Authority forced to re-examine top-price contract

Last month the ruling Liberal Democrat administration awarded the repairs and maintenance contract, previously held by failed contractor Connaught, to Lovell Partnerships.

A confidential report, seen by the Yorkshire Post, warned that the decision could break European Union procurement regulations and leave the council at risk of legal challenges.

Of the three prospective companies to replace Connaught, the report recommended using a combination of Kier Support Services and the council-owned firm Kingstown Works Ltd (KWL) as they were the most "economically advantageous".

It stated that awarding the contract to Lovell Partnerships was the most expensive option – costing 4.3m more than the other bidders.

The bid also scored the lowest in terms of quality according to the council's own indicators, however it was the only bid that would not result in immediate job losses.

That decision was reviewed yesterday by a management and scrutiny committee after it was questioned by leading members of the Liberal Democrats, the opposition Labour group and the Tory party.

The committee returned the decision to Cabinet to reconsider.

Phil Webster, who sat on the committee and is Labour's former portfolio holder for finance, said: "It's been sent back because we in the Labour Party believe the decision making was flawed. It was a perverse decision to go against the officer's strong recommendations and I hope they reconsider.

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Mr Webster said that if the Cabinet made the same decision as before, it could result in legal proceedings against the council.

"If they come to the same conclusions a second time this will probably end up in the High Court – we believe they have breached EU regulations on procurement."