Decision details

New Street Cleansing Vehicles - APR22/CMDN/95

Decision Maker: Cabinet Member for Waste, Street Scene and the Environment

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

The Cabinet Member for Waste, Street Scene and the Environment:

 

Approved the release of capital funding of £1,373,168 from the capital programme to purchase 6 x 7.5t cage / tipper vehicles and 24 x 3.5t cage / tipper vehicles to be used on the Street Cleansing service operated by Aragon Direct Services on behalf of Peterborough City Council. This includes the cost of £31,000 for the spraying of the vehicles, however this is being investigated further by PCC and Aragon Direct Services, with an aim to have potential options to reduce this cost further.

Reasons for the decision:

The current remaining vehicles used to deliver the services are reaching the end of, or have surpassed their economic life. Maintenance costs have significantly increased, which has also increased down time during which the vehicles are not in productive use.

 

The proposed new fleet is programmed to last until 30/05/2029, to be co-terminus with the end of the OSA initial contract term. This will also mean we will be in a position to consider electric / other options to meet the council’s aim to be carbon neutral by 2030.

 

The procurement was carried out by PCC using an approved framework managed by ESPO, Lots 12 (Tippers) and 15 (Hookloader) of Framework 215_20 Specialist Vehicles. The procurement was separated into 3 Lots; Lot 1: 7.5t tipper vehicles, Lot 2: hookloader and Lot 3: 3.5t tipper vehicles. Of the eight suppliers invited to submit a tender, only one submission was received for Lots 1 and 3, Tippers, from Guest Motors Ltd who subsequently withdrew their submission as market conditions no longer enabled them to meet the quoted price or deliver within the timeframe. Following legal advice, Guest Motors were approached to provide a revised quote and enable direct award of contract for both Lots 1 (7.5t tipper vehicles) and 3 (3.5t tipper vehicles) to Guest Motors Ltd.  PL subsequently required the tipper lorries to be resprayed in blue. This increased the revised quote by £31,680.

Alternative options considered:

Do nothing – this was not considered viable as we would be unable to provide an effective and reliable Street Cleansing service, and we would continue to see vehicle down time and increasing costs of mechanical failure.

It was considered as to whether options to lease vehicles on a short- or long-term basis should be used. This was rejected as the business cases for each area showed that this would be a more expensive option for service delivery.

 

Interests and Nature of Interests Declared:

None.

Background Documents:

None.

Publication date: 22/04/2022

Date of decision: 22/04/2022

Effective from: 28/04/2022

Accompanying Documents: