Havering Council has approved a multi-million pound framework agreement for frozen food and grocery supplies, ensuring the borough's catering services continue uninterrupted. The decision was made at a Cabinet meeting on Wednesday, 13 August 2025. The framework agreement for frozen food and grocery supplies will be owned and managed by HES Catering Services.

The approved framework agreement, a pan-London initiative, is valued at an estimated £36.04m over a four-year term. Havering's call-off from this framework is estimated at £10.73m over the same period. The meeting information does not provide the previous contract's value over four years. The framework will be managed by HES Catering Services and can be accessed by members of the Procurement Across London (PAL) group.

Thomas Ridley Ltd and JJ Food Service Ltd were selected as the appointed suppliers based on an open procurement process, where they expressed interest in the tender and submitted bids. Both companies passed compliance checks and were evaluated based on the Most Economically Advantageous Tender (MEAT) criteria, considering both quality (70%) and price (30%). Thomas Ridley Ltd ranked highest overall, with JJ Food Service Ltd placing second. Both suppliers met the minimum quality threshold and were recommended for appointment to the framework.

The new contract is intended to deliver effective value for money, allowing the service to continue operating as a viable catering provision to its clients. The contract will be managed by the HES Catering Service, funded from a 0.75% management fee received from the participating authorities within the PAL Framework. The service will be able to select the lower of the two prices for a specific item.

The decision comes as the council's current call-off contract, and the existing PAL framework, are set to expire on 31 August 2025. According to the Public reports pack, the indicative value of the new call-off contract across PAL members is approximately £8.36m in the first year.

Other options considered by the cabinet included:

  • Purchasing ad-hoc from the market
  • Carrying out an open tender just for HES Catering Services
  • Calling off from an existing national framework
  • Splitting the framework into different lots

These options were rejected due to concerns about cost, efficiency, and operational complexity.

Specifically:

  • Purchasing ad-hoc from the market was rejected because it would not be compliant with the Council's procurement rules and policies, would undermine the financial viability of the service, and would not allow for prerequisite due diligence.
  • Carrying out an open tender just for HES Catering Services was rejected as the PAL arrangement delivers greater efficiencies through combined purchasing power and economies of scale.
  • Calling off from an existing national framework was rejected because framework owners charge a management fee, and established frameworks generally do not allow for setting up a framework-within-a-framework.
  • Splitting the framework into different lots was rejected due to the operational complexity of delivering to 220+ sites across PAL members.

The decision to approve the framework agreement was subject to call-in.

The Decisions 13th-Aug-2025 19.00 Cabinet document confirms that the recommendations were approved.