Summary This report seeks approval to confirm award of the supply of Fresh Fruit, Vegetables,

Potatoes and Salads contract to Fresh N Fruity UK Ltd for a period of two years from 21

October 2014 until 20 October 2016 with an option to extend for a further two years.

Decision To confirm award of contract to Fresh N Fruity UK Ltd for the supply of Fruit, Vegetables, Potatoes, and Salads for a period of two years, with an option to extend for a further two years

ACTION TAKEN UNDER DELEGATED POWERS BY OFFICER

Title

Award of Contract for the Supply of Fresh Fruit, Vegetables, Potatoes and Salads

Report of Ian Harrison, Director of Education and Skills

Wards All

Status Public

Enclosures None

Officer Contact Details

Teresa Goodall teresa.goodall@barnet.gov.uk 020 8359 5140

1. WHY THIS REPORT IS NEEDED 1.1 This report requests authority to award a contract for the supply of Fresh Fruit,

Vegetables, Potatoes and Salads as required by Contract Procedure Rules Appendix 1, Table A. This contract will be for a two year period from 21 October 2014 until 20 October 2016, with an option to extend for a further two years. Total spend over the two year period will be approximately £1,310,000.

2. REASONS FOR DECISIONS

2.1 The Framework Agreement is procured and let on behalf of other local

authorities by the Eastern Shires Purchasing Organisation (ESPO). Barnet Council can “call off” from the Framework Agreement in accordance with the Framework Agreement rules. The Framework Agreement does not commit the Council to any financial liability, unless it obtains goods from Fresh N Fruity UK Ltd. However it has the advantage of securing value for money and security of supply. Fresh N Fruity UK Ltd submitted the most economically advantageous bid and was the highest scoring against a range of performance criteria which are set out in Item 5.9. The identities of the remaining tenderers are set out in the accompanying exempt report.

3. ALTERNATIVE OPTIONS CONSIDERED AND REJECTED

3.1 For a contract of this size and scope, the use of a Framework Agreement administered by ESPO was considered to be the best method for comprehensively testing the market and securing value for money.

4. POST DECISION IMPLEMENTATION 4.1 The supplier has commenced supply of the goods under the terms of the

contract and to deliver the provisions accordingly. The contract is for two years and performance review meetings will be held bi-monthly with ESPO and Fresh N Fruity UK Ltd to jointly review performance levels. The contract is monitored against the following criteria:

• Delivering Quality Performance

• Benchmarking and Trend Analysis

• Account Management

• Sales Management Information

• Sustainability

In the last quarter of the second year of the contract the providers’ overall performance will be subject to a review together with a market evaluation to determine whether to recommend taking up the option to extend the contract

for a further two years.

5. IMPLICATIONS OF DECISION

5.1 Corporate Priorities and Performance

5.2 The Corporate Plan 2013-2016 states that under the Financial Strategy “We will continue to keep a tight rein on our finances and provide quarterly reports on how we are managing the business – and our new contracts – to ensure even better value for money for tax payers”

5.3 The provision of an efficient and cost effective food supply will assist the

Council in meeting the outcome objectives outlined in the Corporate Plan. 5.4 The Children and Young People’s Plan (CYPP) 2013-16 prioritises the

adoption of healthy lifestyles and choices to combat obesity in Barnet’s children and young people which is above the national average by Year 6. With the provision of over 18,000 school meals daily, Catering Services play an important role in helping to promote healthy and positive dietary habits early and encouraging children and young people to stay healthy into adulthood

5.5 Resources (Finance & Value for Money, Procurement, Staffing, IT, Property, Sustainability)

5.6 Finance – The likely expenditure with Fresh N Fruity UK Ltd from October 2014 to October 2016 is expected to be approximately £1,310,000 which will be met from the Catering Services trading account within Education Partnerships and Commercial Services.

5.7 Value for Money – The use of the contract will ensure value for money as

costs are reviewed termly against inflation rates and current market prices. 5.8 Procurement - The procurement process has been conducted in accordance

with the Public Contracts Regulations 2006, the Council’s Contract Procedure rules and the Corporate Procurement code of Practice. The services fall within Part B of the Public Contracts Regulations 2006 and therefore must comply with the EU procurement law of equality of treatment, transparency and non-discrimination.

5.9 Four bids were received from suppliers tendering for the Fresh Fruit,

Vegetables, Potatoes and Salad Framework Contract and the following tables show the results of the tender evaluation.

5.10 Staffing, IT, Property - There are no Staffing, IT or Property implications

associated with the award of the contract to Fresh N Fruity UK Ltd.

5.11 Sustainability – The Public Services (Social Value) Act 2012 requires the Council to have regard to economic, social and environmental wellbeing in connection with public services contracts; and for connected purposes. Catering Services directly supports the council’s priorities set out in the Corporate Plan, the Children and Young People’s Plan and the Health and Wellbeing Strategy.

ESPO’s tender qualification criteria incorporates rigorous standards with regard to the sustainable and ethical sourcing and assessment of supplies. Following a comprehensive tender evaluation Fresh N Fruity UK Ltd was assessed as being the most sustainable of the providers who tendered for the contract. Legal and Constitutional References

5.12 Council Constitution, Contract Procedure Rules, Appendix 1, Table A sets out acceptance documentation and thresholds. For contracts with a value of £172,514 and over, if within budget the acceptance process is via officer delegated powers report in consultation with the Chairman of the relevant theme committee.

5.13 HB Public Law has been consulted on this matter and the comments are incorporated into the body of this report.

Risk Management

5.14 The contract with Fresh N Fruity UK Ltd will be a call-off contract which facilitates the provision of fresh fruit and vegetables as and when required. There is no risk of financial commitment incurred by the contract which has no specific requirement for levels or frequency of use.

5.15 As the framework is let by ESPO on behalf of the other local authorities the

continuity of supply is protected. The Business Continuity plan for the framework agreement includes provision for access to alternative suppliers within the framework should there be a risk of interruption of service.

Equalities and Diversity

5.16 Pursuant to section 149 of the Equality Act 2010, the council has a public equality duty to have due regard to: (i) eliminating unlawful discrimination, harassment, victimisation and any other conduct that is prohibited by or under the Act; (ii) advancing equality of opportunity between those with a protected characteristic and those without; (iii) promoting good relations between those with a protected characteristic and those without. The relevant ‘protected characteristics’ are age, disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation. It also covers marriage and civil partnerships with regard to eliminating discrimination.

5.17 Having ‘due regard’ means: (i) consciously thinking about the three aims as

part of the decision making process; (ii) that an incomplete or erroneous appreciation of the duties will mean that due regard has not been given to them; and (iii) that the duty must be exercised in substance, with rigour and with an open mind.

5.18 The tendering documentation included provision for ensuring equality and

diversity which incorporated the council’s current policies. 5.19 The contract with Fresh N Fruity UK Ltd includes provision for ensuring

equality and diversity which incorporates the council’s current policies. 6 BACKGROUND PAPERS 6.1 A copy of the invitation to tender documentation including Terms and

Conditions and Specification is available for viewing in Catering Services.

6.2 Any person wishing to see the background papers should contact Teresa Goodall, 0208 359 5140

7. DECISION TAKER’S STATEMENT

7.1 I have the required powers to make the decision documented in this report. I am responsible for the report’s content and am satisfied that all relevant advice has been sought in the preparation of this report and that it is compliant with the decision making framework of the organisation which includes Constitution, Scheme of Delegation, Budget and Policy Framework and Legal issues including Equalities obligations.

8. OFFICER’S DECISION I authorise the following action: To award a contract to Fresh N Fruity UK Ltd for the provision of Fruit,

Vegetables, Potatoes, and Salads for a period of two years, with an option to extend for a further two years

Signed Ian Harrison, Education & Skills Director

Date 27 January 2015