Issue details

20/00092 - Highway Term Maintenance Contract Extension

Decision:

The Cabinet Member for Highways and Transport is asked to approve the award of a 20-month extension with Amey until 30th April 2023.

 

Reason for the decision:

Kent County Council is the statutory Authority responsible for the delivery of highway services for the residents of Kent (excluding Medway). Under the Highways Act 1980, as the local Highway Authority, the Council has a legal duty to maintain its respective sections of the highway network under section 41. This    includes responsibility for maintaining, managing and, where necessary, improving their section of the network.

 

The Highway Term Maintenance Contract (HTMC) delivers a large number of services which are currently provided by Amey which is due to terminate on the 31 August 2021.

 

To procure a replacement contract is complex and time consuming. The original programme was extremely tight with minimal time to deal with unforeseen circumstances. The COVID-19 pandemic impact has meant that it is not possible to deliver that programme. It is proposed to mitigate against this risk that the contract is extended until 30 April 2023.

 

Background:

A commissioning programme which focused on reviewing the current contractual arrangements on how these should be delivered post 2021 was underway. Good progress was made, but due to the COVID-19 pandemic and the associated            measures taken by government, the re-procurement of a strategic contract of this kind at this time would represent a high risk for KCC.

 

Reason for Urgency:

Due to the lead times to procure a replacement contract, a decision for the extension needs to be taken to ensure KCC is able to meets its statutory obligation and secure stability for the forthcoming year.

 

Procurement Policy Note (PPN) 01/20 provided advice and guidance for central and local government authorities to consider when evaluating the effects of the COVID-19 pandemic on its contracts with any decision subject to this legislation being shared with the wider market through a modification notice.  It is expected that central and local government implement a return to business as normal by October 2020 and thus all decisions will be required to be taken by this date.

 

Decision type: Key

Reason Key: Expenditure or savings of more than £1m;

Decision status: Recommendations Approved

Division affected: (All Division);

Notice of proposed decision first published: 14/08/2020

This decision will be taken under urgency procedures.

Anticipated restriction: Part exempt  - View reasons

Explanation of anticipated restriction:
Legal advice included commercially sensitive information.

Decision due: 14 Aug 2020 by Cabinet Member for Highways and Transport
Reason: Urgent Decision

Lead member: Cabinet Member for Highways and Transport

Lead director: Barbara Cooper

Department: Growth, Environment & Transport

Contact: Simon Jones, Director of Highways, Transportation and Waste Tel: 03000 411683 Email: simon.jones@kent.gov.uk.

Consultees

Is any public consultation planned or has already been undertaken?

 

No

Cabinet Committee consultation planned or undertaken. If planned – which meeting do you wish to attend?

 

No Cabinet Committee consultation is possible due to urgency process. Under this process, comments will be sought from the Chair and Group Spokesmen of the Scrutiny Committee and the Chair and Group Spokespeople of the Environment and Transport Cabinet Committee.

Financial implications: This will defer a forecasted £2.4m MTFP increase for two years.

Legal implications: Legal advice has been commissioned and considered for this decision. It is proposed to enact regulation 32/72 of the PCR 15 to extend the contract.

Equalities implications: An Equalities Impact Assessment has been carried out and no adverse impacts have identified at this stage.

Decisions