Agenda item

Consideration was given to a report of the Deputy Chief Executive People and Place which sought approval to utlise the Yorkshire Purchasing Organisation (YPO) framework for the supply of liquid fuels for use in the Council’s fleet.

The Council required the supply of liquid fuel on site to ensure the vehicle fleet are fully operational. YPO ran a mini competition of behalf of AGMA (Association of Greater Manchester Authorities) obtaining continuity of supply and value for money.

The current contract was supplied by Certas Energy. The procurement for this contract whilst driven by AGMA was undertaken by YPO (Yorkshire Purchasing Organisation) using a framework of their own establishment.

Liquid Fuel was primarily used by the departments located at Moorhey St with use also by other departments and some schools. Fleet Management stores bunkered fuels on site at Moorhey Street, (Max levels: Diesel – 60,000 litres, Petrol – 13,000 litres and red diesel – 8,000 litres). Fuel was dispensed by onsite pumps which drivers could withdraw by use of a driver and vehicle key fob.

The YPO Liquid Fuel framework had ceased however a re-procurement was undertaken to re-establish and as before an exercise had been carried out for the AGMA authorities. This framework commenced on 22^nd November 2019 for 2 years with an optional additional 2-year extension; the intention was that the Council would contract with the rank 1 supplier throughout the duration of the framework agreement. Standard Oil Fuels Ltd were currently rank 1 supplier and the AGMA authorities had made a decision to appoint the recommended supplier with the intention that each authority would now complete individual call off agreements.

The call off agreement with Standard Oil Fuels Ltd WAS in place until 21^st November 2021 after which YPO would run a further mini competition for a call off period of 2 years (ending 21^st November 2023) which may change the rank 1 supplier.

Options/alternatives considered

Option 1:

• To approve the use of the YPO framework to purchase liquid fuels from the rank 1 supplier as a result of the mini competitions.
• Complete call off contract with the current rank 1 supplier Standard Fuel Oils Ltd and take advantage of the buying power and savings detailed in this report.
• Following the second mini competition for the call off period 22^nd November 2021 until 21^st November 2023 contract with the rank 1 supplier.

Option 2 - To not approve the use of the YPO framework and the purchase of fuels from the rank 1 supplier in both this call off and the second thus not taking advantage of the buying power and savings. Also due to the spend associated an alternative procurement process would need to be completed which would not guarantee any savings.

RESOLVED – That the purchase of liquid fuels using the Yorkshire Purchasing Organisation framework for the Supply of Liquid Fuels be approved. The Council would contract with the rank 1 supplier as per the outcome from the mini competition process.