DMFD5 Provision of Water Supply, Sewage and Ancillary Services

Type of decision: 
Deputy Mayor for Fire decision
Code: 
DMFD5
Date signed: 
20 June 2018
Decision by: 
Fiona Twycross, Deputy Mayor, Fire and Resilience

Executive summary

The London Fire Commissioner seeks approval to award a contract for water and sewage for all Brigade premises following the Water Act 2014, which set the path to deregulate the water and sewerage industry for commercial consumers in England and removed the obligation to buy these commodities from their local water and sewage suppliers.

The tender evaluation has included rigorous evaluation of quality, price, financial standing and terms and conditions, with the quality evaluation being conducted collaboratively by a panel of staff from 15 authorities. The value of the contract is expected to be contained within existing budgets.

Decision

The Deputy Mayor for Fire and Resilience gives approval to the London Fire Commissioner to award a contract to Anglian Water Business (National) Ltd trading as Wave under the CCS framework RM3790, for a period of two years, with the option to extend for a further two years.

Part 1: Non-confidential facts and advice

Introduction and background

The Water Act 2014 received Royal Assent on 14 May 2014, setting the path to deregulate the water and sewerage industry for commercial consumers in England. The company responsible for developing and operating the 2017 competitive market for non-household water supply is the Market Operator Services Ltd.

As of April 2017, commercial consumers no longer have an obligation to buy these commodities from their local water and sewage undertakers (suppliers), but through a new wholesaler market place. The intention was to give consumers a better choice similar to that of the gas and electric wholesale market place.

Immediately following deregulation, the existing local water and sewage undertakers diversified their business between commercial and domestic, moving existing commercial accounts to new incumbents within the market place.

The London Fire Commissioner (LFC) is a member of the London Energy Project (LEP), for which Haringey Council is the Lead Authority, to act on the LFC’s regarding issues relating to the supply of electricity, gas and water and/or associated services. The LEP’s role is to identify and measure efficiencies, savings and improvement opportunities across participating public sector authorities that work together, share services and/or aggregate volume. In October 2017, the LFC were contacted by the London Energy Project (LEP), who were conducting a further competition from the CCS RM3790 framework, and were looking to aggregate the usage of fresh water and sewerage requirements of 36 authorities across London to achieve leverage within the wholesale market place.

Based on an impartial evaluation of the quality and flexibility of the framework and the CPB service and price (e.g. a review of framework Terms and Conditions, retailer supply base, Key Performance Indicators, fees for use, etc.) CCS Water, Wastewater & Ancillary Services RM3790, was selected by the LEP as the best route to market, with the Yorkshire Purchasing Organisation (YPO) conducting the further competition (who had established the framework in partnership with CCS).

Objectives and expected outcomes

Awarding this contract will provide competitive cost benefits, price stability, monthly billing, improved sewage measurement, leak prevention, supplier rationalisation and improved service delivery to the LFC. Furthermore, when reviewing the commercial options following this procurement process:

• Doing nothing will result in the LFC being non-compliant with the Public Contract Regulations 2015 and likely to continue to be affected by fluctuating pricing.
• Tendering independently, having assessed the response and proposed contract, is unlikely to result in a more suitable solution. The cost of a procurement exercise would also cost more than the amount that could be saved by appointing an alternative supplier, as much of the water and waste water bill cannot be influenced.

Equality comments

The Public Sector Equality Duty – and the potential impacts of this decision on those with protected characteristics (age, disability, gender reassignment, pregnancy and maternity, race, gender, religion or belief, sexual orientation) – has been considered by the LFC and the Deputy Mayor for Fire and Resilience. No impacts have been identified.

Financial comments

The expenditure is to be funded through sums available to the LFC. There are no direct financial implications for the GLA.


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