Archived decisions

Hampshire County Council

Buildings, Land and Procurement Panel Item

20 March 2007

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 & Resources approved at his meeting of 6 April 2006 the annual review of construction related procurement for 2006/7 and a series of new initiatives to be implemented over the current financial year and beyond.
1.2	The purpose of this report is to summarise the actions taken during 2006/7, analyse the outcomes, seek approval to further procurement initiatives and set out a number of procurement developments and arrangements for 2007/8 and beyond.
1.3	The completion of projects through Framework arrangements ensures that the schemes are delivered in a cost-effective way, involves closer working and collaboration with the construction industry which ensures continuous improvement in the Council's services and enhances the quality of place in Hampshire.

	Recommendations

	That the Buildings, Land and Procurement Panel advises the Executive Member for Policy & Resources that approval be given to:

1	Projects to be undertaken through the Framework for Major Schemes as identified in Appendix `1' are approved.
2	The procurement initiatives that have been implemented this year as set out in Appendix `2'.
3	Not extending the Hampshire Framework for Major Schemes and Programmes of Work and to procure future major schemes through the South East Centre of Excellence Framework for Major Schemes.
4	Procuring the Primary Capital Pathfinder project through the SECE Framework for Major Schemes and Tier 2 Framework.
5	The progress in establishing Hampshire cluster Second and Third Tier Frameworks.
6	Establishing consultancy arrangements through the South East Centre of Excellence.
7	Procuring consultancy arrangements directly where these are required to meet the County Council's project requirements.
8	The proposed procurement initiatives set out in Appendix `3' relating to : _ Second tier framework (SME) pilots - Projects proposed for 2007/8 _ Roofing framework - development of the arrangements and negotiated projects proposed for 2007/8. _ Hard landscaping framework - Proposed new arrangements _ External redecoration - 2007/8 packages of work _ Temporary Buildings Term Contract - update _ Reactive Maintenance Term Contract - extension of pilot contracts _ Engineering Maintenance Term Contracts - update _ Building Control Consultancy - extension of current arrangements _ Children's Centre Programme - procurement proposals _ Swanwick Lodge Secure Unit - improvement works _ Nuance Global House, Eastleigh - refurbishment and fit out _ Capital House - refurbishment and fit out _ Parkway House - Call centre works _ Froxfield Infant School - installation of Homelodge building _ Norwood Primary School Children's Centre - alterations _ NDS schemes - use of named subcontractor _ Park Primary Children's Centre - extension _ Brookfield Community School - SAI and food technology works _ Oakridge Infant School - recladding and extension _ Osborne School - remedial works _ West Meon - Primary School extension
9	The performance assessment for projects completed during 2006/7
2.0	Introduction
2.1	During recent years the department has developed a procurement model for the County Council's construction work which enables the use of long term collaborative working arrangements to deliver improved performance, value for money and efficiency savings. More recently the department has been acting as the lead for the Building Workstream of the South East Centre of Excellence (SECE), with a focus on establishing collaborative framework arrangements for public bodies across the south east region.
2.2	During 2007/8 the main focus of activity will be on greater integration of the County Council's procurement policy with that of SECE, by beginning to use the new SECE framework arrangements for the delivery of the County Council's mainstream project work.
2.3	Other significant procurement events in the coming year include: _ Renewal of the Term Engineering Contracts _ Procurement of Tier 2 and 3 framework arrangements _ Development of new specialist frameworks including hard landscaping, roofing and reactive maintenance _ Development of new consultancy arrangements through SECE.
3.0	Analysis and Review
3.1	Over the last twelve months a total of £80 million of construction work has been committed through the department, not including the Ashburton Court redevelopment contract which is due to be finalised in April. This is significantly lower than during 2005/6 in line with the County Council's Capital Programme and the conclusion of the Enhance project.
3.2	In addition to the Framework for Major Schemes, work has been procured across a range of best value procurement arrangements, including preferred small to medium size contractors and specialist firms. This includes 27 projects completed through the pilot arrangements for a second framework for small and medium size contractors, established during 2006 as a precursor to longer term arrangements.
3.3	In 2006/7 approximately 69% of the overall value of project work was procured through collaborative procurement arrangements with the remainder procured through conventional tendering. The level of commitment through collaborative procurement arrangements is within the ceiling set for best value procurement approved by Cabinet in September 2004 of 70% as a proportion of the overall value.
3.4	A summary of all best value procurement approved in 2006/7 is shown in Appendices 1 and 2:
	· Appendix 1 details all of the work committed to the Framework for Major Schemes for 2006/7 and beyond. · Appendix 2 details work procured through other best value procurement arrangements including preferred contractors and specialist framework arrangements.
3.5	In value terms, in excess of £30 million worth of major project work will have been committed by best value forms of procurement during 2006/7 through:
	_ Major Framework - 6 projects worth £14 million _ Preferred contractors - 40 projects worth £13.5 million _ Preferred contractors - 18 packages of multiple projects worth £3.75 million
4.0	Framework for Major Schemes and Programmes of Work
4.1	A total of £182 million of work has now been allocated to the Framework for Major Schemes since its inception in 2003/4. This includes work planned for 2007/8 and work already committed during the previous financial years.
4.2	Since the last meeting of the Panel the following scheme has been identified for development under the Framework for Major Schemes: _ Marnel Infant and Junior schools - major refurbishment and extension This project has been included in the table at Appendix 1.
4.3	The major framework agreements were for an initial 4 year term with the option to extend for a further 2 years. The initial term comes to an end in August 2007, however it is not proposed to take up the option to extend the agreements. Instead it is proposed that future major schemes are procured through the SECE Framework for Major Schemes and Tier 2 Framework, details of which were reported to the Panel on 3 October 2006.
4.4	The County Council has recently secured a £6.5 million grant as a regional pathfinder for the DfES' Primary Capital Programme. This will be combined with funding identified in the Children's Services Capital Programme to support a number of primary school projects within the Andover area, which include 3 new primary schools within the major development areas. These schemes will build on the common design and procurement arrangements developed for the Pinewood, Kings Copse and Dowd's Farm projects and are likely to provide the first opportunity to procure County Council projects through the SECE Frameworks.
5.0	Second and Third Tier Framework Arrangements
5.1	Following the success of the Second Tier Framework pilots, the intention to establish second and third tier frameworks based around clusters of authorities within the SECE region was set out in the report to the Panel of 3 October 2006.
5.2	To develop the arrangements for the Hampshire cluster of authorities a body has been formed consisting of Hampshire County Council, Portsmouth City Council, Eastleigh Borough Council, Hampshire Fire and Rescue Service and Hampshire Police.
5.3	An advert placed in the Official Journal of the European Union on 25 November 2006 sought expressions of interest based on the following framework bands, in accordance with the proposals set out in the report to the Panel on 4 April 2006: Tier 2 £500,000 to £2,500,000 5 to 10 Contractors Tier 3 £25,000 to £500,000 10 to 20 Contractors The final number of framework contractors will depend on the capacity and geographic coverage of those pre-qualifying for the tender stage.
5.4	A total of 67 expressions of interest were received; 34 for Tier 2 and 33 for Tier 3. Tender shortlists are currently being finalised prior to issue of tender documents in March and April. It is anticipated that recommendations for appointment will be presented to the Panel in June 2007 for the Tier 2 framework and October 2007 for the Tier 3 framework. Once established these framework arrangements will provide a major delivery mechanism for mainstream County Council project work.

6.0	Consultancy Arrangements
6.1	Since 2002, Property Services has had in place a number of consultancy framework arrangements covering the key disciplines of engineering design, quantity surveying and landscape design. These agreements are coming to an end over the next 12 months and it is proposed that they will be replaced by arrangements to be developed in conjunction with the South East Centre of Excellence (SECE).
6.2	It is anticipated that the SECE consultancy arrangements will be established on a two tier basis. Tier 1 will cover the entire SECE region and be used for schemes procured through the SECE Framework for Major Schemes. Tier 2 is likely to be based around clusters of authorities to complement the second and third tier SECE frameworks. More detailed proposals will be presented to the Panel in June 2007 once they have been developed through SECE.
7.0	Additional Best Value Procurement Proposals
7.1	Appendix 3 details a number of further best value initiatives proposed: _ Second tier framework (SME) pilots - projects proposed for 2007/8 _ Roofing framework - development of new arrangements and negotiated projects proposed for 2007/8. _ Hard landscaping framework - proposed new arrangements _ External redecoration - 2007/8 packages of work _ Temporary Buildings Term Contract - update on tender process _ Reactive Maintenance Term Contract - extension of pilot contracts _ Building Control Consultancy - extension of current arrangements _ Children's Centre Programme - outline procurement proposals _ Swanwick Lodge Secure Unit - improvement works _ Nuance Global House, Eastleigh - refurbishment and fit out _ Capital House - refurbishment and fit out _ Parkway House - Call centre works _ Froxfield Infant School - installation of Homelodge building _ Norwood Primary School Children's Centre - alterations _ NDS schemes - use of named subcontractor _ Park Primary Children's Centre - extension _ Brookfield Community School - SAI and food technology works _ Oakridge Infant School - recladding and extension _ Osborne School - remedial works _ West Meon - Primary School extension
8.0	Performance Assessment 2006/7
8.1	As reported to the Panel in July 2006, a new set of KPIs was introduced from April 2006 to measure contractor performance on all projects undertaken by the department.

8.2	The new indicators allow a more accurate and consistent measurement of contractor performance and will also allow comparison against external benchmarks. The new KPIs, measured on a scale of 1 to 10 (1 = unacceptable, 10 = excellent), are as follows: A: Time Management B: Financial Management C: Health and Safety D: Supply Chain Management E: Quality of Workmanship F: Progress with Making Good Defects G: Collaborative Approach H: Contractor Design (where applicable) I : Customer Satisfaction J: Overall Performance
8.3	A more detailed report on contractor and project performance will be submitted to the Panel in June 2007, once all the data for the financial year 2006/7 has been collated and analysed. A summary of the key outcomes based on projects completed to date is provided below.
8.4	Major Projects (construction value >£500k)
8.4.1	A total of 27 major projects (construction value >£500k) completed in 2006/7 have been assessed against these indicators. This includes 14 competitively tendered projects, 12 projects completed under the Framework for Major Schemes and 1 project negotiated with a preferred contractor.
8.4.2	The average score for all the best value projects is 79%, a slight reduction when compared to the average score for 2005/6. This can be attributed mainly to poor performance on one framework project. Excellent scores have been achieved on the most recently completed Enhance projects, demonstrating the continued learning transfer across the programme of work.
8.4.3	The average score for the 14 competitively tendered projects completed to date is 66%, again a slight reduction on last year's score of 69%. This is mainly due to serious performance issues with one contractor who was responsible for three of the sample projects and who has now been suspended from the register of contractors.
8.5	Second Tier Framework Pilots
8.5.1	Projects undertaken through the pilot second tier framework arrangement have also been assessed against the key performance indicators. The average score across the 27 projects is 84%. This demonstrates an improvement when compared with a sample of 36 similar competitively tendered projects which had an average score of 80%.
8.5.2	Four of the five framework contractors performed consistently above this level achieving a combined average score of 87%. In particular, benefits have been realized in terms of time management, cost management and management of subcontractors indicating that a greater level of predictability of outcomes is being achieved through the framework arrangements. This in turn provides an efficiency in the staff time required to manage these projects by the department.


LINK(S) TO CORPORATE STRATEGY
	Yes	No
Hampshire safer and more secure for all		_
Maximising well-being		_
Enhancing our quality of place	_

This proposal does not link to the Corporate Strategy but, nevertheless, requires a decision because:

N/A

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:

1 Published works

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

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

BLPP0307F

Framework Agreement for Major Capital Projects 2006/07


WORKS	CONTRACTOR(S)	VALUE	SELECTION METHOD	REASON FOR PROCUREMENT STRATEGY
PROJECTS NOW ALLOCATED TO THE FRAMEWORK ARRANGEMENTS
Marnell Infant & Junior Schools Major refurbishment and extensions	Brazier Construction	3,000,000	Direct appointment through Major Framework call off arrangement	_ Early contractor involvement to assist with scheme design and construction planning and programming _ Contractor has preformed well on a number of previous projects procured on similar develop and construct basis _ Contractor currently undertaking project involving similar internal refurbishment works
Tadley Burnham Copse School Reorganisation	Brazier Construction	3,000,000	Direct appointment through Major Framework call off arrangement	_ Early contractor involvement with scheme design development, planning and programming. _ Contractor has performed well on a number of framework projects
PROJECTS CURRENTLY UNDER DESIGN DEVELOPMENT
Education Capital
Romsey Primary School Reorganisation	Mansell Construction	£3,000,000	Direct appointment through Major Framework call off arrangement	· Early contractor involvement with the scheme design development, planning and programming. · Good performance on the Waterside School project which is of a similar nature · Contractor has previously worked with the design team
Dowd's Farm Primary School New 1FE School	HBG	£3,700,000	Direct appointment through Major Framework call off arrangement	· Part of pilot programme to develop common design and procurement template for new primary schools. · Early appointment of contractor to assist with development of common design approach, procurement of key supply chains, planning and programming of the works. · Contractor has performed well on Enhance projects
King's Copse Primary School New 1FE School	HBG	£4,000,000	Direct appointment through Major Framework call off arrangement	· Part of pilot programme to develop common design and procurement template for new primary schools. · Early appointment of contractor to assist with development of common design approach, procurement of key supply chains, planning and programming of the works. · Contractor has performed well on Enhance projects
Cadlands Primary School New 2 FE Primary School (on existing Junior site)	Mansell	£1,800,000	Direct appointment through Major Framework call off arrangements	· Early contractor involvement required due to complexity of schemes and to engage in planning and programming of the works · Contractor has considerable experience of similar school reorganisation schemes through the framework
Other
Ashburton Court Redevelopment	HBG	£30,000,000	Selection based on framework agreement call off arrangements.	· Early involvement of major contractor required due to scale and complexity of the scheme · Phasing and construction strategy for complex inner city project to be developed · Contractor has performed well on a range of major framework schemes · Contractor has experience of major office developments and appropriate capacity and resource to undertake works
Hook Infant School Major re-roofing works	Mansell	£1,340,000	Direct appointment through Major Framework call off arrangements	· Early contractor involvement required due to complexity of scheme and to engage pre-programming of the work · Contractor has experience of working on similar Education schemes and has necessary capacity to meet the operational timescale
CONTRACTS AWARDED SINCE APRIL 2006
Havant EBD (Sundridge BESD)	Balfour Betty	£4,822,919	Direct appointment through Major Framework call off arrangement	· Contractor involvement with the final planning programme and scheme procurement · Good performance on Enhance projects and extensive experience of Education sector beneficial to the development of the scheme. · Good local knowledge following the nearby Malmsbury Lawn project
Havant ESC (Woodlands Education Centre)	Balfour Beatty Construction	£4,726,995	Direct appointment through Major Framework call off arrangement	· Early contractor involvement with the scheme design development, planning and programming. · Good performance on the Enhance projects and knowledge transfer · Good local knowledge following work at Malmsbury Lawn and current work at Havant EBD · Running both the EBD and ESC projects through a combined team.
Pinewood School, Farnborough New 1FE Infant School	Brazier	£3,220,103	Direct appointment through Major Framework call off arrangement	· Part of pilot programme to develop common design and procurement template for new primary schools. · Early appointment of contractor to assist with development of common design approach, procurement of key supply chains, planning and programming of the works. · Contractor has performed well on a number of major projects including the Enhance programme of work.
Priestlands School Entrance Refurbishment	Mansell	£187,000	Direct appointment through Major Framework call off arrangement	· Contractor recently completed Centre for Performing Arts at the school · Continuity with major scheme and benefits from working with established supply chain · Contractor able to undertake work in very tight timescale to meet school operational needs
Staunton Park Community School Repairs & Refurbishment of Sports Hall & Changing Rooms	Balfour Beatty	£600,000	Direct appointment through Major Framework call off arrangement	· Project linked with work at Havant EBD and Havant ESC · Efficiency savings in terms of shared supply chain and management arrangements
Temporary Park'n'Ride facilities, Bar End, Winchester	HBG	£398,968	Direct appointment through Major Framework call off arrangement	· Work required in advance of main Ashburton Court redevelopment in order to release working space for main contractor · Main contractor for the Ashburton Court project appointed so creating a single point of responsibility for related projects

Best Value Procurement 2006/2007


PROJECT TITLE	CONTRACTOR(S)	VALUE	SELECTION METHOD	REASON FOR PROCUREMENT STRATEGY
Negotiated Work
Asbestos Type 2 Survey - Pilot Testing & Analysis works	Environmental Evaluation Gully Howard Technical	£637,815	· Negotiated following two stage tender process	· Testing & Analysis work for asbestos and related material. · Specialist work which required detailed evaluation and sampling · Two contractors appointed to work over a 3 year basis
Ashburton Court Office complex Removal of limpet asbestos to East Block	HBG Construction	£165,451	· Negotiated with a preferred contractor	· Contractor engaged as main contractor for overall development of Ashburton Court complex · Has a good working knowledge of this type of work
Bridgemary Community School Exercise Studio	LST Building Services	£303,448	· Negotiated with a preferred contractor	· LST Building Services have successfully carried out similar works at various schools over a number of years
Bridgemary Community School New Community Room	LST Building Services	£280,000	· Negotiated with a preferred contractor	· LST Building Services have successfully carried out similar works at various schools over a number of years · Contractor has recently successfully completed another project at the school · Good working relationship with the client and the design team
Copper Beeches OPH, Andover New Fire Alarm & Emergency Lighting	Southern Fire Protection	£120,911	· Negotiated with a preferred contractor	· Contractor has experience of working on similar sites and has a good understanding of client needs · Work required in order to meet current legislation · Previous projects have been completed on time and on budget
Cowplain School Sewer Diversion Works	Swanwick Construction	£147,695	· Negotiated with preferred contractor	· Contractor has experience of work of this nature · Work required urgently due to potential contamination of playing fields and adjoining sites · Contractor has a good performance record and able to meet timescale
Cranbourne Business College SCOLA Re-cladding Phase 2	Drew Smith Contracting	£498,791	· Negotiated with a preferred contractor	· Contractor successfully undertook previous phase of work at the school · Positive feedback on previous phase
Curdridge Primary School 2 Classroom Extension & Alterations	Gregory Havant	£711,779	· Negotiated with a preferred contractor	· Collaborative two stage selective tender process due to scheme complexity
Droxford Junior School New Sewerage Treatment Plant	Swanwick Construction	£110,941	· Negotiated with a preferred contractor	· Early engagement with contractor with experience of working on specialist drainage projects · Work required to be undertaken to meet environmental issues and to improve operational facilities on the school site · Need to pre-order treatment plant from specialist manufacturer
Generic Strengthening of SCOLA Panels (Phase 2)	West End Roofing & Construction	£156,939	· Negotiated with a preferred contractor	· Second phase of work following successful completion of Phase 1 · Tendered rates used as basis of negotiation
Hampshire Fire & Rescue Service HQ Modular buildings for training facility	Tudor Trading (Modular)	£355,751	· Negotiated with a preferred contractor	· Specialist modular building contractor with experience and capacity to meet client operational timescale
Hardley (F) School Sports Hall, Changing facilities etc	Brazier Construction	£2,130,886	· Negotiated with a preferred contractor	· Major framework contractor with significant experience of working on sports hall schemes in Hampshire · Design team have a good working relationship with contractor · Contractor able to meet the challenge of tight programme
Household Cavalry Museum New Museum and associated facilities	Wates Construction	£2,069,855	· Negotiated with a preferred contractor	· Contractor has previous experience working on Milestones Museum · Project is located on a sensitive site · Contractor able to meet timescale and operational brief of client
Meadowcroft Kitchen refurbishment	Tew Brothers	£92,517	· Negotiated with a preferred contractor	· Work required to be undertaken urgently following decision by Adult Services to create a new unplanned admissions unit to meet client demand · Early contractor input and appointment to meet the required timescale · Contractor has a good working relationship with the unit and has a good understanding of the operational needs of the staff and clients
Montgomery House Offices Refurbishment of office accommodation	Richardsons (Nyewood)	£649,148	· Negotiated with a preferred contractor	· Work needs to be completed in a time scale to meet the operational requirements of Trading Standards following reorganisation · Positive feedback received on previous projects · Contractor has combined successfully with the Department on previous negotiated projects
Mountbatten School Drainage remedial works - Phase 1	Tew Brothers	£92,826	· Negotiated with a preferred contractor	· Urgent work required following significant flooding of school site due to collapsed pitch fibre drains and blocked storm drains · Contractor has good working relationship with the school and knowledge of school site
Mountbatten School Fire Damage Reinstatement	Tew Brothers	£242,000	· Negotiated with a preferred contractor	· Continuity of main contractor and key supply chains from the initial emergency works · Contractor has worked extensively with the department and has a good performance and Health & Safety record
Otterbourne Primary School Classroom Extension & Alterations	Keison	£128,000	· Negotiated with a preferred contractor	· Project originally tendered but no successful tender received · Subsequently negotiated with lowest contractor · Head-teacher has previous working knowledge of contractor · Contractor able to meet timescale due to funding constraints
Portchester Community School Specialist status Science & SAI works	Brymor Contractors	£696,625	· Negotiated with a preferred contractor	· Contractor has successfully undertaken similar works at various schools · Need to engage contractor early to procure specialist lift equipment in line with project programme
Rowner Youth Service Extension	Vale Builders	£140,000	· Negotiated with a preferred contractor	· Contractor has recently completed a new Youth Service Centre on the site · Good working relationship between client and contractor · Desire to maintain continuity of construction standard and benefit from previously tendered rates
St Michaels Junior School Staff Workspace & Administration Alterations	Inside Outside Commercial	£114,620	· Negotiated with a preferred contractor	· Majority of work required to be undertaken during summer holiday period to avoid disruption to school · Funding for project was agreed too late to facilitate traditional tender procedure · Contractor has a good Health & Safety and performance record and has worked on similar schemes to a high standard
Swanwick Lodge Secure Unit Refurbishment	West Ending Construction	£800,000	· Negotiated with a preferred contractor	· Funding for work is time constrained by DfES · Contractor has a good working relationship with unit management and is aware of the sensitivity of the site · Contractor has developed project with design team to determine best way forward
West Meon Primary School Classroom Extension	John Hobden	£245,000	· Negotiated with a preferred contractor	· Contractor input required on complex project with various site constraints · Contractor has recently completed a very successful similar project using similar construction techniques
Winchester Discovery Centre Archaeological Investigation	Oxford Archaeology	£350,000	· Negotiated with a specialist contractor	· Continuity of contractor who carried out initial site evaluation following competitive tender · Previously worked with County Council on various projects to a high standard
Yateley School Refurbishment of Science Laboratories	Nolan Davis Contracting	£96,750	· Negotiated with a preferred contractor	· Contractor currently undertaking Sports Hall re-cladding works · Benefit from experience of similar schemes to high standard · Benchmark cost information demonstrates value for money · Avoids contractor conflict and provides for consistency in work standard

PROJECT TITLE	CONTRACTOR(S)	VALUE	SELECTION METHOD	REASON FOR PROCUREMENT STRATEGY
Alderman Quilley College Science Laboratory Refurbishment	Gregory Havant	£100,000	· Negotiated with a preferred contractor	· Contract let under SME Framework arrangement · Early engagement of contractor to assist with sequencing and timing of project
Bishopwood Infant School Multi-purpose Room	Dart & Son (Builders)	£119,615	· Negotiated with a preferred contractor	· Contract let under SME Framework arrangement · Early engagement of contractor to assist with sequencing and timing of project
Brune Park School Specialist Teaching Space	To be advised	£100,000	· Negotiated with a preferred contractor	· Contract let under SME Framework arrangement · Early engagement of contractor to assist with sequencing and timing of project
Connaught School Sports Hall Re-cladding & Associated repairs	Nolan Davis Contracting	£148,282	· Negotiated with a preferred contractor	· Contract let under SME Framework arrangement · Early engagement of contractor to assist with sequencing and timing of project
Connaught School Science Laboratory Refurbishment	Nolan Davis Contracting	£100,000	· Negotiated with a preferred contractor	· Contract let under SME Framework arrangement · Early engagement of contractor to assist with sequencing and timing of project
Crestwood School Food Technology Training Kitchen	Nolan Davis Contracting	£120,000	· Negotiated with a preferred contractor	· Contract let under SME Framework arrangement · Early engagement of contractor to assist with sequencing and timing of project
Mill Chase Community School CDT Refurbishment	Nolan Davis Contracting	£107,000	· Negotiated with a preferred contractor	· Contract let under SME Framework arrangement · Early engagement of contractor to assist with sequencing and timing of project
Noadswood School Sports Hall Re-cladding & Associated repairs	Dart & Son (Builders)	£274,520	· Negotiated with a preferred contractor	· Contract let under SME Framework arrangement · Early engagement of contractor to assist with sequencing and timing of project
Oak Meadow CE Primary School Internal Remodelling & Refurbishment of Early Years Centre - Phase 1	Dart & Son (Builders)	£154,000	· Negotiated with a preferred contractor	· Contract let under SME Framework arrangement · Contractor has worked on several similar projects to a high standard and has developed an understanding of client needs
Oak Meadow Early Years Centre Phase 2 - Alterations to Children's Centre	Dart & Son (Builders)	£250,000	· Negotiated with a preferred contractor	· Contract to be let under SME Framework arrangement · Early engagement of contractor to assist with sequencing and timing of project
St Albans CE (A) Primary School Administration Extension	T Coleborn & Son	£94,200	· Negotiated with a preferred contractor	· Contract to be let under SME Framework arrangement · Early engagement of contractor to assist with sequencing and timing of project
Staunton Park Sports College New Catering Kitchen	Nolan Davis Contracting	£140,000	· Negotiated with a preferred contractor	· Contract to be let under SME Framework arrangement · Early engagement of contractor to assist with sequencing and timing of project
Wyvern Technology College WC Refurbishment	Hampshire Partitioning Contracts	£151,023	· Negotiated with a preferred contractor	· Contract let under SME Framework arrangement · Contractor has undertaken similar work to a very high standard and has good Health & Safety and performance records
Yateley School Sports Hall Re-cladding & Associated Repairs	Nolan Davis Contracting	£264,753	· Negotiated with a preferred contractor	· Contract let under SME Framework arrangement · Early engagement of contractor to assist with sequencing and timing of project
Yateley School Security Improvements	Nolan Davis Contracting	£120,000	· Negotiated with a preferred contractor	· Contract let under SME Framework arrangement · Early engagement of contractor to assist with sequencing and timing of project


NEGOTIATED PACKAGED WORK
External Redecorations
*Package A-06* Marlborough Infant School North Farnborough Infant School Knights Enham Infant School St Bernadettes RC Primary School Shepherds Spring Infant School	Atkins Painting & Decorating	£145,910	· Negotiation with preferred contractor	· Secure resources to undertake a large programme of seasonal work · Firms have previously delivered similar work to the high standard required · Previous project rates will provide basis for negotiation · Packaging of schemes to achieve value for money · Simplification of management arrangements by strategically grouping programmes of work with contractor
*Package B-06* Bishop Challenor RC (A) Secondary School Western Downland School Breamore CE (A) Primary School Tile Barn Outdoor Activity Centre Lepe Country Park Totton Youth Centre Barncroft Infant School Barncroft Junior School	Ferris Painting	£160,680	· As above	· As above
*Package C-06* Brighton Hill School Manor Field Infant School Manor Field Junior School Yateley Library Grange Junior School Fair Oak Library	Pool & Son	£140,011	· As above	· As above
*Package D-06* Whiteley Primary School Oliver's Battery Primary School Calshot Activities Centre (Part 5) West Shore House	Purkiss	£159,130	· As above	· As above
*Package E-06* Cowplain Secondary School	Richardsons Decorating Contractors	£258,364	· As above	· As above
*Package F-06* Fort Hill Secondary School Norwood Primary School Rownhams Primary School	Tew Brothers	£286,570	· As above	· As above
*Package G-06* Crookhorn Secondary School Sarisbury Junior School Flora Twort Gallery	Warwick & Son	£230,857	· As above	· As above
*Package H-06* Gomer Junior School West End Infant School	Haylock & Pittman	£102,895	· As above	· As above
*Package 1-06* Foxhills Junior School Hazel Wood Infant School Manor Farm Country Park	Atkins Painting & Decorating	£147,231	· As above	· As above
*Package 3-06* Buriton Primary School Sheet Primary School Selborne Primary School Weyford Infant School Talavera Infant School	Haylock & Pittman	£136,114	· As above	· As above
*Package 4-06* Haselworth Primary School Baycroft Special School Lord Wilson School Swanmore School	Mitie Property Services	£284,232	· As above	· As above
*Package 5-06* Mill Rythe Infant School Riders Junior School Warren Park Primary School Denmead Junior School Horndean Infant School Hart Plain Infant School	Richardson Decorating	£171,608	· As above	· As above
*Package 6-06* Richard Aldworth School	Pool & Son	£303,354	· As above	· As above
*Package 7-06* Haven Early Years Centre Bedenham Primary School	Purkiss	£84,365	· As above	· As above
*Package 8-06* Shakespeare Infant School Preston Candover Primary School Bishop Waltham Infant School	Tew Brothers	£106,020	· As above	· As above
*Package 9-06* Holbrook Primary School Harrison Road Primary School	Warwick & Sons	£109,194	· As above	· As above


WORKS	CONTRACTOR(S)	VALUE		SELECTION METHOD	REASON FOR PROCUREMENT STRATEGY
External Ramps and Hard Landscaping Framework
North Hampshire Framework Schools Access Initiative Schemes: Anton Infant School Butts Primary School Castle Primary School Elvetham Heath School Fair Oak Infant School Fordingbridge Junior School Horndean Infant School Hurstbourne Tarrant Primary School Manor Farm Country Park Meadowlands Mengham Infant School Netley Abbey Junior School Netley Library North Baddesley Library Otterbourne Primary School Red Barn Primary School Riverside Special School St Bede Primary School - Phase 1 St Patricks Cathoilc School Samuel Cody School Tower Hill Primary School Upham Primary School Wavell School Wildern School West End Infant School Weyford Infant School - Ph 1 Weyford Infant School - Ph 2 Weyford Junior School	Rocon Contractors		£571,047 11,422 4,000 15,202 53,000 40,000 9,806 32,819 12,719 24,000 21,150 27,199 TBA 4,813 4,814 18,396 15,150 14,999 43,043 30,500 49,231 17,892 8,583 14,846 40,000 12,442 13,750 16,272 14,999	· Negotiated with preferred Contractor	· Pilot arrangement to determine long term viability of packaging a large number of small projects of a similar type to achieve economy of scale and fixed price on overheads · Early alignment of contractor resources required for seasonal works · Performance management arrangements to ensure continuous improvement · Original pilots established in 2004/5 - further extended to a maximum of £750,000 per annum · Ability to `call--off' schemes as required within the framework
Flat Roofing Framework
Bidbury Infant School Denmead Infant School Fryern Junior School Leesland Junior School Manor Infant School Padnell Junior School South Farnborough Infant School South View Infant School Tadley Library Winklebury Junior School	Survey and Construction		£338,634 (£50,000) (£12,000) (£48,795) (£20,000) (£81,000) (£15,000) (£51,499) (£16,998) (£8,670) (£34,672)	· Negotiated with preferred Contractor	· Pilot framework arrangement extended until March 2007 · Framework allows early alignment of contractor resources. · Contractor has good track record and has worked on in excess of 70 schemes of varying values with the County Council since 2003. · Performance management arrangements ensure continuous improvement

Additional Proposals

Second Tier Framework (SME) Pilots

Following the successful implementation of a range of schemes under these frameworks during the 2006 summer holiday period, the proposal to extend the pilot arrangements until September 2007 was presented to the Panel in October 2006.

It is now intended to engage the framework contractors on the following schemes to enable work to commence at the appropriate time:

Pilot Package 1

Contractor	Scheme	Estimated Value
R V Dart	_ Hayling School - sports hall recladding	£250,000
	_ Applemore College - food technology room	£96,000
	_ Thornden School - science lab refurbishment	£148,000
	_ Brune Park - training kitchen, food and design technology rooms	£300,000
	_ Aviary Children's Centre - enabling works	£210,000

Nolan Davis	_ Calthorpe Park - science laboratory	£146,000
	_ The Hurst School - design technology room	£143,000
	_ Basingstoke Library - sprinkler installation	£125,000
	_ Oak Lodge Special School - extension	£140,000

	Package 1 Total	£1,558,000

Pilot Package 2

Contractor	Scheme	Estimated Value
Hampshire Partitioning	_ Gomer Junior School - accessible w.c. / toilet refurbishment	£90,000
	_ Fawley Primary School - infant toilet refurbishment	£15,000
	_ Foxhills Junior - toilet refurbishment	£30,000
	_ Hale Primary - toilet refurbishment	£30,000
	_ Lymington Junior - toilet refurbishment	£30,000
	_ Oakfield Primary - toilet refurbishment	£33,000
	_ Orchard Infant - toilet refurbishment	£24,000
	_ Wallop Primary - toilet refurbishment	£30,000
	_ Fairfield Infant - toilet refurbishment	£20,000
	_ Alverstoke Junior - toilet refurbishment	£35,000
	_ Brockhurst Infant - toilet refurbishment	£22,000
	_ Haselworth Primary - toilet refurbishment	£18,000
	_ St John the Baptist - toilet refurbishment	£35,000
	_ Grange Infant - toilet refurbishment	£30,000
	_ New Milton Junior - toilet refurbishment	£65,000
	_ Henry Beaufort School - toilet and changing rooms	£110,000

Coleborn	_ Portway Infant - accessible w.c. and ramps	£85,000
	_ Portway Junior - accessible w.c. and ramps	£45,000
	_ Shipton Bellinger Primary - toilet refurbishment	£80,000
	_ Meadowlands Junior - phase 2 toilet refurbishment	£20,000
	_ Cherrywood Primary - Children's Centre enabling works	£341,000

	Package 2 total	£1,188,000

The following additional schemes, together with a number of further toilet refurbishments, are currently being developed. These will be allocated to the appropriate contractors either through the pilot framework arrangements or new Tier 3 Framework arrangement, depending on the individual project programmes.

Scheme	Estimated Value
_ Henry Beaufort School - science lab refurbishment	£96,000
_ Fort Hill - food technology	£96,000
_ Harrow Way - food technology	£96,000
_ Eggars School - Food Technology	£96,000
_ Gomer Infant School - extension	£60,000
_ Toynbee School - specialist teaching spaces	£90,000
_ Crestwood School - specialist teaching spaces	£110,000
_ Cranbourne School - specialist teaching spaces	£190,000

If the programmes require the schemes to be procured through the pilot framework arrangement the total value of the pilot package 1 will increase from the £3 million originally approved to approximately £3.5 million, with the additional schemes allocated to the two contractors who have delivered consistently good performance so far.

Flat Roofing Framework

A flat roofing framework has operated successfully for four years. The contractor Survey Roofing Ltd has undertaken over 80 projects during this time to a generally high standard and the framework arrangement has provided a sound route for the delivery of work within both financial and time constraints.

New arrangements are currently being investigated which will allow for an extended service which may include pitched as well as flat roofing and some reactive repair work. The new framework will initially be on a pilot basis due to the complexity of incorporating reactive roof repairs and capital repairs. This is likely to comprise three contractors, selected through best value tender exercise, for an initial 1 year period with an option to extend for up to a further year subject to good performance and the needs of the County Council. It is anticipated that the value of the framework will be in the region of £1.5 million per annum. The pilot will allow the arrangements to be fully tested prior to a full framework arrangement being tendered in accordance with the EU procurement rules.

A number of roofing projects have been identified for completion before the new framework arrangements are in place. It is therefore proposed to negotiate these schemes with two roofing contractors, Survey Roofing Ltd and West End Construction Ltd, both of whom regularly undertake these type of projects for the County Council to a high standard. Costs for the negotiated schemes will be benchmarked against last years' framework rates and rates for recently tendered projects. The schemes to be negotiated are:

Contractor	Scheme	Estimated Value
Survey Roofing Ltd	_ Siskin Infants - flat roofing renewal	£84,000
	_ Manor Infants - flat roofing renewal	£100,000
	_ Rowlands Castle Primary - rooflights	£20,000

West End Roofing and Construction Ltd	_ North Farnborough Infants - pitched roof works	£90,000
	_ Pennington Infants - repair of storm damage to flat roof	£100,000

Hard Landscaping Framework

Following the success of the pilot framework for Ramps and Hard Landscaping, proposals to tender a 2 year framework arrangement were reported to the Panel in April 2006.

The pilot arrangements focused on a range of small to medium size projects mainly associated with access improvements, minor improvement and resurfacing work. It is proposed that the new arrangements are enhanced to cover a wider range of landscaping work and larger improvement work which could include elements of major capital funded work such as Multi Use Games Areas (MUGA), Synthetic Turf Pitches (STP) and soft landscaping. The aggregated value of the framework could be in excess of £5 million subject to the needs of the County Council and is therefore being procured in accordance with EU procurement rules. In accordance with the objectives of the South East Centre of Excellence, the new framework will also be made available for use to any local authority within the Hampshire boundaries.

The proposal is to appoint three contractors over a two year term with the possibility of extension for a further two years subject to satisfactory performance. A Contract Notice inviting expressions of interest was published in early February with a view to drawing up a shortlist of contractors for tender in April 2007. It is anticipated that contracts will be awarded in the autumn.

External Decorations Programme 2007/08

A programme of external decorations work for education premises to be negotiated with a number of preferred contractors was presented to the Panel on 23 January 2007.

A further programme of work covering Adult Services, Recreation & Heritage and Office Accommodation has been drawn up with an estimated value of £460k. It is proposed to negotiate 2 packages of work with preferred contractors with the remaining schemes, valued at approximately £100k, to be competitively tendered to provide benchmark costs.

Details of all the negotiated packages of work are provided below. As the packages are developed some variance in the list of schemes and values may occur.

Education Properties

Contractor

Properties

Estimated Package Value

Atkins

(Package A-07)

_ Marchwood Infant

_ Lakeside Special

89,000

Ferris

(Package B-07)

_ Oakfield Primary

_ Upham CE Primary

_ St Swithun Wells RC Primary

_ Milford on Sea CE Primary

67,000

Haylock and Pitman

(Package C-07)

_ Crookham CE Infant

_ St Thomas More's RC Primary

_ Bidbury Junior

_ North Baddesley Junior

113,500

Mitie Property Services

(package D-07)

_ Crofton Secondary

_ Baycroft Special

_ Newtown Soberton Primary

_ St Lawrence Primary

_ St Francis Special

_ Peel Infant and Junior Schools

268,000

Pool & Sons

(Package E-07)

_ St Anne's RC Primary

_ St Mark's CE Primary

_ Southwood Infant

_ St Bede's RC Primary

_ Grange Junior (Farnborough)

_ West Tytherley Primary

98,000

Purkiss

(Package F-07)

_ The Hayling College

_ Mill Hill Early Years Centre

_ Bosmere Junior School

165,000

Richardsons

(Package G-07)

_ Brookfield Community

250,000

Tew Brothers

(Package H-07)

_ Test Valley Secondary

_ Knightwood Primary

_ Micheldever Primary

190,000

RG Warwick

(Package I-07)

_ Neville Lovett Community

_ Hampshire Microtech and Early Years Centre

162,000

Adult Services, Recreation & Heritage and Office Properties

Contractor

Properties

Estimated Package Value

Pool & Sons

(Package K-07)

_ Kershaw Day Centre

_ Locksheath Day Services

_ Stubbington Library

_ Gosport Elson Library

_ Havant Day Services satellite unit (Hayling Island)

_ SE Divisional Education Office

_ Petersfield Library

_ Sir George Staunton Country Park

145,000

Mitie Property Services

(Package L-07)

_ Appletree Centre

_ Argoed Lwydd Outdoor Centre

_ Heol Senni Outdoor Centre

_ Westholme OPH

_ South Side Offices, Winchester

_ Castle Avenue Offices

_ Alreford Library

210,000

Temporary Buildings Term Contract

The extension of the existing term contract for the supply, transfer and hire of volumetric buildings was reported to the Panel at the meeting held in October 2006. Since then negotiations have been satisfactorily concluded and a contract formed with the Elliott Group for the period up until 31 October 2008.

As previously reported, a tender exercise for a second framework contractor is currently being undertaken in accordance with EU procurement rules. Following publication of a Contract Notice in December 2006, expressions of interest have been received and are currently being evaluated with a view to inviting tenders during March 2007. It is anticipated that the contract will be let in the summer 2007.

Reactive Maintenance Term Contract

A pilot reactive maintenance arrangement has been in place since July 2006 with two contractors, Tew Brothers and Dorelbury, selected through a best value tender. The contracts were for an initial 6 month period with an option to extend subject to satisfactory performance.

Both contractors have performed to an acceptable level, however the initial contract period has highlighted a number of areas where review and further development of the arrangements is required, in particular the pricing structure and contractor resourcing. To allow further development of a fully collaborative arrangement prior to tendering a longer term contract, it is proposed to extend the current contracts until the end of March 2008. The intention is to advertise longer term arrangements through OJEU in autumn 2007 once the scope of the services has been fully defined. Full proposals will be presented to the panel in October 2007.

Engineering Maintenance Term Contracts

Approval to extend the current engineering maintenance term contracts until 31 July 2007 was sought and approved by the Executive Member Policy and Resources in January 2007. In addition approval was given to extend Johnson Controls' contract for the Castle Complex from 1 August 2007 until 31 October 2008. These extensions will allow time to complete the evaluation of the tenders for the new engineering maintenance term contracts which, subject to the necessary approvals, will commence on 1 August 2007. A separate report to the Panel details the recommendations for appointment of contractors for the new contracts.

Building Control Consultancy Arrangement

The existing Building Control consultancy arrangement was implemented in March 2004 with a fixed duration of three years and an option to extend this period by a further two years subject to mutual agreement by both parties. Due to the imminent expiry of the initial three years and the successful working relationship with the consultant, Butler & Young, it is proposed to take up the option and extend the arrangement until 31 March 2009.

Throughout the duration of the arrangement the consultant performance has been measured against a set of pre-determined performance indicators which have shown that they are performing well and delivering the desired outcomes.

Children's Centre Programme

Following identification of major funding totalling £20.5 million to provide enhanced Children's Centres facilities in Hampshire, a programme of 45 projects has been drawn up. 3 projects are currently on site or already completed with a further 2 schemes at design stage. The remaining schemes are subject to feasibility. Further briefing by the client together with site visits and discussions with staff and centre users is on-going with a view to delivering many of the projects by the end of March 2008.

The extent of work at each centre ranges from new provision to refurbishment and minor works. A number of projects may involve the provision of fitted modular buildings whereas others will only be internal alterations.

The value of individual schemes will vary from approximately £200k up to a maximum of £2 million, with the majority of projects falling within the £200k to £600k band. This scale of project is best suited to medium size contractors and it is therefore envisaged that the majority of the schemes will be procured through the Tier 2 Hampshire framework arrangements currently being established through SECE.

Subject to the necessary scheme approvals it is anticipated that it will be necessary to place orders by the early summer 2007 in order to meet the March 2008 completion date. Packaging of schemes either by geographical location or project type will be investigated to determine the most appropriate procurement strategy. Where modular buildings are identified as the appropriate design solution, these may be procured directly through the department's temporary buildings term contract detailed above. A further report will be submitted to the Panel in June 2007, once a more detailed procurement strategy has been developed.

Swanwick Lodge Secure Unit

The Executive Member Policy and Resources approved the proposal to negotiate a package of works worth in excess of £500k with West End Construction Ltd in October 2006. Since that report the department has been successful in securing additional funding from DfES for:

_ Creation of a family meeting room

_ New courtyard gates

_ Refurbishment of 4 classrooms, therapy/playroom, sensory room and building skills workshop.

The additional funding increases the total value of the works to be negotiated with West End Construction to £800k. The revised cost of the works is included in Appendix 2.

Nuance Global House, Eastleigh

Following the successful occupation of part of Nuance Global house and the relocation of Payroll Services during 2006, it is proposed to refurbish and occupy a further three floors to provide accommodation for Adult and Children's Services (1 floor) and the Environment Department (2 floors) as part of the decanting process associated with the redevelopment of Ashburton Court.

The first phase of work was undertaken by Nolan Davis Contracting who are well known to the County Council and have undertaken various projects to a high standard. It is therefore proposed to negotiate the next phase, estimated to cost £740k, with the same contractor and to engage the same design team which successfully delivered the first phase.

Capital House

Two floors of Capital House are to be refurbished to accommodate staff from the Environment Department decanting from Ashburton Court.

It is proposed to negotiate the contract worth approximately £200k with Nolan Davis Contracting, following their successful completion of the phase 1 works at Nuance Global House. The negotiation will be based on the rates previously obtained via the SME Framework pilot and subsequent negotiations on the Nuance Global House projects.

Parkway House - Call centre

The proposal to negotiate a contract estimated at £200k with Nolan Davis to undertake alterations and adaptations at Parkway House in connection with the proposed new Call Centre was reported to the Panel in October 2006. The estimated value of this project is now £450k.

Froxfield Infant School - Homelodge Building

It is proposed to negotiate with Homelodge Buildings Ltd to construct a system building at Froxfield Primary School. The building is timber framed and timber clad and Homelodge are the only contractor on the Property Services' Register of Contractors able to provide this type of building.

In line with the established protocol for the installation of Homelodge buildings the substructure and services have been designed by Property Services and the superstructure is constructed to the Homelodge system. The anticipated cost of the work is £180k.

Norwood Primary School Children's Centre - alterations

It is proposed to tender this scheme on a best value basis to a shortened tender list of 3 contractors who have previously undertaken similar work. The estimated scheme value £430k.

NDS Schemes 2007/8 - Use APMG as named subcontractor

Property Services are currently developing a package of NDS funded schemes comprising design technology, food technology and science laboratory refurbishment projects. It is proposed to use APMG as a named subcontractor for provision and installation of furniture for all these schemes.

APMG have been used as a subcontractor for a large number of refurbishments schemes undertaken by Property Services during the last 5 years, including schemes won through competitive tender and, more recently, schemes procured through the second framework pilot arrangements. APMG have established good relationships with a number of preferred main contractors, have consistently delivered on time and to budget, are familiar with the requirements of working in schools. Using APMG across a number of projects should provide a cost benefit and allow improved planning and programming of the works. The estimated total value of the furniture package for these schemes is £400k.

Park Primary Children's Centre - extension

It is proposed to negotiate the extension to the Children's Centre with Gregory Havant who undertook the construction of the original works in 2005 and therefore has a good working knowledge of the site. Gregory Havant received excellent feedback for the original scheme and established a good relationship with the school who are keen that the firm undertakes these further works. The contractor has resources available and is able to meet the timescales for the project. The estimated value of the scheme £240k.

Brookfield Community School and Language College - SAI works and refurbishment of food technology rooms

A second phase of SAI works together with NDS and school funded refurbishment of two food technology rooms is planned for summer 2007. It is proposed to negotiate these works with Brymor Ltd who successfully undertook the first phase of SAI works together with recladding in 2005. Good feedback was received from the client and project officers and Brymor has confirmed it has resources available to undertake this work in accordance with the proposed programme. The estimated value of the works is £260k.

Oakridge Infants School - Recladding and extension works

A first phase of NDS funded recladding and extension works has been won through competitive tender by Woods Commercial Ltd. NDS funding has now been allocated for a further phase of similar works. It is proposed to negotiate the addition of these works to the contract with Woods Commercial Ltd, subject to satisfactory performance on the initial phase of works.

Osborne School - remedial works to flooring

Further remedial works are required to areas of flooring in Osborne School. Discussions are ongoing with the original contractor to determine responsibility for the defects, however to ensure that the work is undertaken during the forthcoming summer holiday period it is proposed to negotiate the remedial works with Mansell. Mansell are currently performing well on the Winchester Cultural Centre project and have confirmed that resources are available to undertake the work the summer. The estimated value of the proposed remedial work is £120,000.

West Meon Primary School - extension

A proposal to negotiate the extension to West Meon school with John Hobden Ltd was included in the report to the Panel on 4 April 2006. The original value of the scheme was £180k. Additional funding has now been confirmed and the value of the contract to be negotiated is £245k.

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Summary

Section 100 D - Local Government Act 1972 - background papers

CONTRACTS AWARDED SINCE APRIL 2006

Flat Roofing Framework

Scheme