How PfH Scotland helped Midlothian Council re-procure heating services for 7,000 homes

Delivering value for money: How PfH Scotland supported Midlothian Council through a complex heating services re-procurement

Midlothian Council manages around 7,000 properties across the region, including over 6,000 boilers, 125 back boiler units and 2,000 gas cookers. When their heating servicing and maintenance contract was coming to an end, the Council needed a reliable, compliant way to re-procure the work and make sure they were getting genuine value for money. That’s where we came in.

THE PROBLEM

A high value contract coming to an end and a procurement strategy that needed a fresh look

As part of a wider review of their procurement strategy, Midlothian Council identified a number of higher spend contracts that were nearing the end of their existing agreements. The heating servicing and maintenance contract was one of the most significant. With thousands of properties relying on that service, getting the re-procurement right mattered a great deal. The Council needed a process that was competitive, compliant and gave them confidence in the outcome.

THE SOLUTION

Using our Compliance Services DPS to run a fair and open tender

Midlothian Council chose to use our Compliance Services Dynamic Purchasing System as their route to market. The DPS gave them access to a pool of qualified suppliers who could be invited to submit a return and, if successful, bid for works across the relevant lots and regions.

Crucially, it also meant the Council could invite their existing supplier, Richard Irvin FM, to take part in the tender alongside other DPS-appointed contractors. There was no assumption the incumbent would be reappointed. Every submission would be assessed on its merits.

Our team supported the Council through the process, helping to make sure the tender ran smoothly from start to finish.

THE RESULTS

Three competitive bids, one strong winner and a four year contract secured

The tender process generated three competitive submissions. Richard Irvin FM put forward a high quality bid and were successfully awarded the contract. A four year agreement was signed and work got underway in late 2020.

For Midlothian Council, the process delivered exactly what they set out to achieve: a competitive, transparent procurement that gave them confidence in both the value and the quality of the service going forward.

Dickson Leishman, Division Manager at Richard Irvin FM Ltd, said: “Following a thorough tender process Richard Irvin FM Ltd are very pleased to continue our relationship with Procurement for Housing which we have developed over many years.”