Hampshire County Council

Executive Member for Policy and Resources Item *

13 November 2003

Procurement Initiatives

Report by the Director of Property, Business and Regulatory Services

1

Summary

1.1

The following decisions are sought:

That approval be given *

2

Reason(s)

2.1

*

3

Other options considered and rejected

3.1

*

4

Conflicts of interest declared by the decision-maker or a member or officer consulted

4.1

Not applicable

5

Dispensation granted by the Standards Committee

5.1

Not applicable

6

Reason(s) for the matter being dealt with if urgent

6.1

Not applicable

Approved by:

..........................

Date of decision:

.........................

Councillor T K Thornber

Hampshire County Council

Executive Member, Policy & Resources Item

13 November 2003

Building Land and Contracts Panel

24 October 2003

Procurement Initiatives

Report by the Director of Property, Business and Regulatory Services

1

Introduction

1.1

The Executive Member Policy and Resources at his meeting of 10 April 2003 approved the annual review of procurement initiatives for 2002/2003 and a series of new initiatives to be implemented over the current financial year and beyond. A report was also presented to the Executive Member Policy and Resources at his meeting of 25 July 2003 which focused on a number of supplementary approvals for further partnered schemes and the early allocation of projects to the successful framework contractors.

1.2

This report provides an interim review of all current initiatives being undertaken this financial year, including consultant partnering arrangements and key supply chain partners. This report also seeks approval to a number of further proposals for specific projects including major projects to be undertaken through the major Framework Agreement:

· Andover Hospital additional Nursing Care Beds

· Fleming House additional Nursing Care Beds

· Marfield additional Nursing Care Beds

· Gosport Discovery Centre

· Perins School new sports facilities

· Winchester Early Years centre

· John Hunt of Everest Secondary School

· Westgate School science, administration and entrance improvements

· Rookwood School fire damage reinstatement and alterations

· Farnborough Grange Infant School extension

· Mengham Infant School extension and alterations

· Cliddesden Primary School Music/Drama extension

· Temporary Buildings Term Contract (extended arrangements)

· Scola recladding

· Flat Roofing Framework Agreement (extended arrangements)

· External Redecoration and prior repairs

2.

Current Initiatives

2.1

2.2

2.3

The attached summary in Appendix 1 details all the procurement proposals implemented since the report to the Executive Member Policy and Resources on 10 April 2003. By value a further £46.5m of capital works has been committed both in terms of collaborative working and negotiation, with some of the schemes identified now on site.

The allocation of the first schemes under the Framework for major schemes has also begun to feature in a significant way, with the projects identified together with procurement information.

The following is a summary by capital value for each category of procurement shown in Appendix 1:

· Framework projects - £20.6m

· Partnership work - £12.6m

· Best value tender selection - £2.5m

· Negotiated work - £10.8m

2.4

Appendix 2 summarises details of forthcoming projects for which approval is sought to the alternative procurement methods identified. The overall value of work shown is in excess of £8m.

3.

Framework Projects

3.1

3.2

3.3

The report to the Executive Member Policy and Resources of 25 July 2003 identified the initial schemes to be undertaken through the Framework for major schemes. Appendix 3 of this report provides more information in respect of the priority projects which now need to be committed in order to meet the intended programmes.

In value terms the proposals indicated account for a further £35.9m of work to be undertaken through the Framework arrangements. The significant schemes identified include further Nursing Care projects and the new John Hunt of Everest Secondary School.

Future reports will review progress with the arrangements and give information on the performance of the contractors against Key Performance Indicators (KPI's).

4.

4.1

4.2

4.3

Mechanical and Electrical Engineering Supply Chain Partners

With the establishment of the Frameworks for major schemes the next logical step is to commence the creation of key supply chains. A priority task in this area is to select preferred mechanical and electrical specialist firms following the European Community Procurement Directive, with advertisements placed in the through the Official Journal of the European Communities (OJEC).

Mechanical and Electrical services represent a significant portion of the cost of all building projects, they are complex and tend to be reliant on early specialist input for full design integration. The selection of preferred contractors in this field is key to establishing long term collaborative arrangements to successfully deliver these significant specialist elements.

Some early appointments of preferred specialist firms will however be require in advance of the European Community Procurement Directive procedures, which are fairly lengthy, to cater for current key projects.

5.

5.1

Mechanical and Electrical Engineering Design Partnerships

Following receipt of tenders a similar selection process was used to that for the Structural Engineering Partnerships. The result of this exercise is that six practices have been selected as "preferred" partners and, subject to contract, a formal partnering arrangement will be entered into. The practices are;

W.S.Atkins, Gifford and Partners, RHB Partnership, EDP Ltd, Gary Jones and Associates, and White, Young, Green.

Recommendation(s)

That the Panel advices the Executive Member for Policy and Resources that approval be given to:

1

The procurement initiatives as set out in Appendix 1

2

The procurement initiatives set out in Appendix 2 and 3 relating to:

· Andover Hospital additional Nursing Care Beds

· Fleming House additional Nursing Care Beds

· Marfield additional Nursing Care Beds

· Gosport Discovery Centre

· Perins School new sports facilities

· Winchester Early Years Centre

· John Hunt of Everest Secondary School

· Westgate School science, administration and entrance improvements

· Rookwood School fire damage reinstatement and alterations

· Farnborough Grange Infant School extension

· Mengham Infant School extension and alterations

· Cliddesden Primary School Music/Drama extension

· Temporary Buildings Term Contract (extended arrangements)

· Scola recladding

· Flat Roofing Framework Agreement (extended arrangements)

· External Redecoration and prior repairs