CABINET
Contract Award: New 3FE Primary School
(Grange)
Portfolio Holder: Councillor Chadderton, Cabinet Member Education
Officer Contact: Executive Director Corporate and Commercial
Services – Emma Alexander
Report Author: Barney Harle, Capital Works & Energy Manager
Ext. 1985
30th March 2015
Reason for Decision
To seek approval to accept direct award contract for design and construction of new
3FE Primary School on the former Grange School site.
Executive Summary
The report details the direct award process under the government procured
framework for education buildings for the design and construction of new 3FE Primary
School.
Recommendations
Cabinet are requested:
- To authorise the acceptance of the negotiated price and to approve
commencement of discussions with the contractor to develop their
proposal.
- To approve delegated authority to Executive Director (Corporate and
Commercial Services), Cabinet Member for Finance and the Interim
Director of Finance, to enter into a contract to deliver the new school ready
for September 2016 term commencement.
30th March 2015
Cabinet
Contract Award: New 3FE Primary School (Grange)
1
Background
1.1
Through the review of primary school places across the borough a future
provision of between 140 and 165 primary school places was identified to
meet the educational needs of children, focussed around Failsworth,
Saddleworth and the central area of Oldham. As a result of this identified
need the Council agreed in a Cabinet Report on 31st March 2014 an
investment programme of £13.5m to help address the basic needs demand.
1.2
The basic need provision allocation for the new 3FE build primary school
(central) was approved at £7.5m, together with its location as being on the
former Grange School site adjoining the Oldham College on Rochdale Road.
1.3
The site of the proposed school is currently leased to Oldham College as a
decant space whilst the college complete construction of their buildings. The
lease expires in July 2015 and therefore the site will not be available for
development until that time.
1.4
Officers have been investigating options which would enable the new school
to be open in time for intake of pupils in September 2016.
1.5
Initial procurement options utilising traditional routes indicated a realistic
opening date of the school between February and April 2017.
1.6
An alternative procurement route was proposed which would make a direct
award under the Crown Commercial Services Framework, RM 875 (Lot 7) for
modular steel framed education buildings. This route has been recently
utilised for the successful procurement of the ASD School – which would be
used as a benchmark for the 3FE.
1.7
The Procurement Process Briefing Note detailing this route was approved
November 2014 by Executive Director (Corporate and Commercial Services),
Cabinet Member for Finance and the Interim Director of Finance. This note is
attached as Appendix B.
2
Current Position
2.1
The chosen procurement route for the new 3FE Primary School was agreed
as being a direct award under the Crown Commercial Services Framework
RM875.
2.2
Officers and Unity Partnership have undertaken initial briefing and design
team meetings with ASD School contractor and Architect (Extraspace
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Solutions (UK) and BP Architecture), site and floor plans have been produced
utilising Department for Education (DfE) baseline target floor plans.
2.3
Numerous site layout options (13nr in total) and configurations have been
considered for the new 3FE building, ultimately concluding that the most
economical and logistically advantageous option is for a 3 storey teaching
block with 2 storey administration / hall wing located on the current middle
plateau of the site.
2.4
Contractors proposals for the preferred option include sprinklers.
2.5
The proposal also contains allowance for removal of asbestos from the
current buildings, demolition and site preparation for the new school, external
works and areas in accordance with building bulletins and costs associated
with the separation of the sports hall from the current shared utilities for
retention by Oldham College.
2.6
It is recommended that approval is given to enter into negotiations with
Extraspace Solutions (UK) and having agreed a revised scheme within the
funding envelope, that delegated authority be given to award the contract as
noted above and that the form of the contract used will be NEC3 (a
government advocated standard form of contract) on a guaranteed maximum
price basis.
2.7
Under Section 6A of the Education Act 2011 there is a presumption that
where an LA thinks there is a need for a new school in its area it must seek
proposals to establish an academy/free school.
In October 2014 the Department published non-statutory guidance to local
authorities (LAs) on the establishment of new schools. It sets out for LAs and
new school proposers the department’s expectations of how the academy/free
school presumption process should operate in practice and the characteristics
and qualities that new school proposers must demonstrate.
3
Options/Alternatives
3.1
Option 1 – Do nothing
This is not an option as the provision of primary places will remain and
completion of scheme would leave Council without adequate pupil places.
3.2
Option 2 – Competitively tender scheme under Modular Framework
This option is available for consideration to deliver the pupil places, but would
not be able to achieve the completion date requested of September 2016.
3.3
Option 3 – Accept Contract Proposal and Commence discussions to develop
fixed price tender.
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This is the recommended option as it will enable delivery of all the required
accommodation within the revised timescales and budget restrictions.
4
Preferred Option
4.1
Option 3 – Accept Contract Proposal and Commence discussions to develop
fixed price tender.
This is the recommended option as it will enable delivery of all the required
accommodation within the revised timescales and budget restrictions.
5
Consultation
5.1
There has been internal consultation with schools access officers, AED
children’s services, corporate landlord and the procurement team, ward
members for Coldhurst ward and Cabinet Members for Finance and
Education have been informed concerning the approach and the
recommended option.
As part of the competitive process for seeking an Academy sponsor and the
parallel process of applying for planning permission for this development a
public consultation event was held in the Civic Centre 11th February 2015.
A further event for public consultation is to be held March 9th at the Millennium
Centre, Westwood.
6
Financial Implications
6.1
The total funding for the 3FE Primary School project that is included in the
Councils approved capital programme is £7,500,000.
6.2
Treasurer’s Comments
Capital Implications
6.2.1 A general provision of £7.5m exists within the approved 2014-2018 capital
programme against which this scheme will be a charge.
6.2.2 The provision included within the capital programme is phased and funded as
follows:
Funding
Basic Needs Capital grant
Prudential Borrowing
TOTAL
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2014/15
£’000
20.0
250.0
270.0
2015/16
£’000
3,072.0
307.2
3,379.2
Contract Award: New 3FE Primary School (Grange)
2016/17
£’000
3,850.8
0.0
3,850.8
TOTAL
£’000
6,942.8
557.2
7,500.0
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30 March 2015
6.2.3 In accordance with standard practice, officers will closely monitor the progress
of this scheme to ensure that it is kept within the funding allocation. Any
anticipated variations to scheme spending will be reported as soon as any
issues are highlighted. (J Kara/Anne Ryans)
Revenue implications
6.3.1 The revenue funding of this school will be met from the Dedicated Schools
Grant.
(Liz Caygill)
7
Legal Services Comments
7.1
The Crown Commercial Services Framework RM875 – Lot 7 – for the
provision of Educational Buildings states that “Call-off contracts can be put in
place either by direct order or further competition” subject to the following
conditions:
7.2
In summary, as this is a standard specification building, the Council is able to
make a direct award. (Rebecca Coldicott)
8.
Co-operative Agenda
8.1
Raising educational attainment is a key priority for the Council and is a key
theme of the Education and Skills Commission currently underway. It is vital in
supporting our ambition for a productive place and building confident
communities. (Jennifer Barker)
9
Human Resources Comments
9.1
As the new school will be an academy there are no HR implications from a
statutory perspective. Although academies do not have to adhere to national
and local teaching and support staff conditions, the LA will strongly encourage
potential sponsors to commit to the following:•
•
•
•
•
•
Sign up to Oldham Fair Employment Charter
Operate within National and Local terms
Apply national standards for Headship and Teacher Standards
Commit to the local TU facilities fund
Engage and work with the wider Oldham school community
Work with the full range of LA services including HR, Finance, Health and
Safety, School Performance and the Learning Academy (Andy Collinge)
10
Risk Assessments
10.1
In devising a solution which delivers the required school opening timetable the
procurement risk around by using a standard specification under the
framework has been managed during the letting of the contract.
(Mark Stenson)
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11
IT Implications
11.1
None.
12
Property Implications
12.1
The proposals will ensure required school places are delivered in a timely
manner. (Cath Conroy)
13
Procurement Implications
13.1
The Crown Commercial Services Framework, RM 875 (Lot 7) for modular
steel framed education buildings is fully OJEU compliant and is in accordance
with Oldham Council CPRs. The framework allows for direct award to
suppliers within Lot 7.
13.2
This framework has been used to secure a supplier to build the new ASD
school. A mini competition was carried out and project plans and full pricing
schedules reviewed and analysed to ensure value for money and most
commercial offer selected.
13.3
A direct award is proposed by the project team due to the strict timescales in
order for the school to be open for September 2016. The pricing from the ASD
school mini-competition will be used to ensure value for money via a direct
award. In addition additional savings will be made through project synergies
as the same supplier should be delivering both projects.
13.4
Alternative procurement routes were reviewed including a restricted OJEU
tender but this would have an impact on the opening date of September 2016.
(Karen Lowes)
14
Environmental and Health & Safety Implications
14.1
Environment: This new school will be built to the standards of current Building
Regulations, but will not include any extra renewable energy infrastructure
due to budget constraints. However, the school may be considered in the
future for solar PV or other measures as part of a community energy
programme. (Andy Hunt)
14.2
This was procured via a Crown Commercial Services Framework RM875.
There are no prosecutions or enforcement notices recorded on the HSE
enforcement website in respect of Extraspace Solutions for the period
concerned. Prior to commencement of any works, full health and safety
documentation including risk assessments must be submitted by the
contractors involved. (Laura Smith)
15
Equality, community cohesion and crime implications
15.1
There are no equality implications arising from this report (Jennifer Barker)
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15.2
There are no cohesion implication arising from this report (Bruce Penhale)
16
Equality Impact Assessment Completed?
16.1
No
17
Key Decision
17.1
Yes
18
Key Decision Reference
18.1
EDS-01-15
19
Background Papers
19.1
None
20
Appendices
20.1
Appendix A – Provision of Primary School Places – Cabinet Report 31st March
2014
20.2
Appendix B – Procurement of New 3FE Primary School (Grange) –
Procurement Process Briefing Note September 2014
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Appendix A
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Appendix B
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