Purpose of Report. Recommendation

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Cordia (Services) LLP

Report to: Executive Committee – 7th October 2010

Report Date: 23rd September 2010

Report by: The Managing Director of Cordia (Services) LLP Contact: Fergus Chambers, Telephone 0141 353 9130

Award of Contract for Supply, Installation, Provision of Associated Services and

Planned Maintenance of Stair/Through Floor/External Step Lifts

on behalf of 8 Local Authorities

Tender Number: - Cordia (Services) LLP COR002036

Purpose of Report

The purpose of this report is to submit details of the tender received for the provision of supply, installation of stairlifts, including planned maintenance and reactive maintenance, and to recommend the acceptance of the most economically advantageous tender as detailed in this report.

Recommendation

The Executive Committee is requested to approve the recommendations for the supply, installation, provision of associated services and planned maintenance of stair/through floor external steplifts from 18th October 2010 until 17th October 2013/2014 to the 4 suppliers listed in the matrix under Section 2.6 of this report. The estimated annual value is

£2.2 million.

Ward No(s):

Local member(s) advised: Yes No

Citywide:

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1. INTRODUCTION

1.1 This framework contract is for the supply and installation of a range of stairlifts and the associated services, including planned maintenance and reactive repairs. Cordia (Services) LLP has taken a lead role in the procurement of this contract on behalf of EquipU (the partnership and store which provides community equipment across 6 local authorities and NHS Greater Glasgow and Clyde Health Board). The new model for the service delivery of stairlifts will be to integrate this into the Store

operated by Cordia on behalf of EquipU. Glasgow City Council is the lead authority in the EquipU partnership, All the local authorities within the EquipU partnership

(Glasgow Council, South Lanarkshire Council, Renfrewshire Council, East Renfrewshire Council, West Dunbartonshire Council and East Dunbartonshire Council) will

participate in the new framework contract.

1.2 Aberdeen City Council and Aberdeen Council have chosen to participate only in the procurement initiative and will not be involved in any service provision via EquipU.

1.3 It was anticipated at the time of tendering this framework contract that other local authorities may wish to participate in the framework as Scotland Excel have no plans to tender a similar agreement before 2011. This will be pursued by Cordia (Services) LLP.

1.4 This framework contract will provide benefits, arising from the collaborative

approach, for all 8 authorities in terms of procurement. The authorities either had no existing contractual arrangements for stair lifts or believed that this economy of scale would deliver better value for money than their stand-alone contract.

1.5 For the purpose of this tendering exercise the collaborative local authorities are divided into 5 geographical groups.

- EquipU members

- Area 1 – South Lanarkshire Council

- Area 2 – Glasgow City Council, East Dunbartonshire Council

- Area 3 – Renfrewshire, East Renfrewshire and West Dunbartonshire Council

- Partners

- Area 4 – Aberdeen City Council - Area 5 – Aberdeenshire Council

1.7 The scope of works for this contract comprises of supply, installation, servicing, maintenance, removal and storage and any ancillary works as agreed in advance for the fitting or removal of equipment across the participating local authorities. For EquipU partners the estimated number of stairlifts is 4,829, to be maintained with approximately 665 being purchased. Repairs are estimated to be 1,387. For our partner authorities it is estimated at 763, to be maintained, with approximately 164 being purchased. Repairs are estimated at 391.

1.8 Data gathering for this first collaborative framework contract has proved challenging, with a number of authorities (Glasgow City Council, West

Dunbartonshire and East Renfrewshire) all confirming significant gaps in information, particularly on the estimated number of stairlifts to be maintained via this framework contract.

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2. FINANCIAL IMPLICATIONS

2.1 The estimated annual value of this framework contract is approximately £2.2 million. 2.2 An extensive evaluation exercise has been undertaken to establish the most

economically advantageous tender to the 8 local authorities

2.3 The tendering opportunity was advertised in the Glasgow City Council’s Procurement

Portal and the OJEU on 17th June 2010. Subsequently 18 expressions of interest were

received and 9 returned the invitation to tender.

2.4 The tender evaluation was based upon an agreed price score of 40% and quality 60%. A user intelligence group of experts representing the local authorities was formed to undertake the quality evaluation of the tender.

2.5 All areas and lots received sufficient levels of interest from the market place to enable a full most economical tender evaluation exercise to be undertaken. 2.6 The Executive Committee is requested to approve the award of the contract for

supply, installation, provision of associated services, and planned maintenance of stair, through floor, external step lifts to 4 suppliers as detailed below, based on their total quality and price score (max 500).

AREA 1

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AREA 3

AREA 4

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2.7 The tendered saving is a maximum based on standard types of stairlift used in South Lanarkshire which had the best data and could reduce significantly where patterns of use of additional devices are different

2.8 The local authorities participating in this new collaborative arrangement have recognised that in the first year of the arrangement that there is unlikely that any saving will be realised, due to the wide diversity of equipment in the community and the age profile of the equipment, there will be a requirement to remove obsolete stair lifts and to move equipment out of the system as we move to an integrated model across the EquipU partnership.

2.8 The values of spend per contractor are based on local authorities historical data for 2009/10 and may vary dependent upon service requirement over the duration of the framework contract period.

3. SERVICE IMPLICATIONS

Financial The estimated overall revenue saving is a maximum of 23% per

annum.

Legal This contract will be concluded by Cordia (Services) LLP

Personnel None

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Environmental

Considerations A significant element of the delivering of this contract will be therecycling of stairlifts and spare parts, the benefit of which will be shared across the 6 EquipU authorities.

It is also expected that tenderers shall not supply any goods or products which will cause significant damage to the environment during manufacture, disposal or use, which consume a

disproportionate amount of energy during manufacture, use or disposal, which cause unnecessary waste, or which contain materials derived from threatened species or environments.

4. RECOMMENDATIONS

4.1 The Executive Committee is requested to approve the award of contract for supply, installation, provision of associated services and planned maintenance of stair/ through floor/external steplifts to the following suppliers:

- Advanced Stairlifts (Scotland) Ltd

- Minivator Ltd

- Stannah Lift Services Ltd

- Atlas Lifts & Services Ltd

5. FURTHER INFORMATION

5.1 Members or officers requiring additional information on this report should contact David Melvin, Operations Director on 0141 353 9130 or Frances McMeeking, Head of Care Services at Cordia (Services) LLP on 0141 353 9021.

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