Background to Gas Safe Register

HSE on 8 September 2008 signed a contract with Capita Group Plc. to run the new gas engineer registration scheme from 1 April 2009 The following provides the background on why the competition took place, and the way in which the procurement exercise was conducted.

Background

Domestic (piped and LPG) gas is very widely used in GB (about 21 million homes). However, its increasing use over the years has coincided with an improving trend in the official statistics on gas deaths. Whilst the Gas Safety (Installation and Use) Regulations (GSIUR) 1998 have provided a framework for improving safety in gas work, other factors such as improvements in the inherent safety of gas appliances will also have contributed to this trend.

2006 Review of domestic gas safety

HSE believes there is no room for complacency and during 2006 a review of the domestic gas safety regime identified a case for change. The former HSC took a strategic decision to stay in gas safety and aim to do it better with greater industry leadership. HSE felt that stakeholder criticisms of the existing gas engineer registration scheme which has evolved over time and is managed by CORGI, had some foundation. Even though the official statistics were showing an improving picture, it was felt that more should be done to raise public awareness of gas and CO risks. Greater industry ownership and accountability would enable HSE to refocus its own resource more productively. The core recommendation from this review, agreed by the HSC, was to deliver added value to consumer gas safety and benefits to gas engineers through a reformed gas engineer registration scheme and this was endorsed by Lord McKenzie in March 2007. Background to the gas scheme competition.

Procurement exercise

To deliver this change, HSE embarked on a procurement exercise to select a provider to run an innovative new scheme for a five year term. Regular updates were provided for HSC/E. The cross HSE project team drew heavily on expert external legal and procurement advice to establish a robust process aimed at creating a fair and open competition. This work was overseen by an HSE project board and evaluation of the bids undertaken by an independently chaired Tender Evaluation Board (TEB).

There was significant commercial interest from the outset and, at the Invitation to Tender (ITT) stage, the competition narrowed to two strong bidders: CORGI, the incumbent, and Capita, the professional and support services "Top 100" company. Evaluation of the ITT bids adopted broadly the approach of the new EU's competitive dialogue and involved an intensive period of negotiation which proved extremely successful in improving both bidders' offerings. Because of the high level of public interest HSE has decided to publish the final evaluation report [108KB] for this competition.

Consultation

External stakeholders were widely consulted during the development of the specification of the new scheme. The project board and the procurement process has involved all interested parts of HSE, together with selected external stakeholders and external expert advice.

Background to the gas scheme competition

HSE collects and publishes statistics on gas incidents involving piped and LPG derived from (Reporting of Injuries and Dangerous Occurrences Regulations) RIDDOR. During 2006, HSE undertook a major review of the domestic gas safety regime. This involved extensive stakeholder engagement led by the consultants, Frontline, and research by the University College London, which found that 45% of those interviewed in a 'snapshot' survey of 597 homes had little understanding of the risks associated with gas and carbon monoxide. Full reports are available on the HSE website. You can read the full report Review of Domestic Gas safety by Frontline Consultants.

In December 2006, HSE Board paper B/06/110 set out proposals for change, principally involving changes to the gas registration scheme managed by CORGI. At its meeting on 6 December, the Board discussed the proposals for reform and agreed that there should be a 'competition for the market' to find a single provider to run a new registration scheme. The Board also agreed that there should be an acronym for the gas registration scheme that would be retained regardless of who currently carried out that work; that the governance arrangements should be expanded; fees should decline in real terms over the time of the contract. Minutes number BM/06/12 .

In January 2007, the Health and Safety Commission paper HSC/07/09 set out the proposals agreed by the HSE Board. HSC strongly supported the recommendation that the gas engineer registration scheme should be reformed to improve gas safety and that there should be a competition for a 5 year contract to run the new scheme. The Commission said that it would want to be satisfied that the scheme was well managed and appropriate key performance indicators were in place. Minutes HSC/07/M01

On 7 March 2007, Lord McKenzie issued a press release endorsing the HSC recommendations and announcing the new scheme to improve domestic gas safety. The core recommendation was to deliver added value to the gas consumer safety through a reformed gas engineer registration scheme.

In July 2007, HSC paper Misc/07/09 reported on progress with developing the specification for the new scheme and the launch of the competition with the Pre-Qualification Questionnaire (PQQ) and an announcement in the Official Journal of the European Union.

In February 2008, HSC MISC/08/04 reported on the delivery of a major stage of the competition with the issue of the Invitation to Tender documents to selected bidders. The paper also advised of adjustments to the earlier timetable for delivery following complexities which had arisen with the novel procurement exercise.

The replies to the Invitations to Tender were evaluated by the independently chaired Tender Evaluation Board on 27 March and the successful candidates were invited to submit Best and Final Offers by 19 May. HSE announced on 28 August 2008 that it had awarded the contract to run the new gas engineer registration scheme from 1 April 2009 to Capita Group Plc. 

Frequently asked questions about the rationale approach to the new scheme

• Why do we need a new gas engineer registration scheme?
• Won't there be extra costs to engineers and the public from the additional functions of the new scheme and the changes?
• Who is affected by the new scheme?
• How did HSE reach a decision on the preferred bidder?
• Why have stakeholders not been involved in the decisions on the procurement exercise?

Why do we need a new gas engineer registration scheme?

The CORGI statutory registration scheme for gas installation businesses has been operating for 17 years. During that time, the number of gas related fatalities has fallen significantly. Although stakeholders involved in the review overwhelmingly supported the continuation of a gas engineer registration scheme, they identified areas where improvements could bring potentially significant benefits to both gas consumers and gas engineers. Moving to a concession agreement for a fixed term of 10 years will give greater certainty to the provider and encourage investment.

This is a great opportunity to build on the successes of the existing scheme and at the same time introduce innovation to further develop the existing arrangements and add value to gas consumer safety.

Won't there be extra costs to engineers and the public from the additional functions of the new scheme and the changes?

Most change involves some level of investment. For instance, there will be costs associated with developing and launching the new gas safety brand. However, because we are offering the new provider a long-term concession agreement, this gives the scheme provider time to recoup their investment. An important requirement with the new scheme is that fees for engineers should be fixed at affordable levels and come down in real terms during the period of the agreement. Further announcements on the fees will be made when the contractual arrangements are finalised.

Announcements of the changes that will occur from April 2009 will be made as soon as possible once the contractual arrangements are finalised. Further advice and support about the new scheme will be made available to engineers at that stage. There are plans in place to minimise any possible confusion and ensure a smooth transition.

Who is affected by the new scheme?

All engineers who are currently carrying out gas work should be registered now and will need to continue to be registered in the future. The scope of registration will not change and will still require engineers working on domestic, non-domestic, commercial, natural gas and liquid petroleum gas installations to be registered.

How did HSE reach a decision on the preferred bidder?

Since July last year, following an announcement in the Official Journal of the European Union, HSE has been involved in a major procurement exercise to select a provider to operate the new scheme. This has been a fair and open competition. The evaluation of bids was undertaken by an independently chaired HSE Tender Evaluation Board and has involved detailed examination and clarification of proposals together with negotiation to achieve the best outcome for the new gas scheme. Capita was recommended as preferred bidder because it scored more highly in this process.

Why have stakeholders not been involved in the decisions on the procurement exercise?

Stakeholders were very much involved in advising on the changes needed and in the early stages of developing the specification for the new scheme which formed part of the invitation to tender documentation. As this has been a competitive procurement exercise, it would not have been appropriate to continue with the same level of stakeholder engagement that occurred during the review. However, certain selected stakeholders, subject to confidentiality agreements, have provided advice to HSE on aspects of the bids, as part of the evaluation process

Links to further reading

• Discussions and decisions taken by the HSE Board in November 2006 set out in the HSE paper [176KB]
• Minutes of the November 06 Board meeting [28KB]
• Discussions and recommendations made by the HSC at its meeting of January 9 2007 as set out in the HSC paper [169KB]
• Minutes of the January 07 HSC meeting [85KB]
• 7th March 2007 press release issued by Lord McKenzie, the DWP Minister for Health and Safety endorsing the HSCrecommendations and announcing the new scheme to improve domestic gas safety
• July 2007 - HSC paper sets out progress with the competition and gives information about the Pre-Qualification Questionnaire stage [65KB]
• July 2007 - Press release announces launch of competition for a new gas engineer registration scheme with announcement in the Official Journal of the European Union
• January 2008 - Press release announces that HSE issued Invitation to Tender documents to selected short-listed bidders.
• February 2008 - HSC paper provides a further update on progress with the competition and includes sections of the ITT documents and the specification for the new scheme. [133KB]