Cabinet considered the Management of Incubator report and noted the amendment to the recommendation that the contract term be for 3 years at a nominal rent noting that it is a concessions contract that can be terminated at any time with 1 months’ notice and a possible extension after 3 years.
Cabinet noted that there were 28 businesses that opened the Request For Quote (RFQ) but only one tender for the contract was made from a company who already successfully manage two other incubators of a similar size in Surrey. Cabinet further noted that the lack of tenders was more than likely due to this being a niche market, and as a result not many businesses were equipped with the experience and skill set required to bid.
Alternative options considered and rejected by the Cabinet:
Not to enter into the contract and instead recruit a manager for the premises as a paid employee of the Council to run the incubator on behalf of the Council.
Not to enter into the contract and instead use existing staff from the Economic Development Team to run and manage the incubator.
Resolved to agree to enter into a contract to manage the Business Incubator with the tender specified in Appendix B to include the grant of a lease of the premises at the Summit Centre 33 Hanworth Road Sunbury on Thames for a term of 3 years at a nominal rent noting that it is a concessions contract that can be terminated at any time with 1 months’ notice and a possible extension after 3 years.
Reason for Decision:
Under contract standing orders the appointment of a contractor for a contract of this value sits with Cabinet.
The tender achieved a very high score, so, although only one application was received, it was of a very high standard and strongly recommended for this contract.