Contract Award for a Conservation Architect Design Team Framework Agreement
North Lanarkshire Council · 29 August 2022
Back to Enterprise, Growth and Fair Work Committee — 29 August 2022 and its agenda
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North Lanarkshire Council Report Enterprise, Growth and Fair Work Committee Does this report require to be approved? ☐ Yes ☒ No Ref: NLC-CPT-21-110 Date: 29/08/2022 Contract Award for a Conservation Architect Design Team Framework Agreement From Pamela Humphries, Head of Planning and Regeneration E-mail hodges@northlann.gov.uk Telephone Stuart Hodge, Project Development Manager – 07583 091571 Executive Summary This report is to advise Committee of the decision taken in accordance with condition 21.3.2 of the Council’s General Contract Standing Orders (GCSO’s) where in the absence of committee, the Chief Executive approved the award of a Conservation Architect Design Team Framework Agreement (the “Framework Agreement”) on 09 June 2020, with the four (4) tenderers listed below appointed: • MASTARCH Limited t/a MAST Architects; • Page \ Park Limited; • Robert Potter and Partners LLP; and • Smith Scott Mullan + Associates Limited. Following successful conclusion of the required standstill period, the Framework Agreement was formally awarded on 23 June 2022. The Framework Agreement is for an initial period of 24 months and commenced on 01 July 2022 and will initially expire on 30 June 2024. The Council reserves the right to extend the Framework Agreement for two (2) additional 12-month periods until 30 June 2026. The maximum value of the Framework Agreement shall not exceed Three-Million Pounds Sterling (£3,000,000.00) exclusive of VAT. Recommendations It is recommended that Committee acknowledges the award of the Framework Agreement in accordance with GCSO 21.3.2 at the maximum value of Three-Million Pounds Sterling (£3,000,000.00) exclusive of VAT with the four (4) tenderers listed above appointed. This recommendation follows the completion of a procurement procedure in accordance with the Public Contracts (Scotland) Regulations 2015 and the Council’s GCSO’s, where the tenders recommended for award were evaluated as providing the most economically advantageous tenders in terms of cost and quality for the Council.
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The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition Statement (2) Refocus our town centres and communities to be multi-functional connected places which maximise social, economic, and environmental opportunities 1. Background 1.1 The Council has a positive plan for North Lanarkshire, its businesses and its people, boosting the local economy and creating jobs. The Council has one of the fastest growing economies in Scotland before the health emergency and an independent report shows that the Council is one of the best-placed councils to withstand the economic impact of coronavirus. The Council still plans to invest £3.5billlion over the next 10 years, which, along with private sector inward investment, will create around 12,000 jobs and generate an additional £1billion for the local economy. 1.2 The Councils “Growth Team” was formed in January 2019 with the remit of developing and managing physical regeneration projects within North Lanarkshire town centres undertaken as part of the Council’s “Ambition Programme”. This Programme will deliver an ambitious regeneration agenda set out within the Economic Regeneration Delivery Plan (ERDP), particularly regarding reshaping and renewing North Lanarkshire’s town centres. The Council is making significant progress, with investment and development happening in all our towns and communities. 1.3 As part of this agenda, the Council is investigating ways in which we can identify, purchase, and redevelop key buildings and / or land within our town centres. This initiative is intended to renew buildings that have become unused or underutilised in order to reinvigorate the town centres with the added benefit of increasing footfall to local businesses. The primary focus of redeveloping these buildings to date has been for them to be converted into social housing as part of the council’s new supply programme, but other outcomes may be more suitable depending on the location of the building, surrounding uses and residential requirements in a particular location. 1.4 Additionally, The Council has an approved programme to deliver 5,000 new homes by 2035. The Councils New Supply Team is responsible for the delivery of this large- scale programme and its challenges, not least, the procurement of design consultants and contractors to build the houses to the required standard, within the timescale required and at a competitive cost. 1.5 Accordingly, the Council intends to implement a framework agreement to enable appointment of multiple conservation architect consultants to lead a multi-disciplinary design team that includes (but not limited to) structural / civil engineers, quantity surveyors, and specialist surveyors as required (i.e., rot, asbestos, traffic, acoustic etc.) to provide options for design and project management services for the conversion of selected buildings. This approach should provide the Council with a direct route to market for future projects as and when they are identified. 1.6 The requirements of the Framework Agreement have never been contracted before by the Council therefore historical contract information is not available.
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2. Report 2.1 A user intelligence group (the ‘UIG’) of technical and procurement representatives was formed to review technical specifications, discuss trading processes, market conditions and trends, ways to maximise community benefits and sustainability and to agree the procurement strategy that would deliver maximum benefit for the Council via the Framework Agreement. 2.2 The initial estimated value of the Framework Agreement dictated that the procurement procedure be undertaken in accordance with the Public Contracts (Scotland) Regulations 2015. An advert for the contract opportunity was published on the Public Contracts Scotland and the UK Find a Tender (FTS) website. 2.3 The procurement procedure was undertaken as an “Open Procedure” Based on the evaluation criteria and scoring methodology set out in the invitation to tender package within the procurement procedure, an evaluation of tender responses was completed by members identified by the UIG. Selection stage responses were assessed first and compliant tenderers that satisfied / declared that they met the published minimum selection stage criteria progressed to the award stage evaluation. Following identification of the recommended tenderer(s), their selection stage responses were assessed in more detail to ensure they satisfied the minimum selection stage criteria applied 2.4 The Framework Agreement award recommendation is made on the basis of the tenderer’s that submitted the most economically advantageous tenders. 2.5 It was the Council’s intention to appoint a maximum of six (6) consultants to the Framework Agreement. Following the evaluation of tenders received in terms of quality and price, and in line with the conditions applied within the invitation to tender documents, the Council proposed to appoint eight (8) consultants to the Framework Agreement as the 7th and 8th ranked tenderers total scores were within 1.00 of the 6th ranked tenderer. However, when undertaking the “Request for Documentation” stage of the evaluation process to ensure all tenderers recommended for appointment satisfied the minimum selection stage criteria applied within the procurement procedure, four (4) tenderers failed to demonstrate sufficient previous experience to that required within the scope of the Framework Agreement. As four (4) of the eight (8) tenderers identified for appointment to the Framework Agreement failed to demonstrate sufficient previous experience, an assessment of the 9th ranked tenderer was also undertaken to ascertain whether they could demonstrate sufficient previous experience that would enable them to be recommended for appointment in line with the Councils intention to appoint a maximum of six (6) consultants to the Framework Agreement. However, following an assessment of the 9th ranked tenderer’s previous experience examples, they were also assessed to be unable to satisfy the minimum selection stage criteria applied within the procurement procedure Accordingly, the tender(s) submitted by the four (4) tenderers listed below were recommended for appointment to the Framework Agreement: • MASTARCH Limited t/a MAST Architects; • Page \ Park Limited; • Robert Potter and Partners LLP; and • Smith Scott Mullan + Associates Limited.
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2.6 Appendix 1 confirms the scoring achieved by each tenderer, further details of the procurement procedure is provided in Appendix 2 and the SME status and location of all tenderers is located within Appendix 3. 2.7 The value of the Framework Agreement is Three-Million Pounds Sterling (£3,000,000.00) exclusive of VAT including any option to extend the Framework Agreement. 2.8 The costs associated with contract delivery will be contained within the capital budgets for the Growth Team, Planning and Regeneration and any additional external funding that can be achieved. Additionally, the New Supply Team within Planning and Regeneration may also access the Framework Agreement via their capital and Housing Revenue Account (HRA), as well as any additional external funding that can be achieved. Price Savings / Increases 2.9 The Framework Agreement is not expected to deliver cashable procurement savings. Any savings that may come to fruition within the Framework Agreement shall be reinvested into specific projects to maximise improvements and outlays with the Councils town centre / urban environments. Price Stability 2.10 Rates received shall be firm for the initial 24-months of the Framework Agreement. Subsequent to that initial period, there is provision within the Framework Agreement for recommended tenderer’s to request annual reviews of their submitted “Day Rates” however these will require to be no greater than the current National Retail Price Index. It will be at the sole discretion of the Council whether to accept or reject any pricing amendments proposed. Community Benefits 2.11.1 The Council is committed to maximising the delivery of community benefits. The procurement included a community benefit requirement, this approach is designed to deliver local community benefits where possible. 2.11.2 Within tenders submitted by tenderer’s recommended for appointment to the Framework Agreement, the following community benefits within the Framework Agreement: Community Benefit Type Quantity Committed Graduate Initiatives 1 Educational Visits 9 Industry Awareness Events 9 Financial Support for a Community Project / Organisation 2 Non-financial support for a Community Project / Organisation 5 Work Experience Placements (14 to 16 years of age) 7 Work Experience Placements (16+ years of age) 4
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A significant number of community benefits have been committed to within the contract award procedure as a whole. However, the delivery of selected community benefits will only be applicable in the event a consultant appointed to the Framework Agreement is awarded a call-off contract. 2.11.3 The community benefits delivered as part of the Framework Agreement includes the creation of jobs or apprenticeships. Fair Work First 2.12 Within tender’s received for the four (4) consultants identified for appointment to the Framework Agreement confirmed commitment to the Scottish Government’s “Fair Work First” initiative with all four (4) confirming they have a Living Wage Policy and three (3) out of the four (4) confirming that they are accredited Living Wage providers. Contract Strategy 2.13 Officers from the Growth Team, Planning and Regeneration will be responsible for managing the Framework Agreement and all appropriate call-off contracts, all of which will be undertaken in accordance with the Councils agreed approach to contract and supplier management. 3. Measures of success The Framework Agreement will deliver the following outcomes; 3.1 The appointment of a consultants who have the experience and capability to deliver innovative, high quality and responsive conservation led architect design team that will deliver the minimum delivery targets within the Framework Agreement; 3.2 The Framework Agreement award procedure is compliant with the procurement legislation and internal procedures; 3.3 That best value is both demonstrable and achieved; 3.4 That the Framework Agreement secures a range of community benefits; 3.5 That the Framework Agreement secured a number of “Fair Work First” initiatives; 3.6 That the Framework Agreement performance is proactively managed against a number of local Key Performance Indicators and national targets; and 3.7 A collaborative approach to the procurement of the requirement, minimising the burden on internal resource and leveraging the economies of scale. 4. Supporting documents Appendix 1 Summary of Tender Evaluation Process Appendix 2 Summary of Procurement Process
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Appendix 3 SME Status and Location of All Tenderers Pamela Humphries Head of Planning and Regeneration
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ 5.2 Financial Impact Does the report contain any financial impacts? Yes ☐ No ☒ 5.3 HR Policy Impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ 5.4 Legal Impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ 5.5 Data Protection Impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ 5.6 Technology / Digital Impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ 5.7 Environmental / Carbon Impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Environmental / Carbon Neutral Costs will be paramount within relevant design costs given the Councils carbon neutral targets. 5.8 Communications Impact
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Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ 5.9 Risk Impact Is there a risk impact? Yes ☐ No ☒
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Appendix 1 – Summary of Tender Evaluation Process Final Rank Tenderer Name Total Tender Score (%) Recommended for Appointment 1 Smith Scott Mullan + Associates Limited 83.81% Yes 2 Robert Potter and Partners LLP 83.36% Yes 3 Collective Architecture Limited 81.57% No* 4 Loader and Monteith Architects Limited 79.47% No* 5 MASTARCH Limited t/a MAST Architects 76.90% Yes 6 Wylie Shanks Architects LLP 76.73% No* 7 Page \ Park Limited 76.58% Yes 8 Austin-Smith:Lord Limited 75.86% No* 9 Stallan-Brand Architecture + Design Limited 71.60% No* * Tenderer failed to demonstrate sufficient previous experience to that required within the scope of the Framework Agreement.
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Appendix 2 – Summary of Procurement Process Response Procurement Procedure Utilised: Open Procedure Governing Legislation / Regulations: Public Contracts (Scotland) Regulations 2015 Date Contract Strategy Approved: 25 February 2022 Date Contract Notice Published: 28 February 2022 Total Expressions of Interest Received: 47 NLC Based of Expressions of Interest: 0 Tender Return Deadline: 12 noon, 05 April 2022 Number of Tenders Received: 9 Tenders Received from SME’s: 9 Tenders Received from NLC Based Tenderers: 0 Number of Non−compliant Tenders: 0 Number of Compliant Tenders: 9 Number of Recommended Tenderers: 4 Basis of Award: Quality: 70% Price: 30% Evaluation Team: Officers from the Growth Team, Planning and Regeneration Approval Obtained via GCSO 21.3.2: 09 June 2022 Standstill Period Commenced: 10 June 2022 Standstill Period Expired: 20 June 2022 Framework Agreement Award Date: 23 June 2022 Framework Agreement Start Date: 01 July 2022 Total Contract Period (Months): 24 + 12 + 12 (48 Total) Maximum Total Framework Agreement Value: £3,000,000.00
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Appendix 3 – SME Status and location of all Tenderers Name of Tenderer Size of Tendering Organisation (Micro, Small, Medium or Large) Location (Local Authority / Council Area) Austin-Smith:Lord Limited Medium Liverpool City Collective Architecture Limited Small Glasgow City Loader and Monteith Architects Limited Micro Glasgow City MASTARCH Limited t/a MAST Architects Small Glasgow City Page \ Park Limited Small Glasgow City Robert Potter and Partners LLP Small South Ayrshire Smith Scott Mullan + Associates Limited Small City of Edinburgh Stallan-Brand Architecture + Design Limited Small Glasgow City Wylie Shanks Architects LLP Micro Glasgow City