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Click here to download the SOCIAL_HOUSING_CROSSWORD_PUZZLE.pdf

The future of social housing was prudently addressed, following a riveting conversation held by Theresa Mays former chief of staff Nick Timothy at one of our own board awaydays, back in January.

Many believe that social housing is nearing the bottom of the agenda when it comes to the implications of Brexit and is being heavily overlooked.

Arguable, the main issue that the social housing sector is going to face is the logistical changes to supply chains. With materials like timber being heavily imported from the EU, many merchants have already begun contingency planning to maintain their sustainability, and have adopted the approach of stockpiling materials; however, it’s a very temporary solution

The overcomplicating of importing materials is set to have some implications on the affordability of social homes, whether this is going to be for the good or bad of renters in the UK.

But the question is, does anyone know what they are doing? Planning for the unknown is an impossible feat in all walks of life, let alone when looking to mitigate the effects of Brexit on an entire industry.

The potential knock-on effects are endless with the immediate ones possibly the most damaging. Will we begin seeing more or less jobs in the construction industry? Half of construction workers in London come from the EU and many have already gone back to avoid being ‘stuck’.

The effects that deal or no deal Brexit could be endless from temporary purchasing alternative materials to a complete logistical change, steering away from current just in time solutions.

Going from a blanket agreement to, well, who knows what, is going to be a huge change regardless of the specifics and the social housing market is inevitably going to learn to adapt no matter what comes its way; Deal or No Deal is just the beginning of something bigger.

With every future deal coming from UK Parliament, surely our government will do what is best for UK citizens? It is no secret that the UK has been in a housing crisis for some time now with the publication of reports like the Shelter’s “vision for social housing”.

Although the UK is going Brexit crazy, there’s no need to panic. CHIC has been actively collaborating with its members / suppliers to gather intel on what is the best course of action to mitigate the amount of disruption to the supply chain. 95% of Manufacturers and Distributors have already plans in place to mitigate for a No deal vote with the large majority being determined as low risk. (Testimonial from a supplier)

CHIC has engaged with it’s supply chain to ensure that members have contingencies in place for every aspect of property maintenance requirements.

CHIC’s Merchant Services Manager (maybe change it to Supply chain manager) is of the opinion that: “The worst thing that we in the social housing industry can do right now, is to put our heads in the sand and hope that this storm will pass us by. The first thing that will be affected will be supply chains, as we see in other sectors such as the automotive industry. Arguably if housing associations engage with purchasing groups, in respect of their suppliers, trends will be noticeable which means that steps can be taken to mitigate negative effects.”

As rightly pointed out purchasing groups such as CHIC, are better positioned to notice trends in the market that individual housing associations cannot see, and this is purely down to the number of suppliers each engages. Having a pool of suppliers providing the same type of service, normally via a framework, will allow members that purchase through that group a better understanding of where the market is going.

In these trialling times, co-operation is key, and instead of we can do it better, we need to do it better together.

The question is then, what has your association done to ensure that services will not drop.

Quote from Bournville to come: - need to chase giles again today.

If you are worried about the Brexit impact on your organisation, please give us a call.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     II.   an objective mechanism for supplier selection.
 

However, a direct award is still not permissible under a Dynamic Market (DM), which will replace Dynamic Purchasing Systems (DPS) going forward. The route to market must be by mini competition only.
The reference to "core terms" replaces "all the terms governing the provision of the works, services and supplies concerned" in the current regulations. This is both more flexible and more closely matches the reality of many framework agreements which will typically contain template service schedules to be completed for each individual call-off.
When calling-off, the documentation used must adhere to the information established by the Framework or Dynamic Market, including the following:

-    A description of goods, services or works to be provided which must broadly align with the framework DM scope-    The price payable, or should follow the mechanism for determining the price payable as previously established.

Whilst conducting a Mini-Competition and developing a case for Direct Award under a Framework, CHIC Members must consider Section 12 of the Act, which outlines procurement objectives that contracting authorities must consider:

-    Delivering value for money-    Maximizing public benefit-    Sharing information so that suppliers can understand procurement policies and decisions-    Acting with integrity and being seen to do so

These should be embedded into CHIC policies and processes around the Mini Competitions and Direct Awards and further evidenced and recorded through our practices within our procurement documents, timescales and setup of the CHIC eSourcing portal.

Focus on Most Advantageous Tender (MAT)

When setting award criteria within a mini competition, the Act changes the focus from the Most Economically Advantageous Tender (MEAT) to the MAT, which allows contracting authorities to consider more award criteria, such as social value. However, all criteria should be proportionate and related to the contract's subject matter.

Setting Award Criteria and Removing Barriers

Other than the use of MAT, the Act remains largely unchanged when it comes to setting award criteria, however in complying with the duty to have regard to SMEs, it is much clearer that contracting authorities should not create award criteria that are prohibitive, supporting their obligation to have regard to removing barriers to SMEs’.

Abnormally Low Bids

Although under previous legislation it was mandatory, contracting authorities are not required under the Act to ask suppliers to explain their price where it appears to be abnormally low, although it may still be seen as good practice to identify where a misunderstanding of the tender documents may have occurred.

Setting Time Limits for Call-off

Section 54 of the Act covers minimum time limits applicable to call-offs under both Frameworks and Dynamic Markets.

For Frameworks, where the contract is being awarded by a contracting authority (that is not a central government authority) and the suppliers have been pre-selected via the framework the minimum tender period is 10 days.

Where the contract is being awarded by reference to suppliers’ membership of a dynamic market the legal minimum tender period is also 10 days.

Although the above legal minimums apply, section 54 of the act also states the Authority must have regard to the following when setting time limits:

As per the current set of legislations the same principle applies that time limits set must be the same for each supplier, however the new act is more explicit.

Key performance indicators

Before entering into a public contract sourced via call-off with an estimated value of more than £5 million, a contracting authority must set at least three key performance indicators in respect of the contract.

These must be managed through performance notices published at least every 12 months to be throughout the lifecycle of the call-off.

Call-offs extending beyond the framework's life

Call-offs can extend past the framework's life if the duration is reasonable for the contract and market type, and if the authority can properly justify award and is not used as a way to circumvent normal competition.

Pre- Award Notices and Advertising related to Call-off

In the case of the Dynamic Market call-off, tenders to be awarded via the Market must be published publicly and make reference to the fact that only members of the Market will be considered. All new or pending applications to join the Market must then be considered while this tender is open in a ‘reasonable’ time frame.

Post Award Notices and Advertising related to Call-off

According to regulation 53; a contracting authority that enters into a public contract must publish a Contract Details Notice (old Contract Award Notice) before the end of the period of 30 days beginning with the day on which the contract is entered into. This should set out:

Regulation 95 sets out the information required to be included in a Contract Details Notice published following the awarded of a call-off contract that is a public contract. This is largely the information required by regulation 53 plus some additional information. The additional information includes whether the award was made following a competitive selection process (under section 46 of the Act) or without further competition (under section 45(4) of the Act) and, if the latter, an explanation as to why the contracting authority considered no further competition was required (by reference to section 45(4)). 

For a Dynamic Market a contract details notice must be published and must include that same information with the exception of section 45(4) as Direct Award is not permissible, it must also include that the contract was award by reference to a Dynamic Market. This represents a significant change where the old regulations allowed the flexibility to submit contract award notices within 30 days or alternatively group these on a quarterly basis (publish within 30 days of the end of each quarter), removing the option to publish quarterly.

Applicable to both Frameworks and Dynamic Markets, a contracting authority that enters into a public contract with an estimated value of more than £5 million must publish a copy of the contract before the end of the period of 90 days beginning with the day on which the contract is entered into.

Once the Contract Details Notice is published, if the Authority opts to use a voluntary standstill it is able to start.

Whilst the mandatory standstill period of 8 working days does not apply to contracts awarded in accordance with a framework or by reference to a dynamic market, if the Authority chooses to utilise a voluntary standstill period, it must be for a minimum of 8 working days starting on the day it was published. The Contracting Authority may not change its stance before the end of the standstill period and enter into contract earlier, even when voluntary.

 

 

 

Background

Cardinal Newman College in Preston, Lancashire, faced an urgent need for service and maintenance of their fire alarm equipment. They approached CHIC to find a swift and effective solution. Given the urgency, CHIC assessed the options and determined that a Direct Award was the best approach. Churches Fire Security, the incumbent service provider, had previously delivered successful projects for the college and demonstrated exceptional responsiveness. Thus, continuing their partnership was the most efficient way of meeting the college’s current requirement, subject to detailed assessment of a full business case.

Approach

CHIC facilitated this process through its unranked Active Fire and Security Framework, initially approving a Direct Award. We supported the development of a comprehensive business case to justify the award, drafted the contract and managed the signing process through DocuSign. Additionally, CHIC provided ongoing support to both the college and Churches Fire Security once the contract commenced. The outcome was a £51K, three-year contract ensuring the college’s fire alarms, detectors and CCTV systems are maintained by a trusted provider.

Feedback

Cardinal Newman College expressed their satisfaction with the streamlined process: " CHIC made the thorough Direct Award process simple and stress free. Our Account Manager handled all the paperwork, including a detailed Business Case, contract execution and supplier contact. Cardinal Newman College was happy with the process and would recommend CHIC as a compliant route to market."

Similarly, Churches Fire & Security commended "Having the existing relationship with Cardinal Newman College meant that a direct award was the most convenient, quickest, compliant route and just made sense. CFS has also had other positive client relationships built through this framework and is one we recommend to customers."

Customer First

Ensuring the safety and security of residents is vital and reliable maintenance services are essential to prevent potential hazards and ensure compliance with safety regulations. Regular servicing and maintenance not only enhance the performance and longevity of the equipment but also provide peace of mind to both landlords and tenants. Partnering with trusted providers through efficient procurement frameworks ensures cost effective solutions and timely responses to urgent needs.

If you are a social landlord with requirements for fire safety and security maintenance, please get in touch with CHIC to explore how our services can meet your needs efficiently and reliably.