Proposed decision
(i) APPROVE the procurement and contract award of a zero value Highways Term Maintenance Contract.
(ii) DELEGATE authority to the Corporate Director of Growth Environment & Transport, to take relevant actions to facilitate the required procurement activity;
(ii) DELEGATE authority to the Corporate Director of Growth Environment & Transport in consultation with the Cabinet Member for Highways and Transport, to take relevant actions, including but not limited to, awarding, finalising the terms of and entering into the relevant contracts or other legal agreements, as necessary, to implement the decision; and
(iii) DELEGATE authority to the Corporate Director of Growth Environment and Transport, in consultation with the Cabinet Member for Highways and Transport, to award extensions of the contract in accordance with the relevant clauses within the contract.
Background and reason for decision
Our 5,400-mile road network in Kent has a replacement value of £10.2 billion. It plays a vital part in delivering council objectives set out in Framing Kent’s Future by enabling safe and reliable journeys around and through the county. Our roads support social wellbeing and economic prosperity. They are essential for emergency services to execute their work: policing, healthcare, fire, and emergency response provision all require an effective highway network. These services are a key part of a functioning society which cannot exist without well-maintained and well-managed roads.
Under Section 41 of the Highways Act 1980 the council has the legal duty to maintain its highways and all highway assets (e.g. bridges, tunnels, drainage etc). This duty includes responsibility for maintaining, managing and where necessary improving sections of the network and to keep the highways safe for the travelling public. These contractor services need to be commissioned externally to ensure the Council meets its statutory obligations and that service continuity is maintained.
Other options considered but discarded:
Deliver in-house: It has been established that there is no internal resource to deliver a contract of this size and complexity and that a commercially procured contract would be required through a provider with extensive ability and expertise
Do nothing. The current HTMC contract cannot be extended any further. New contractual arrangements must be in place from 1st November 2025 to allow time for implementation and mobilisation and to ensure service continuity from the 1st May 2026. Failure to commission services beyond this date will put KCC at risk in failing to deliver its statutory obligations to maintain the Highway, as the Highway Authority.
How the proposed decision supports Framing Kent’s Future 2022-2026: (https://www.kent.gov.uk/about-the-council/strategies-and-policies/corporate-policies/our-council-strategy)
The proposed decision relates to Framing Kent’s Future priority Infrastructure for communities by ensuring our highways are safe and reliable for people to access employment, education, health provision and leisure opportunities
How the proposed decision supports Securing Kent’s Future: Securing Kents Future - Budget Recovery Strategy.pdf
The proposed decision relates to Securing Kent’s Future to review all contract spend to ensure the new contract delivers best value for money.
Decision type: Key
Reason Key: Affects more than two Electoral Divisions;
Decision status: Recommendations Approved
Division affected: (All Division);
Notice of proposed decision first published: 10/09/2024
Decision due: Not before 9th Oct 2024 by Cabinet Member for Highways and Transport
Reason: To allow 28 day notice period required under Executive Decision regulations
Lead member: Cabinet Member for Highways and Transport
Lead director: Haroona Chughtai
Department: Growth, Environment & Transport
Contact: Andrew Loosemore, Head of Highway Asset Management Email: andrew.loosemore@kent.gov.uk Email: andrew.loosemore@kent.gov.uk Tel: 03000 411652.
Consultees
The proposed decision will be considered by the Environment and Transport Cabinet Committee on 19th September 2024
Financial implications: There are reduced financial risks to the Council from developing this zero-value contract, as the Council is only required to pay for work after it has been delivered. However in order to meet our the statutory duties there is a minimum value that will need to be placed through this Contract. In establishing the zero-value contract, Kent County Council does not commit in any way to awarding any volume or value of works to the appointed contractor. This will allow flexibility where services required may be affected by KCC budgetary pressures and uncertainty around internal and external funding. Throughput on this contract is expected to be between £50m and £60m as this is the current level of spend. This is based on circa one third revenue and two thirds capital. Capital expenditure is made up of DfT grant funding and KCC funding. Expenditure is aligned to revenue and capital annually agreed budgets.
Legal implications: Under Section 41 of the Highways Act 1980 the council has the legal duty to maintain its highways and all highway assets (e.g. bridges, tunnels, drainage etc). This duty includes responsibility for maintaining, managing and where necessary improving sections of the network and to keep the highways safe for the travelling public. These contractor services need to be commissioned externally to ensure the Council meets its statutory obligations and that service continuity is maintained.
Equalities implications: Equalities: An Equality Act Impact Assessment screening has been carried out and it is judged that the proposals do not disproportionately affect protected groups. Data Protection implications: A DPIA was completed and is not require as there is no processing of personal information.