The Cabinet has decided to award a four-year contract for cremator equipment provision, maintenance, and repairs to Facultatieve Technologies.

URL: https://sandwell.moderngov.co.uk/ieDecisionDetails.aspx?ID=1193

Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: Approval is sought for a Direct Award. The contracts related to cremator equipment, servicing and repairs are due to end on 31 August 2026. Also following the release of the new process guidance note for Crematoria PG5/2(25) from DEFRA in December 2025 which identifies the most effective technologies and processes for limiting and monitoring emissions to air from crematoria, Sandwell as a cremation authority needs to invest in new equipment at both its crematoria by December 2029 in order to be compliant with the new statutory guidance. The council’s current provider Facultatieve Technologies (FT) is a market leader in this field both in terms of the suppling equipment such as cremators and associated ancillary equipment (such as mercury abatement equipment) and undertaking ongoing service, maintenance and repairs. Previous tender exercises have seen very few bids received with FT in some instances being the only bidder. In order to have the necessary contracts in place for the supply of the new equipment necessary to be compliant with the new statutory regulations and ongoing servicing and maintenance requirements for cremator equipment in Sandwell, it is proposed a direct contract award is made to Facultatieve Technologies. Combined expenditure for the duration of a four-year contract to include new equipment is expected to be circa £1,500,000.

Content: Reasons for Recommendations The Council operated two crematoria sites in West Bromwich and Rowley Regis, delivering approximately 3,000 cremations each year. These were essential local services supporting residents at a sensitive time, and continuity, reliability and compliance were critical to maintaining public confidence.   The existing contract for the provision of cremator equipment, servicing, maintenance and repairs expired on 31 August 2026. The market for these services was highly specialised, with a very limited number of providers nationally. Facultatieve Technologies was the current provider, a recognised market leader, and the supplier of the Council’s existing crematoria infrastructure. The technical requirement for compatibility with installed equipment, alongside warranty and servicing constraints, significantly limited the viability of alternative providers.   In December 2025, DEFRA issued updated statutory guidance (PG5/2(25)), requiring crematoria operators to install mercury and nitrogen oxide abatement technology by December 2029. While Sandwell Valley Crematorium had partial compliance, neither site fully met the new requirements. The proposed contract incorporated the installation of the necessary abatement systems, ensuring regulatory compliance within the required timeframe.   Bringing equipment supply, installation, servicing, maintenance and regulatory upgrades within a single contractual arrangement provided a coherent and controlled approach to service delivery, strengthened accountability, and reduced operational risk. Cost estimates were informed by historic spend and supplier quotations and were considered proportionate to the scale and technical complexity of the requirement.   Given the limited supplier market, previous procurement outcomes, and the need to ensure operational continuity and compliance, the direct award via an established framework represents the most robust and deliverable option.   Alternative Options Considered Option 1: Undertake a full open procurement process. This option would involve testing the wider market through a competitive tender exercise. While this could, in principle, demonstrate openness and competition, previous procurements in 2018 and 2022 resulted in only a single compliant bid, requiring exemptions to proceed. There remained a significant risk that alternative suppliers would be unable to support existing equipment or meet compatibility requirements, creating service, warranty and compliance risks. Given the low likelihood of a different outcome and the potential for disruption, this option was not recommended.   Option 2: In house provision . This option would effectively require the Council to have the technical expertise and experience to install the new abatement equipment and be able to service and maintain this and all associated cremator equipment. The Council did not have the knowledge and expertise internally to undertake this work and given the limited amount of companies who undertake this would be unlikely to be able to recruit individual to do so in a cost effective manner. The existing equipment and the new abatement equipment was provided by FT which was all compatible and subject to FTs warranties and guarantees. Not using FT to maintain and repair this equipment would also invalidate these warranties. This option was not recommended given the technical expertise and experience necessary, along with an ongoing need for equipment supplies, to undertake complex maintenance of the cremators which suggests the contracting of this work to the manufacturer was the most appropriate approach to ensure crematoria services in Sandwell can reliably be maintained.   Option 3: Cease provision of crematoria services. This option would involve the Council exiting the direct provision of crematoria services entirely. Whilst the service was not a statutory duty, it was an established and heavily utilised local service, delivering approximately 3,000 cremations annually and generating income for the Council. Withdrawal would have significant reputational, community and operational implications, including reduced access to local bereavement services. This option was not recommended.   Resolved:-   (1)  that approval is given for the award of a four-year contract, commencing 1 September 2026, for the provision of cremator equipment, associated ancillary supplies, installation, maintenance, servicing and repairs, to Facultatieve Technologies via the Yorkshire Purchasing Organisation (YPO) Framework 1032, on the basis that this represents a compliant and appropriate procurement route under the Procurement Act 2023 and the Council’s Contract Procedure Rules;   (2)  that the total contract value of up to £1.5m, comprising both revenue and capital elements, is approved within the Council’s existing budget framework, with the capital element subject to formal inclusion within the approved capital programme;   (3)  that delegated authority is given to the Executive Director – Finance and Transformation, in consultation with the Service Director of Governance and Monitoring Officer, to take all actions necessary to give effect to recommendations (1) and (2) above.  

Date of Decision: July 15, 2026