Decision Maker: The Leader and Cabinet Member for Corporate Services and Transformation
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
The Council’s current insurance contract is due to expire on 30 June 2020. A procurement exercise has been undertaken in preparation for the new contract which commences on 1 July 2020. This decision seeks to award a new contract to the bidder with the highest score for the initial period of three years (with an option to extend for a further two years plus two years).
To approve the award of the Council’s insurance contract to the bidder with the highest score (further details in exempt Appendix 1 to the decision report) for the initial period of three years (with an option to extend for a further two years plus two years) commencing from 1 July 2020.
A procurement exercise has been undertaken, in accordance with the Council’s Contract Procedure Rules, in preparation for the new insurance contract which commences on 1July 2020. The contract is for a period of three years with the option to extend for two periods, each for a duration of two years. The Council appointed a broker in December 2019 to assist with the procurement which was undertaken via the YPO Insurance Dynamic Purchasing System (DPS). This was deemed the most effective and efficient route to market. The DPS contains 21 suppliers and all were invited to submit a bid.
With the support of the broker and YPO, a mini competition was issued through the DPS on 5 March 2020 with a closing date of 8 April 2020 to all 21 suppliers. The mini competition contained the following Lots:
Lot 1: Material Damage
Lot 2: Combined Liability
Lot 3: Motor
Lot 4: Crime
Lot 5: Engineering
Lot 6: Personal Accident and Travel
The procurement leaves the Council with two choices, either to award to the bidder with the highest evaluation score or not to award a contract at all. The second option is not realistic (the Council would be left without insurance) and therefore awarding a contract to the bidder with the highest evaluation score is recommended as the way forward.
As a result of the procurement exercise five insurers responded to the invitation to tender.
Bids were evaluated using the criteria stipulated in the invitation to tender which was based on 60% Price and 40% Quality with the quality criteria being broken down into Core Cover Requirements (20%), Claims Handling (15%) and Added Value (5%).
Further information about the results of the evaluation can be found in exempt Appendix 1.
The Council’s insurance contract has been tendered in accordance with the Contract Procedure Rules and the tenders have been evaluated by the Council’s broker and officers involved in the procurement. Further information about the value of the bids can be found in exempt Appendix 1 to the decision report.
Publication date: 27/05/2020
Date of decision: 27/05/2020
Effective from: 04/06/2020