Agenda item

Purpose of report:

To provide the Select Committee an update on the Procurement of the Term Maintenance Contract and some of the key features of the new arrangements scheduled to start in April 2022.

Witnesses:

Matt Furniss, Cabinet Member for Transport and Infrastructure

Katie Stewart, Executive Director – Environment, Transport and Infrastructure

Lucy Monie, Director, Highways and Transport

Paul Wheadon, Business Improvement and Consultancy Team Manager

Key points raised during the discussion:

1. The Select Committee welcomed the report on the Procurement of the Term Maintenance Contract and some of the key features of the new arrangements scheduled to start in April 2022.

2. The questions posed by the Committee to Cabinet Members and officers, together with the report, provided a sound insight into how over the past 12 months, Surrey County Council had overseen an exhaustive, complex procurement process to drive the best outcomes in each of the bidder’s tenders.

3. The Select Committee understood that Council had undertaken a Competitive Procedure with Negotiation (CPN) procurement exercise which allowed both the Council and bidders to discuss and develop their proposals in several stages, allowing open discussion and negotiation to enable each bidder to eventually put forward their best submission.

4. This approach allowed the Council to test and improve each bidder’s tender, giving confidence in the substance of the written submission, detailed scrutiny of the associated pricing to deliver those services, understanding of where risk pricing had been included, and allowing - where appropriate - the reallocation of risk to reduce the artificial inflation of prices.

5. The Select Committee noted that the process to finalise the new contractor was to formally conclude soon with a report for the Cabinet at its next meeting, to approve the award of the Term Maintenance Contract to the successful bidder. Confidential information about this process and the name of the successful provider had been shared with the Members of the Select Committee privately before this meeting. The Committee was grateful to the Cabinet Member for Transport and Infrastructure for this commitment to collaborative working.

6. The Select Committee was reassured to learn that following the awarding of the contract, the Council would work with the successful contractor’s senior management teams to implement their mobilisation plan. Also, a communication plan would be developed and implemented to advise stakeholders on the award to the successful bidder.

Recommendations:

While supporting the contents of the Report and the rigorous process leading to the award of the contract, the Committee recommends:

1. Timely and robust details of the specific improvements Surrey residents will be expecting from this new contract, particularly regarding the reporting of and quality of work on potholes and other highways matters and the overriding importance of ‘Right First Time’.

2. Early publication of the chosen contractor’s commitment to “improve engagement with residents” and improve communication with them on planned works etc. and collaboration more generally. This should also involve elected Divisional members. The Reference Group of Councillors which has been involved throughout the contracting process can play a constructive role in helping shape these.

3. That a robust process remains in place for the transition phase and initiated for mobilisation period.

4. That unannounced and random spot checks on a regular basis be considered as part of an effective contractual management process; the contract is easy to understand with strong governance and monitoring provisions for dispute resolution mechanism and in an unlikely termination scenario from Surrey County Council’s perspective.

5. More publicity/communication be considered for social value activities and projects undertaken as part of the new partnership.