Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report

1. Executive Summary

1.1. The purpose of this paper is to gain approval to tender framework contracts, separated into two lots, to facilitate the supply of civil engineering professional services for locations in Hampshire and be available for other regional authorities through Improvement and Efficiency South East (IESE) to operate between 2010 and 2014.

1.2. This paper seeks to:

(i) provide a background and outline current arrangements;

(ii) describe the need for civil engineering professional services; and

(iii) give details of proposed arrangements and procedures.

2. Contextual information

2.1. Professional services for the design and supervision of civil engineering construction projects in delivery of the Local Transport Plan (LTP) and other capital works are predominantly undertaken by the Council's `in-house' resources, assisted by a private sector consultant providing additional resources as workload demands.

2.2. Mott Gifford was appointed as the current private sector consultant under a term contract arrangement in 2005. The resultant Professional Services Contract has been extended, following satisfactory performance, to its maximum permitted duration and will end on 31 March 2010. Replacement contractual arrangements have been considered and the resultant strategy for implementation was approved by the Executive Member for Policy and Resources on 19 May 2009.

2.3. Professional services of various technical disciplines are required in the development, design, contract management and supervision of the Council's civil engineering construction projects to ensure delivery to required standards of cost, quality and timescale. A significant component of these professional services is delivered through the use of `in-house` expertise, however core staff levels are not sufficient to be able to deliver the entire LTP and other capital programme requirements. Externally sourced private sector professional services are therefore essential to enhance the Council's core resources.

2.4. Since development of the current professional services contract, the range of service requirements has been extended and a need for more specialist services such as transport modelling, inspections, ecology, and biodiversity studies has been identified as desirable.

3. Finance

3.1. The overall value of commissions will vary considerably due to the demand of the capital programmes of participating authorities, but it is anticipated that Hampshire County Council is likely to be the largest user. Current estimated values are £1.5 million to £5.5 million per annum through the LTP and capital programme framework, with £1.5 million to £10 million per annum through the major projects framework.

3.2. Although the values stated above are estimated, there will be no financial commitment to suppliers within the framework apart from authorised commissions. Commissions authorised for Hampshire County Council will be capitalised as fees charged against approved projects or as approved specific commissions authorised by the Council where appropriate.

3.3. Admission of a supplier onto a framework does not guarantee any level of workload and therefore the financial exposure to the Council and other local authorities is minimised.

4. Performance and efficiencies

4.1. Consultations with adjacent authorities in the South-East region have identified a need for similar professional services. Work undertaken through IESE has enabled regional support to be used in the development of a framework for use by any of the South East authorities.

4.2. The procurement proposals will encourage efficient innovation in design, yet be flexible to cater for fluctuations in demand. The scope of service will encompass large civil engineering projects and also include minor improvement schemes. It is therefore important that contractual arrangements deliver resources within relatively short timescales but there is also a continuous and ongoing commitment from the supplier in delivery of the services.

4.3. In order to provide this flexibility, it is proposed to procure civil engineering professional services through the use of two frameworks:

(i) a first framework will concentrate on delivery of LTP and other capital programme projects specifically tailored to local requirements; and

(ii) a second framework will target major civil engineering and capital projects that have a regional influence or are of sufficient size to warrant dedicated teams for successful project delivery.

4.4. It is proposed that both frameworks are tendered for use by the Council and other local authorities within the South East region, so that efficient management of resources is obtained and economies of scale achieved.

4.5. Each framework will consist of three suppliers capable of providing services detailed in the tender documents. Each tenderer will be required to price a range of activities and functions across the South East region. In addition, suppliers will submit a quality submission outlining how effective services will be managed. To be appointed as one of the successful suppliers, tenderers will need to demonstrate the best combination of quality and price.

4.6. Suppliers will be chosen using an evaluation matrix developed by the Council on behalf of IESE using standards applied to other Council frameworks. As lead authority, final selection will be made following this evaluation process and the Director of Environment will authorise the selected suppliers to enter into contractual arrangements.

4.7. Commissions will be undertaken using either a term contract for core services, or a professional services contract for single or multiple selected projects. The choice of supplier to undertake these commissions will use a detailed selection procedure set out within the framework. Selection for a commission will be determined by a combination of price, capacity and suitability or resource.

4.8. Expressions of interest are being sought through the European Journal with the intention of issuing tenders in August for return in October 2009. Successful suppliers will be notified in December 2009 and a mobilisation period started to enable commissions to commence on 1 April 2010.

5. Programme:

5.1. The following key dates are proposed in delivery of the frameworks:

· Issue of OJEU Contract Notice - Late May 2009

· Return date for Expressions of Interest - Mid July 2009

· Selection of Tender List - August 2009

· Invitation to Tender - September/October 2009

· Tender Return Date - Mid October 2009

· Tender Assessment and Final Selection - November 2009

· Framework Contract Period - January 2010 to December 2013.

6. Contract Management

6.1. As the frameworks are intended to be available for use by any of the local authorities within the South East region, it is essential that some form of collaborative contract management arrangements are put in place. Details have yet to be finalised, however it is intended that any authority signed up to use the frameworks will be involved in this management.

6.2. Set up costs for the frameworks are being partially funded through IESE, with approval for tender given by the IESE Board on 2 June 2009. Framework management and administrative costs will, however, need to be funded through appropriate charges and levies on local authorities using the frameworks. Exact charging arrangements have yet to be established, but it is intended that they will be set to cover costs only.

6.3. It is anticipated that charges or levies applied to users of the frameworks will be lower than comparative procurement costs, providing demonstrated efficiencies to any authorities using the new arrangements.

7. Conclusions

7.1. The proposed approach, using two frameworks to deliver civil engineering professional services, supports the LTP and Major Project delivery allows efficient engagement of suppliers to the highest quality standards. An ongoing selection process will focus delivery throughout the framework period.

7.2. The frameworks offer the opportunity to procure work to shorter timescales than with traditional methods of either a term contract arrangement or individual commissions.

7.3. Contract management procedures will be established to ensure that frameworks are managed efficiently and effectively across the region. Charges and levies will be applied to each participating authority in order to cover establishment and administration costs, monitored by IESE.

8. Recommendation

8.1. That approval be given to tender framework contracts to supply civil engineering professional services to Hampshire County Council and be available for other regional authorities through Improvement and Efficiency South East, to operate between 2010 and 2014.

2054Rpt/696/KG

CORPORATE OR LEGAL INFORMATION:

Links to the Corporate Strategy

Other Significant Links

IMPACT ASSESSMENTS:

1. Equalities Impact Assessment:

1.1. Assessment of the Race Relations (Amendment) Act has been considered in this decision but no adverse impact has been identified in terms of race, creed or gender.

2. Impact on Crime and Disorder:

2.1. The provisions of the Crime and Disorder Act 1998 have no impact on this proposal.

3. Climate Change:

a) How does what is being proposed impact on our carbon footprint / energy consumption?

By engaging in a Regional framework it is hoped that remote resources can be supplied without the need for significant travelling of personnel and movement of documents.

b) How does what is being proposed consider the need to adapt to climate change, and be resilient to its longer term impacts?

Individual commissions under the framework will have an environmental consideration and will be subject to long term benefit analysis of design solutions.