Low Value Construction & Highways Services Framework
Transcription
Low Value Construction & Highways Services Framework
CABINET Low Value Construction & Highways Services Framework Portfolio Holders: Councillor J McMahon and Councillor D Hibbert Officer Contact: Report of: Elaine McLean, Executive Director for Economy and Skills Report Authors: Peter Wood, Head of Strategic Facilities Management. Darren Judge, Commercial Manager, Procurement. Ext: 4028 30th March 2015 Reason for Decision This report requests approval to establish a Low Value Construction Framework, aimed at bringing together under one contract, a number of existing Oldham Council measured term building and highway maintenance contracts, (that are managed by Unity Partnership as the Council’s Strategic Partner), which are due to expire (as detailed in Appendix A), to facilitate the future delivery of maintenance works. Executive Summary A review of the delivery of repair and maintenance contracts currently managed by Unity Partnership and the Council, identified initially through the elapsed Procurement & Commissioning Board and finalised through the Diamond Partnership Board (DPB), a potential to deliver a significant efficiency saving through retendering the current measured term contracts, to be replaced with a new overarching framework contract. The proposal is to establish a Low Value Construction Framework, which includes a variety of lots (as detailed in Section 2.6) to cover the majority of the Council’s maintenance work requirements. The Council needs to ensure that all procurement activity is fully compliant with Oldham Council Contract Procedure Rules and EU Regulations. The Framework Contract is to be established initially for a two year period, with the option to extend by an additional two years (in one year increments), if considered appropriate to do so at that time. Recommendations That Cabinet approval is given to establish this Low Value Construction Framework (LVCF) Oldham Council Contract. Page 2 of 12 Low Value Construction Framework th 30 March 2015 30th March 2015 Cabinet Title: Low Value Construction & Highways Services Framework 1. Background 1.1 The existing Oldham Council Term Contracts are coming to their expiry date (31st March 2015). The Council and Unity Partnership need to ensure all procurement activity is fully compliant with Oldham Council Contract Procedure Rules and EU Regulations. 1.2 On review of an options appraisal, the outcome provided an opportunity for the Council and Unity Partnership to review current ways of working and to formulate in partnership, a strategy for procuring construction and highways maintenance works. This was done by stream lining the process and delivering efficiencies in line with the Council’s co-operative and objectives to make Oldham a productive place to invest where business and enterprise thrive. 1.3 The recommendation is the establishment of an over-arching master framework agreement, divided into value banded work categories (as detailed below), as a route to market to cover all maintenance, servicing, statutory, repairs and minor / moderate works that will be required to the Council’s building stock; whether a reactive or planned requirement. It is proposed that the framework contract period, will initially be for a two year fixed period, with the option to extend by an additional two years (one year increments), if considered appropriate to do so at that time. 1.4 The resultant contract termed, the Low Value Construction & Highways Services Framework is divided into the following Lots: Lot Nr Work Category Work Type Value Band 1 - £0 to £5,000 Lot 1 Roofing Works – Flat / Pitched. Lot 2 Drainage Works. Responsive & Minor Repairs. (merged to Lot 3). Value Band 2 - £0 to £50,000 Page 3 of 12 Lot 3 Building Repairs / Maintenance. Lot 4 Mechanical Works Lot 5 Electrical Works Lot 6 (Specialist Works) 6a Asbestos Remediation Works 6b Lift Servicing Low Value Construction Framework Responsive Service & Minor Works. Reactive, Servicing & Minor Works. Reactive, Servicing & Minor Works. Reactive & Planned Service. Reactive & Responsive th 30 March 2015 6c Legionella Risk Assessments, Tank & Scald Protection 6d Fire Alarms & Extinguishers Servicing 6e Security & CCTV Repairs. Risk Assessments & Remedial Works. Responsive Servicing & Planned Repairs. Responsive Servicing & Planned Repairs. Lot 7 Highways Minor Works Planned Service. Lot 8 Highways Lining / Road Marking Planned Service. Value Band 3 - £50,000 to £500,000 Lot 9 Building Repairs / Maintenance / New Build / Extensions / Refurbishment Planned Service Lot 10 Mechanical Works Planned Service Lot 11 Electrical Works Planned Service Value Band 4 - £5,000 to £500,000 Lot 12 Lot 13 Lot 14 Lot 15 Roofing Works – Flat / Pitched Highways Carriageway Surfacing Highways Surface Dressing Bridges & Structures and Drainage Planned Service Planned Service Planned Service Planned Service 2. Current Position 2.1 Due to the value of the LVCF contract, it has been necessary to procure the contract through the OJEU tender process, advertised via the Council’s Procurement Portal; The Chest. A Pre Qualification Questionnaire (PQQ) for this contract was openly advertised, with a due diligence process that consisted of interested suppliers having to meet predetermined selection criteria, linked to a Constructionline assessment. Secondly, bidders were required to demonstrate competency by completing Technical assessments and Professional Capacity questions, which made reference to i.e. experience / capability, staffing, qualifications, delivery, performance, quality, environmental, social and economic criteria requirements. 2.2 As a co-operative council, we wanted to ensure a fair and open process that delivered high performance. The outcome of the PQQ process was aimed at identifying the top highest scoring bidders for each lot, which would be invited to progress to the Invitation to Tender (ITT) stage. The PQQ evaluation was undertaken by Oldham Council’s Procurement Team and with officers from Unity Partnership. The Council received One hundred and eleven (111) bidder responses. Page 4 of 12 Low Value Construction Framework th 30 March 2015 2.3 The ITT stage was undertaken and scored as follows: An assessment on price was undertaken, relevant to each Lot, which was scored via various methods i.e. by using a mixture of schedule of rates, bills of quantities, sample schemes, assessment of labour rates and charges, with material and overhead / profit percentage mark ups. 2.4 A technical assessment was undertaken as aforementioned, which involved scoring a set of predetermined questions focused on framework management, the approach to partnership working, continuous improvement, operational management, sustainability, project delivery and our co-operative values, initiatives and behaviours. Lot specific questions also covered technical related questions to the relevant discipline. 2.5 The outcome of the ITT evaluation process identified the top highest scoring four to six bidders that would be considered, for a place on the relevant Framework Lot. This would be further reinforced by Lots 1 to 8 having a ‘ranked’ system whereby the highest scoring supplier would receive directly awarded works to a certain value (in the main up to £5,000). This would be a ranked system, so if the top ranking supplier did not perform as required, the offer would drop down to the next ranked supplier, and so on. Any work procured outside the awarded framework, will be administered via a competitive mini competition (quote process) between all relevant suppliers. 2.6 The outcome of the ITT is as follows. The suppliers / bidders are identified in ranking order from Lots 1 to Lot 8, with Lots 9 to 15 in random (no particular) order: Lot Nr Successful Framework Suppliers Comments (Ranking) Lot 1 1. 2. 3. 4. Fulwood Roofing Services st (Northern) Limited (1 ). New Charter Building Company (2nd). Prime Roofing (Rochdale) Limited (3rd). WRPS Limited (4th). Lot 2 Merged to Lot 3. Lot 3 1. 2. 3. 4. 5. 6. Page 5 of 12 E Smith and Son (1st). Jackson, Jackson & Sons Limited (2nd). New Charter Building Company (3rd). Kaberry (4th). P&L Construction Limited (5th). Connor Limited (6th). Low Value Construction Framework th 30 March 2015 Lot 4 1. 2. 3. 4. Lot 5 1. 2. 3. 4. Lot 6a 1. 4. 5. Northern Insulation Contractors (1st) Reddish Vale Insulation Limited (2nd) Aspect Contracts Limited (3rd) Woods Building Services Limited (4th) Concept Elevators (1st) E A Foulds Limited (2nd) Total Lift Care Limited (3rd) Hertel (UK) Limited (1st) Graham Facilities Management (2nd) Maxigiene Limited (3rd) Hydro-X Water Treatment Limited (4th) Guardian Technical Maintenance Limited (1st) Amalgamated Limited (2nd) GTM Electrical Services Limited (3rd) Spie Scotshield Limited (4th) Spie Scotshield Limited (1st) Mono Alarm Installations Limited (2nd) Quadrant Security Solutions Limited (3rd) Stanley Security Solutions Limited (4th) J Hopkins (Contractors) Limited (1st) J Cooney Limited (2nd) Eric Wright Civil Engineering Limited (3rd) Westshield Limited (4th) Kenny Bros (CE) Limited (5th) 1. NSL Limited 2. 3. 4. Lot 6b Lot 6c 1. 2. 3. 1. 2. 3. 4. Lot 6d 1. 2. 3. Lot 6e 4. 1. 2. 3. 4. Lot 7 1. 2. 3. Lot 8 Page 6 of 12 Ellesmere Engineering Co Limited (1st) MWA Eco Systems Limited (2nd) Tudor Northwest Limited (3rd) New Charter Building Company (4th) Corlett Electrical Engineering Co Limited (1st) New Charter Building Company (2nd) Carey Electrical Engineering (3rd) GTM Electrical Limited (4th) Low Value Construction Framework On agreement with the suppliers, the Fire Extinguisher servicing element of this contract is to be withdrawn and tendered as a separate Lot This Lot received an insufficient response, and as such this Lot will be retendered to achieve a minimum number of suppliers th 30 March 2015 Lot 9 Lot 10 Lot 11 Lot 12 1. 2. 3. 4. 5. 6. 7. 1. 2. 3. 4. 1. 2. 3. 4. 1. 2. Lot 14 3. 4. 1. 2. 3. 4. 5. 1. Lot 15 1. Lot 13 Manley Construction E Smith and Son Harry Fairclough Construction J Greenwood (Builders) Limited Jackson, Jackson & Sons Limited Rosslee Construction Limited City Build Manchester Limited WH Good Limited Tudor Northwest Limited Jackson, Jackson & Sons Limited Lewis Facilities Carey Electrical Engineering Corlett Electrical Engineering Co Limited Link Contracting Services Limited GTM Electrical Limited Fulwood Roofing Services (Northern) Limited M&J Group (Construction & Roofing) Limited WRPS Limited J Greenwood (Builders) Limited J Hopkins (Contractors) Limited Lafarge Tarmac Trading Limited Hanson Contracting J Cooney Limited Kenny Bros (CE) Limited Kiely Bros Limited Eric Wright Limited Civil to service this work stream. One supplier to be removed from this Lot before Cabinet meeting. This Lot received an insufficient response, and as such this Lot will be retendered to achieve a minimum number of suppliers to service this work stream Engineering This Lot received an insufficient response, and as such this Lot will be retendered to achieve a minimum number of suppliers to service this work stream 3. Options/Alternatives 3.1 There are two options available: 3.2 Option 1 – To approve the LVCF and award the contract to the panels of Lot suppliers aforementioned. This will ensure that this delivery model commences on 1st May 2015, firstly to comply with Oldham Council Contract Procedure Rules and EU Regulations, and secondly, to deliver best value for the council and for local residents, alongside efficiencies savings, in terms of service delivery. Page 7 of 12 Low Value Construction Framework th 30 March 2015 3.3 Option 2 – Not to award the contract, which is not considered viable, as the consequence of this will leave the Council in breach of Oldham Council Contract Procedure Rules, unless each scheme is individually quoted or tendered for, which is considered an inefficient procurement method and would not provide best value. 4. Preferred Option 4.1 Option 1 – to award the Low Value Construction & Highways Services Framework to the proposed panel of suppliers, who have demonstrated through a robust OJEU compliant tender procedure to have offered the most economically advantageous bids in relation to cost and service delivery. 5. Consultation 5.1 The tender has progressed in consultation with Corporate Procurement, Corporate Property Facilities Management and Unity Partnership. 6. Financial Implications 6.1 Property Contracts The contract will facilitate planned and reactive property works which will be covered mainly through agreed capital and revenue streams within the Economic Development service area which will form part of the Economy and Skills Directorate. 6.2 The revenue property elements will mainly be funded through Repairs and Maintenance and Maintenance Contracts within the corporate landlord function for which a budget of £1,024,470 exists in financial year 2015/16. Costs will need to be monitored and works prioritised by the service manager to maintain a balanced budget within year. (K.Williams) 6.3 Highways Contract The contract will facilitate planned transport works which will be covered through agreed capital and revenue streams within the Environmental Services area of the Cooperatives and Neighbourhoods Directorate. Expenditure on the contracts will be monitored to ensure that expenditure is in line with the agreed revenue budgets and agreed capital programme allocation. (James Postle) 7. Legal Services Comments 7.1 This is a Framework for minor works which has been procured through a competitive procurement process in compliance with OJEU procedures and UK Public Contracts Regulations 2006. 7.2 Three of the lots received insufficient responses and therefore these can either be re-tendered, as long as the specifications, evaluation criteria and contract terms remain as previously advertised, or direct awards can be made to those Page 8 of 12 Low Value Construction Framework th 30 March 2015 bidders who were adjudged as compliant under the provisions of Regulation 14 of the 2006 Regulations provided that the proposed contract terms offered to those bidders are substantially the same as offered to bidders in lots that have achieved a sufficient response. (Rebecca Coldicott) 8. Co-operative Agenda 8.1 The technical assessment included, amongst other criteria, evaluating suppliers based on our co-operative values and behaviour, as well as their approach to partnership working. This process will help ensure that we procure suppliers who are the best choice for Oldham as well as those who support our co-operative values. (Dominic Coleman). 9. Human Resources Comments 9.1 N/A 10. Risk Assessments 10.1 N/A (Mark Stenson). 11. IT Implications 11.1 None. 12. Property Implications 12.1 The Council realises that if buildings are not maintained, they will cease to fulfil their intended functions. Implementing the LVCF is recognised as a cost effective measure of dealing with outstanding backlog maintenance issues, which if deferred or left will ultimately result in future increased costs, possible consequential damage and liabilities to the property estate. The implementation of the LVCF will create an efficient model for dealing with building and highway maintenance issues and also reduces the Council’s risks in terms of loss of service and business continuity. (Peter Wood). 13. Procurement Implications 13.1 The Procurement has been carried out in line with EU Regulations and Oldham Council’s Contract Procedure Rules. 13.2 All Framework suppliers are registered with Constructionline in accordance with the Council’s requirements. Throughout the term of this Framework agreement, all the successful suppliers will continue to be monitored and forward vetted by Constructionline reducing risk. Page 9 of 12 Low Value Construction Framework th 30 March 2015 13.3 The financial status of the Framework suppliers have been assessed by the Council (Dun & Bradstreet report), all outcomes of increased risk will be addressed accordingly. 13.4 Social value, the ‘Get Oldham Working’ initiative and Oldham’s ‘Fair Employment Charter’ formed part of the tender submission. The successful suppliers will be expected to deliver locally and will be monitored to ensure commitments are carried through accordingly. 13.5 The Framework as a whole will be contract managed through the Council Strategic Relationship Management Team to improve contract performance and report on the deliverables. (Darren Judge) 14. Environmental and Health & Safety Implications 14.1 Oldham Council’s Health and Safety Team have no objections as we are assured that all contractors will have signed up to construction line. Specific risk assessments and other safety documentation will still need to be checked for individual jobs/projects during the planning/construction phases of any works (Laura Smith). 14.2 Environment: Environmental management formed part of the Pre-Qualification Questionnaire scoring for this framework, and a basket of environmental performance measures will be applied to contractors undertaking some of the larger contracts with greater environmental risk. [Andrew Hunt] 15. Equality, community cohesion and crime implications 15.1 None. 16. Equality Impact Assessment Completed? 16.1 No. 17. Key Decision 17.1 Yes. 18. Key Decision Reference 18.1 CFHR-29-14. 19. Background Papers 19.1 The following is the previously approved Waiver Report that provides a background to this report, based in accordance with the requirements of Section 100(1) of the Local Government Act 1972. It does not include documents which would disclose exempt or confidential information as defined by the Act: Page 10 of 12 Low Value Construction Framework th 30 March 2015 File Ref: CFHR-29-14. Name of File: Contract Decision in respect to extending existing Measured Term Contracts for Repairs and Maintenance Records held in Property Services Department, Henshaw House, Cheapside, Oldham. OL1 1NY Officer Name: Peter Wood Contact No: 0161 770 4028. 20. Appendices 20.1 Appendix A – Current or expired contracts. Page 11 of 12 Low Value Construction Framework th 30 March 2015 Appendix A – Current or Expired Term Contracts Service Area Servicing and Responsive Repairs to Mechanical Plant Servicing and Responsive Repairs of Emergency Lighting, PAT testing, Fixed Wiring testing Servicing & Responsive Repairs of Fire Alarms Servicing and Responsive Repairs of Lifts and Hoists Servicing & Responsive Repairs of Sonitrol Intruder Alarms Responsive Building Repairs and Maintenance Provision of Flat and Pitched Roofing Works Asbestos Removal/Remediati on Provision of Water Risk Assessments Servicing and Responsive Repairs to Air Conditioning &Ventilation Plant Servicing and Responsive Repairs to Fire Extinguishers Contractor Start Date End Date st 31 March 2012 st 31 March 2012 st 31 March 2012 st 31 March 2014 st 31 March 2014 st 31 March 2014 Tudor Northwest 1 April 2009 Corlett Electrical Engineering 1 April 2009 Guardian Technical Maintenance 1 April 2009 Total Lift Care 1 January 2010 Stanley Security 1 August 2009 FCHO 1 April 2009 31 March 2012 st IKO Ltd 1 August 2010 31 March 2013 Northern Insulation Contractors 1 April 2009 Maxigiene 1 Sept 2009 Rourke Environmental Services 1 April 2009 Fire Queen 1 April 2009 st st st st Extension Date th (30 June 2012) th 30 July 2011 st st st th (30 June 2014) th 30 July 2013 st 31 March 2014 st 31 March 2015 st 31 March 2014 31 March 2012 st (30 June 2012) th st 31 March 2012 st 31 March 2012 st st st th (30 June 2014) st 31 March 2014 st st 31 March 2014 st Please note: A delegated Waiver report was approved in April 2014, to extend all of aforementioned contracts to the 31st March 2015, to coincide with the commencement of this Low Value Construction Framework Contract. Page 12 of 12 Low Value Construction Framework th 30 March 2015