Hackney Council has awarded a £1.5 million contract for its corporate water supply, a decision made during a Hackney Procurement Board meeting on Wednesday, July 22, 2026.
The contract, which will run for an initial one-year period with an option to extend for a further year, has been awarded to Supplier A. The estimated total value of the contract, excluding VAT, is £1.5 million, rising to £1.8 million including VAT.
The procurement was conducted via the LASER framework, which was identified as the most suitable option after benchmarking against other frameworks. The assessment considered procurement compliance, contract flexibility, supplier offering, account management, value for money, and sustainability. The LASER framework was chosen because it best aligned with the Council's requirements, particularly by accommodating the preferred 1+1 year contract arrangement, providing strong utility sector expertise, effective contract management, and value-added services. Other frameworks considered were Crown Commercial Service (CCS) and ESPO. [1]
The contract will cover water and wastewater retail services across the council's corporate estate, serving operational buildings, schools, housing communal supplies, depots, libraries, and other council-owned assets. The re-procurement aims to ensure service continuity, achieve value for money, improve billing accuracy, enhance consumption monitoring, and support the council's sustainability and carbon reduction objectives.
The procurement exercise identified both cashable and non-cashable benefits. Cashable savings are expected through competitive water retail rates, improved billing accuracy, reduced administration costs, and proactive water efficiency activities. Non-cashable benefits include enhanced account management, improved consumption visibility, better management information, strengthened compliance, and improved customer service.
Supplier A has demonstrated strong social value commitments beyond donating laptops to local schools and providing careers education resources. They have committed to working with Hackney schools to deliver tailored virtual careers sessions and provide access to an online resource hub with educational materials on careers, employability, and sustainability. Furthermore, they intend to organize an annual volunteering event in London and support the M10 Boys Network mentoring program by inviting Hackney Council employees to volunteer as mentors for Year 10 pupils.
The new water supply contract aims to support the Council's wider sustainability and carbon reduction objectives. Supplier A's carbon emissions for the financial year 2024-2025 were 273.64 tCO2e before verified carbon offsets, an increase of 5.39 tCO2e from the baseline, driven by air travel and wider transportation use. They have supported the Zambian Western Province Safe Water Project and offset 200 tCO2e. For the upcoming year, the focus is on developing and reducing Scope 3 emissions and further understanding and removing carbon impact within the value chain. The contract also includes objectives for water consumption and efficiency, including identification and implementation of water efficiency opportunities across the Council's estate, leak detection, and water efficiency initiatives.
The key performance indicators (KPIs) for Supplier A include: Invoice accuracy (minimum 99% billing accuracy), Query resolution (95% of customer queries resolved within agreed contractual timescales), Account management performance (delivery of regular consumption reports, annual account reviews, and proactive management advice), Water consumption and efficiency (identification and implementation of water efficiency opportunities), Social Value commitments (delivery of agreed social value initiatives), and Sustainability and Net Zero (delivery of agreed environmental commitments, including carbon reduction support, leak detection, and water efficiency initiatives).
The contract has an option to extend for a further one year, subject to satisfactory supplier performance and continued value for money.
[1] Public reports pack Wednesday 22-Jul-2026 14.00 Hackney Procurement Board.pdf (https://hackney.moderngov.co.uk/documents/g6562/Public%20reports%20pack%20Wednesday%2022-Jul-2026%2014.00%20Hackney%20Procurement%20Board.pdf?T=10)