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1 Meeting Finance and Investment Committee Date Monday 27 th October hours Location Stirling Management Centre, Stirling Title of Paper Tender Evaluation for Furniture Removal Solutions, Storage & Disposal Services to the Scottish Police Authority Item number 10 Presented By Colin Heppenstall For Approval/For Information FOR APPROVAL Appendix Attached No PURPOSE To establish a single supplier contract agreement for furniture removal solutions, storage & disposal services. The Contract is for an initial requirement to relocate relevant departments to Dalmarnock Police Building but will also allow for a service that can be utilised by the Scottish Police Authority for the duration of the contract. The Contract will be for a three year period with the option to extend for a further one year. This paper is being submitted in accordance with the Scheme of Administration, section BACKGROUND 1.1 Currently the Scottish Police Authority do not have a valid contract for removal solutions, storage & disposal services. 1.2 A Framework Agreement for Furniture Removal Solutions, Storage & Disposal Services (Lot 2: Large Scale Removal - Ref: 49) undertaken by Eastern Shires Purchasing Organisation (ESPO) was utilised and a mini competition was carried out using the terms of the framework. 1.3 In accordance with The Public Contracts (Scotland) Regulations 2012 as amended, a mini competition process commenced with an advertisement in the Public Contracts Scotland web portal, inviting the five firms on the ESPO framework (Lot 2: Large scale removal Services - Ref 49) to download, complete and return an Invitation to Tender (ITT) for Furniture Removal Solutions, Storage & Disposal Services to the Scottish Police Authority.

2 1.4 Of the five firms listed on the ESPO framework three firms returned completed tender submissions. 1.5 The offers were evaluated by an evaluation team, consisting of three members of the Dalmarnock Project Delivery Team, to identify the most economically advantageous tender in accordance with the award criteria detailed in the Invitation to Tender. As the exact requirements for both the Dalmarnock Relocation Project and future Scottish Police Authority relocations were unknown, a costing scenario for an imaginary relocation was used to evaluate the price criteria. Summary of Award Criteria Criteria Weighting (i) Quality 50% (ii) Price 50% 1.6 As part of the evaluation process, Suppliers provided a presentation of their tender proposal to the evaluation team. 2 FURTHER DETAIL ON REPORT TOPIC 2.1 Each of the firms who submitted a compliant bid, were evaluated in accordance with the published award criteria as detailed above. 2.2 The overall score for each tenderer is calculated by the addition of the weighted score for each element of the award criteria. 2.3 The offer from Harrow Green Ltd represents the most economically advantageous tender in respect of the Furniture Removal Solutions, Storage & Disposal Services to the Scottish Police Authority. The value of offer shown has been ascertained utilising the Scenario Analysis Model of calculation, where the exact requirement for the term of the contract is unknown but a representative model of the requirement is utilised as part of the analysis model. The relevant score of the recommended firm is listed below. 2.4 Firm Name Score Scenario value of Offer (Ex VAT) Estimated Contract Spend Harrow Green Ltd , Relocation Project 350,000 3 Year Contract 150,000

3 2.5 The other firms who submitted a compliant bid are as follows: Firm Name Score Ranked Position Pickfords Business Solutions nd John Bradshaw & Son Ltd (t/a BCL) rd 3 FINANCIAL IMPLICATIONS Following receipt of the tender submissions, the revised total estimated value of the Contract for the Furniture Removal Solutions, Storage & Disposal Services to the Scottish Police Authority for the period 14 November 2014 to 13 November 2017 is 500,000 (EX VAT). Provision has been made in the Dalmarnock Relocation Project Removals budget for 350,000 and in the Scottish Police Authority budget of 150,000 over the 3 year contract period. The potential procurement saving to the Scottish Police Authority can be predicted in line with savings calculation method 2 of the procurement savings definitions (as presented to the Finance & Investment Committee in November 2013) which is the Comparison to the Average of Other Bids. If one of the unsuccessful offers is above or below the median of the value of the others, this can be excluded from savings calculations method 2 in order to normalise the average of other offers and present a more realistic savings calculation The preferred method of savings calculation, 1 Comparison to the Last Known Price Paid, was not available because of the complexity and differing service provision models in existence within the individual legacy forces, therefore a like for like comparison with this Contract cannot be achieved. Using savings calculation method 2, and taking the difference between the successful offer and 2nd placed unsuccessful offer from the costing scenario, the following savings are predicted: Dalmarnock Relocation Project savings based on an estimated 350,000 spend:- 44,383 ex VAT Scottish Police Authority 3 year contract savings based on an estimated 150,000 spend):- 19,021 ex VAT 4 PERSONNEL IMPLICATIONS 4.1 None

4 5 LEGAL IMPLICATIONS 5.1 This procurement was performed in compliance with The Public Contracts (Scotland) Regulations 2012 as amended and the Police and Fire Reform (Scotland) Act Not entering into a contract for Furniture Removal Solutions, Storage & Disposal Services to the Scottish Police Authority exposes the Authority to the risk of a legal challenge from the supply chain, as the requirement of The Public Contracts (Scotland) Regulations 2012 will have not been followed. 6 REPUTATIONAL IMPLICATIONS 6.1 Failure for Scottish Police Authority to properly provide this service could lead to reputational damage for the Organisation from a number of perspectives. Ultimately the public would suffer from a lack of service, which in turn would lead to lower confidence in Police Scotland and the Police Authority. 7 SOCIAL IMPLICATIONS Tenderers were evaluated on their approach to sustainability and their consideration of Corporate Social Responsibility (CSR). The Scottish Police Authority will work with the successful Tenderer to ensure that recycling, waste management and any available CSR programmes are fully utilised to manage any redundant furniture or equipment throughout the contract period. 8 EQUALITIES IMPLICATIONS 8.1 The tender process ensures that all suppliers sign up to confirm compliance with the Equality Act Furthermore, the tender process for this Contract requested and evaluated: the maintaining of standards and complaints processes; the tenderers methods of communicating and training equalities practices; and the tenderers obligations to ensure subcontractors also work under the guidelines of the Equality Act RECOMMENDATIONS Members of the Finance and Investment Committee are invited to: (i) Approve the award of Contracts in respect of the Furniture Removal Solutions, Storage & Disposal Services to the Scottish Police Authority to Harrow Green Ltd in the estimated sum of 500,000 for the period 14 November 2014 to 13 November 2017, which relates to an estimated 350,000 for Dalmarnock Relocation and 150,000 for a 3 year contract for the provision.

5 (ii) As part of service provision to the Authority by police staff permitted under section 83 (2) of the Police and Fire Reform (Scotland) Act 2012, to instruct Procurement staff within Police Scotland on behalf of the Scottish Police Authority: (1) to issue the appropriate notification under Regulation 32 of the Public Contracts (Scotland) Regulations 2012 of the Authority s award decision; (2) to observe the relevant standstill period required by the said Regulations, (3) subject to there being no challenge by an unsuccessful Tenderer, to prepare, issue and sign, on behalf of the Authority, Contract Documentation; and. (4) thereafter throughout the contract period to place orders as required to satisfy the Organisation requirements for Furniture Removal Solutions, Storage & Disposal Services to the Scottish Police Authority.