DD2555 Specialist support for the framework for domestic retrofit

1.1 The Mayor wants to make London a zero-carbon city by 2030, while at the same time protecting the most disadvantaged by tackling fuel poverty. The COVID-19 pandemic has presented London with its most challenging period in recent history and missions to deliver a Green New Deal and a Robust Safety Net are central to London’s recovery programme.

1.2 The Mayor’s Warmer Homes programme has operated since January 2018 and provides heating and insulation improvements to homes in or at risk of fuel poverty. By winter 2021 it is expected to have improved over 2,000 homes and has so far secured over £6m in match funding from the Green Homes Grant Local Authority Delivery programme and the Energy Company Obligation.

1.3 Recent government funding means the GLA is close to reaching the procurement headroom on the existing supply contract for the Warmer Homes programme. Further funding is likely to be available in the form of government grants and energy supplier funding and the GLA is committed to securing funds on London’s behalf. MD2775 secured approval to procure a framework for the delivery of Warmer Homes 3 whilst stating any acceptance and expenditure would be subject to a further Decision.

1.4 The new Warmer Homes framework will have to be sufficiently flexible to accommodate Able to Pay initiatives, allow London Boroughs to call off the framework, and reflect the requirements of further Government funding schemes which are anticipated to be available later this year. Due to the complexity of the proposed framework, the GLA wishes to procure specialist technical support from S&J Consulting Limited to develop the procurement strategy, tender documentation and contract terms. TfL Legal will provide all legal support on the development of the contract terms.

1.5 S & J Consulting Limited have previous involvement in GLA Energy team projects which means they are able to deliver the programme more quickly and efficiently than another supplier, thereby reducing costs. Other suppliers would require substantial preliminary work which would therefore increase overall project costs.

1.6 S & J Consulting Limited have considerable commercial experience in the energy sector and supporting the creation of frameworks. They understand the GLA/TfL processes having supported in both the RE:FIT and RE:NEW frameworks and having more recently worked on the London Power procurement.

1.7 The day rate due to S & J Consulting Limited has been held since 2019. Their experience of GLA/TfL working will further enhance value for money by removing the need for a familiarisation period therefore progressing the work at pace.

2.1 This contract has the following objectives:

• design of the Warmer Homes 3 programme including supporting TfL to develop the procurement strategy
• procurement of Framework for Domestic Retrofit
• mini-competition to appoint Warmer Homes 3 provider.

2.2 This contract has the following outcomes:

• successful procurement and award of Warmer Homes 3 contract
• circa £30m+ spend
• supporting the GLA in achieving energy efficiency improvements to circa 3,000 homes by the end of March 2023
• domestic retrofit framework in place - allows fast procurement of programmes across London.
• a more deft ability to secure and deliver on external funding opportunities.

Governance and procurement approach

2.3 In line with the GLA Contracts and Funding code (Section 10.1), an exemption from standard procurement processes was sought through a single source justification (Form GLA 81968 as reviewed at TfL Commercial Approval Panel on 28th Oct), due to:

• previous involvement in a specific current project or continuation of existing work that cannot be separated from the new project/work
• the supplier is unique in its ability to provide compatibility with an existing service.

2.4 S & J Consulting Limited’s previous involvement in GLA Energy team projects means they are able to deliver the programme more quickly and efficiently than another supplier, thereby reducing costs. Other suppliers would require substantial preliminary work which would therefore increase overall project costs.

2.5 S & J Consulting Limited have considerable commercial experience in the energy sector and creating successful procurement frameworks. They understand the GLA/TfL processes having supported in both the RE:FIT and RE:NEW frameworks and having more recently worked on the London Power procurement. The day rate due to S & J Consulting Limited has been held since 2019. Their experience of GLA/TfL working will further enhance value for money by removing the need for a familiarisation period therefore progressing the work at pace.

3.1 Under Section 149 of the Equality Act 2010, as a public authority, the GLA is subject to the public sector equality duty and must have due regard to the need to:

(i) eliminate unlawful discrimination, harassment and victimisation;

(ii) advance equality of opportunity between people who share a relevant protected characteristic and those who do not; and

(iii) foster good relations between people who share a relevant protected characteristic and those who do not.

The "protected characteristics" are age, disability, gender re-assignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation and marriage/civil partnership status. The duty involves having appropriate regard to these matters as they apply in the circumstances, including having regard to the need to: remove or minimise any disadvantage suffered by those who share or is connected to a protected; take steps to meet the different needs of such people; encourage them to participate in public life or in any activity where their participation is disproportionately low. This can involve treating people with a protected characteristic more favourably than those without one.

3.2 The Warmer Homes 3 programme targets residents who are in or at risk of fuel poverty and homes with poor levels of energy efficiency, and it will aim to promote holistic, whole-house energy efficiency retrofits. The Warmer Homes 3 procurement process has been designed to help improve equality of opportunity in the supply chain by placing requirements on tenderers including details of how they will create an inclusive supply chain.

3.3 The programme is designed to advance equality of opportunity and support occupants who are particularly vulnerable, whether as a result of their protected characteristics or other factors, such as their health or personal circumstances. It is expected that this scheme will have a positive impact on lower income and fuel poor households directly through the home refurbishments. Indirect benefits are also anticipated by catalysing greater awareness of energy use and the opportunities for people to reduce their energy consumption and bills, whilst still protecting their health.

Links to Mayoral strategies and priorities

4.1 Alongside its central role in delivering the Fuel Poverty Action Plan this proposal also aligns with relevant actions in the London Environment Strategy, Equality, Diversity & Inclusion Strategy and Health Inequalities Strategy.

4.2 Relevant recovery missions are:

• A Robust Safety Net: The pandemic has impacted on Londoners’ incomes and household bills and support from the Warmer Homes Advice Service will help to relieve hardship.
• A Green New Deal: Londoners living in fuel poverty are more likely to experience cold, damp homes and the Warmer Homes Advice Service supports them to use energy more efficiently and supports access to funding for heating and insulation improvements.

Key risks and issues

4.3 Table of key risks and issues:

Impact assessment

4.4 S&J specialist support facilitates delivery of strategically important Warmer Home 2 & 3 fuel poverty programmes which contributes to delivery of the Mayor’s London Environment Strategy and to London becoming zero carbon by 2030.

4.5 An Impact Assessment was undertaken for both the London Environment Strategy and its associated programmes. As this funding will help deliver the objectives of these Strategies, the original impact assessments are still relevant to the project. There will be appropriate levels of Impact Assessment and stakeholder consultation in relation to the development and delivery of this programme.

Conflicts of interest

4.6 There are no conflicts of interest to note for any of the officers involved in the drafting or clearance of this decision form.

5.1 Approval is sought for expenditure of up £67,900 to procure S&J Consulting Limited to provide Specialist procurement framework design, procurement strategy and support for the framework for provision of domestic retrofit measures as detailed within this report. The contract expenditure includes the following cost milestones as summarised below:

5.2 The £67,900 cost of this contract will be funded from the 2021-22 Warmer Homes Revenue budget held within the Environment Budget and approved as part of the 2021-22 budget setting process.

6.1 Sections 1 - 2 of this report indicate that the decisions requested of the director fall within the GLA’s statutory powers to do such things considered to further or which are facilitative of, conducive or incidental to the promotion of economic development and wealth creation, social development or the promotion of the improvement of the environment in Greater London; and in formulating the proposals in respect of which a decision is sought officers have complied with the Authority’s related statutory duties to:

• pay due regard to the principle that there should be equality of opportunity for all people;
• consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the United Kingdom; and
• consult with appropriate bodies.

6.2 In taking the decisions requested, the director must have due regard to the Public Sector Equality Duty; namely the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010, and to advance equality of opportunity and foster good relations between persons who share a relevant protected characteristic (race, disability, sex, age, sexual orientation, religion or belief, pregnancy and maternity and gender reassignment) and persons who do not share it (section 149 of the Equality Act 2010). To this end, the director should have particular regard to section 3 of this report.

6.3 Section 9 of the Contracts and Funding Code (the ‘Code’) requires the GLA to seek three or more written quotations in respect of the services required or call off the services required from an accessible framework. However, the director may approve an exemption from this requirement under section 10 of the Code upon certain specified grounds. One of those grounds is that the approval of the exemption is justified on the basis that the supplier has previous involvement in a specific current project or continuation of existing work that cannot be separated from the new project, and another of those grounds is that the supplier is unique in its ability to provide compatibility with an existing service. Officers have indicated in section 2 of this report that these grounds apply. Officers have also indicated in section 2 of this report that they are satisfied that the proposed contract affords value for money due to the holding of previous day rates.

6.4 The director may approve the proposed exemption if satisfied that the grounds for exemption apply, that the contract affords value for money, and if the director is satisfied with the content of this report generally.

6.5 Officers must ensure that appropriate contract documentation is put in place and executed by the supplier and the GLA before the commencement of the services.

• MD2775 - Warmer Homes 3 and Green Homes Grant Local Authority Delivery Scheme Funding
• Single Source Request Form - GLA 81968 – Specialist Technical Support for the framework for provision of domestic retrofit measures