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Officer delegated decision
Decision Due: 23 April 2015
Extension of Duties of EC Harris – Your New Town Hall
Wards: All
Report Authorised by: Strategic Director Delivery Sue Foster
Portfolio: Deputy Leader (Finance and Investment): Cllr Paul McGlone
Contact for enquiries:
Dan Murray, [email protected], Senior Programme Manager, Tel: 0207 926 9444
Report summary
The ‘Your New Town Hall’ project will consolidate Council offices to save money and provide
office accommodation that is fit for purpose. Work undertaken to date has indicated potential
annual revenue savings in excess of £4.5m based on current running costs. It would also fund
construction of new offices and refurbishment of the Town Hall at no net cost.
EC Harris was originally appointed in March 2012 as a Technical Advisor to support the project
through three phases (Establish bid requirements and bidder evaluation; design development;
construction). EC Harris has already provided a range of services to the Council for the first
stage resulting in the appointment of Muse as developer. These included: Technical advice;
Project Management; Interim Programme Management; and Cost Consultancy. It is now
proposed to place the order for the next stage of work. It is intended to issue a final order for
continuation of the technical advisor role during the construction of the ‘Your New Town Hall’
project.
This report seeks approval to place an order with EC Harris for the current stage of work using
the same terms that they were previously appointed under.
Finance summary
EC Harris was appointed as Technical Advisor to this project in 2012. The first stage value was
£106,409 (£88,674 plus 20% contingency), with variations for additional requirements this took
the cumulative cost to date to £ 204,266.
It is proposed to appoint EC Harris for the next stage of work to review technical proposals and
costs during the design stage at a cost of £328,233.
This work is budgeted for as part of the cost neutral business case for YNTH and will complete
by November 2015 when the Council enters into the Unconditional Development agreement.
Recommendations
1. To waive Section 3 of the Contract Standing Order requirement for competition for
contracts over £5,000.
2. To approve the extension of EC Harris’s contract as Technical Adviser for the ‘Your New
Town Hall’ project at a cost of £328,233 with an expected completion date of 27
November 2015.
Reason for Exemption from Disclosure
The accompanying part II report is exempt from disclosure by virtue of the following paragraphs
of Schedule 12A to the Local Government Act 1972:
Information relating to the financial or business affairs of a particular person. (Including the
authority holding that information).
1.
Context
1.1
The ‘Your New Town Hall’ (YNTH) programme rationalises the Council’s offices from 14
to 2 at no capital cost while realising over £4.5m savings per annum once complete.
1.2
As part of the YNTH project EC Harris was appointed Technical Advisor to assist with
the procurement and selection of the developer for the ‘Your New Town Hall’ project.
1.3
The appointment of EC Harris followed a mini-competition selection process using the
GPS Framework RM457 for Project Management and Full Design Services. The
framework used is extremely comprehensive and allows for a range of technical and
consultancy services. The Council entered into a contract with EC Harris for the
provision of technical and cost advice during development of developer proposals and
evaluation of bids, this was based on a contract value of £88,674 (contract to include a
contingency making the total value £106,409).
1.4
In May 2012, the Council extended the scope of its duties to include cost consultancy,
and at a cost of £52,000.
1.5
A further variation was issued in June 2012 for the value of £9,000 to cover nine weeks
of specialist development input to consider the different options from developers and
whether it would be beneficial for the Council to explore different routes to market.
1.6
In November 2012 the scope of duties were extended by £40,000 to cover the on-going
support required on Project and Programme Management in order to ensure business
continuity during a period of internal change.
1.7
A final variation of £6,000 was made to cover support following a delay in concluding the
selection of preferred bidder in October 2013.
1.8
It is now proposed to place an order for the next stage of works up to agreement of the
Unconditional Development Agreement with Muse in November 2015. This is at a cost of
£328,233.
1.9
GPS has confirmed that there is insufficient value in the original framework for further
orders to be placed. This is largely due to numerous other works having been called off
against the framework which have eroded the value available. It is not clear if the
intended additional phases of work were allowed for when further orders were placed.
1.10
In order to progress the project EC Harris was instructed on 11 September 2014 to
continue their support of a project while an order was raised. Due to changes in staff and
lack of response it was not until 10 December 2014 that it was reported back to the
YNTH team that the financial limit on the original framework had been exceeded.
1.11
This report seek to secure waiver approval from Contract Standing Orders for the
additional expenditure associated with technical advice with respect to the ‘Your New
Town Hall’ project to be procured through an order on the same terms as the original
framework but as a stand alone contract.
2.
Proposal and Reasons
2.1
EC Harris has provided technical advice to the Council from the outset of this project.
They have assisted the Council in developing the technical requirements and assisted in
the selection process of the successful Developer.
2.2
The Council has extended the scope of its duties within the parameters set out in the
framework RM457 for Project Management and Full Design Services. EC Harris has
performed extremely well in the provision of technical support throughout this project. It
is vital that the Council secures their services for the next phase of the procurement of
the ‘Your New Town Hall’ project in order to ensure continuity and a successful outcome
to the delivery of the ‘Your New Town Hall’ project.
2.3
As part of the next phase of this project EC Harris will be providing the Council with
services including: reviewing Employers Requirements; sustainability advice; workplace
design; lifecycle costing; flexibility; full review of Muse proposals prior to Unconditional
contract stage; change control; project management support; and general technical and
cost support.
2.4
The Council originally entered into contract with EC Harris following a mini-competition of
all the providers on the GPS framework. The Council wish to benefit from the competitive
rates provided in March 2012 and secure the services of EC Harris based on original
rates which are higher on currently available frameworks.
2.5
A waiver from the Council’s standing orders is being sought because this follows the
original intention and tender exercise and represents demonstrable best value due to EC
Harris agreeing to honour the lower rates from the original competition, and the implicit
knowledge they have of all aspects of the project combined with significant experience of
similar Council Office developments in London and elsewhere.
3.
Finance
3.1
A budget of £331k has been pre-approved by the Your New Town Hall Programme
Board under Cabinet authority for EC Harris to provide technical support as well as
support of the moves programme. These costs have been included within the overall
YNTH delivery budget and will be funded from the YNTH reserve.
3.2
The project will deliver £4.5 million pounds worth of saving pa by autumn 2019 when the
project completes.
4
Legal and Democracy
4.1
The authority to deal with the matters set out in this report is delegated to the Director,
who may exercise her discretion on the recommendation of the Procurement Board.
4.2
The Council’s Contract Standing Orders require that contracts with a value in excess of
£100,000 must be competitively tendered.
4.3
Waivers of this requirement in the Contract Standing Orders may be granted in certain
circumstances, which includes where this is demonstrably in the Council’s best interests
and for extensions of contracts not provided for in the original award.
4.4
Contracts for services with a value in excess of £172,514 are subject to the EU
procurement regime and the Public Contracts Regulations apply to the contract award.
The requirements of the Regulations cannot be waived.
4.5
There is no requirement to publish a notice when awarding a contract off a properly
procured framework which has complied with the Regulations provided the Council is
named, or is part of an identifiable group named, in the OJEU notice published in respect
of the framework. Contracts should in most circumstances be awarded by conducting a
mini-competition open to providers on the framework. The Council must adhere to the
provisions of the framework in awarding contracts from it. This framework has expired. It
is noted that the instructions to tender issued using the framework required bidders to
submit pricing to the financial close stage with the possibility of an extension beyond that
stage in order to provide technical support during the delivery phase of the project, but
this is unlikely to determine compliance.
4.6
The Council’s Constitution requires that all key decisions, decisions which involve
resources between the sums of £100,000 and £500,000, and important or sensitive
issues, must be published on the website for five clear days before the decision is
approved by the Director or Cabinet Member concerned. Any representations received
during this period must be considered by the decision-maker before the decision is
taken.
5
Consultation and co-production
External events and consultation sessions about the project have and continue to take
place as the development scheme progresses. These include sessions with residents,
local community groups and market stalls sharing information and gathering feedback.
EC Harris have been involved in these consultation sessions and have used comments
provided to inform the technical requirements for the project.
6
Risk management
The key risks associated with the project are:
1. Supplier challenge of OJEU / procurement process
2. Poor value for money in the extension of the contract arrangements with EC
Harris.
3. Lack of continuity and technical support for the delivery of the ‘Your New Town
Hall’ project.
While these risks cannot be fully mitigated the following key points are noted:
1. Officers have discussed the risks with Legal and Procurement Colleagues.
Having weighed their advice against officers’ risk assessment of the market,
officers have assessed the risk as very low’. The embedded knowledge EC
Harris have in addition to their general experience in this area would put them in
a very strong position. Other providers would also be reluctant to challenge due
to limited chances of success and how such a challenge would reflect on them.
2. Rates provided in the original framework are lower than currently offered as they
are historic and provided at a very competitive period in the market.
7
Equalities impact assessment
The Stage 1 initial equality consideration report has been completed and issued to the
Equalities and Diversity team for the Your New Town Hall. A rating of medium / high is
allocated with the key issue for the Equalities Impact Assessment being the DDA
compliance of all core council office buildings for staff, councillors and visitors. EC Harris
have ensured that the Council’s requirements reflect it’s obligations under the DDA
legislation. In addition, consideration has been given to new ways of working to ensure
that the Council fulfils it’s obligations under the Health & Safety at Work Act 1974. There
will be on-going review and evaluation of the Equalities Impact Assessment as the
programme develops and through project implementation.
8
Community safety
The Office Accommodation Strategy will ensure compliance with section 17.0 of the
Crime and Disorder Act 1998 by preventing opportunities for crime and anti-social
behaviour through the adoption of secured by design principles and that the public realm
environment promotes safety and security and deters criminal and anti-social behaviour
opportunities. The scheme content will therefore be appraised by EC Harris for any
crime and disorder implications and any mitigating actions.
9
Organisational implications
There are no specific organisational implications arising from the appointment of EC
Harris in the provision of technical assistance to the Council.
9.1
Environmental
The Your New Town Hall will have a focus on sustainability and considerably reduce the
Council’s accommodation requirement and thus its carbon footprint as well as
significantly reducing travel times between offices. EC Harris will be contributing through
ensuring good practice in the design and development process.
9.2
Staffing and accommodation
The procurement of a Design / Technical Adviser has no direct impact on staff or
accommodation. However, a key objective of the Your New Town Hall is to significantly
reduce the amount of office accommodation required to delivery Council services. There
are no TUPE issues as a result of this procurement.
9.3
Procurement
EC Harris meets London Living Wage for all staff and contractors working on this project.
10
Timetable for implementation
10.1
The current phase of design development runs from the appointment of Muse in April
2014 to finalisation of unconditional development agreement at the end of November
2015 with planning submission on 30 March 2015.
10.2
Deliverables
Date
Start of work
September 2014
Complete review of RIBA stage two design proposal
20 December 2014
Attendance at design workshops and meetings
On-going
Complete review of RIBA stage three design proposal and present to
programme board
6 March 2015
Commence work on the Whole Life Cost assessment
await developer
Arrange weekly and monthly progress review meetings
On-going
Support the Council in preparation for the submission of planning
permission
March 2015
Complete the Whole Life Cost assessment
April 2015
Support and advice up to Unconditional Contract sign off
November 2015
10.3
This contract will be monitored and managed by:

Monthly review with the EC Harris account director and Lambeth Director;

Weekly review with the account manager and Senior Programme Manager

Monthly highlight reports including cost tracking and forecasts;

Weekly update reports
Audit trail
Consultation
Name/Position
Sue Foster
Finance
Legal Services
Democratic Services
Councillor Cllr McGlone
Delivery Director
Internal Officer Board
Procurement Board
External
Lambeth
cluster/division or
partner
Strategic Director,
Delivery
Daniel Omisore
Andrew Pavlou
Henry Langford
Deputy Leader,
Finance and
Investment
Mike Pocock
Date of meeting
26.03.14
Report history
Original discussion with Cabinet Member
Report deadline
Date final report sent
Report no.
Part II Exempt from Disclosure/confidential
accompanying report?
Key decision report
Date first appeared on forward plan
Key decision reasons
Background information
Appendices
Date Sent
Date
Received
Comments
in para:
23.03.2015
23.03.2015
-
12.03.2015
12.03.2015
23.03.2015
23.03.2015
23.03.2015
13.03.2015
S3
07.04.2015
08.04.2015
25.03.2015 S4 & Risk 1
27.03.2015 11.04.2015 -
11 April 2015
N/A
N/A
N/A
Yes
No
N/A
N/A
Cabinet Report 12 March 2012 (OAS)
Cabinet Report 10 November 2014 (YNTH)
Confidential Part Two
APPROVAL BY CABINET MEMBER OR OFFICER IN ACCORDANCE WITH SCHEME OF
DELEGATION
I confirm I have consulted Finance, Legal, Democratic Services and the Procurement
Board and taken account of their advice and comments in completing the report for
approval:
Signature ______________________________________ Date ________________
Post Dan Murray, Senior Programme Manager
I approve the above recommendations:
Signature ______________________________________ Date ________________
Post Sue Foster, Strategic Director, Delivery