Agenda item

(Director of Communities) To consider the attached report, CHB-007-2017/18.

(1)   That, following an open procedure EU Procurement Exercise, the Consultants listed below be appointed, based on a Quality/Price/Interview (50/40/10) evaluation methodology, to assist the Council with the future delivery of the Council House-building programme:

a.     ECD Architects Ltd be appointed based on an overall weighted score of 93.78% as the Architects and Multi-disciplinary Design Team (MDDT); and

b.     Airey Millar Ltd be appointed based on an overall weighted score of 94.56%as the Employers Agents.

(2)   That, following an open procedure EU Procurement Exercise, the list of Framework of Contractors below be agreed, based on the first stage of a 2-stage tender process using a Quality/Stage one Price/Interview (60/30/10) evaluation methodology, from which second stage tenders will later be sought to construct the future delivery of the Council House-building programme:

a.     Neilcott Construction Ltd, based on an overall weighted score of 96.59%

b.     Rooff Ltd, based on an overall weighted score of 85.59%

c.      TSG Building Services Ltd, based on an overall weighted score of 74.35%

d.     Indecon Building Ltd, based on an overall weighted score of 65.91%

The Assistant Director (Housing Property & Development) presented a report to the Cabinet Committee. He advised that at its meeting in January 2018, the Cabinet Committee were advised that East Thames had exercised their right to end their role as Development Agents and as a result, the Council considered a report on the way forward in terms of delivering future phases of the Council’s Housebuilding programme.

The report explained how the Council had reviewed its approach based on its experiences over the last 4-years, and how it would deliver a more efficient service and de-risk some of the aspects of the programme that have so far resulted in additional costs across schemes that were on site. This included dealing with ground contamination, drainage, foundations and advancing the designs to a more detailed stage prior to appointing the Contractor. The Cabinet Committee were advised that this would require an EU procurement exercise in order to make the necessary appointments.

The Council had appointed Cameron Consulting, a specialist procurement consultant to undertake the EU Procurement exercise. Notices were placed in the European Union Journal for a Multi-Disciplinary Design Team (MDDT), Employers Agents and Contractors. Expressions of interest were received and evaluated based on quality, price and interview to explore the approach they would take to engage and deliver as part of a team on behalf of the Council.

The Council sought two separate services contracts, MDDT and Employers Agent and Cost Consultants (EA). There were a combined number of 143 expressions of interest for each of the MDDT and EA roles, which resulted in just three formal bids for the MDDT Consultant and five bids for the EA Consultant. The tenders were evaluated by Cameron Consulting Limited with Council Officers undertaking a final moderation exercise.

The tenders were based on quality, price and interview using a weighting of 60:30:10 for the MDDT and 50:40:10 for the EA. The tables below summarise the scores for each of the bidders:

Final Summary – Lot 1 Multi-Disciplinary Design Team

Final Summary – Lot 2 Employer’s Agent/ Cost Consultant

Based on the results of the tender exercise, it was therefore recommended that ECD Architects Limited be appointed as the MDDT team and Airey Miller Limited be appointed as the EA.

Decision:

(1)             That, following an open procedure EU Procurement Exercise, the Consultants listed below be appointed, based on a Quality/Price/Interview (50/40/10) evaluation methodology, to assist the Council with the future delivery of the Council House-building programme:

a.       ECD Architects Ltd be appointed based on an overall weighted score of 93.78% as the Architects and Multi-disciplinary Design Team (MDDT); and

b.       Airey Millar Ltd be appointed based on an overall weighted score of 94.56%as the Employers Agents.

(2)             That, following an open procedure EU Procurement Exercise, the list of Framework of Contractors below be agreed, based on the first stage of a 2-stage tender process using a Quality/Stage one Price/Interview (60/30/10) evaluation methodology, from which second stage tenders will later be sought to construct the future delivery of the Council House-building programme:

a.       Neilcott Construction Ltd, based on an overall weighted score of 96.59%

b.       Rooff Ltd, based on an overall weighted score of 85.59%

c.       TSG Building Services Ltd, based on an overall weighted score of 74.35%

d.       Indecon Building Ltd, based on an overall weighted score of 65.91%.

Reasons for Decision:

The Council’s procurement rules require a Cabinet decision to award any contract over £1m. However, the Cabinet Committee have been delegated authority by the Cabinet to approve any tenders relating to the Council House-building Programme.

By appointing these Consultants and Contractors it will lead to the formation of a multi-disciplinary design and build team that will work alongside the Council’s Development Team that will take over from the previous approach that was led by East Thames as Development Agents.

Other Options Considered and Rejected:

To employ the relevant resources in-house to deliver the programme directly.