You are the Procurement Manager for GSA and you have been asked to consider:

(a) Initiating the procurement of an externally managed programme of installation of solar panels

(b) Outsourcing the three categories of activities undertaken by the in-house workforce.

1. What would you need to consider in relation to both the above initiatives?

2. What contractual matters would need consideration in the relation to the outsourcing initiative and the existing frameworks?

Granite Housing Association Granite Housing Association (GHA), a charitable organisation, is a Registered Social Landlord (RSL). Its operations are part funded by the Government. GHA is based in the South East of England and manages 30,000 properties. It was created from 7 other RSLs with portfolios ranging from 1,800 to 14,600 properties. Five of the original RSLs had their own maintenance workforce while the other two used external contractors. 30% of the inhouse workforces are also tenants. Each workforce has remained on its own terms and conditions of employment and operates independently of each other. Activities associated with the workforce fell into three main areas: 1. Reactive maintenance 2. Void management and refurbishment 3. Programmed capital works Reactive maintenance requests are initiated by the tenant requesting repairs for damage to property, broken locks, leaking windows, etc. Void management is triggered when a tenant leaves. Typically, the property needs to be made secure, which may involve boarding windows and doors and/or installation of alarms. While the property is vacant prior to a new tenant arriving and dependent upon the condition of the premises, they may need full or partial refurbishment which may include central heating upgrades, kitchen and bathroom replacements. Programmed capital works includes the significant upgrading of a number of properties in a locality which may, for example, include replacement double-glazed windows. Two years remain on the framework agreements for the supply only of plumbing materials and supply only of building supplies, and four years remain on framework contracts for the supply and fitting of alarms, the supply only of kitchen units and the supply only of glazing products. The accountant, James Andrews, has undertaken an analysis of a new government scheme to encourage renewable forms of energy and has proposed that a major capital programme can be undertaken to install solar panels on properties with a south facing roof. For 8,000 properties the scheme is financially viable, for a further 7,000 properties the cases further work would require additional investigation to determine economic viability. The programme will be beneficial both to the tenant and to Granite. However, the in-house workforce does not have the capacity to undertake this activity.