion of specialist property and catering services;

(e)

approves the identified service retendering of Cleaning and Catering services;

(f)

delegates authority to the Executive Director, Resources, in consultation with the Cabinet Member for Finance and Resources:-

·         to carry out the appropriate contractual mechanisms to give notice to Kier Ltd to notify that the contract will not be extended and to carry out all necessary steps to identify and carry out the exit obligations;

·         to undertake formal consultation with Trade Unions regarding the transfer of staff engaged on the Kier Ltd contract into the Council and other transfer and transition arrangements (in consultation with the Director of Human Resources as necessary);

·         in consultation with the Director of Human Resources to develop the future structures of in sourced services within his portfolio;

·         in consultation with the Director of Commercial Services, the Director of Finance and the Director of Legal and Governance to approve a business case for the creation of joint venture arrangements for the Cleaning and Catering services

·         in consultation with the Director of Commercial Services, the Director of Finance and the Director of Legal and Governance, to approve the procurement strategy and subsequent contract awards for the outsourced Cleaning and Catering services, including, where a business case has been approved, a joint-venture arrangement;

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

·         any other actions he sees appropriate for the effective preparation for, and implementation of, the insourcing and future delivery of the identified service elements within his portfolio; and

(g)

delegates authority to the Executive Director, Place, in consultation with the Cabinet Member for Finance and Resources:-

·         in consultation with the Director of Human Resources, to develop the future structures of insourced services within his portfolio;

·         approving the final procurement strategy, contract awards, joint-venture arrangements and agreeing contract terms and entering into the contracts for all necessary associated goods and services (in consultation with the Director of Commercial Services and the Director of Legal and Governance as necessary);

·         any other actions he sees appropriate for the effective preparation for and implementation of the insourcing and future delivery of the identified service elements within his portfolio;

·         ensuring compliance with all relevant legislation to minimise the risk of disruption to the Organisation or the public; and

·         to make arrangements to monitor the performance and delivery of the new service arrangements.

12.3

Reasons for Decision

12.3.1

Each element of the proposed package has been considered on its merits. The proposals are being recommended as providing an appropriate balance between:-

·         Providing quality services, which meet the expectations of customers (both internal customers and the public)

·         Making a considerable, and ongoing contribution to the Council’s savings target, over and above what was envisaged as part of the 2008 contract

·         Maintaining risk (financial, legal, reputational and delivery) within acceptable limits

·         Being affordable and representing best value to the Organisation within the short and long term

·         Supporting the Organisation to transform its services and deliver differently

12.4

Alternatives Considered and Rejected

12.4.1

To extend the full contract with Kier Ltd based on the service improvements and savings offered within the contract renewal dialogue.

12.4.2

To offer to extend elements of the contract with Kier Ltd based on the service improvements and savings offered within the contract renewal dialogue.

12.4.3

To extend elements of the contract of sufficient duration to enable a specification for retender to be produced and evaluated.