Decision details

The report seeks approval to call off the Yorkshire Purchasing Organisation (YPO) Framework for the supply of liquid fuels, initially for a 12-month period with the option to extend for a further 2 years.

That the Executive Director approves:-  

(a) a call off under the Yorkshire Purchasing Organisation’s (YPO) Liquid Fuel Framework to procure the Council’s Liquid Fuel, initially for a 12 month period; and

(b) delegation to the Director of City Centre Development of the decision regarding whether or not to extend that call off for a further 24 months, following the 12 month benchmarking review by the YPO.

The course of action recommended will give the Council a compliant arrangement for the supply of liquid fuels. The framework will also deliver best value in this area.

Independent benchmarking of the framework undertaken by the Council has concluded that the YPO framework offers the simplest and best value route to market and that the recommended supplier for Sheffield is competitive. Further research into other frameworks were carried out which included ESPO and re-contacting the suppliers on the YPO Framework. We had three responses and the suppliers were on both frameworks and offered the same rate on both. Certas Fuels were still the cheapest supplier on all Frameworks and overall best value for money.

Suppliers confirmed that the rates they offered on the framework are considerably cheaper than rates they would be able to offer to individual businesses that tendered their own requirements for fuel. This is due to the massive amount of fuel that YPO purchase and the discount this provides. After comparing the frameworks that were researched, the YPO Framework came out cheapest to call off from as they offer a rebate on fuel purchased (0.0025p per litre).