Decision details

HRA Energy Efficiency Improvements Project

Decision Maker: Portfolio Holder for HRA & Private Sector Housing

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

To recommend acceptance of £800,000 of capital grant funding from the Green Homes Grant LAD scheme, together with £87,300 of enabling funding. To recommend to Council that an amendment to the HRA capital programme with an adjustment of £265,000 to the energy efficiency budget is approved.
To facilitate the works programme, a contract will be initially awarded to Rybka for consultancy services and Aaron Services Ltd to undertake retrofit work to a value of £1,152,300. (For phases 1b and 2 of the Green Homes Grant LAD scheme.) Further call off works may be drawn down under this framework for up to 8 years at a total estimated contract value of £8,000,000 where future grant funding is secured.

Decision:

1.    To recommend acceptance of Green Homes Grant LAD capital funding of £800,000 and enabling funding of £87,300. To recommend an amendment to the HRA capital programme of £1,152,300, to be funded by £887,300 Green Homes Grant and £265,000 for match funding, required under the scheme.

 

2.    To enable delivery of retrofit works to council properties at a total initial value of £1,152,300 and that Council approve the acceptance of grant funding and the necessary amendments to the HRA capital budget.

 

3.    To award a contract to Rybka for consultancy works and Aaron Services Ltd for retrofit works at an initial value of £1,152,300. To allow future call off works for a period of up to 8 years at a value not exceeding £8,000,000.

 

 

Reasons for the decision:

The initial grant under Phase 1B has to be spent by 30th September 2021. In order to deliver capital improvements to meet this timeframe, a direct award under a framework agreement is considered the most proficient option. By using the CPC framework, the consultants and contractors have proved value for money by being allowed on to the framework. In addition the necessary accreditations required by BEIS including PAS2035 and Trustmark.

 

Entering into a contract for a lengthy period is considered advantageous under the terms of the framework. As there is no commitment to spend as the total contract value is an upper limit. This enables the Council to advantageously bid for future funding opportunities. The benefit of the framework can be regularly reviewed to ensure the Council continues to receive value for money and access to contractors that meet the requirements of the work to be delivered. Alternative procurement options may then be considered.

 

Alternative options considered:

Option 1 - To initially award a contract to Rybka for consultancy services and Aaron Services Ltd to undertake retrofit work to a value of £1,152,300. (for phases 1b and 2) To recommend acceptance of the grant funding offered to the Council together with amendments to the HRA capital programme. To allow a call off on this framework for up to a potential 8 years at a total estimated contract value of £8,000,000. Recommended.

 

Option 2 – Consider alternative procurement options, including an open market tender or a direct award to an alternative framework. It should be noted that this option might cause significant delays in the appointment of a contractor, resulting in the initial grant monies becoming a payback risk. Not recommended.

 

Option 3 – Do nothing. This is not considered a viable option as the Council will have to meet Government’s targets to achieve an EPC C rating in every property by 2035. In addition, the grant monies secured would have to be paid back. Not recommended.

 

Interests and Nature of Interests Declared:

None

Reason Key: Incurring expenditure above £75,000 threshold in respect of revenue/£180,000 in respect of capital;

Wards Affected: (All Wards);

Contact: Jason King, Assistant Director Housing Email: JasonKing@sholland.gov.uk.

Publication date: 20/07/2021

Date of decision: 20/07/2021

Effective from: 28/07/2021

Accompanying Documents: