Portsmouth City Council - Term Service Contract for the Repairs & Maintenance Residential and Commercial properties for Council Managed Assets

Description

Overview of Procurement Objectives Portsmouth City Council (the Council) is seeking to procure repairs and maintenance services for its housing stock through two individual contracts, with a combined total value in the region of £36M per annum. To meet the distinct geographical and logistical needs of service delivery, the procurement will result in two separate contract awards, one for properties located on "on-island" and one for those located ''off-island''. The successful contractors will be expected to deliver a responsive, high-quality service that ensures safe, well-maintained homes for residents while demonstrating value for money and alignment with the Council's strategic objectives. Each individual contract has an estimated annual value between £14M to £18M based on current historic spend. The contracts will be let for an initial base term of five years, with the option to extend for up to a further five years in intervals to be agreed. Based on anticipated inflationary uplifts and potential growth in housing stock, the total individual contract spends over the potential 10-year term (5-year base with options to extend) is expected to range between £168M and £225M. Therefore, based on current market conditions, the total combine spend over the 10-year lifetime of both contracts could be in the region of £336M to £450M. The impacts of Local Government Review have not been considered in this current value and the likely increases in the total value of the opportunity, brought about through the reform, will be addressed when the formal tender notice is issued. Housing Stock Information The Council has a housing stock of approximately 17,500 properties of which approximately 15,500 are socially rented and then there are approximately 2000 leasehold properties. Within the stock there is a mix of housing types including houses and bungalows; however the majority of the dwellings are within purpose-built blocks of flats constructed in the 1950s and 1960s. Traditionally the estate has been spread across the two geographical areas of Portsea Island (on-island, PO1 to PO5) and Paulsgrove and Havant (off-island, PO6 to PO9). A recent acquisition of approximately 800 properties has however subsequently increased the 'off-island' area to sites in Gosport, Fareham and Winchester. Current & Future Demand Over the last 5 years there have been approximately 16,000 annual general repairs and maintenance tasks undertaken across the 'on-island' housing stock and 15,000 annually across the 'off-island' housing stock, which is likely to remain consistent over the course of any new contract. The Council is currently working on a number of development options, and it is anticipated that within the next 5-10 years there is potential for up to 1000 additional dwellings to be created that will require some level of maintenance and consequently will need to be absorbed into any new contract. Over the course of the contract, it is likely that new workstreams will be introduced particularly as the stock is decarbonised and alternative renewables are implemented. Changing Context and Objectives Over the next 5-10 years the Council is expecting to experience a number of challenges with regards to the maintenance of its housing and general fund properties with any incumbent provider to work in partnership with the Council to ease pressures where they can. Significant changes in legislation such as the Building Safety Act and Fire Safety Act will require greater scrutiny from suppliers to ensure they are working in a compliant way and may require them to adopt new skills such as undertaking works as a result of Building Safety Cases for buildings of 6+ storeys. There will be more focus on the accuracy and timely manner of up-load of compliance information and ensuring repairs, particularly around damp and mould are well managed and resolved and will be monitored by the Social Housing Regulator. Local Government Review As part of the wider Local Government Review (LGR), the Council is required to actively engage in discussions with neighbouring authorities to explore potential opportunities for collaboration, shared service delivery, and governance alignment. While this engagement is ongoing, no formal decisions or agreements have been reached at this stage. Under current LGR proposals, it is likely to require Portsmouth City Council to form a new Authority by merging with other neighbouring Authorities. For Portsmouth, this will result in a new Council being created to provide the same services to everyone in the city, whilst covering a larger area and have a different name. Effectively all the current council services in the new council boundary would be merged to create a new Council. The Council can only confirm its current demand and scope of requirements; however, this may be subject to change should additional needs arise from other local authorities as part of wider structural reforms. Any tender opportunities and contracts will be structured to allow adjustments in the scope of services and the value of contracts to the Council to respond to changes in demand and budgetary constraints, whilst ensuring that services remain efficient and continue to provide value for money. Additionally, provisions will be included to adapt to changes in geographical boundaries resulting from any reorganisation. This will ensure that services can be extended or retracted to align with new administrative areas. In the event of reorganisation, contracts will include clauses that allow for the assignment of the contract to successor authorities. Any assignment clause is likely to state any contract may be assigned to any new authority that succeeds the original contracting authority. For further details in respect of LGR see the following link - https://www.portsmouth.gov.uk/services/council-and-democracy/devolution-and-plans-for-local-government-reorganisation/ Existing R&M Contract Two term service providers have managed the general repairs and maintenance requirements across the housing stock under an NEC 4 Option E Cost Reimbursement contract. Each service provider has covered a distinct geographical area with one provider being responsible for 'on-island' repairs and one contractor being responsible for 'off-island' repairs. The 'on-island' contractor also manages repairs to a number of the Council's corporate assets. The contract with each service provider has been in operation for just under 10 years and will expire in March 2026 with an estimated overall combined contract value of approximately £400m split fairly evenly across both geographical areas. The existing arrangement has incorporated a number of functions and has included but is not exhaustive of: • General responsive repairs • General void property works • Disabled adaptations • Decorations • Compliance testing • Solar panel repairs • Fire door, sprinkler and smoke detector checks • Catering and Laundry Appliance Servicing and Repairs New R&M Contract The new contracts will mirror the existing arrangement with a geographical separation by on and off island. Two contracts supplied by two contractors will be established, one for the on-island properties and one for the off-island properties. Both contracts will be run under an NEC 4 Option E Cost Reimbursable basis with an initial base term of 5 years with the option to extend the contractor for a further 5 years, in increments to be agreed. The Council are estimating the value per contractor will be in the region of £14m-£18m per annum. The core scope of works will include but not limited to: • General Repairs and Maintenance • Smoke/Heat Detector Checks • EICRs • Emergency Lighting • Ventilation Checks • MVHR Testing and Repair • Asbestos Removal • Fire Door Installation and Maintenance • Door Entry Systems • Warden Call • PV Maintenance • Void Works • Out of Hours The contract may also require the following to covered or taken forward and will include but not limited to: • Decarbonisation • Air Source Heat Pumps • Water Hygiene Repairs • Communal Ventilation • On and Off Island Repairs • Corporate Asset Repairs While not fully determined it is possible that Repairs to the Council's Corporate Assets will be taken forward by either the on island or off island contractor. The on-island contractor is responsible for approximately 550 assets across both geographical areas; however these are predominantly within the PO1-PO5 postcode. The Council's broader property portfolio encompasses a range of building types which include but are not limited to: • Schools • Offices • Commercial buildings, warehouses and depots • Care homes • Sheltered housing and supported living properties • Maritime port facilities With reference to the corporate assets supported by the 'on-island' contractor there have been approximately 2000 repairs annually over the term of the contract at a value of approximately £750k per year. Partnership Working In addition to working in close partnership with the council, the supplier will also be required to work in partnership with the council's other existing term service contractor partners. Systems Thinking Approach The previous contracts have been managed on a full open book partnership basis with adoption of a range of Vanguard Systems Thinking designed processes and performance measures. The Council envisages these principles will still form part of any ongoing delivery strategy for Repairs & Maintenance contracts. Further information on System Thinking can be freely accessed via the Vanguard site using the link below. https://vanguard-method.net/the-vanguard-method-and-systems-thinking/ Social Value The Council are committed to continuously reviewing and improving the approach to social value delivery, and suppliers can find further information using the following link - https://www.portsmouth.gov.uk/services/council-and-democracy/social-value/

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