Decision details

Consideration was given to a report of the Executive Director, Place and Economic Growth which sought approval to enter into a call-off contract with Dunsters Farm Ltd, following a competitive tender for the supply and delivery of groceries, chilled and frozen food.

Trafford Council on behalf of the Greater Manchester Combined Authority had undertaken a procurement process to retender the contract for the supply and delivery of groceries and chilled and frozen foods. Duster Farms Ltd were identified as the most economically advantageous tenderer.

Oldham Council was named as a purchaser in the tender documentation and Trafford Council would enter into an overarching contract with Dusters, with Oldham Council having the right to access this contract and place orders for the supply and delivery of groceries, chilled and frozen foods. During this financial year Trafford Council were intending to undertake the procurement of the following contracts,

·         Supply & Deliver of Fresh Produce and Chilled Prepared Produce

·         Supply & Delivery of Fresh and Freshly Frozen Meat, including Halal, Cooked Meats and Bacon

·         Supply and Delivery of Milk, Bread, and Dairy Products 

Oldham Council had made a commitment to secure supplies under the contracts which could create greater efficiencies, economies of scale and reduced costs.

Options/alternatives

Option 1 – Do nothing. This would leave Oldham Council with no formal contract in place. This runs the risk of a further increase in costs, unstable service delivery and nonadherence of the Public Contract Regulations 2015. Due to the spend associated with this contract an alternative procurement process would need to be completed which would not guarantee any savings and may be less attractive to the market due to the lack of economy of scale. 

Option 2 – Undertake a procurement process targeting local businesses to solely supply to Oldham Council. This is not a viable option at present as a review has not taken place on the local market position.

Option 3 – To utilise the GMCA framework and enter into a call-off contract with Dunster Farms Ltd. This would provide stability in the service area ensuring continuous delivery and fixed prices. Furthermore, a robust and compliant procurement process has been undertaken to identify Dunster Farms Ltd, reducing risk further to the Council.

Option 4 – On completion of a compliant procurement process by Trafford Council via STaR Procurement, to allow for delegated approval to enter into call-off contracts for:

This would allow the implementation period to be fully maximized ensuring that all systems are up to date, delivery schedules agreed and specific service requirements to be considered prior to the contract start dates.

RESOLVED – That the Cabinet would consider the commercially sensitive information contained at Item 16 of the agenda before making a decision.