A report to seek approval to commence a procurement exercise for parking enforcement.

The Committee received a report to commence a joint procurement exercise for parking enforcement, permit management, Penalty Charge Notice (PCN) processing, and postal services, in partnership with Oxfordshire County Council (OCC) and potentially other neighbouring authorities.

The report explained that currently Trellint, which was part of the Modaxo Group, provided parking enforcement services for both Reading Borough Council (RBC) and Oxfordshire County Council (OCC) as separate contracts. The Council’s contract with Trellint had commenced in October 2023, and the initial term would expire in October 2027 with a total value of £2m.

The Council had an option to extend the existing contract, however, Trellint had indicated that it was exiting the parking enforcement market and would not be content for the contract to be extended beyond October 2027. As Oxfordshire's contract would expire in April 2027 at the latest, there was an opportunity for both Councils to benefit from economies of scale garnered through procuring collaboratively and to commence a joint procurement exercise. It was noted that other near neighbours might also wish to join a shared procurement exercise.  The intention would be for each council to have its own contract, but with the procurement dealt with jointly.  It was noted that the Council’s contract extended beyond Oxfordshire’s contract by six months and this would be a material consideration in relation to possible early termination of Reading Borough Council’s contract with Trellint.

The report also noted that the Council’s contract for Penalty Charge Notice (PCN) processing, permit management and postal services would also expire in October 2027. These were currently provided by a different supplier and the Council would seek to procure a new contract for these services at the same time. This could result in a staggered start to the contract arrangements, but the contract terms would seek to ensure all elements of these contracts ended at the same time in the future to allow easier bundling of these linked services. Aggregation of contracts in this manner might lead to improved pricing and positive impact on each Council’s finances; however, steps would be taken to ensure that doing so would not hamper small/medium enterprises from bidding as required under the National Procurement Policy Statement (e.g. permitting consortium bids).

The report explained that in a marketplace that had few suppliers, procuring at the same time as with a neighbouring authority could lead to lost opportunities and unbalanced competitive tension in the market; whilst procuring together simplified the opportunity for bidders and put the combined authorities in a stronger position to require competitive bids. By joining with Oxfordshire the procurement value would be much higher and therefore attract wider interest for both service areas.   A joint procurement would also reduce costs and demand on resources for both authorities. 

Resolved –

(1)  That the Executive Director for Economic Growth and Neighbourhood Services, in consultation with the Lead Councillor for Climate Strategy and Transport, Assistant Director of Legal and Democratic Services, and Director of Finance be authorised to:

a.    Commence a procurement exercise independently or in partnership with other councils for parking enforcement, permits, Penalty Charge Notice processing and postal services;

b.    Terminate, if appropriate, the existing contract for parking enforcement with Trellint (part of the Modaxo Group) by mutual agreement at a date that allowed an orderly handover to new contract arrangements;

c.    Enter into a suitable agreement with another council or councils to undertake the necessary procurement exercises on behalf of Reading Borough Council;

d.    Enter into an agreement with a company individually or jointly procured to provide on street and off-street parking enforcement services;

e.    Enter into an agreement with a company individually or jointly procured to deliver Penalty Charge Notice processing, issue permits for residents and businesses and provide postal services for same;

f.        Undertake any required contract modifications (to include extension / variation) as might be required from time to time to ensure effective operational management of the contract, subject to that impact not exceeding key decision thresholds.