Nottingham City Council has directly awarded a two-year maintenance contract valued at £264,922 to International Parking Solutions (UK) (IPS).
The decision was officially published today, following approval from the Spend Control Board.
The contract will cover essential services, including the maintenance of parking equipment, data connection, peripherals, and transactional charges. This move comes as the existing parking infrastructure, which includes pay stations and management systems, nears the end of its serviceable life and falls outside of formal contract agreements.
Financial Breakdown and Strategic Allocation
The first year will see £27,778 allocated to the maintenance agreement, £16,170 for data connections, and £84,000 for peripherals and transactional charges.
These costs will slightly increase in the second year, with maintenance agreement costs rising to £30,834, data connection to £17,140, and peripherals and transactional charges to £89,000. Additionally, a 4% contingency increase is included to address the shifting preference from multi-storey car parks to on-street parking, which currently generates 54% of the parking team’s income.
The funding for this contract has already been accounted for within the Medium-Term Financial Plan (MTFP) and will be covered by the existing revenue budget. The maintenance costs are eligible to be paid from the Special Parking Account (SPA), ensuring no adverse impact on the General Fund. In the unlikely event of overspending, a ring-fenced reserve is available to cover any shortfalls.
The Rationale for Direct Award
The decision to directly award the contract to IPS through the ESPO Procurement Framework was driven by the need for an immediate and reliable solution to maintain the city’s parking infrastructure. As the only organisation capable of providing the required ongoing maintenance, peripherals, and data processing services for the existing parking system, IPS was identified as the preferred provider. This direct award should ensure that Nottingham’s parking services remain fully operational, avoiding any disruption that could arise from equipment disrepair.
Other potential solutions, such as obtaining repair quotes on an as-needed basis or conducting a new procurement exercise, were considered but ultimately rejected. These alternatives were deemed impractical given the immediate need for a fit-for-purpose maintenance agreement and the risks associated with potential equipment failures.
