Issue - meetings

Purpose of report

To seek approval for the award of the Facilities Management Contract to Key Integrated Services (Maintenance) Ltd.

Decision

That Cabinet:

1.    Approve the award of the Facilities Management contract to Key Integrated Services (Maintenance) Ltd for an annual sum of up to £450,000 for a period of 3 years with an option to extend for a further 2 periods of 2 years.

2.    Delegate to the Deputy Chief Executive and Section 151 Officer to sign a Parent Company guarantee with Key Integrated Services (Holdings) Ltd in respect of the award of the Facilities Management Contract.

3.    Delegate to the Deputy Chief Executive and Section 151 Officer, in consultation with the Cabinet Member for Property and Public Engagement to extend the contract by up to a further two periods of two years should this be required.

Other options considered

The Council could have adopted an in-house maintenance model. However, this approach would have required the recruitment of specialist personnel to deliver services in key technical areas such as heating, ventilation and air conditioning (HVAC), electrical systems and gas safety.

The Council does not employ any specialist maintenance operatives within the Corporate Property Team, and it would have required significant resource and financial investment to have established a capable in-house maintenance approach.

Reasons for the decision

By entering a new contract, SKDC could now:

a)    Continue with a structured approach to managing legal and health & safety obligations, including gas, electrical, and building safety requirements, ensuring a reducing risk of regulatory breaches.

b)    Ensure all assets and equipment were maintained in a safe and operational condition, supporting the continued availability and functionality of facilities.

c)    (through the Corporate Property Team) maintain and enhance the existing planned maintenance programme, monitor asset performance, and implement new initiatives to contribute towards SKDC’s sustainability objectives.

d)    Operate within forecasted maintenance budgets, providing greater certainty and planning capability over the contract period.

e)    Continue to utilise providers with expert knowledge across a wide range of building maintenance disciplines, ensuring professional and effective service delivery.