Portsmouth City Council - Term Service Contracts for the Repairs & Maintenance of Residential and Commercial Properties for Council Managed Assets - 2026

Description

Portsmouth City Council (the Council) intends to appoint two suppliers to deliver repairs and maintenance services for its housing stock through two separate contracts, with one of these suppliers also taking responsibility for Corporate Assets. Contracts will run for an initial five year term, with the option to extend for up to a further five years in agreed intervals. The opportunity is divided into three lots: • Lot 1 - On Island Repairs & Maintenance (£14M-£18M p.a.) • Lot 2 - Off Island Repairs & Maintenance (£14M-£18M p.a.) • Lot 3 - Corporate Assets Repairs & Maintenance (approx. £0.75M p.a.) A single shortlisting exercise applies to all three lots. Only suppliers who pass Stage 1 will be invited to Stage 2. Under Stage 2, suppliers must submit one tender covering both Lots 1 and 2, state their preferred lot, and submit a separate submission for Lot 3. The highest ranked supplier will receive their preferred lot, and the second ranked supplier will be awarded the remaining lot. If any supplier declines an award, the Council may set aside that submission and approach the next ranked supplier. Only suppliers submitting fully compliant bids for both Lots 1 and 2 will be eligible for Lot 3, and only the two appointed suppliers for Lots 1 and 2 will be considered. Suppliers cannot tender directly for Lot 3. The Council manages approximately 17,500 homes, including around 15,500 socially rented and 2,000 leasehold properties. Most dwellings are 1950s-1960s purpose built blocks. Historically, stock has been divided into on island (PO1-PO5) and off island (PO6-PO9), with recent acquisitions adding around 800 homes in Gosport, Fareham and Winchester. Corporate Assets are currently managed by the on island contractor and cover around 550 buildings, mainly in PO1-PO5. Around 16,000 repairs per year are completed on island and 15,000 off island, volumes expected to remain stable. Up to 1,000 new dwellings may be added over the next 5-10 years. New workstreams are likely as decarbonisation measures and renewables roll out across the stock. The Council anticipates future challenges over the next decade, including changes from the Building Safety Act and Fire Safety Act, greater compliance scrutiny, increased requirements around information accuracy, and more focus on issues such as damp and mould under Social Housing Regulator oversight. Suppliers must work collaboratively with the Council to meet these demands. The existing two housing R&M contracts (NEC4 Option E) have operated for 10 years plus a 12 month extension and will expire on 31 March 2027, with a combined total value of approximately £400m. Services provided include responsive repairs, void works, disabled adaptations, decorations, compliance testing, solar panel repairs, fire safety checks, and various appliance servicing. Corporate Assets cover a wide range of buildings including schools, offices, warehouses, depots, care homes, sheltered housing, supported living sites, and maritime facilities (the latter will be procured separately). Approximately 2,000 repairs per year are completed at an annual value of £750k. Core services include general repairs, smoke/heat detector checks, EICRs, emergency lighting, ventilation checks, MVHR repairs, asbestos removal, fire doors, door entry systems, warden call, PV maintenance, void works, and out of hours services. Suppliers must provide a 365 day out of hours service. Ancillary services may include decarbonisation works, air source heat pumps, water hygiene repairs, communal ventilation, on/off island repairs, Corporate Asset works, and gas servicing in emergencies. The Specification sets out functional and performance requirements and may be updated before Stage 2. Repairs to Corporate Assets (Lot 3) will be delivered by either the Lot 1 or Lot 2 supplier to ensure consistency, clear accountability, and value for money. This approach supports operational efficiency and allows flexibility in preparation for potential Local Government Reorganisation (LGR). Should LGR occur, the Council may inherit a significantly larger Corporate Asset portfolio, potentially adding several million pounds per year to R&M demand. In such circumstances, the Council may vary the Lot 3 contract, create a new lot open only to the Lot 1 and Lot 2 suppliers, or run a separate procurement. The Council expects requirements to remain broadly consistent but may adjust scope, boundaries, or statutory obligations to reflect any LGR driven changes. Suppliers will be expected to work collaboratively with the Council and with other term contractors. Previous contracts have used an open book partnership model and Vanguard Systems Thinking, which the Council expects to continue. Further information is available at: https://vanguard-method.net/the-vanguard-method-and-systems-thinking/ The Council is committed to improving social value delivery. Information can be found at: https://www.portsmouth.gov.uk/services/council-and-democracy/social-value/ To support organisations that cannot deliver the full contract scope but wish to offer services to main bidders, the Council will maintain a voluntary list of interested subcontractors and supply chain partners. Suppliers wishing to offer their services as sub-contractors should contact the Council via the In Tend correspondence function and provide their company name and reference number, contact details, a brief description of services, relevant experience, and website address. The Council will collate this information and share it with all main bidders on a no liability, no guarantee basis. Inclusion on the list does not constitute endorsement, pre qualification, or recommendation. Main bidders are solely responsible for assessing the suitability, capability, and compliance of any subcontractors they choose to engage. Local Government Review As part of the wider Local Government Review (LGR), the Council has been required to engage with neighbouring authorities to explore future structural reform, shared service opportunities, and alignment of governance arrangements. The UK Government has now confirmed its decision regarding Local Government Reorganisation across Hampshire and the Isle of Wight. Under the confirmed proposals, Portsmouth City Council will become part of a new, larger unitary authority covering the areas of Gosport, Fareham and Havant, and including Newlands, Horndean, Clanfield and Rowlands Castle. The new unitary authority will formally come into existence on 1 April 2028, at which point Portsmouth City Council, as it currently exists, will be legally dissolved on 31 March 2028. While the new authority's service delivery model has not yet been finalised, the reorganisation will merge all existing local authority service responsibilities within the new boundary. This means that current demand, scope and operational requirements for Repairs & Maintenance (R&M) services may change substantially as part of the transition, depending on the final asset base, stock profile, and governance arrangements determined for the new authority. For Portsmouth's current footprint alone, the estimated 10‑year total contract value remains within the region of £336M to £450M, taking into account inflationary pressures, anticipated stock growth, decarbonisation workstreams, and increased compliance requirements. Following LGR, the total opportunity value is expected to increase materially, due to the combined housing stock, broader corporate estate, additional operational buildings, wider geographical footprint, and increased repairs demand integrated from the merging authorities. The Council will continue to plan responsibly for the transition and reserves the right to modify the contract in line with Schedule 8 of the Procurement Act 2023 should the confirmed LGR arrangements require changes to scope, value or delivery structure. For planning purposes, and in the absence of confirmed stock and asset figures from potential partner authorities, an initial estimate is that the overall maintenance requirement may increase by 50% to 70% relative to Portsmouth alone. On this basis, the inflation adjusted 10 year total opportunity value is estimated at between £504M and £765M. Hampshire County Council (HCC) is currently procuring a single‑supplier £250 million, 10‑year Term Maintenance Contract (2026-2036) covering building fabric and M&E services across approximately 825 sites, including schools. Depending on the outcome, the appointed HCC contractor may continue to manage part or all of these assets following LGR, meaning little or no change in scope may initially arise for the Corporate Assets element of this procurement. However, if the new unitary authority assumes direct responsibility for HCC Corporate Assets within the reorganised boundary, the new Authority anticipates inheriting a substantial proportion of this service portfolio. Based on indicative modelling, the inherited Corporate Assets R&M requirement may be in the region of 20% of the HCC contract value, although the Council reserves the right to exceed this estimate if future Government directions or statutory transfers require it. 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/ 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/ For additional information in relation to known risks, see the later section within the notice below in relation to other information.

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