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

Award outcome

Description

AWARD & STANDSTILL PERIOD Following receipt of tenders on 11th September 2026 the Council has concluded the assessment process and issued assessment summaries to the successful and unsuccessful suppliers as required under Section 50 of the Procurement Act 23 (the 'Act'). The Council reserves the right to amend (extend) the Standstill Period if needed; if this right is exercised, the Contract Award Notice will be updated and affected suppliers will be notified accordingly. After the Standstill Period has expired, and provided no legal challenge has been made by the end of the Standstill Period or any agreed extension, the Council intends to enter into contracts with the Successful Supplier. Following this, the Council also intends to publish a Contract Details Notice. Description Portsmouth City Council has completed the evaluation of tenders for the provision of repairs and maintenance services across its residential housing stock and designated corporate assets. The procurement comprises three separate lots: Lot 1: On-Island Repairs and Maintenance Lot 2: Off-Island Repairs and Maintenance Lot 3: Corporate Assets Repairs and Maintenance Subject to completion of the applicable standstill period and finalisation of the contractual arrangements, the Council intends to award all three lots to the same supplier. Following completion of the evaluation process, application of the published affordability assessment, and review of tendered costs against the Council's approved budget provision, the Council identified one supplier capable of award within the affordability constraints set out in the procurement documents. The remaining submissions exceeded the Council's affordability threshold and were therefore not capable of award. In accordance with the provisions of the Invitation to Tender, which reserved the Council's right to award both housing repairs and maintenance lots to a single supplier where two suppliers capable of award could not be identified, the Council intends to award Lot 1 and Lot 2 to the same successful supplier. The Council will finalise the detailed contractual arrangements for the Lots prior to contract execution, however the Lots will remain distinct service areas for the purposes of service delivery, performance management and contract administration. Lot 3 was evaluated in accordance with the published methodology applicable to the Corporate Assets contract and the Council also intends to award this contract to the same successful supplier. The contracts are intended to operate on an NEC4 Option E Cost Reimbursable basis. The stated values are estimates based on historic expenditure and forecast demand. Actual expenditure may increase or decrease depending on service demand, void volumes, compliance requirements, changes to the housing stock and asset portfolio, inflation, emergency works, new workstreams and instructed Task Orders. The Council does not guarantee any minimum or maximum level of expenditure. The contracts will have an initial term of five years, with the option to extend for up to a further five years in intervals to be agreed. Background information The scope of services under this procurement include the full delivery of responsive repairs, void property works, statutory and regulatory compliance activities, planned maintenance, out‑of‑hours emergency response, and associated building safety functions across the Council's residential housing stock and designated corporate assets. Suppliers will be required to provide a high‑quality, customer‑focused service that ensures safe, well‑maintained homes and buildings, meets all legislative and regulatory obligations, and supports the Council's wider strategic objectives, including asset sustainability, building safety compliance, and continuous service improvement. 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. Corporate Assets In addition to the residential housing stock, currently the 'on island' repairs and maintenance contractor also manages repairs for a number of the Council's corporate assets. This is a function managed by the 'on island' contractor only. 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 Over the last 5 years there have been approximately 25,000 annual general repairs and maintenance tasks undertaken across the 'on-island' housing stock and 25,000 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. Scope and specification of requirements The core scope of works, which the successful suppliers will be required to deliver are - • 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 • Void Works • Out of Hours The supplier will be required to resource an out of hours service which is available 365 days a year. Ancillary Scope of Works The ancillary scope of works, which the successful suppliers may be required to deliver, namely: • Decarbonisation • Air Source Heat Pumps • Water Hygiene Repairs • Communal Ventilation • Warden Call • PV Maintenance • On and Off Island Repairs • Corporate Asset Repairs • Gas Servicing (in the event of an emergency) Lot 3 - Corporate Assets Contract Lot 3 constitutes a separate, standalone contract with its own defined budget, performance requirements, KPIs, contractual obligations and reporting arrangements, and will be managed independently from Lots 1 and 2. In the event of LGR, the Council may assume responsibility for a significantly larger Corporate Assets portfolio, including but not limited to additional schools, offices, social care buildings and other operational facilities currently maintained by Hampshire County Council. This is expected to increase both the geographical coverage and the annual value of Corporate Asset repairs and maintenance. Based on indicative values derived from Hampshire County Council's existing south‑area Repairs & Maintenance arrangements, the Council anticipates that the additional asset base could reasonably add several million pounds per annum to the scope of works inherited. In such circumstances, the Council may either - (a) vary the new Corporate Assets contract awarded under Lot 3 to incorporate the increased volume and value of work where appropriate and compliant (b) undertake a separate tender exercise specifically for the additional Corporate Assets arising from LGR. As the nature of the assets and the required works are consistent with those already included within the Corporate Assets scope, the Council does not anticipate a material change in service requirements, but will ensure any adjustments reflect operational demand, new boundaries, and statutory obligations arising from LGR. Suppliers should therefore assume that the scope, value, geographic coverage and number of Corporate Assets covered by Lot 3 may increase materially during the contract term, particularly following Local Government Reorganisation, and should take account of this potential expansion when considering scalability of their proposed operating model 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/ Local Government Reorganisation (LGR) The Council has previously participated in discussions relating to Local Government Reorganisation (LGR), devolution and wider local government reform across Hampshire and the Isle of Wight. At the time of issuing this procurement, progression of those proposals has been paused and there is currently no confirmed timetable, structure or implementation programme for any future reorganisation. Whilst there is no certainty that local government reorganisation will proceed in its previously proposed form, the Council recognises that future Governments, legislative changes or wider public sector reform initiatives may result in structural changes to local government during the life of this contract. Should any future reorganisation, devolution arrangement, local government reform programme or transfer of functions occur, the scope, scale, geographical coverage and operational requirements associated with the delivery of Repairs and Maintenance (R&M) services may change during the contract term. For Portsmouth's current operational footprint, the estimated 10-year contract value remains within the region of £336 million to £450 million, taking account of inflationary pressures, anticipated stock growth, decarbonisation workstreams and increased compliance requirements. Whilst the Council cannot predict whether any future reorganisation will proceed, suppliers should be aware that any structural change to local government boundaries, responsibilities or asset ownership could result in corresponding changes to service demand, asset numbers, geographical coverage and contract value. The Council reserves the right to modify the contract in accordance with Schedule 8 of the Procurement Act 2023 and other applicable legal provisions should such circumstances arise. The Council continues to monitor developments in respect of local government reform and wider public sector restructuring. However, any future impacts remain uncertain and the Council makes no representation as to whether any reorganisation will occur during the life of the contract. Hampshire County Council (HCC) has procured 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. Any future transfer of responsibilities between authorities may influence future service delivery arrangements, although no such changes are currently confirmed. If local government reorganisation, devolution, boundary changes or statutory transfers occur during the contract term, the Council may need to review the most appropriate contractual arrangements for the continued delivery of services. This could include the transfer, assignment, modification, expansion or reallocation of service responsibilities where permitted by the contract and applicable legislation. Contracts have provisions enabling assignment to successor authorities where required by law or future public sector restructuring arrangements. For further information regarding devolution and local government reform, please refer to the Council's website: Local Government Reorganisation and Devolution Information Known Risks The Council has identified the following known risks that are likely to occur during the duration of the term of the contract - • An increase in stock size due to the construction of new build sites or the purchase of additional existing dwellings • A decrease in stock size due to the sale or decommissioning of existing dwellings In all of the above cases, the change will result in a change to the number of properties and the annual value of the contract due to increased complexity of - • ageing stock requiring more frequent or complex repairs • increase in the number of system replacements needed • inclusion of other installations as risk assessments or Legislation dictates Under this cost‑reimbursable contract, any requirements that fall outside the agreed baseline scope will be instructed and managed through the contract's defined Task Order depending on value and urgency. Other Risks • Local Government Reorganisation leads to other stock holding Authorities becoming amalgamated with the Council and consequently the contract acquires additional stock numbers, increasing the value of the opportunity. • Local Government Reorganisation leads to the Council becoming amalgamated with other Local Authorities and the contract or stock is novated to an alternative contract or supplier, decreasing the value of the opportunity. • KPIs reduce relevance or are found to be ineffective during the contract, potentially following changes in legislation and compliance monitoring, and need to be amended. • Workstreams are added to provide contingency for other suppliers increasing the size and value of the contract. • The ongoing costs in delivering the service increases due to larger than predicted inflationary pressures, labour shortages or skills gaps in engineering and supply chain disruptions (e.g., parts availability) Impacts of technological change in respect of unknown future standards or innovations - periodic review clause to allow to utilise new technology, mobilisation and purchase of new technology • Following the acquisition of additional stock, higher than expected costs to bring dwellings to required standards following unknown conditions/unexpected issues that the Council could not have reasonably been aware at the point of purchase. • Amendment or introduction of new legislation, changes in building safety legislation, evolving targets and potential changes in tenant rights and/or service expectations could increase/decrease the cost in delivering the service. • Amendments or the introduction of new building safety legislation (e.g. under the Building Safety Act 2022 or related statutory instruments) may require the Council to modify the scope of the contract to ensure continued compliance. This could include new inspection regimes, reporting obligations, or remedial works not originally priced. • Local Government Reorganisation may require the new authority to assume responsibility for a significantly expanded Corporate Asset portfolio (e.g., schools, offices, social care facilities) currently maintained under Hampshire County Council's £25M per annum R&M contract. This may materially increase the scale, value and geographic spread of the Corporate Assets element of the contract. The Council may need to vary the existing Corporate Assets arrangement, create a new lot restricted to the Lot 1 and Lot 2 suppliers, or undertake a separate procurement exercise to accommodate the increased workload. Although the nature of works is expected to remain broadly consistent, the operational scale may increase substantially. • An endemic or pandemic event such as Covid 19 requires the contractor to achieve contractual outcomes by adapting existing practices. The Council has identified the risks above associated with the delivery of this contract. In accordance with Schedule 8 of the Procurement Act 2023, the Council reserves the right to modify the contract, without initiating a new procurement procedure, should any of these known risks materialise during the contract term. Any such modification will be limited to addressing the consequences of the known risk and will not alter the overall nature of the contract. Where applicable, a Contract Change Notice will be published in accordance with the requirements of the Act. Contract Modification - Adding Scope to Existing R&M Contracts The Council may expand the scope of the on island or off island contract where the additional work is compatible with the original contract, represents a non-substantial modification, and supports operational efficiency. Before awarding additional scope, the contractor must: • Continue to meet all conditions of participation, including technical, professional and financial requirements. • Demonstrate they meet any new or enhanced insurance requirements for the expanded scope. • Confirm they and their sub-contracts (see s.28 PA23) are not listed on the national debarment list under the Procurement Act 2023 and confirm they have they not become an 'excludable' or 'excluded' supplier by definition of s.57 of the Act. • Provide assurance of adequate resource capacity and performance levels. In determining the most appropriate allocation mechanism, the Council will consider the nature of the additional requirement, geographical location, operational fit with existing service delivery arrangements, demonstrated capability, capacity, value for money, urgency and the applicable provisions of the Procurement Act 2023. The Council reserves the right to select the most appropriate route on a case-by-case basis New Contract Award Following Local Government Reorganisation (LGR) or Other Authority Collaboration The new Authority/collaborating Authorities may award new or expanded contracts to align with the enlarged geographical and service footprint. To be considered for additional work the supplier must: • Continue to satisfy the participation conditions applied during the original tender (technical, financial, legal, professional). • Meet any expanded insurance requirements triggered by the new service area (e.g., increased PL/EL/PI limits, specialist coverage). • Not appear on the Procurement Act 2023 debarment list, nor be subject to mandatory or discretionary exclusion. • Maintain acceptable performance levels under the existing contract. • Demonstrate sufficient resource capacity and resilience to absorb additional work. • Pass updated financial standing checks, proportionate to the enlarged scope.