Agenda item

The Sub-Committee received a report of the Strategic Director, Corporate and Policy which requested the waiving of Procurement Standing Orders 3.1 to 3.7 which placed a requirement of the Council to tender for contracts with a value greater than £50,000 but not exceeding £1,000,000.

Members were advised that the Halton Strategic Partnership had approved a project to digitally enable around 120 households in an area with low levels of computer ownership and broadband uptake. It was a pilot project to establish that it could be successfully delivered. Households would be provided with a keyboard, mouse, flat screen and lightweight computing device (known as a thin client) connected to a managed computing service hosted at a central data centre. The service provided access to standard software such as Microsoft Office as well as to the Internet (which could be filtered if necessary). In the absence of existing Broadband connections, a wireless connection would be provided.

It was further noted that the service to be procured would be the provision of a robust infrastructure with low running costs. The supplier would provide basic training on how to use the device, and a free connection for 12 months. Thereafter there may be a small charge (around £2 per month).

The partnership plan to build on this provision and develop local skills and to provide access to local services such as Job Centre Plus through a local portal.

Members were advised that residents in our deprived areas suffered from many forms of exclusion, one of which could be the lack of access to services provided over the internet. This project would address that, and also help to provide local residents with IT and other skills that may help in the job market. The pilot was to be located in part of Windmill Hill. This area had been selected because it was the most deprived area of the Borough and was relatively isolated. The proximity to the Daresbury Science facility was also a possible future benefit.

AIMES was a Community Interest Company. It was established by Liverpool University with funding from North West Development Agency and ERDF. It had established similar digital inclusion schemes in St. Helens, Liverpool and Wirral. It also provided commercial services, the profits from which were re-invested back into the social enterprise. The combination of the social objectives, specific expertise, technical solutions and experience in similar projects was believed to be unique in the region. The company had a local employment policy and a commitment to work with local partners on engagement and training provision. It was therefore recommended that for the purposes of this pilot, AIMES were engaged.

The contract would be for £200,000 and would provide approximately 120 households with a managed computer service, filtered internet access and access to other hosted applications, all the required equipment and connections, a user guide, and a free service for 12 months, and thereafter at a low cost.

Members were advised that there was no market in the provision of this service to enable value for money to be established through competition. However, AIMES would be procuring the equipment via competitive process.  Thus although the co-ordination and management would not be market tested, much of the costs related to equipment which would be procured on a competitive basis, and so there was reasonable comfort that the costs represented value for money.

Members were further advised that the procurement process was transparent by virtue of this report and the availability of information via the Freedom of Information Act. The project would be subject to the Council’s normal internal and external audit and scrutiny procedures.

It was noted that to ensure propriety and security the usual integrity clauses would be built into the contract document and only staff with a need to know would have information about the contract.

It was further noted that accountability for the project would remain with the Operational Director Policy and Performance. Progress would be scrutinised through the Corporate Services Policy and Performance Board and the Halton Neighbourhood Management Board.

Given the social aims of this initiative this would be a Part B contract as, as such was exempt from the tendering requirements of the Contract Regulations 2006. However, there was still a requirement to place Contract Award Notice in OJEU within 42 days of the award of the contract (supports transparency) and all other contracts including Part B were subject to the overarching EU Principles of Transparency and Non-Distortion of Competition.

Members raised concerns over the fact that this had not gone to tender and the need to waive standing orders to complete the project.  In response it was noted that there was only one known supplier, and that due to the time scale involved for the use of Working Neighbourhood Fund money, there was no time to test this through a tender process.

Having expressed their views regarding the choice of ward selected to do the pilot project, Members offered their support.  It was noted that officers would report back to the Employment Learning and Skills PPB with an update.

RESOLVED: That the Operational Director, Policy and Performance be authorised to award the contract for the provision of a Digital Inclusion Pilot to the contractor AIMES Grid Services CIC Limited in the sum of £200,000 and that in light of the exceptional circumstances and in accordance with Procurement Standing Order 1.6, Standing Orders 3.1 to 3.7 and 3.10 be waived on this occasion because the requirements can only be delivered by this particular supplier in that it can provide a technical solution, can host this solution and has successfully delivered similar projects.