Decision details

To consider a report of the Cabinet Member for Transport and Environment providing an update on the progress of procurement of long-term Highways Service Partnership together with the business case and requesting delegated authority to close competitive dialogue and call for Final Tenders.

(i)  To delegate authority to the Executive Director for Environment in consultation with the Solicitor to the Council and Executive Director for Resources and following consultation with the Cabinet Member for Environment and Transport to take all necessary steps to close dialogue, issue Call for Final Tenders and appoint a preferred bidder within the parameters set out at Appendix 2, Annex 3.

(ii)  To approve the lease of office and depot space at Castle Way, Town Depot and future Dock Gate 20 City Depot to the successful Provider for a period commensurate with the term of the contract (or such lesser period as may be required) and to delegate authority to determine the final terms and conditions of any such leases to the Head of Property and Procurement.

1. The dialogue stage of procurement with bidders is nearing completion. This process has provided evidence that the proposed implementation of a highways service partnership will provide a more effective and efficient service leading to improved performance levels and increased output. An Addendum to the original Outline Business Case has been produced to support these assertions.
2. The efficiencies generated from the partnership will be re-invested back into the highways service. The Partnership will not provide the level of additional funding required for significantly improving the condition of the highways network (for which it is estimated between £10-15m spend per annum is required) or move the Council away from a ‘managed decline’ strategy. However, it will ensure the Council is maximising the output from its existing budgets (approx £7.6m per annum).

1. A Strategic Business Case included an options appraisal which determined, in the absence of significant additional investment (i.e PFI), the model that best met the Critical Success Factors for the future of the Highways service was a long-term public/private service partnership. The alternative options considered were: Do-Nothing; Public/Public Partnership; Strategic Partnership; Externalisation; Fully in-house.
2. An Outline Business Case (OBC) set out a detailed options appraisal considering the form of Partnership which best met the Council’s objectives.