Hampshire County Council

Executive Member - Recreation and Heritage Item 9

20 November 2003

Milestones capital expenditure programme 2003 - 07 : single tender approval

Report of the Director of Recreation and Heritage

Contact: Sara McPartland (01256) 403901

1. Summary

1.1 The following decision is sought:

That a contract be agreed with Integrated Circles for the provision of specialized audio-visual work at Milestones Museum on the basis of a negotiated single-tender contract of £100,000.

2. Reasons

2.1 This is the most cost-effective process for securing improvements to the interpretation of important Milestones exhibits and the visitor experience, in line with the business plan for Milestones.

2.2 The contract for which approval is sought is the first phase of work which is potentially valued at £500,000, but it is not intended to issue a contract on this basis.

2.3 Work will be commissioned by negotiating a fixed price order for each phase of work. There will be no forward commitment for future work. Each completed phase of work will be independent of any other. A competitive element may be introduced at any future stage.

2.4 Because the cost of the total package of work is estimated at potentially £500,000, the grounds for the approval have been reviewed on behalf of the head of Corporate and Legal Services. Their advice is that the provision of the services falls within Part B of the EU procurement rules relating to services and as such does not require that the work be exposed to competitive tender. However, the required notice will be published after award of contract.

2.5 The approval of a single tender can be justified on the basis of the specialist work required.

3. Other options considered and rejected

3.1 Endeavouring to identify one or more additional specialist suppliers able to provide quotations.

3.2 This was not considered practicable because of the highly specialized nature of the work, the need for thorough understanding of the business needs which underpin the work and the cost and time needed to identify another supplier.

4. Conflicts of interest declared by the decision maker, or a member or officer consulted

4.1 None.

5. Dispensation granted by the Standards committee

5.1 Not applicable.

6. Reasons for matter being dealt with if urgent

6.1 It is highly important that a planned programme of investment continues, within the business plan, as part of achieving a sustainable income base from visitors to Milestones.

Approved by: (signature) Date: (date of decision)

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

Cllr. J. Waddington

Hampshire County Council

Executive Member - Recreation and Heritage Item 9

20 November 2003

Milestones capital expenditure programme 2003 - 07 : single tender approval

Report of the Director of Recreation and Heritage

Contact: Sara McPartland (01256) 403901

1 Introduction

Integrated Circles are a specialist firm who design audio-visual systems for the museums sector. They are first and foremost engineers, who use technology to bring static displays to life by using computers, lighting, sound, smell and movement. They were responsible for all of the audio-visual elements of the original fit-out of the museum and laid the control systems infrastructure into the fabric of the museum during its construction.

1.1 The cornerstone of the new Milestones Business Plan is to broaden the appeal of the museum and create repeat visiting to sustain its long term viability. The key to achieving this is to create an exciting product, which is kept fresh by a sustained programme of gallery development. A living history museum requires an investment in specialist equipment to bring the objects and galleries `alive'.

1.2 With the museum now in its third year, the Executive Group commissioned Integrated Circles to revisit the museum and develop an investment proposal for the whole site that would upgrade Milestones and bring it to `life'. The proposal would be delivered in phases across 3 years as capital funds permitted.

1.3 The whole project is estimated to cost in the region of £500,000. The budget for Phase 1 is £100,000 in total for 2003/4; Phase 2 in 2004/5 is anticipated to be £150,000.

2. Phase 1 - Taskers Gallery, External effects, Audio-visual projector

2.1 This is the first gallery of the visit and needs to make a powerful and exciting impact on the visitor. Illuminated with low level lights and certain areas picked out in coloured light. The forge is burning, and burning coke can be smelled. On the back wall a projected image of Robert Tasker starts to explain the importance of the forge, how it worked, how he formed his business and how it helped industrialise Hampshire. The fire comes to life and burns brighter during the dialogue as the forge is pumped with air, the glow of the forge is enhanced and the visitor is hit with a blast of air to increase the physical effect of heat. Set fades to rest state with low-level lighting. As the forge fades down, lights come up in the next part of the gallery.

2.2 The room set will be carefully lit to highlight the objects in the room. Cold light is cast around the graphic panel. Suddenly the mood is transformed - a character in the graphic panel comes to life, the lighting changes to warm as the visitor becomes part of the past with one of the characters talking to him. At the end of the sequence, the lighting reverts to cold and the picture is reset in the past. Sequencing of soundtracks and effects will be timed to match visitor flow.

2.3 The treatment of the Tasker Gallery is a fitting illustration of the nature of Integrated Circles design and engineering work. Phase 1 also includes four `eavesdropped' conversations to add to the sense of `peopling' in the museum, smoke machines to simulate smoking chimneys (synchronised) at rooftop level (visible from reception) and a new audio-visual projector for the Thornycroft Gallery telling the Thornycroft story.

3. Need and justification for a single tender

3.1 Integrated Circles went through the Authority's single tender process in detail and at length for the work they did at Milestones during the fit-out of the building before opening (2000). It was agreed that no other supplier could match the type of specialist work they perform and single tender status was won.

3.2 Three years on, Milestones is satisfied that there is no other new entrant to this niche market who could satisfactorily accomplish a complete package of work of this scale and complexity, potentially up to £500,000 across 3 years, subject to funding being available.

3.3 There are cost, service maintenance and ownership advantages to using the same supplier for same-type information technology.

3.4 £100,000 has been allocated from the Recreation and Heritage capital programme in 2003/04 to Milestones for Integrated Circles Phase 1 proposal and approval has been given by the Milestones Executive Group to proceed.

3.5 An initial cost of £20,000 has been incurred. This expenditure is in planning, design and subcontract work in the fields of software and hardware, electrical specifications, lighting plans and modelling and show designs. There are no consultancy costs.

3.6 The maximum benefit from this work will only be realised if the rest of the project is accomplished by Integrated Circles. Were another supplier to quote for this package of work, the benefit from the £20,000 would be foregone. The total cost of Phase 1 would in theory rise to £120,000.

The balance of work to update Phase 1 will cost £80,000 : 30% on placing the order

40% on commencement of work

30% on completion

3.7 Future contracts will be considered on their merits and reported to the Milestones Executive Group and Executive Member for Recreation and Heritage.

Recommendation

That a contract be agreed with Integrated Circles for the provision of specialized audio-visual work at Milestones Museum to a value of £100,000.

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

Published works.

Documents which disclose exempt or confidential information as defined in the Act.

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