Decision - Procurement of the Corporate Building Cleaning Contract

(1)       The re-tendering of the building cleaning contract for a 4 year period with the option to extend by a further 2 years at the council’s discretion, in accordance with the tendering timetable included in this report  at item 4.2 to enable the new services to commence in October 2009.

(2)       That the Director of Finance and Resources and Assistant Director Property & Design, in consultation with the Cabinet member for Central Services, be given delegated authority to award the contract to the successful bidder following evaluation and recommendations of the evaluation team.

The existing contract is due to expire in October 2009. A new contract is needed to ensure that council sites are clean, hygienic and well presented to the public and that the buildings are safe for the council’s employees.

(1)       Do Nothing – this was not recommended, as council buildings and schools need to be cleaned, it would not be possible to just let the current contract expire with no alternative in place.

(2)       Bring the service in-house - The possibility of bringing this contract ‘in house’ was considered. The current contract is valued at £1.2 million p.a. in total, a figure that would cover salaries only should we transfer 250+ cleaning/supervisory/contract management and administration staff into our employment. Additional costs would include the replacement of most of the equipment which will be nearing the end of its’ working life, the purchase of 5 vehicles for the Area supervisors, Contract Manager and mobile cleaner. It is estimated that the cost would be approximately £1.4 million p.a. plus the additional work placed on our Human Resources and Payroll teams.

(3)       OGC Framework Agreements – There are no existing framework agreements that Brighton & Hove City Council could use in place of a tender process.