Decision details

To extend the contracts for 4 years from the current expiry of 1^st November 2022 for Debt Recovery Concession Services.

1.        Recommendations

1.1    That, following endorsement by the Commercial Gateway Review Board and the Director of Environment, the Cabinet Member for City Management and Air Quality approves the four-year contract extension of the Parking Services Debt Management Contract to Marston (Holdings) Limited (Company No. 04305487). The contract will be at zero cost to the Council, but the contractor may generate up to £5.15m from statutory fees applied through post warrant recovery over the extension period.

2.        Reasons for Decision 

2.1 The proposed extension of the contracts by four years is due to the resilience and good performance that Marston has demonstrated, especially considering the impact that Covid-19 has had on the service and the industry, as well as the additional functions being offered. There is no risk as the contract is non-exclusive, so the council still has the ability to procure additional partners if the performance of the incumbent does not meet expectations.

2.2 The current supplier is biggest single debt collection agency in this field with more than 26% of total registered UK bailiffs, with the next nearest competitor with only 9%. Expectations and associated KPIs are regularly reviewed and benchmarked. The Council have negotiated significant service add-ons that make extension attractive. The extension comes at zero cost to the Council and there are no concerns that excessive incomes can be generated by the supplier as the fee structure they apply is set by law.