Issue - meetings

Approval is sought to utilise the single supplier ‘Lincolnshire Framework Agreement’ for the purchase of refuse collection vehicles.

Purpose of report

This report sought approval to utilise the single supplier ‘Lincolnshire Framework Agreement’ for the purchase of refuse collection vehicles.

Decision

That Cabinet approves the use of the single supplier ‘Lincolnshire Framework Agreement’ for the outright purchase of refuse collection vehicles until the expiration of the Framework on 31 May 2027.

Alternative options considered and rejected

Failure to procure new refuse collection vehicles (RCVs) could have impacted on the safe and effective delivery of the waste collection service and lead to potential service failure for residents. For this reason, this option was discounted.

Reasons for decision

The purchase of RCVs through the framework would allow for the replacement of vehicles approaching the end of their serviceable life and ensured the continued provision of the refuse and recycling collection services across the district. The Council procured vehicles rather than leasing them, as a procurement strategy concluded that this was the most cost-effective way of adding to the fleet of vehicles.

The Council could have gone directly out to the market for each vehicle purchase, however, it was considered that this was unlikely to lead to a more competitive alternative, as the benefits of the economies of scale bought about by using the Framework would not be available.

Typically the lifecycle for the vehicles was approximately seven years, and the lead-in time for each new vehicle was between seven to fifteen months. A number of Councils across Lincolnshire and North Yorkshire were able to access a single supplier framework agreement for the provision of RCVs; in fact, if more Councils used the single supplier framework, it would lead to better priced vehicles for the Council. A supplier for South Kesteven District Council would be identified at the most appropriate time.

The Council could decide to step outside of the framework, but it would not likely be the most cost-effective way of procuring vehicles.

All modifications to vehicles would be tailored to each authority.

The following points were raised during debate:

·       If the Council did not sign up to the Framework Agreement then the fleet could consist of old vehicles, no longer fit for purpose. The Agreement would provide a better built, more efficient vehicle.

·       Members wished for further information on what level of purchasing was required in order to meet ‘economies of scale’.

·       Agreeing the use of the framework did not necessarily mean that it had to be followed, but it did make it an option available to the Council.

·       The relatively lengthy lead-in time between ordering vehicles and their delivery into service was reason itself to adopt the framework.

·       This framework was focused on freight vehicles, and officers suggested the vehicle type that was currently in use.

·       The district was not suited to the rollout of electric freight vehicles, due to the size and rurality of the region. The duration of the batteries in such vehicles lent itself to more urban regions where refuse had shorter journeys. The vehicles were also not economically viable at this time.