So now the £34.28 million York Libraries contract has been let

A Council official has used his delegated powers to let one of the City’s largest ever leisure contracts. The supplier is confirmed as the current Library management company. The decision was delegated on the basis that the tender received was within the agreed budget. In reality it wasn’t and the Council subsequently had to hike its contribution during its recent budget meeting.

No details of the terms of the contract or the expected outputs have been published. The decision was taken at a “behind closed doors” meeting on 1st March. The Council had however already announced that the contract had been let on 19th February!The old contract was due to terminate on 31st March 2019.

While we hold the York Explore team in high regard – a recent independent report gave them a good review in comparison with libraries in other City’s https://t.co/9R3KnthqUF – we are less than convinced about the transparency of the process used by the Council

The degtails released so far by the Council are reproduced below.

“On 21 June 2018 the Council’s Executive agreed key aspects of the service specification for a new contract for library and archive services. It was agreed that the term of the contract would be 15 years with an option for a 5 year extension.

Authority was delegated to the Director of Children, Education and Communities authority to:

? Develop and implement the procurement framework in line with the terms of the Executive report, and

? Award the contract at the end of the process provided that the price is within budget

Two bids were received. These were rigorously assessed. The financial assessment was undertaken by a team of officers from Corporate Finance. The quality assessment was undertaken by a team of officers with expertise in the relevant areas, supported by two external experts, former heads of libraries and archive services respectively.

The assessment of the bids was on the basis of 60% quality and 40% price.
Neither bid as submitted was deemed to be compliant since neither was assessed as being deliverable within the Council’s affordability limit.
The Competitive Procedure with Negotiation (CPN) under regulation 29 of the Public Contract Regulations 2015 was then used within a second bidding round. This procedure was selected as the best option for CYC to assess the minimum additional resources required to secure the contract in line with our specification and within the original timetable.

Both bidders agreed to take part in the CPN on the basis that an uplift in the affordability limit may subsequently be agreed by the Council. A revised affordability limit was set for round 2, in agreement with the Director of Resources, at £2.432m per annum for years 1 to 4, reducing to £2.232m for years 5-15, a total budget of £34.28m over the 15 years of the contract.

The procedure allowed CYC officers to meet both bidders twice before a second tendering phase commenced in order to provide feedback to each bidder on why their bid had been rejected so that they could subsequently make changes to their bids to make them compliant for round two.
The second tender stage was conducted between 14 and 28 January 2019 and both bidders submitted bids.

The highest scoring bid in terms of quality was that submitted by Explore Libraries and Archives Mutual Ltd. This was also the lowest priced bid.
Budget Council on 28 February allocated additional resources commensurate with the increased affordability limit set out above.

The tendered price is now, therefore, within budget and the contract can be awarded to Explore Libraries and Archives Mutual Ltd.”