Contract Award for Ravenscraig Levelling UP Fund - Professional Services for Project Team
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: PH/RavLUF Date: 29 August 2022 Contract Award for Ravenscraig Levelling Up Fund – Professional Services for Project Team From Pamela Humphries, Head of Planning and Regeneration E-mail speedj@northlan.gov.uk Telephone Jonathan Speed 07583 669625 Executive Summary Committee is asked to note the award of contracts for Ravenscraig Levelling Up Fund – Design & Planning Services (the ‘D&P Contract’) to Sweco UK Limited and for Ravenscraig Levelling Up Fund – Project & Contract Management Services (the ‘PCM Contract’) to Currie and Brown UK Limited. The award of the D&P Contract and the PCM Contract (together the ‘Contracts’) has been approved by the Deputy Chief Executive, in accordance with the Council’s General Contract Standing Orders (June 2022), to expedite the contract awards and commencement of services, in order to achieve the programme requirements of the UK Government Levelling Up Fund, in the absence of a Committee meeting. The D&P Contract is for an initial period of 23 months anticipated to commence on 18th July 2022. The Council reserves the right to extend the D&P Contract for additional periods up to a maximum of a further 12 months. The value of the D&P Contract shall not exceed five hundred and twenty three thousand, nine hundred and seventy six pounds and thirty one pence, sterling (£523,976.31) exclusive of VAT. The PCM Contract is for an initial period of 4 years, 9 months anticipated to commence on 18th July 2022. The Council reserves the right to extend the PCM Contract for additional periods up to a maximum of a further 12 months. The value of the PCM Contract shall not exceed three hundred and twenty thousand, one hundred and thirty pounds and seventy six pence Sterling (£320,130.76) exclusive of VAT. Recommendations It is recommended that Committee notes the action taken to award: 1. The D&P Contract to Sweco UK Limited at the maximum value of five hundred and twenty three thousand, nine hundred and seventy six pounds and thirty one pence, sterling (£523,976.31) exclusive of VAT
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2. The PCM Contract to Currie and Brown UK Limited at the maximum value of three hundred and twenty thousand, one hundred and thirty pounds and seventy six pence Sterling (£320,130.76) exclusive of VAT. This recommendation follows: 1. Approval by the Chief Executive in April 2022, between committee cycles in accordance with the Council’s General Contract Standing Orders, 15th Edition (January 2020) of the commencement of procurement and inviting of tenders. 2. The completion of a procurement procedure, where the tenders recommended for award have been evaluated as providing the most economically advantageous tender in terms of cost and quality for the Council. 3. Instruction by the Deputy Chief Executive to the Head of Assets and Procurement Solutions to accept the Tenders. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition Statement (21) Continue to identify and access opportunities to leverage additional resources to support our ambitions 1 Background 1.1 The requirements of the D&P Contract and PCM Contract have never been contracted before by the Council therefore historical contract information is not available. 1.2 In November 2021, Enterprise & Growth Committee noted the scoping of applications to the UK Government’s Levelling Up Fund (the ‘LUF’) and approved their submission, including for enabling works at Ravenscraig, to support this wider regeneration initiative. 1.3 Subsequent to this, during late 2021 and early 2022, feasibility studies were undertaken to develop the scope of an application for Ravenscraig and in March 2022, Policy and Strategy Committee approved the proposed scope of the application. 1.4 An application will be made to the LUF in August 2022 to support remedial and enabling groundworks and the creation of a development platform for mixed use town centre plots which would advance and promote development at Ravenscraig, building on the development of the Sports Facility, the Park, the new Employment Access Road and related plots, forthcoming active travel connections and the City Deal infrastructure. 1.5 The application to the LUF will be specifically to support the cost of: • Remedial and enabling groundworks and preparation of clean platform • Provision of new network utilities and service infrastructure including electricity, water, drainage, and including an energy network and centre • Providing new pedestrian, cycling and road access from Robberhall Road 1.6 The prospectus for the second round of the LUF was published on 23 March 2022. The prospectus confirmed the Council’s earlier expectations of timing for spend of any monies awarded, i.e., that projects should demonstrate spend from the LUF in 2022-23 financial year and that all funding provided from the LUF is expected to be spent by 31 March 2025 and by 2025-26 on an exceptional basis.
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1.7 It is currently assumed that announcements on the outcome of applications will be made in the autumn budget, expected be in late October 2022. 1.8 A programme for the development of detailed proposals and their implementation has been prepared which demonstrates that these timescales, whilst challenging, can be met. This programme includes all necessary Committee and other statutory approvals, including planning, education, procurement. 1.9 As noted in the report to Policy & Strategy Committee in March 2022, the requirement to spend by the end 2024/25 requires some preparatory work to be undertaken in advance of the outcome of the funding application being known and that this would include development of detailed proposals for planning and procurement including the submission of a Proposal of Application Notice and commencement of associated public consultation for the planning application for the works to be supported by the LUF funded works. 1.10 This preparatory work to develop the detailed proposals for planning, including public consultation, for the LUF funded works is required to commence in summer 2022. Accordingly the Council required to commence the procurement of the professional team during May 2022. The commencement of procurement and inviting of tenders was approved by the Chief Executive on 28th April 2022, between committee cycles in accordance with the Council’s General Contract Standing Orders, 15th Edition (January 2020). 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 D&P Contract and PCM Contract. 2.2 The initial estimated value of the contracts dictated that the procurement procedure be undertaken in accordance with the Public Contracts (Scotland) Regulations 2015. 2.3 The procurement procedure was undertaken as a “Mini Competition” from the Scotland Excel framework agreement for Engineering and Technical Consultancy Services. 2.4 The Contract award recommendations are made on the basis of the tenderers who submitted the most economically advantageous tenders. 2.5 The tenders submitted by Sweco UK Limited and Currie and Brown UK Limited have been evaluated as representing the most economically advantageous tender for the D&P Contract and PCM Contract respectively. 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 D&P Contract is five hundred and twenty three thousand, nine hundred and seventy six pounds and thirty one pence, sterling (£523,976.31) exclusive of VAT including any option to extend the Contract.
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2.8 The value of the PCM Contract is three hundred and twenty thousand, one hundred and thirty pounds and seventy six pence Sterling (£320,130.76) exclusive of VAT including any option to extend the Contract. 2.9 The costs associated with contract delivery will be contained within the capital budget for Ravenscraig Levelling Up Fund project. 2.10 As noted at 1.9 above, the Council is required to proceed to commence the development of detailed proposals for planning and procurement in advance of the outcome of the LUF application being known, however the contracts for services are staged accordingly to reflect the period prior to the funding outcome and the period following the outcome. Whilst the work of the project team in the first stage is not expected to be undertaken at the Consultants’ risk, their continued appointment beyond the funding announcement will be subject to a successful LUF award. 2.11 The value of the first stage of services, with a value of £390,000, is met through resources earmarked by the service for this purpose. Expenditure for later stages is supported through the LUF should the LUF application be successful. Price Savings / Increases 2.12 There are no cashable savings attributed to the Contract. Price Stability 2.13 The pricing mechanism is a Priced Contract with Activity Schedule offering a good level of cost certainty. Community Benefits 2.13.1 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. 2.13.2 Within their tenders, Sweco UK Limited and Currie and Brown UK Limited committed to deliver the following community benefits within the Contracts: Community Benefit Type Quantity Committed Sweco Currie and Brown Work Experience Placement – school (includes virtual options) 2 3 Work Experience Placement – non -school (includes virtual options) 1 3 Non-financial consultancy support for a local community project 1 1
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Fair Work First 2.14 All contractors appointed to the Scotland Excel Engineering and Technical Consultancy Framework have evidenced Fair Work practices and demonstrated how they will promote them in the delivery of contract call-offs from the Framework. Contract Strategy 2.15 Officers from Enterprise Projects will be responsible for managing the Contract which will be undertaken in accordance with the Councils agreed approach to contract and supplier management. 3 Measures of success 3.1 Successful appointment of a professional team will support the development of detailed proposals for and their implementation for the Ravenscraig LUF project. A successful Ravenscraig LUF application will support development of both Council and community assets and the development and regeneration of Ravenscraig. 4 Supporting documents Appendix 1 Summary of Tender Evaluation Process Appendix 2 Summary of Procurement Process 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 ☒ A Fairer Scotland Duty Assessment will be completed alongside the development of the LUF application. 5.2 Financial Impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The cost of developing the application to date is supported by monies provided by the UK Government and Ravenscraig Ltd. The expenditure required to develop and prepare detailed proposals in advance of the outcome of the LUF application being known will be funded from within existing budgets. 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 ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.5 Data Protection Impact Does the report / project / practice contain or involve the processing of personal data?
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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? The original masterplan and permission for the development of Ravenscraig was supported by an extensive Environmental Impact Assessment, and a number of technical assessments were updated in the preparation of the Revised Masterplan in 2017. Further detailed assessments will form a part of the planning applications for the LUF funded works and for subsequent development of the proposed end uses 5.8 Communications Impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? As noted at 1.9 the requirement to spend by the end 2024/25 requires some preparatory work to be undertaken in advance of the outcome of the funding application being known and that this would include development of detailed proposals for planning and procurement including the submission of a Proposal of Application Notice and commencement of associated public consultation for the planning application for the works to be supported by the LUF funded works. 5.9 5.9 Risk Impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? The primary risks at this time relate to:
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• The need to incur some potentially abortive costs in order to progress preparations for the works in advance of knowing the outcome of the bid, due to the tight timescales for spending the funding. • The uncertainty of securing funding which means the statutory education consultation regarding the change of site will only take place if the bid is successful • The potential risk that funding will not be fully spent by 31st March 2025 as delivery timescales are tight, taking into account statutory processes
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Appendix 1 – Summary of Tender Evaluation Process Price Weighting 40% Quality Weighting 60% Design & Planning Services (the ‘D&P Contract’) Contract Ref: NLC-SLP-22-007 Final Rank Tenderer Name Quality score (%) Price score (%) Total Tender Score (%) Recommended for Contract Award (Y / N) 1 Sweco UK Limited 49.50% 36.76% 86.26% Y 2 Gavin & Doherty Geosolutions (UK) Ltd 44.25% 40.00% 84.25% N Project & Contract Management Services (the ‘PCM Contract’) Contract Ref: NLC-SLP-22-006 Final Rank Tenderer Name Quality score (%) Price score (%) Total Tender Score (%) Recommended for Contract Award (Y / N) 1 Currie and Brown UK Limited 57.50% 40.00% 97.50 Y 2 Turner & Townsend plc 56.50% 33.89% 90.39 N N/A Atkins* 33.00% N/A N/A N * Tenderers with a N/A ranking failed to meet the minimum requirements and / or pass mark of 70 applied to specific quality questions in the technical assessment and as such were excluded from further participation in the procurement in accordance with the tender instruction and evaluation guidance issued with the invitation to tender.
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Appendix 2 – Summary of Procurement Process Response Procurement Procedure Utilised: Call-off contract from third party framework agreement Governing Legislation / Regulations: Public Contract (Scotland) Regulations 2015 Date Contract Strategy Approved: 16 May 2022 Number of Candidates Invited to Tender: D&P Consultant – 14 PCM Consultant – 12 Tender Return Deadline: 24 June 2022 Number of Tenders Received: D&P Consultant – 2 PCM Consultant - 3 Tenders Received from SME’s: 0 Tenders Received from NLC Based Tenderers: 0 Number of Non−compliant Tenders: 0 Number of Compliant Tenders: D&P Consultant – 2 PCM Consultant - 3 Number of Recommended Tenderers: D&P Consultant – 1 PCM Consultant – 1 Basis of Contract Award: Quality: 60% Price: 40% Evaluation Team: Staff from Enterprise Projects Team Anticipated Contract Start Date: 18 July 2022 Total Contract Period (Months): D&P Consultant – 23 months PCM Consultant – 51 months Maximum Total Contract Value: D&P Consultant – £523,976.31 excl VAT PCM Consultant – £320,130.76 excl VAT
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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) Sweco UK Limited Large Edinburgh Gavin & Doherty Geosolutions (UK) Ltd Large Edinburgh Currie and Brown UK Limited Large Glasgow Turner & Townsend plc Large Glasgow Atkins Large Edinburgh