The Cabinet Procurement and Insourcing Committee has decided to award the dockless cycle hire contract to two suppliers in Hackney.

URL: https://hackney.moderngov.co.uk/ieDecisionDetails.aspx?ID=8422

Decision Maker: Cabinet Procurement and Insourcing Committee

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: Recommendation on decision to award the dockless cycle hire contract.  

Content: Recommendation on decision to award the dockless cycle hire contract.   RESOLVED:   1.  To approve the appointment of Supplier A and Supplier B (see Exempt Appendix A for details), as the Service Providers of the Dockless Cycle Hire Service using cycle hire bays provided by the Council. The appointment to operate in Hackney shall be on the basis of a fee paying concession agreement for an initial period of three years with up to two further optional annual extensions.   Reasons For Decision   Following the decision at the Hackney Procurement Board to carry out the procurement of a dockless cycle hire service, the procurement of the Service has been carried out whereby suppliers were invited to tender for the Service. A decision is now required to award the contract.   The contract award decision is treated as a key decision to be considered at the Cabinet Procurement and Insourcing Committee as the decision is for a borough-wide cycle hire service and therefore affects all wards in Hackney and the contract value is estimated to be £93 million across the five year term (inclusive of VAT) and therefore over the threshold of £1million.   Table 1 sets out the high-level, final tender evaluation result     Quality Price Social Value Total Supplier A 30.00% 42.60% 12.40% 85.00% Supplier B 22.73% 46.00% 9.80% 78.53% Supplier C 18.18% 42.80% 10.40% 71.38% Supplier D 12.73% 43.80% 10.40% 66.93% Supplier E 28.18% 28.60% 46.00% 66.58%   Appendix A (Exempt): Shows the tender responses at the SQ stage and the members of the evaluation team   Appendix B (Exempt): Shows the quality and price breakdown scores at the ITT Stage and the members of the evaluation team.   The Invitation to Tender and associated appendices including the minimum requirements of the Service, specification, quality questions, financial submission and award criteria. Together these documents were designed to specifically test and unlock the market’s ability to supply a service that aligns with the principles and outcomes defined for Hackney. See section 9 for how this contract award will address issues and unlock opportunities related to sustainability, net zero and social value specifically.   The business case proposed to run a tender that awards the contract to up to two suppliers. Five tenders were received and evaluated. The quality question responses and financial submissions from all five tenders demonstrated a high level of ability to deliver a service that aligns with the principles as set out in the business case. The tender process has therefore successfully resulted in a highly competitive evaluation that has resulted in officers being able to put forward the recommendation to award the contract to two suppliers.   Alternative Options Considered and Rejected   Award contract to one supplier/winning bidder   The business case proposed to carry out a tender that awards the contract to up to two suppliers. The invitation to tender stated that “Should there be only one compliant bid, the bidders may be offered 100% of the contract capacity.” The two winning bids were compliant and therefore the option of contract award to one bidder is not considered.   Award contract to no supplier and re-tender the Service   The Council is not obligated to award a contract following the tendering of the Service. In the event that the tender didn’t result in the ability to award a contract for a service provider to deliver a service that met the defined principles for the Service then the option of no contract award could be considered. Similarly if a significant risk was identified with contract award or a significant opportunity was identified from re-tendering the Service then this option could be considered.   While lessons learnt have been identified from this tendering exercise, officers are satisfied that the contract award will result in a service that meets the aspirations for the Service.   The tender process did reveal a risk that was not fully considered in the drafting of the business case. This was the risk that the tender evaluation results in neither winning supplier being able to facilitate cross-borough trips. While a significant risk, this outcome did not materialise due to the tender evaluation process self-selecting service providers which together will enable cross-borough trips to take place from day one of the contract. The identification of this risk will inform future procurement exercises of the Service, for instance through the consideration at the point of drafting the business case stage of the options to mitigate this risk for instance through joint-borough procurements or the use of lots.   A potential opportunity which officers have been actively monitoring during the tendering process is whether there is a significant opportunity to be gained from a joint-borough procurement or from waiting for a London-wide Contract or licensing framework. These two options were considered and discounted at the business case stage and these reasons have not changed since.  

Date of Decision: July 7, 2025