Decision details

Reason for the decision:

Kent County Council (KCC) is the Statutory Authority responsible for the delivery of highway services for the residents of Kent (excluding Medway). The Highway Term Maintenance Contract (HTMC) is delivered by Amey Highways Ltd and the contract is managed by Highways and Transportation (H&T). This will expire in August 2023 which includes the initial ten-year term and subsequent extension due to COVID-19.

To procure a replacement contract is complex and time consuming. To deliver the programme, a longer lead time is required to finalise the strategy and outline the contract requirements. The procurement and mobilisation process should in best practice require 27 months. This allows for float for any unexpected issues and mobilisation to protect KCC’s statutory obligation.

Due to Winter Service requirements, the recommended period for any new contracts to commence is late spring/early summer. This allows preparation for Winter Service (which formally starts in October) and includes securing/maintaining vehicles, salt purchase, route optimisation and driver recruitment and training. To deliver the programme, a longer lead time will allow for sufficient market engagement, finalise an appropriate strategy and outline the new contract requirements. A procurement programme will ensure a new contract will commence from 1^st May 2026. An interim 32-month contract with Amey Highways is required.

Background:

The current arrangement commenced on 1 September 2011 and has been worth between £40m and £50m per annum split across revenue and capital budgets which is dependent on certain grants and KCC funded elements. Several key services are delivered through this contract including:

•           Winter Service Provision – i.e. gritting of our major routes during freezing conditions.

•           Drainage Maintenance and Capital Projects – i.e. gully cleansing and drainage repairs.

•           Structures Maintenance – i.e. bridge repairs and construction.

•           Patching and Small Resurfacing Services – i.e. pothole and surface defect repairs.

•           Surface Treatments – i.e.  road and footway surface preservation and life extension.

•           Emergency Response – i.e. supporting emergency services in response to incidents across the network including weather events and structural failure.

•           Highway Schemes Delivery – i.e. construction of highway improvement schemes, including those for crash remedial measures and s106 requirements.

Due to the aftermath of COVID-19 and the market volatility due to demand, inflation and raw material availability, the re-procurement of a strategic contract of this kind at this time would represent an elevated risk for the Council (and would not elicit or enable a good market response).

Options (other options considered but discarded):

Re-procure on a like-for-like basis.

Disaggregate the contract and procure smaller contract packages.

A partnering (Highway Alliance) model developed jointly between the Council and Commercial Services Kent Limited (CSKL).

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)

Priority 2: Infrastructure for communities

This framework will support the delivery of maintaining, repairing and installing drainage assets on the Kent highway network to a safe standard which in turn impacts on Kent residents’ accessibility to employment, education, health provision and leisure opportunities.

Data Protection implications:

The initial screening identified that a Data Projection Impact Assessment will not be necessary as no personal data is collected for this commission.

As Cabinet Member for Highways and Transport, I agree to:

a)         a new contract is awarded to Amey for 32 months;  

b)         give delegation to the Corporate Director of Growth, Environment and Transport, in consultation with the Cabinet Member for Highways and Transport, to take relevant actions including but not limited to entering into contracts and other legal agreements, as necessary to implement the decision; and

c)         agree to the proposed procurement timeline for the replacement contract.