Planning

Portsmouth City Council - Term Service Contract for the Repairs & Maintenance Residential and Commercial properties for Council Managed Assets

  • Portsmouth City Council

UK3: Planned procurement notice - Procurement Act 2023 - view information about notice types

Notice identifier: 2025/S 000-017831

Procurement identifier (OCID): ocds-h6vhtk-0509c2 (view related notices)

Published 30 April 2025, 9:58am



Scope

Description

Overview of Procurement Objectives

Portsmouth City Council (the Council) is seeking to procure repairs and maintenance services for its housing stock through two individual contracts, with a combined total value in the region of £36M per annum.

To meet the distinct geographical and logistical needs of service delivery, the procurement will result in two separate contract awards, one for properties located on "on-island" and one for those located ''off-island''. The successful contractors will be expected to deliver a responsive, high-quality service that ensures safe, well-maintained homes for residents while demonstrating value for money and alignment with the Council's strategic objectives.

Each individual contract has an estimated annual value between £14M to £18M based on current historic spend. The contracts will be let for an initial base term of five years, with the option to extend for up to a further five years in intervals to be agreed.

Based on anticipated inflationary uplifts and potential growth in housing stock, the total individual contract spends over the potential 10-year term (5-year base with options to extend) is expected to range between £168M and £225M. Therefore, based on current market conditions, the total combine spend over the 10-year lifetime of both contracts could be in the region of £336M to £450M. The impacts of Local Government Review have not been considered in this current value and the likely increases in the total value of the opportunity, brought about through the reform, will be addressed when the formal tender notice is issued.

Housing Stock Information

The Council has a housing stock of approximately 17,500 properties of which approximately 15,500 are socially rented and then there are approximately 2000 leasehold properties. Within the stock there is a mix of housing types including houses and bungalows; however the majority of the dwellings are within purpose-built blocks of flats constructed in the 1950s and 1960s.

Traditionally the estate has been spread across the two geographical areas of Portsea Island (on-island, PO1 to PO5) and Paulsgrove and Havant (off-island, PO6 to PO9).

A recent acquisition of approximately 800 properties has however subsequently increased the 'off-island' area to sites in Gosport, Fareham and Winchester.

Current & Future Demand

Over the last 5 years there have been approximately 16,000 annual general repairs and maintenance tasks undertaken across the 'on-island' housing stock and 15,000 annually across the 'off-island' housing stock, which is likely to remain consistent over the course of any new contract.

The Council is currently working on a number of development options, and it is anticipated that within the next 5-10 years there is potential for up to 1000 additional dwellings to be created that will require some level of maintenance and consequently will need to be absorbed into any new contract.

Over the course of the contract, it is likely that new workstreams will be introduced particularly as the stock is decarbonised and alternative renewables are implemented.

Changing Context and Objectives

Over the next 5-10 years the Council is expecting to experience a number of challenges with regards to the maintenance of its housing and general fund properties with any incumbent provider to work in partnership with the Council to ease pressures where they can.

Significant changes in legislation such as the Building Safety Act and Fire Safety Act will require greater scrutiny from suppliers to ensure they are working in a compliant way and may require them to adopt new skills such as undertaking works as a result of Building Safety Cases for buildings of 6+ storeys.

There will be more focus on the accuracy and timely manner of up-load of compliance information and ensuring repairs, particularly around damp and mould are well managed and resolved and will be monitored by the Social Housing Regulator.

Local Government Review

As part of the wider Local Government Review (LGR), the Council is required to actively engage in discussions with neighbouring authorities to explore potential opportunities for collaboration, shared service delivery, and governance alignment. While this engagement is ongoing, no formal decisions or agreements have been reached at this stage.

Under current LGR proposals, it is likely to require Portsmouth City Council to form a new Authority by merging with other neighbouring Authorities. For Portsmouth, this will result in a new Council being created to provide the same services to everyone in the city, whilst covering a larger area and have a different name. Effectively all the current council services in the new council boundary would be merged to create a new Council.

The Council can only confirm its current demand and scope of requirements; however, this may be subject to change should additional needs arise from other local authorities as part of wider structural reforms.

Any tender opportunities and contracts will be structured to allow adjustments in the scope of services and the value of contracts to the Council to respond to changes in demand and budgetary constraints, whilst ensuring that services remain efficient and continue to provide value for money. Additionally, provisions will be included to adapt to changes in geographical boundaries resulting from any reorganisation. This will ensure that services can be extended or retracted to align with new administrative areas.

In the event of reorganisation, contracts will include clauses that allow for the assignment of the contract to successor authorities. Any assignment clause is likely to state any contract may be assigned to any new authority that succeeds the original contracting authority.

For further details in respect of LGR see the following link -

https://www.portsmouth.gov.uk/services/council-and-democracy/devolution-and-plans-for-local-government-reorganisation/

Existing R&M Contract

Two term service providers have managed the general repairs and maintenance requirements across the housing stock under an NEC 4 Option E Cost Reimbursement contract.

Each service provider has covered a distinct geographical area with one provider being responsible for 'on-island' repairs and one contractor being responsible for 'off-island' repairs. The 'on-island' contractor also manages repairs to a number of the Council's corporate assets.

The contract with each service provider has been in operation for just under 10 years and will expire in March 2026 with an estimated overall combined contract value of approximately £400m split fairly evenly across both geographical areas.

The existing arrangement has incorporated a number of functions and has included but is not exhaustive of:

• General responsive repairs

• General void property works

• Disabled adaptations

• Decorations

• Compliance testing

• Solar panel repairs

• Fire door, sprinkler and smoke detector checks

• Catering and Laundry Appliance Servicing and Repairs

New R&M Contract

The new contracts will mirror the existing arrangement with a geographical separation by on and off island. Two contracts supplied by two contractors will be established, one for the on-island properties and one for the off-island properties.

Both contracts will be run under an NEC 4 Option E Cost Reimbursable basis with an initial base term of 5 years with the option to extend the contractor for a further 5 years, in increments to be agreed. The Council are estimating the value per contractor will be in the region of £14m-£18m per annum.

The core scope of works will include but not limited to:

• General Repairs and Maintenance

• Smoke/Heat Detector Checks

• EICRs

• Emergency Lighting

• Ventilation Checks

• MVHR Testing and Repair

• Asbestos Removal

• Fire Door Installation and Maintenance

• Door Entry Systems

• Warden Call

• PV Maintenance

• Void Works

• Out of Hours

The contract may also require the following to covered or taken forward and will include but not limited to:

• Decarbonisation

• Air Source Heat Pumps

• Water Hygiene Repairs

• Communal Ventilation

• On and Off Island Repairs

• Corporate Asset Repairs

While not fully determined it is possible that Repairs to the Council's Corporate Assets will be taken forward by either the on island or off island contractor.

The on-island contractor is responsible for approximately 550 assets across both geographical areas; however these are predominantly within the PO1-PO5 postcode.

The Council's broader property portfolio encompasses a range of building types which include but are not limited to:

• Schools

• Offices

• Commercial buildings, warehouses and depots

• Care homes

• Sheltered housing and supported living properties

• Maritime port facilities

With reference to the corporate assets supported by the 'on-island' contractor there have been approximately 2000 repairs annually over the term of the contract at a value of approximately £750k per year.

Partnership Working

In addition to working in close partnership with the council, the supplier will also be required to work in partnership with the council's other existing term service contractor partners.

Systems Thinking Approach

The previous contracts have been managed on a full open book partnership basis with adoption of a range of Vanguard Systems Thinking designed processes and performance measures. The Council envisages these principles will still form part of any ongoing delivery strategy for Repairs & Maintenance contracts.

Further information on System Thinking can be freely accessed via the Vanguard site using the link below.

https://vanguard-method.net/the-vanguard-method-and-systems-thinking/

Social Value

The Council are committed to continuously reviewing and improving the approach to social value delivery, and suppliers can find further information using the following link -

https://www.portsmouth.gov.uk/services/council-and-democracy/social-value/

Total value (estimated)

  • £450,000,000 excluding VAT
  • £540,000,000 including VAT

Above the relevant threshold

Contract dates (estimated)

  • 1 April 2027 to 31 March 2032
  • Possible extension to 31 March 2037
  • 10 years

Description of possible extension:

The contracts will be let for an initial base term of five years, with the option to extend for up to a further five years in intervals to be agreed.

Main procurement category

Services

CPV classifications

  • 45311000 - Electrical wiring and fitting work
  • 45312000 - Alarm system and antenna installation work
  • 45315100 - Electrical engineering installation works
  • 45315300 - Electricity supply installations
  • 45315400 - High voltage installation work
  • 45315500 - Medium-voltage installation work
  • 45315600 - Low-voltage installation work
  • 45315700 - Switching station installation work
  • 45317100 - Electrical installation work of pumping equipment
  • 45317200 - Electrical installation work of transformers
  • 45317300 - Electrical installation work of electrical distribution apparatus
  • 45324000 - Plasterboard works
  • 45331000 - Heating, ventilation and air-conditioning installation work
  • 45332000 - Plumbing and drain-laying work
  • 45341000 - Erection of railings
  • 45342000 - Erection of fencing
  • 45343100 - Fireproofing work
  • 45343200 - Firefighting equipment installation work
  • 45343230 - Sprinkler systems installation work
  • 45410000 - Plastering work
  • 45420000 - Joinery and carpentry installation work
  • 45430000 - Floor and wall covering work
  • 45440000 - Painting and glazing work
  • 45451000 - Decoration work
  • 45452000 - Exterior cleaning work for buildings
  • 45453000 - Overhaul and refurbishment work
  • 45454000 - Restructuring work
  • 50711000 - Repair and maintenance services of electrical building installations
  • 50712000 - Repair and maintenance services of mechanical building installations
  • 50760000 - Repair and maintenance of public conveniences
  • 50870000 - Repair and maintenance services of playground equipment
  • 51100000 - Installation services of electrical and mechanical equipment

Contract locations

  • UKJ31 - Portsmouth
  • UKJ35 - South Hampshire

Participation

Legal and financial capacity conditions of participation

To be confirmed within the tender notice.

Technical ability conditions of participation

To be confirmed within the tender notice.

Particular suitability

Small and medium-sized enterprises (SME)


Submission

Publication date of tender notice (estimated)

25 May 2026

Enquiry deadline

17 June 2026, 4:00pm

Submission type

Requests to participate

Deadline for requests to participate

26 June 2026, 12:00pm

Submission address and any special instructions

Tenders may be submitted electronically

Yes

Languages that may be used for submission

English

Suppliers to be invited to tender

4 to 6 suppliers

Selection criteria:

To be confirmed within the tender notice.

Award decision date (estimated)

11 December 2026

Recurring procurement

Publication date of next tender notice (estimated): 26 May 2031


Other information

Applicable trade agreements

  • Government Procurement Agreement (GPA)

Procedure

Procedure type

Competitive flexible procedure

Competitive flexible procedure description

Market Testing

Portsmouth City Council (the 'Council') undertook two Soft Market Testing (SMT) exercises as part of a strategic review of delivery options for the provision of Repairs & Maintenance (R&M) across residential and commercial properties, Gas Servicing & Repairs (GSR) for residential properties and Fire Safety Compliance Services (FSCS) across its managed building assets.

Two separate Prior Information Notices were issued, being -

• SMT 1 - Housing, Neighbourhood and Building Services - Repairs & Maintenance and Gas Servicing & Repair Delivery Options Appraisal, Portsmouth- Wednesday 9th October 2024 - Reference - 2024/S 000-032496

• SMT 2 - Housing, Neighbourhood and Building Services - Repairs & Maintenance, Gas Servicing & Repair and Fire Safety Compliance Services Delivery Lotting Options Appraisal 2025 - Friday 23rd February 2025- Reference 2025/S 000-006741

The Council's main aim in undertaking SMT 1 was to understand the market's interest, capacity, capability, and ideas for delivering these services and inform an options appraisal which considered in-sourced, out-sourced and other alternative delivery options appraisal.

The subsequent options appraisal report submitted on 19th February 2025 to the Cabinet Member for Housing & Tackling Homelessness recommended continuation of outsourcing delivery and requested the following -

• Delegated authority to the Director of Housing, Neighbourhood and Building Services (HNB) to determine

o the lotting strategy

o contractual arrangements

o individual contract durations be for a minimum of five years, with the option to extend for up to 5 years subject to contractor performance

o commencement of a procurement exercise to re-tender the R&M and GSR contracts

o ability to proceed with the contract award and enter into contract with the preferred bidders

• Review the R&M contract Scope of Service with Cabinet member for approval

• Duty to consult and engage Portsmouth Homes (council housing service) tenants, leaseholders and shared owners

• Update the Cabinet member, housing opposition portfolio members and the Residents Consortium, at the key procurement milestones.

All recommendations and requested delegations were approved. For full details of the Council's formal report and associated appendices can be found using the following link -

https://democracy.portsmouth.gov.uk/ieIssueDetails.aspx?IId=31340&PlanId=0&Opt=3#AI25498

A subsequent round of SMT was undertaken (SMT2) primarily to inform and refine the proposed lotting strategy, scope and contracting models. The following lotting structure, which included for combined bid options, were investigated with the market -

• Lot 1 - R&M On-Island (Lot1A) and R&M Off-Island (Lot 1B) (this is one lot with two separate contract awards to different suppliers) - estimated annual value from £14M to £18M per supplier, total value both suppliers of around £36M

• Lot 2 - R&M Corporate Assets - estimated annual value from £400k to £600k

• Lot 3 - GSR - estimated annual value from £4M to £5M

• Lot 4 - FSCS - estimated annual value from £500k to £1M

Following analysis of supplier feedback and a review of the risks and benefits, the Council now intends to proceed with separate staggered procurement processes on individual programmes for the following service areas:

• Gas Servicing & Repairs

• Fire Safety Compliance Services

• Repairs & Maintenance*

*The proposed Corporate Assets R&M is likely to be combined into the R&M opportunity.

By tendering these services separately, the Council aims to:

• Maximise market engagement, particularly among SMEs and specialist contractors

• Allow suppliers to bid for the areas most aligned with their expertise and capacity

• Support higher service quality and compliance through focused delivery

• Maximise financial benefits through direct contracting with specialist suppliers for high volume/value requirements

• Align with the Council's strategic priorities around value for money, local economic support, and effective service delivery

Feedback from suppliers indicates increased interest in tendering for these contracts separately rather than on a combined basis. There appears to be a larger market of suppliers who are capable of tendering for these contracts on an individual basis, compared to relatively few suppliers who are interested in delivering against multiple contracts who have direct delivery capacity and required level of experience.

Following completion of the SMT processes, the Council has produced summary reports that can be found as appendix 1 & 2, which can be found under the documents section of this notice.

The Council now intends to undertake procurement process for the three main service areas inline with the following summary programmes -

• Gas Servicing & Repairs

o Issue Tender Notice - May/June 2025

o Contract Award - November 2025

o Contract Start - April 2026

• Fire Safety Compliance Services

o Issue Tender Notice -August/September 2025

o Contract Award - January 2026

o Contract Start - June 2026

• Repairs & Maintenance

o Tender - May/June 2026

o Contract Award - November 2026

o Contract Start - April 2027

For further details of the outline programmes see the relevant Planned Procurement Notices-

GSR - PPN - 2025-000023

FSCS - PPN - 2025-000026

R&M - PPN - 2025-000027

The Council will publish the GSR and R&M contacts using a Competitive Flexible Procedure (CFP), which will encompass the utilisation of conditions of participation stage to create a shortlist of suppliers. The FSCS contract is also likely to be procured under a CFP, though the Council will review the option of using the Open Procedure before publishing the tender notice.

R&M - CFP Design

The Council will run this procurement using the Competitive Flexible Procedures, which will be akin to the Restrictive Procedure under the Public Contracts Regulations (2015), with two separate stages -

Stage 1 - Initial Selection

This stage focuses on shortlisting suppliers that meet the necessary technical, financial, and operational capabilities required for the contract. It aims to reduce the number of bidders to a manageable level through consideration of current experience, capacity, systems, accreditations, financial standing, legal standing, etc.

The Council envisages the shortlisting process will have 4 to 6 suppliers.

Stage 2 - Invitation to Tender (ITT)

The second stage, shortlisted suppliers are invited to submit detailed proposals, including price, delivery methodology, and any specific solutions they propose.

The council may also consider the use of interviews and site visits, on a verification and due diligence basis. The procurement process will also consider the viewpoint of residents at every stage including for development of requirements and assessment of resident engagement proposals.

The Council are intending to follow the subsequent Procurement Programme -

FTS & Tender Notice issued - Monday 25th May 2026

Tender issued and procurement documents published on Intend - CFP Stage 1 - Monday 25th May 2026

Deadline for requests for clarification - Wednesday 17th June 2026 by 16:00

CFP Stage 1 submission deadline - Friday 26th June 2026 by 12:00

Notification of shortlisting decision - Monday 20th July 2026

Final procurement documents published on Intend - CFP Stage 2 - Monday 27th July 2026

Deadline for requests for clarification - Monday 7th September 2026 by 16:00

Tender return deadline - Friday 25th September 2026 by 12:00

Contract Award Notice Published - Monday 9th November 2026

Standstill and section 20 notification start - Tuesday 10th November 2026

Standstill finish - Friday 27th November 2026

Section 20 Notice Finish - Tuesday 8th December 2026

Contract award - Wednesday 11th December 2026

Contract commencement - Thursday 1st April 2027


Documents

Associated tender documents

Soft Market Testing Reports.zip

SMT Survey Responses in relation to the following Prior Information Notices -

• SMT 1 - Housing, Neighbourhood and Building Services - Repairs & Maintenance and Gas Servicing & Repair Delivery Options Appraisal, Portsmouth- Wednesday 9th October 2024 - Reference - 2024/S 000-032496

• SMT 2 - Housing, Neighbourhood and Building Services - Repairs & Maintenance, Gas Servicing & Repair and Fire Safety Compliance Services Delivery Lotting Options Appraisal 2025 - Friday 23rd February 2025- Reference 2025/S 000-006741

SMT Briefing 2 - R&M, Gas & associated lots 2025 v2.0.zip

Supporting information for SMT 2 - including the background information regarding the proposed lotting structure, example questionnaire and attached appendices.


Contracting authority

Portsmouth City Council

  • Public Procurement Organisation Number: PCNL-5714-PRZV

Civic Offices, Guildhall Square

Portsmouth

PO1 2AL

United Kingdom

Region: UKJ31 - Portsmouth

Organisation type: Public authority - sub-central government