Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report :

EXECUTIVE SUMMARY

1) Summary of Decision Area:

1.1. This report details proposals for a number of new procurement initiatives relating to the delivery of building construction work and the maintenance of the Corporate Estate on behalf of the County Council.

2) Issues Covered in Report:

· Provision of multidisciplinary professional services for minor building projects through the proposed Building Surveying Framework.

· Procurement of an external supplier to undertake surveys and provide floor layout plans and workplace sufficiency and suitability data for schools.

· Future arrangements for the procurement of temporary buildings.

· Selection and appointment of contractors through the Improvement and Efficiency South East (IESE) Tier 1 framework to provide pre-construction services for the proposed new two form entry (2FE) primary school at West of Waterlooville major development area and the East New Forest Special School.

· The extension of the trial partnership arrangement with MACE.

3) Recommendations:

That the Panel advises the Executive Member for Policy and Resources that:

3.1. The proposal to include an option in the Building Surveying Framework for a provision of multidisciplinary professional services for minor building projects be approved.

3.2. The proposal to procure an external supplier to undertake surveys to provide floor layout plans and sufficiency and suitability data for schools, with an estimated maximum value of £500,000 be approved.

3.3. The proposals to establish new arrangements for the supply of temporary buildings from November 2009 through a new County Council framework or through a framework established by the Office of Government Commerce, with an estimated County Council expenditure of £1.5 million per annum be approved.

3.4. The selection and appointment of a contractor under the IESE Tier 1 framework to provide pre-construction services up to a maximum value of £100,000 in connection with the proposed new 2FE primary school at the West of Waterlooville major development area be approved.

3.5. The selection and appointment of a contractor under the IESE Tier 1 framework to provide pre-construction services up to a maximum value of £100,000 in connection with the proposed new East New Forest Special School project be approved.

3.6. The extension of the trial partnership arrangement with MACE Ltd for a further 6 months be approved.

MAIN REPORT

1) Purpose of the Report:

1.1. The purpose of this report is to seek approval to a number of procurement initiatives relating to the County Council's building construction work.

2) Contextual Information:

2.1. The Executive Member for Policy and Resources approved on 9 April 2008 the annual review of construction related procurement for 2007/8 and a series of new initiatives to be implemented during 2008/9 and beyond. A number of further proposals were approved at the meeting on 23 July 2008.

2.2. A separate information report on this agenda identifies progress on the initiatives previously approved.

2.3. The completion of projects and programmes of work through framework and term contract arrangements ensures that schemes and programmes of work are delivered in a cost-effective way, involving closer working and collaboration with the construction industry which ensures continuous improvement in the County Council's services and enhances the quality of place in Hampshire.

3) Building Surveying consultancy framework

3.1. The Executive Member for Policy and Resources has previously approved the procurement of a framework arrangement for the provision of building surveying services. Following further consideration of this arrangement it is now proposed to include an option for the consultants to provide multi-disciplinary professional services through a `one stop shop' arrangement for certain projects with a construction value of less than £500,000.

3.2. This arrangement would require the lead consultant to co-ordinate the input of other specialist services where required, providing streamlined management arrangements through a single point of contact for the County Council. This offers particular benefits where only limited input is required from specialist consultants.

3.3. The total value of the framework is estimated to be £1 million over 4 years.

4) Provision of floor layout drawings and sufficiency and suitability assessments

4.1. As part of the renewal of the service level agreement (SLA) for schools, a commitment was made to complete electronic floor plans for all schools by the end of the current SLA term (2012), and make these available to schools in electronic format via a web interface. In addition, Children's Services are required by the Department for Children, Schools and Families (DCSF) to make available current information on the sufficiency of school workplaces to meet pupil numbers and curriculum requirements and the suitability of the condition of these workplaces.

4.2. It is proposed to meet both these requirements through the completion of surveys undertaken by a suitably qualified and experienced external supplier. The supplier will also be responsible for providing the information in database format which will allow it to be viewed through an internet hosted website which will be purchased separately. The estimated value of the survey work and associated database is between £400,000 and £500,000. A combination of Children's Services and Policy and Resources funding has been identified for this work.

4.3. An option to procure this work through the Building Surveying Consultant Framework under a sub-consultant arrangement has been considered. However the services required are quite specialist and do not fall within the scope of building surveying services currently identified. This arrangement would also result in a management fee being paid to the main consultant with limited added value to the services being provided.

4.4. It is therefore proposed to select a single supplier to undertake the work through a tender process undertaken in accordance with the Public Procurement Regulations 2006. A Contract Notice will be published shortly with a view to commencing the work during 2009/10.

5) Temporary buildings framework

5.1. The County Council currently operates two contracts for the supply and installation of temporary buildings. The contract with Elliott Group expires on 31 October 2009, while the contract with Martin Reynolds Construction (MRC) continues until February 2010.To ensure that the County Council's requirements for temporary buildings continues to be met, a new arrangement for supply of temporary buildings needs to be established from late 2009.

5.2. To meet the County Council's future requirements for temporary buildings, it is anticipated that a new framework will be tendered shortly. A new framework would comprise 3 suppliers for a maximum period of 4 years. The estimated County Council expenditure through the framework would depend in the future requirements for temporary buildings, but it is estimated to be approximately £1.5 million per annum. The framework would also be made available for use by a number of neighbouring local authorities who have expressed and interest in using the arrangement.

5.3. An alternative option is to procure temporary buildings through a framework set up by the Office of Government Commerce (OGC). The suitability of the current and future OCG frameworks to meet the County Council's requirements is currently being explored. To ensure that appropriate arrangements are in place from November 2009, approval is sought to progress with the most appropriate option for the procurement of temporary buildings once this has been determined. Progress on this arrangement will be reported to a future meeting of the Panel.

6) Contractor Pre-construction Appointments

6.1. The County Council's procurement strategy for building construction projects includes the procurement of major projects through the IESE Tier 1 framework. The framework arrangement is based on the selection and appointment of the main contractor early in the design phase of the project to work as part of the project team. The contractor provides a range of pre-construction services including advice on buildability, cost planning, package procurement and construction planning and programming for which the contractor is paid a pre-construction fee. On some projects the pre-construction fee includes for the contractor to develop the design using its own team of design professionals.

6.2. To ensure that the contractor's input can be used to advantage on the project, the appointment is normally made prior to approval of the project appraisal. Award of the construction contract is not completed until after project appraisal, once the procurement process has been completed.

6.3. The following projects have been identified for development and procurement through the IESE Tier 1 framework and approval is therefore sought for selection and appointment of contractors to provide pre-construction services prior to approval of the project appraisal:

Project	Pre-construction Fee
New 2FE primary school at West of Waterlooville major development area	Up to £100,000
East New Forest Special School	Up to £100,000

7) Extension of Trail Partnership with MACE

7.1. The Executive Member for Policy and Resources approved on 23 July 2008 an initial 6 month trial partnership arrangement with MACE. The report identified that as an initial step a number of their staff would be seconded to the County Council through the Tier 1 framework for major schemes established by the Council on behalf of Improvement and Efficiency South East (IESE). So far the trail partnership is proving to be highly effective with key individuals working with County Council staff across a number of key IESE work streams.

7.2. The outcome of the pilot will be reported to a later Panel, but it is proposed to extend these arrangements by a further 6 months in order for the trail arrangement to continue and initial assignments to be completed.

8) Outline of Options:

8.1. The County Council's procurement actions are governed by the Public Procurement Regulations 2006 and the Council's Contract Standing Orders. In addition, the County Council's procurement model and strategy for building construction work, approved by the Executive Member for Policy and Resources on 9 April 2008, provides the framework within which procurement decisions relating to building construction work are made.

8.2. Where this framework clearly determines the appropriate procurement strategy no further options have been identified. Where options are available, these have been outlined under the relevant heading in the previous sections of this report.

9) Option Analysis / Comparison:

9.1. Please refer to section 8 above and, where applicable the details set out under the previous sections of this report.

10) Conclusions:

10.1. The procurement decisions set out in this report comply with the Public Procurement Regulations 2006 and the County Council's Contract Standing Orders. The proposals are also in line with the procurement model and strategy for building construction work approved by the Executive Member for Policy and Resources on 9 April 2008.

11) Summary Recommendations:

That the Panel advises the Executive Member for Policy and Resources that:

11.1. The proposal to include an option in the Building Surveying Framework for a provision of multidisciplinary professional services for minor building projects be approved.

11.2. The proposal to procure an external supplier to undertake surveys to provide floor layout plans and sufficiency and suitability data for schools, with an estimated maximum value of £500,000 be approved.

11.3. The proposals to establish new arrangements for the supply of temporary buildings from November 2009 through a new County Council framework or through a framework established by the Office of Government Commerce, with an estimated County Council expenditure of £1.5 million per annum, be approved.

11.4. The selection and appointment of a contractor under the IESE Tier 1 framework to provide pre-construction services up to a maximum value of £100,000 in connection with the proposed new 2FE primary school at the West of Waterlooville major development area be approved.

11.5. The selection and appointment of a contractor under the IESE Tier 1 framework to provide pre-construction services up to a maximum value of £100,000 in connection with the proposed new East New Forest Special School project be approved.

11.6. The extension of the trial partnership arrangement with MACE Ltd for a further 6 months be approved.

CORPORATE OR LEGAL INFORMATION:

COMPREHENSIVE RISK & IMPACT ASSESSMENT:

Race and Equality Impact assessment

Race and equality impact assessment has been considered in the development of this report and no adverse impact has been identified.

Crime prevention issues

The County Council has a legal obligation under Section 17 of the Crime and Disorder Act 1998 to consider the impact of all the decisions it makes on the prevention of crime. The proposals in this report have no impact on the prevention of crime.