Contact: Phil Samms, ext 7072 email: [email protected]

1. Summary

1.1 This report sets out the basis for the renewal of an existing contractual arrangement to provide site investigation work and associated laboratory testing to the Geotechnical Section of the Environment Department's Engineering Consultancy. (Geotechnics is the investigation and determination of the engineering properties of the ground, and an intrinsic element of all construction.)

1.2 The tender is to be issued to a select list of specialist contractors who have expressed an interest in bidding for the contract, estimated at £180,000 per annum for works and fees, following an advert in the Contracts Journal and Southern Daily Echo.

2. Background

2.1 As well as supporting the delivery of the Environment Department's Highway related Capital and Maintenance programmes, the in-house Engineering Consultancy offers a wide range of services to all Departments within Hampshire County Council. These services provide a convenient and cost-effective means of obtaining specialist advice and design from an in-house consultancy that has extensive knowledge and experience of working within Hampshire.

2.2 Geotechnical advice and design is of significant importance to the success of any construction project, and the Engineering Consultancy has been providing advice in this area for many years, most notably to colleagues in Property, Business and Regulatory Services Department.

2.3 Geotechnical advice and design requires detailed knowledge of the existing ground conditions and, to this end, investigations of the ground are often required in advance of the design of construction projects. Whilst Hampshire County Council has some resources available to facilitate minor investigations in this respect, including the Highways Laboratory, larger investigations require the employment of specialist consultants, contractors and laboratories.

2.4 In order to facilitate immediate action on investigations and testing, and to gain efficiencies in terms of tender processing, the Environment Department has been operating a framework style arrangement with a number of specialist contractors in this field for over 15 years. This arrangement has proved to be very effective in delivering the required service at an acceptable cost that is regularly monitored to ensure that value for money is being maintained.

2.5 The existing contractual arrangement has run for three years, and has recently been extended to 31 January 2006, to ensure resources are maintained whilst a comprehensive review of the contract is being undertaken. The review is felt to be necessary to ensure that appropriate opportunities are taken to revise the contract to facilitate efficiency savings required in line with the Gershon efficiency agenda.

3. Review of Existing Arrangements

3.1 Whilst the existing contractual arrangement has worked well over the past three years, in the interests of considering all opportunities to provide efficiencies in line with Sir Peter Gershon's recommendations, a comprehensive review has been undertaken.

3.2 Whilst there were opportunities for inclusion of the geotechnical investigation and testing work within the new Professional Services Contract (PSC) 2006-08, the specialist nature of the works required was not felt to combine well with the more generic highway skills required through the PSC. Geotechnical advice is included within the PSC, however the provision of investigation work and testing is not. It is provided, however, so that the professional services consultant will use the Environment Department's contractual arrangement for geotechnical investigation and testing, ensuring that the new framework will be used as much as possible.

3.3 The existing contractual arrangement, whilst delivering the instructed works successfully, requires updating in line with recently issued Government legislation. This legislation has focused on environmental issues, and in particular ground contamination. The contract will therefore be extended to include these new requirements.

3.4 An opportunity is also being taken to update the contract in line with best practice for the conditions of contract. This will ensure that the contract administration requirements are clearly defined, particularly in relation to the monitoring of costs and contractor performance.

3.5 In response to comments raised by BLAPP, monthly contractor performance data will be collected to ensure regular monitoring of key issues, such as works quality, works management and health and safety. In addition, regular consideration will be given to opportunities to package similar types of investigation to gain greater efficiency and reduce costs by using the most economically viable contractor from the framework.

3.6 The existing contractual arrangement has operated for three years. It is felt that this period provides the best compromise between maintaining the contract in line with legislation and ensuring adequate exposure to the market place. Cost and performance monitoring throughout this period will ensure that best value is assured.

3.7 Further to the key points highlighted above, it is recommended that the new contractual arrangement be formalised into a framework arrangement, ensuring that adequate structure is incorporated to facilitate enhanced service delivery through regular monitoring. In light of the new emphasis on environmental issues, it is proposed to rename the arrangement as the `Framework Arrangement for Geotechnical and Geo-environmental Investigation, Testing and Reporting'.

3.8 The Framework will be issued for a three year period, with an anticipated annual works and fee turnover of £180,000. It is anticipated that between four and six contractors will be included on the Framework Arrangement.

4. The Tender Process

4.1 It is proposed to tender the new Framework Arrangement for Geotechnical and Geo-environmental Investigation, Testing and Reporting in mid-November 2005, with returns to be received by early January 2006.

4.2 The tenders will be invited from a select list of between six and eight specialist contractors, who have been selected on the basis of their abilities to deliver the required service, both technically and financially.

4.3 Tenders will be assessed upon their return in respect of rates submitted for key staff posts, investigation and testing items. A final list of contractors will be agreed and registered on the Framework Arrangement for call-off of work commencing on 1 February 2006.

5. Impact Assessments

5.1 The contractors appointed will be obliged to follow national legislation and Hampshire County Council's equalities aims and procedures.

Recommendation

That approval be given to the proposed tendering procedures for the Site Investigation Work and Associated Laboratory Testing framework arrangement, to ensure continuous service delivery of geotechnical advice and design offered by the Environment Department's Engineering Consultancy following the end of the existing contract.

620Rpt/PS