Archived decisions
Hampshire County Council Buildings, Land and Procurement Panel Item 13 October 2005 Procurement Initiatives Report by the Director of Property, Business and Regulatory Services |
Contact: David Corcoran Ext: 7930 email: [email protected]
1.0 |
Summary |
1.1 |
The Executive Member for Policy and Resources approved at his meeting of 14 April 2005 the annual review of procurement initiatives for 2004/5 and a series of new initiatives to be implemented over the current financial year and beyond. |
1.2 |
This report is an interim review of the arrangements for the current financial year of all present initiatives, including the Framework for Major Schemes and other Strategic Partnerships. The report also puts forward a number of new initiatives, which it is proposed are introduced over the remainder of the year. |
2.0 |
Framework for Major Schemes |
2.1 |
The report to the Executive Member for Policy and Resources of 14 April 2005 provided a review of the Framework arrangements and detailed the award of the schemes procured through the arrangements to date. It also proposed that a number of further significant capital projects would be undertaken through the arrangements. |
2.2 |
Primary Schools |
2.2.1 |
Due to plans for several major development areas of new housing across Hampshire a requirement for up to fifteen primary schools associated with these MDAs has been identified for delivery during the next five to ten years. There is also a programme for review of primary school provision across the County, which could generate further requirements for new schools. |
2.2.2 |
The Procurement Initiatives report to the Panel in April 2005 proposed that the following schools would be allocated to the Framework for Major Schemes: · Kings Copse - new 1FE Primary School, Hedge End · Dowd's Farm - new 1FE Primary School, Hedge End · Pinewood - replacement 1FE Infant School It is now proposed that the following additional scheme be added to this programme of work under the framework arrangements: · Whitely - new 1FE Primary School |
2.2.3 |
To facilitate the delivery of this large programme of work it is proposed to engage with two framework contractors, HBG and Brazier Construction, to develop these first four schemes as part of an integrated design team. The aim is to establish a common approach to the design and procurement of primary schools which can then be extended to further schemes identified in the future programme of work. |
2.3 |
John Hunt of Everest school relocation |
2.3.1 |
This project was allocated to Wates Construction during 2004 following a best value review of submissions invited from four Framework contractors. |
2.3.2 |
An enabling works contract of value £1.7 million was awarded to Wates in June to allow the preparatory earthworks to take place during the summer months. These works are currently progressing well on site with an anticipated completion in November. The project team are now in the process of finalising the costs for the main contract to construct the replacement school. |
2.4 |
Ashburton Court Redevelopment |
2.4.1 |
Following evaluation of expressions of interest for the role of Construction Project Manager, three firms were invited to tender: · Mace · Turner and Townsend · Heery Following post tender interviews Mace have been appointed to the Construction Project Manager role for the Ashburton Court Redevelopment. |
2.4.2 |
For the Architecture, Mechanical and Electrical Engineering services appointment, three firms have been short-listed; Bennetts Associates, Hopkins Architects and Building Design Partnership and tenders were returned on 14 September. It is proposed to involve the selected Construction Project Manager in the post tender interviews with the aim of seeking appointment of the architecture and engineering services consultant in early November. |
2.4.3 |
As previously reported the Major Framework arrangements will be used for the construction implementation and a suitable framework contractor will be selected once the Construction Project Manager has been appointed. |
2.5 |
Havant EBD and ESC |
2.5.1 |
It is now proposed that the following two projects are allocated to the Framework arrangements for further development: · Havant EBD · Havant ESC |
2.6 |
Appendix 1 summaries the projects currently being developed and constructed under the Framework for Major Schemes. A total of £19M of construction works has so far been awarded this financial year. |
3.0 |
Current Initiatives |
3.1 |
Appendix 2 provides a summary of all best value procurement (excluding the major frameworks) which has been implemented this financial year, as follows: · Negotiated projects - £4.34M · Negotiated packages - £3.06M |
3.2 |
Appendix 3 attached details a number of new initiatives which it is proposed are implemented in the current financial year related to: · Former In-Tech Building, Winchester - refurbishment · Fire Alarm and emergency lighting at older persons homes · Portchester School - improvements · Park Community School - response following major flooding · Froxfield Infant School - provision of additional accommodation · The Rookwood Centre - phase II alternations and improvements · North Popley - archaeological investigation and strategic planting · Curdridge Primary School - Extension · Trosnant Infant School - Extension · Wildern School - Virtual Learning Centre · SCOLA Masonry Wall Repairs · Milestones Museum - extension of maintenance contract · Second Framework - tendering arrangements adjusted |
3.4 |
Engineering Maintenance Term Contracts |
3.4.1 |
The report to the Panel in April 2005 sought approval to extend the current engineering maintenance term contracts until 31 March 2007. It is proposed to undertake a tender exercise during the next 12 months to establish three new contracts to commence in April 2007. These contracts will run concurrently with the SLA for Schools and will be for a 5 year term with the option to extend for a further 2 years. |
4.0 |
South East Centre of Excellence |
4.1.1 |
The report to this panel on the 5 April advised Members the County Council would be leading the construction workstream for South East Centre of Excellence (SECE). |
4.1.2 |
Members will recall that nine Regional Centres of Excellence have been established by the by the ODPM, which are designed to support Councils in delivering the National Procurement Strategy and the drive to achieve efficiency savings. The report also noted the approval of a business case by SECE for additional resources for the County Council to support this initiative. |
4.2 |
SECE Work Plan |
4.2.1 |
A number of meetings have been held with senior officers from County Councils and Unitary Authorities to determine how best to obtain the benefits of aggregation and value for money. These meetings have resulted in the agreement of a detailed Work Plan and work will now begin on developing the 5 key themes which will have the greatest impact comprising: |
· Access to reliable professional advice and expertise · Developing procurement arrangements that work either regionally or around clusters of authorities · · Sharing existing arrangements · Aggregation when forming new procurement arrangements · Developing reliable procurement models through demonstration projects | |
4.2.2 |
The next SECE Workstream meeting on the 14 October will involve all SECE authorities including District Councils. This meeting will explain current progress with the Work Plan and encourage full `buy in' to proposed initiatives. |
4.3 |
Major Framework |
4.3.1 |
Establishing wide ranging framework agreements for major construction work, which can be enjoyed by a range of small medium and large authorities, has emerged as a priority area. This is largely in response to Reading Borough Council and Wokingham District Council's request to run their demonstration projects in an early timeframe and the potential that other Councils may have a similar desire for early participation. |
4.3.2 |
The SECE framework will operate in a similar way to the County Council's own Framework agreement for major schemes and programmes of work, which is now entering a third year and is delivering in excess of £130m of construction work as noted elsewhere in this report. |
4.3.3 |
The SECE Framework will be introduced through a three stage development process comprising: · A development stage involving a series of demonstration projects designed to develop common procurement templates · · A forum where the governance of the framework will be developed and agreed · Establishing a four-year agreement.framework. | |||
4.3.4 |
The County Council will lead the development process including undertaking a number of demonstration projects, and it is proposed to issue a Contract Notice on behalf of SECE under European Procurement Directives seeking expressions of interest from suitable contracting organisations. | |||
4.3.5 |
The current skills shortages in the South East region and elsewhere in the country are likely to become more acute in the run up to the 2012 Olympics. Accordingly, it is vital for service delivery for all south east authorities that longer term arrangements, which secure the best contractors and their supply chains, are developed and implemented. | |||
4.3.6 |
The major Framework, which will be developed, will be for construction projects and programmes of work in excess of £1M. It will offer the chance for SECE authorities to work more closely across a range of procurement and allow common templates to be developed, for example as an alternative to the BSF LEP model. These arrangements will allow authorities to retain control over their activities but gain economies of scale through aggregation and collaboration. It is intended that the arrangements will operate regionally or around `clusters' of authorities, recognising different and variable usage patterns. | |||
4.3.7 |
Early consultation with major contracting organisations has confirmed the industry's keen interest in the development of such arrangements, but stressed the importance of establishing consistent governance across authorities. | |||
4.4 |
A Second Framework | |||
4.4.1 |
The report to this panel on 5 April noted that the development of a second Framework for work up to £2.5M and suitable for SME's, would allow for potential collaboration and participation of other SECE authorities. Another Hampshire authority has recently expressed interest in participating in such an arrangements and it is therefore proposed that when a Contract Notice is issued through European Procurement Directives that it will allow for such participation. | |||
4.5 |
National Liaison | |||
4.5.1 |
The County Council has recently been involved with discussions with the OGC to consider how to develop common standards of measuring efficiencies around the work, which it is leading for SECE. | |||
4.5.2 |
The County Council is also working closely with Nottinghamshire County Council who are providing national coordination on the construction workstream. The Chief Executive of Nottinghamshire County Council has suggested that SECE takes the lead nationally on the development of major Framework templates | |||
4.5.3 |
Future reports to this panel will record the progress being made with this and other initiatives as they emerge. | |||
Recommendation(s) | ||||
That the Panel advises the Executive Member for Policy and Resources that: 1 Projects to be undertaken through the Framework for Major Schemes as identified in Appendix `1' are noted 2 The procurement initiatives that have been implemented this year as set out in Appendix `2.' are approved. 3 That the appointment of Mace as Construction Project Manager for the Ashburton Court Redevelopment is noted. 4 Approval be given to the proposed procurement initiatives set out in Appendix `3' relating to: · Former In-Tech Building, Winchester - refurbishment · Fire Alarm and emergency lighting at older persons homes · Portchester School - improvements · Park Community School - response following major flooding · Froxfield Infant School - provision of additional accommodation · The Rookwood Centre - phase II alterations and improvements · North Popley - archaeological investigation and strategic planting · Curdridge Primary School - Extension · Trosnant Infant School - Extension · Wildern School - Virtual Learning Centre · SCOLA Masonry Wall Repairs · Milestones Museum - extension of maintenance contract · Second Framework - tendering arrangements adjusted 5 That the arrangements for the re-tendering of the Engineering Maintenance Term Contracts are noted. 6 That the SECE Framework proposals are noted and that Contract Notices are issued on behalf of the SECE. 7 That the Second `Hampshire' Framework is extended to allow for the participation of other SECE authorities. Section 100D - 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: 1. Published works. 2. Documents which disclose exempt or confidential information as defined in the Act. File Location None. |
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