The Director of Regeneration and Place has agreed:

(1)  To endorse the competitive tendering exercise by Crown Commercial Service, acting on the Council’s behalf to arrange for a preferred supplier for a liquid fuel call-off contract by competitive tender; and

(2)  To award the contract for the supply of liquid fuels toStandard Fuel Oils Limited for a contract duration 2 years with no option to extend at a contract value of £728,400.

(3)  That the above recommendations be deemed urgent and therefore not subject to the procedure for re-consideration.

The current call-off contract with Crown Commercial Service (CCS) for the supply of liquid fuels ends on 31 March 2024. Expenditure on liquid fuels for fleet vehicles, agricultural equipment and space heating over 2022/23 was £364k. The actual rather than predicted contract price is wholly dependent on the amount of liquid fuels ordered and the prevailing market prices. Fuel prices are updated weekly according to the Platt’s index (a price benchmark service for the oil industry). The award will be underpinned by a formal contract that will be signed under seal. It is necessary to appoint a supplier to enable the Council to maintain a supply of liquid fuels from 1 April 2024 and onwards. Standard Fuel Oils Limited is the preferred supplier having performed best under the tendering exercise having regard to the relevant award criteria.

The CCS call off arrangement provides liquid fuel supply for fleet vehicles, agricultural equipment and space heating. Suppliers for the contract duration are appointed by CCS following a competitive bidding process that is compliant with Council procurement rules. 

The cost of liquid fuels ordered through the Council’s iProcurement system is met by the individual cost centres and provided for in individual budgets.

This decision will ensure that value for money is delivered and that risks associated with liquid fuel price volatility are reduced.

The option of not renewing the call-off arrangement was considered but discounted because of the significant additional resource required for individual users to make their own arrangements in a volatile market.

The call off arrangement provided by CCS provides a risk managed solution that is compliant with corporate procurement rules.

It is necessary to recommission the liquid fuels call off contract in order to comply with Public Contract Regulations and the Council’s Contract Procedure rules. Other options have been considered and discounted.  The contract has been logged on The Chest system (Ref DN680680).  A ‘smart’ form PRC Case 532093512 has been logged.  The contract renewal process has been undertaken in consultation with Procurement colleagues.  Contract details required for the competitive bidding process have been shared with the Council’s Legal Department.

As part of the special urgency process the Mayor has been consulted and is in agreement. The Chief Executive has been consulted on waiving re-consideration and is in agreement.