Decision
Analysis
outcome: The contract was awarded to Corona Energy for a 24-month duration, with the possibility of a 12-month extension, at a total cost of £5,583,776.
summary: The decision involves awarding a contract for the supply of natural gas to all council premises in Salford to Corona Energy for a period of 24 months, with an optional extension, aiming to reduce costs and provide budget certainty.
topline: The Salford City Council has decided to award a multi-million pound natural gas supply contract to Corona Energy, securing a 47% cost reduction over two years.
reason_contentious: The issue may be contentious due to the significant cost of the contract, the choice of a non-SME (larger company) over potentially local SMEs, and the environmental implications of natural gas procurement.
affected_stakeholders: Salford City Council, Corona Energy, local businesses, taxpayers, and potentially environmental groups.
contentiousness_score: 5
political_party_relevance: There is no direct mention of political parties or political influence on the decision within the provided record.
URL: https://sccdemocracy.salford.gov.uk/ieDecisionDetails.aspx?ID=2347
Decision Maker:
Outcome:
Is Key Decision?: No
Is Callable In?: No
Purpose:
Content: Salford City Council – Record of Decision I Paul Dennett, City Mayor, in exercise of the powers contained within the Council Constitution do hereby approve: · to award the contract for the supply of natural gas to all council premises, as detailed below: Detail required Answers Title/Description of Contracted Service/Supply/Project Contract for the supply of natural gas Name of Successful Contractor Corona Energy Supplier Registration Number (to be supplied by Corporate Procurement) 0324101 Type of organisation (to be supplied by Corporate Procurement) Public Limited Company Status of Organisation (to be supplied by Corporate Procurement) Non-SME Contract Value (£) £5,583,776 full project Contract Duration 24 months Contract Start Date 01/07/2023 Contract End Date 30/06/2025 Optional Extension Period 1 12 months Optional Extension Period 2 months Who will approve each Extension Period? Procurement Board (extension > £150k) Contact Officer (Name & number) Majid Maqbool Lead Service Group Place How the contract was procured? (to be supplied by procurement) Framework Framework Details (where applicable) (procurement body, framework reference & title, start/ end date YPO Gas framework ref 986 Funding Source Revenue Budget Ethical Contractor (EC): Mayor’s Employment Charter EC: Committed to sign Charter EC: Accredited Living Wage Employer The Reasons are following the procurement of gas renewal via a fully compliant YPO framework, Corona Energy submitted prices for both 12 and 24 months. The 24-month contract provides best value and will result in a total cost of £5,583,776. This amounts to a reduction in costs of £4,174,978 (47%) for the term of the contract. Options considered and rejected was a 12-month contract which would have limited the cost reductions to 44%. The 24-month contract therefore provides budget certainty and an overall cost reduction that will help in easing budget pressures over the course of next 2 years. Assessment of Risk: Low The source of funding is: Revenue budgets and schools’ budgets Legal Advice obtained from: Tony Hatton, Principal Solicitor Financial Advice obtained from: Gemma Singleton, Senior Accountant Procurement Advice obtained from: Heather Stanton, Category Manager HR Advice obtained: N/A Climate Change Implications obtained from: Majid Maqbool, Energy Manager Contact Officer: Majid Maqbool Telephone number: 0161 607 6987 The appropriate Scrutiny Committee to call-in the decision is the Growth and Prosperity Panel and overview Scrutiny Panel Signed: Paul Dennett Dated: 14 June 2023. City Mayor FOR DEMOCRATIC SERVICES USE ONLY * This decision was published on 14 June 2023 * This decision will come in force at 4.00 p.m. on 21 June 2023 unless it is called-in in accordance with the Decision-Making Process Rules.
Date of Decision: