Contract Award for Design and Build of New Bellshill Waste and Fleet Depot
North Lanarkshire Council · 24 August 2022
Back to Environment and Place Committee — 24 August 2022 and its agenda
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North Lanarkshire Council Report Environment and Place Committee Does this report require to be approved? ☐ Yes ☒ No Ref: NLC-CPT-21-066 Date: 24 August 2022 Contract Award for Design and Build of New Bellshill Waste and Fleet Depot From Andrew McPherson E-mail mcphersona@northlan.gov.uk Telephone 07939 280467 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 contract for Design and Build of New Bellshill Waste and Fleet Depot (the ‘Contract’) to Tilbury Douglas Construction Limited. The Contract was formally awarded on 15 June 2022 and is for a period of circa nine (9) months anticipated to commence on 1 August 2022. The value of the Contract is FIVE MILLION, THREE HUNDRED AND TWENTY THOUSAND, FOUR HUNDRED AND FORTY POUNDS, FIFTY PENCE Sterling (£5,320,440.50) exclusive of VAT. Recommendations It is recommended that Committee acknowledges the award of the Contract (in accordance with GCSO 21.3.2 ) to Tilbury Douglas Construction Limited at the value of FIVE MILLION, THREE HUNDRED AND TWENTY THOUSAND, FOUR HUNDRED AND FORTY POUNDS, FIFTY PENCE Sterling (£5,320,440.50) exclusive of VAT. This recommendation follows the completion of a procurement procedure, where the tender recommended for award has been evaluated as providing the most economically advantageous tender in terms of cost and quality for the Council. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition Statement (3) Maximise the use of our marketable land and assets through improved development in business and industrial infrastructure
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1. Background 1.1 An options appraisal exercise was undertaken by the Service Department that considered all aspects of the Councils ambition agenda. It concluded that the new build facility was the most viable and appropriate option aligning best with the Plan for North Lanarkshire and associated programmes of work including overall service delivery. 1.2 In line with the Council’s objectives and vision to ensure best value for service delivery, depot rationalisation was identified. Two main areas of service delivery will be accommodated within a new building, which is to be in the existing Transport Services Depot, Old Edinburgh Road, Bellshill ML4 3JG. 1.3 The current Fleet Depot building has been partially closed and deemed unsafe and following costing exercise it was found to be unviable to repair/refurbish the existing properties. 1.4 The design and construction of a new vehicle workshop consisting of a maintenance repair area, MOT facilities, VOSA lane, stores, office, welfare and toilet facilities will provide a new transport hub which is in keeping with the Council’s objectives and vision. 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 Contract. 2.2 The initial estimated value of the Contract 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 utilising the Quick Quote facility. 2.3 The procurement procedure was undertaken as a “Mini Competition” from the Crown Commercial Services Framework (CCS) framework agreement for Construction Works and Associated Services Lot 2.4 (Works £3m - £10m - Scotland). 2.4 The Contract award recommendation is made on the basis of the tenderer who submitted the most economically advantageous tender. 2.5 The tender submitted by Tilbury Douglas Construction Limited has been evaluated as representing the most economically advantageous tender for this Contract. 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 Contract is FIVE MILLION, THREE HUNDRED AND TWENTY THOUSAND, FOUR HUNDRED AND FORTY POUNDS, FIFTY PENCE Sterling (£5,320,440.50) exclusive of VAT including any option to extend the Contract. 2.8 The costs associated with contract delivery will be contained within the capital budget for Enterprise & Communities, Regulatory Services and Waste Solutions. Price Savings / Increases
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2.9 There are no price savings / increases related to this Contract. Price Stability 2.10 This is a NEC4 contract which contains fixed price schedule of work items, allowing full transparency and detailed scrutiny to enable accurate monthly payment draw downs. 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 their tender, Tilbury Douglas Construction Limited committed to deliver the following community benefits within the Contract: Community Benefit Type Quantity Committed Recruitment for those removed from labour market • 3 work placements for those with at least 2 barriers to work • 2 Kickstart positions • 30 hours of training and coaching for those with multiple barriers to work Local SME involvement • 80% of build cost will be spent locally • 50% of subcontractor work will be with SMEs / social enterprises • Meet the buyer event Employment or training opportunities • 2 school pupil work experience placements • 2 modern apprenticeships • 2 employability skills workshops • 4 school talent taster session Educational benefits • 6 site visits for school pupils • 5 STEM based “construction in a box” talks to primary schools • Provision of 2 masterclasses • 2 FE construction skills lectures Engagement with community organisations • 2 construction related workshops • 2 employability skills workshops • 20 hours of mentoring • 10 hours to help with facilities Other • 30 hours of community clean up • 10 hours of local charity evet support 2.11.3 The community benefits delivered as part of the Contract includes the creation of apprenticeships. Fair Work First 2.12 Within their tender submission, Tilbury Douglas Construction Limited advised that they commit to the following the Scottish Governments “Fair Work First” initiative and commit to ensuring their staff and the staff of their partners and subcontractors are paid The Living Wage Contract Strategy
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2.13 Officers from external design consultants Faithful & Gould Limited, together with the Council’s Technical and Design Team (Asset and Procurement Solutions) 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 The Contract will deliver the following outcomes; 3.1 Improve economic opportunities and outcomes; 3.2 Market and promote NLC as the place to live, learn, work, invest and visit; 3.3 Improve the Council’s resource base; and 3.4 Form part of the asset rationalisation strategy, continuing to build a workforce with the capability of delivering on our priorities and ambition. 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 Andrew McPherson Head of Regulatory Services and Waste Solutions
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5. Impacts 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 ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer-scotland- duty-impact-assessments Yes ☐ No ☐ 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? Overall build of new facility sits within the budget allocated. However, due to the delivery of a new Eco Park facility on the same site the surrounding civil works may have to be changed to accommodate the new Eco Park. Discussions are to commence with Scottish Power over the coming weeks with potential to share costs associated with works to ensure that all costs remain within the overall budget. If additional capital budget is required Fleet Services will review its spend profile on other areas of the business in partnership with Financial Solutions. 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? Yes ☐ No ☒
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If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e-mailed to dataprotection@northlan.gov.uk 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 ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? 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? Centralised location of the Fleet and Waste service adjacent to the new Eco Park will deliver efficiencies in fuel consumption and as a consequence a reduced carbon footprint. 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? 5.9 Risk Impact Is there a risk impact? Yes ☒ No ☐
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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? A separate project risk register will be maintained as part of the overall build programme and monitored through appointed consultant Faithful + Gould Limited
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Appendix 1 – Summary of Tender Evaluation Process Final Rank Tenderer Name Total Tender Score (%) Recommended for Contract Award (Y / N) 1 Tilbury Douglas Construction Limited 91.20% Yes 2 ISG Limited 87.04% No 3 Heron Bros Limited 82.05% No 4 Henry Brothers Limited 78.64% No
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Appendix 2 – Summary of Procurement Process Response Procurement Procedure Utilised: “Mini Competition” utilising the Crown Commercial Services Framework (CCS) framework agreement for Construction Works and Associated Services Lot 2.4 (Works £3m - £10m - Scotland) Governing Legislation / Regulations: Public Contracts (Scotland) Regulations 2015 Date Contract Strategy Approved: 01 June 2022 Date Contract Notice Published: 24 December 2021 Number of Companies Invited to Take Part: 6 SME % of Expressions of Interest: 0% NLC Based % of Expressions of Interest: 0% Tender Return Deadline: 07 March 2022 Number of Tenders Received: 4 Tenders Received from SME’s: 0 Tenders Received from NLC Based Tenderers: 0 Number of Non−compliant Tenders: 0 Number of Compliant Tenders: 4 Number of Recommended Tenderers: 1 Basis of Contract Award: Quality: 30 Price: 70 Evaluation Team: Officers from the Council’s Technical and Design Team (Asset and Procurement Solutions) and consultants Faithful + Gould Limited Approval Obtained via GCSO 21.3.2: 14 June 2022 Contract Award Date: 15 June 2022 Anticipated Contract Start Date: 01 August 2022 Total Contract Period (Months): 9 Maximum Total Contract Value: £5,320,440.50
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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) Henry Brothers Limited Large Londonderry County Council Heron Bros. Limited Large Londonderry County Council ISG Limited Large City of London Tilbury Douglas Construction Limited Large City of London