Agenda item

(To receive a report from Paul Rusted, Infrastructure Commissioner, which provides the Committee with an update on the work in relation to the Highways 2020 contract)

The Committee gave consideration to a report from Paul Rusted, Infrastructure Commissioner, which provided an update on the work being carried out to replace the Lincolnshire Highways Alliance.

In guiding the Committee through the report, reference was made to:-

·         The background behind the three contracts relationships, which for the Alliance were due to reach their full term on the 31 March 2020;

·         The work that had been undertaken to date, which had included market engagement, local authority visits;

·         The Options Appraisal process – Reference was made to the Highways Maintenance Efficiency Programme Toolkit, Councillor Option Workshop (details of the five preferred main options were detailed on page 2 of the report presented);

·         Working Group Option Workshop; and Preferred Option Selection.  The Committee was advised that the Executive at their meeting held on the 5 December 2017 had accepted Option 17, which provided for a single provider contractor with improved reactive service incentivisation for the Highway Works Term Contract;

·         Working Groups – The Committee was advised that a number of working groups had been set up to move forward the detailed work required to progress the preferred option.  This included:-

Contract Drafting – It was reported that the documentation was nearly complete;

Depot Strategy - The Committee was advised that all depots had been surveyed to fully understand their current usage.  The Committee was further advised that Lincolnshire Legal had been appointed to draft a formal Lease Agreement; and that meetings had been held to consider the options available to Lincolnshire County Council (LCC); and the potential changes moving forward;

Pricing Documents – It was reported that Highways Maintenance Efficiency Programme Pricing Document was to be adopted throughout the contract for the majority of items;

Reactive Service Incentivisation – It was noted that meetings had been held to discuss the options available with the relevant staff;  

Performance – It was reported that a review was being undertaken of performance measures being adopted by other authorities; and that contractual drafting had commenced;

Specification – It was highlighted that a Lincolnshire specification would be adopted in one document, which was a move away from the current position.  It was highlighted further that the reason for this was because Highways England would not be supporting the national specification document for Local Authorities in the future and it was believed that collating all the information in one document would be clearer for officer use.  The Committee noted that Lincolnshire Laboratory had completed the initial draft which was currently in the process of being issued to the LCC specialists; and

Procurement – It was noted that a single procurement exercise would commence using the Competitive Procedure with Negotiation with three individuals Lots for each of the contracts (Works, Professional Services and Traffic Signals).  It was noted further that LCC was likely to restrict the bidders to only being successful in one Lot.

·         Work Planned – Details of work planned for the next period was shown on page 4 of the report presented. Particular reference was made to further market engagement and that an Industry Day had been provisionally arranged for 18 May 2018; this would give potential bidders the opportunity to find out more about Lincolnshire. 

In conclusion, the Committee was advised that the project was on target having completed its option appraisal phase; and that the next phase of work would continue to develop the detailed contract documentation required to deliver the preferred option.

During discussion, the Committee raised the following issues:-

·         One member felt that there needed to be flexibility in the contract for dialogue with contractors.  Officers confirmed that there would be flexibility to allow work to be done in the most appropriate way, and that officers had no problems at all speaking to contractors.  It was agreed that any member with a concern regarding a contract should speak to the officers involved, or raise the matter with the Executive Councillor;

·         A suggestion was made that going forward the newly appointed contractors should be invited to attend Scrutiny Committee meetings at agreed times; and

·         One member welcomed the unannounced inspection of contract works.

RESOLVED

            That the Highways 2020 Update report be received.