Agenda item

Mr Hannon, Environmental Strategy and Governance Manager, reminded the Committee that the Waste Collection / Management, Street Cleaning, Grounds Maintenance and Highways reactive work functions for Slough Borough Council was currently delivered by Amey under the Environmental Services contract. This contract was due to expire in November 2017.

A dedicated commissioning process was conducted whereby the preferred contract delivery vehicle and service batching was appraised and assessed against critical criteria, including financial implications and risks. This also included feedback from the market through a soft market testing day undertaken in January 2016.

The risks of providing an in-house service against the risk of outsourcing the services to the market were outlined. A greater emphasis on provision of commercial services, ability to identify and absorb risk as an Authority, to mitigate excess cost and reduce overheads paid to the private sector were all factors which contributed to the ‘in-house provision’ option. 

It was brought to Members attention that the preferred option of insourcing the service could be delivered by either bringing the service in as a DSO (Direct Services Organisation also known as a DLO – Direct Labour Organisation) or a Teckal Company - limited by shares with the Council as the sole shareholder. It was noted that the Teckal Model company could achieve service benefits for residents as well as providing commercial opportunities not possible with an outsourced model. 

The Committee discussed a number of issues in the ensuing discussion. It was queried as to why when the scope of the contract was commissioned the in-house option had not been considered, which had led to a delay in the process. Mr Hannon submitted that in-sourcing should have been considered as an option earlier during the process and that lessons had been learnt for any future procurement exercises.

Concern was expressed whether the January 2018 deadline for implementation of the new contract would be met and what assurances could be provided relating to the quality of service provided, given that staff from the current provider would be transferred across to the new company. The Committee were informed that following engagement with Amey, Officers were confident that the new company would be operational by January 2018. It was noted that a robust governance structure would be implemented, including performance monitoring on a quarterly basis.

After due consideration, the Committee agreed that a recommendation be made to Cabinet that the Environmental Services Contract be brought in house and services delivered via a Teckal Company.

Recommended to Cabinet -  Thatan in-house model be developed for the delivery of Environmental Services and Highways from December 2017 and  that the service be delivered via a Teckal Company.