Gateway Three Officer Delegated Decision Report - Procurement For All Procurement Awards, Waivers, Contract Extensions & Variations Contract Requisition Number Provision of modular construction works at Charlie Chaplin Adventure Playground Wards Oval Report authorised by: (Debbie Jones – Executive Director) Report Prepared and Submitted by: Stuart Dixon, Senior Project Manager, BSF, Lead officer’s name title, Sixth Floor, International House, Canterbury Crescent, London, SW9 7QE address and phone number: Phone: 020 7926 3208 Email: [email protected] Is this report for a request to recommend approval for a waiver to procurement rules? Yes No PB Date: SPB Date: Department: Gateway 1 date (if relevant) Gateway 2 date Business unit code Business unit: Name, phone and mobile numbers of presenter: Off-line N/A CYPS 475.9998.C300001187 BSF N/A Executive Summary The report seeks approval to appoint Portakabin Limited as a design and build contractor to provide a ‘Portakabin’ (‘Ultima’ ® Portakabin unit) within the grounds of the Charlie Chaplin Adventure Playground site in Kennington. The appointment follows a tendering exercise, which was conducted in consultation with colleagues from Corporate Commissioning. A waiver to the Council’s Contract Standing Order 8.1 is sought on grounds of inviting tenders from three instead of five tenderers. The reason for this was that the time constraints did not allow Council the opportunity to find additional tenderers with experience of working within an adventure playground setting with older children with on the ASD spectrum. If the Council did not seek Officer Delegated Decision Report - Procurement Corporate Procurement Team V9 – 4 October 2010 1 this waiver and failed to meet the external deadline to be contractually engaged the end of the 2010/2011 financial year, external grant funding of £241,000 would be lost to the authority. The contractor will be required to install a ‘Portakabin type’ modular construction building of approximately 12m x 10m in accordance with the detailed specifications developed in conjunction with the staff, Board of Trustees of Charlie Chaplin and the parents and children who use the adventure playground. Portakabin Limited scored 92 out of a possible 100 points in accordance with the tender evaluation criteria as set out in the tender brief. The tenders were evaluated on a 60% price, 40% quality basis. Tenders were sent to the three specialist contractors. Of the 3 companies invited, 2 companies submitted tenders within the specified timeframe. Due to the additional needs of client group who use Charlie Chaplin (Children and older teenagers with Autistic Spectrum Disorder), all three companies were given the opportunity to visit and meet with staff so as to better understand the context of the community prior to being asked if they wished to tender. Following these visits, all three companies expressed an interest in tendering. The tender evaluation matrix is attached as Appendix 1. Summary of Financial Implication This waiver is urgently sought, as the funding is external capital funding-stream that will be lost to the Council if it is not committed before the end of March 2011. This required the Council to be contractually engaged by that date. The Charlie Chaplin Adventure Playground project is part of a wider programme, which is fully funded by the CYPS Children with Disabilities Team within the cost code 475.9998 capital code C300001187 as part of the aforementioned DfE ‘Aiming High for Disabled Children’ capital grant funding allocation to the authority. The Grant is made under sections 14(1) subsections (2)(b), (2)(j) and (2)(k) of the Education Act 2002 for the purpose of securing equipment, building adaptations, and new facilities that will support disabled children’s short break provision, the total value of funding for 2010/11 £466.800K. The construction, delivery to site and connection of services to the portakabin totals £200,680 excluding contingencies. This is within the available grant budget. Contingency funding from within the same grant budget is set aside to deal with any unforeseen circumstances which may require potential additional works arising from the construction on an enclosed site that will have to remain in partial operation during the construction period. Reason for Exemption from Disclosure This report is Part 1 of a 2 part report. Part 2 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 any person (including the authority holding that information) is exempt from publication.” The reasons for confidentiality are: • Details of the bids and pricing schedules reveal information on individual companies that is provided in confidence to the Council during the procurement exercise. No approval has been sought by all tenderers to release this information. • Benchmarking information provided on a confidential basis • Confidential information relating to a company. Recommendations 1. That the Council waives Contract Standing Order 8.1 and appoints Portakabin Limited as the main contractor for the supply and installation of a ‘Portakabin type’ modular unit and associated landscaping at Charlie Chaplin Adventure Playground. Officer Delegated Decision Report - Procurement Corporate Procurement Team V9 – 4 October 2010 2 2. That the Procurement Board permits the expenditure of up to 15% of the overall works budget value (£30,102 in total) for any contingency items which arise during the construction period. Approvals I have seen this report and approve it for onward submission to PB and or SPB: Signature _______________________________________ Date ________________ Mike Pocock Director - Building Schools for the Future I approve the above recommendations: Signature _______________________________________ Date ________________ Farrukh Akbar Head of Departmental Procurement Board Delegated Authority We approve the above recommendations: Signature _______________________________________ Date ________________ Mike Pocock Director - Building Schools for the Future Signature _______________________________________ Date ________________ Farrukh Akbar Divisional Director of Resources Please be sure to complete the signatory information (name and title) above. Declarations of Interest (or exemptions granted): Yes Interest or Exemption None Declaring Officer’s Name Officer Delegated Decision Report - Procurement Corporate Procurement Team V9 – 4 October 2010 3 Officer Delegated Decision Report - Procurement Corporate Procurement Team V9 – 4 October 2010 4 Name of consulted person Department or Organisation Date sent Date response received Report section reference Department of Legal and Democratic Services 24/03/2011 30/03/2011 Throughout report CYPS 23/03/2011 25/03/2011 Throughout CYPS 23/03/2011 28/03/2011 7.0 CYPS 20 / 3 / 2011 25/03/2011 7.0 Cllr Pete Robbins CYPS Cabinet Member 24/3/2011 30/03/2011 Throughout Victor Ruskin Procurement 24/03/2011 25/03/2011 Throughout Internal Andrew Pavlou / Peter Flockhart Charles Booth Assistant Director - BSF Dunni Komolafe Head of Departmental Finance- CYPS Solomon Akuffo Divisional Finance Manager External None Report History Is this a Key Decision (£500k+), a Non-Key Decision or For Information? If a Key Decision (£500k+), enter the date it was first entered into the Forward Plan: Key Decision Non-Key Decision For Information N/A Background Documents None Previous Reports Gateway 1 10.08.2010 Gateway 2 19.10.2010 Appendices Tender Evaluation Matrix Officer Delegated Decision Report - Procurement Corporate Procurement Team V9 – 4 October 2010 5 1.0 Context 1.1 Charlie Chaplin Adventure Playground is a unique resource for children with disabilities and special educational needs. It is located in Kennington very near to Kennington Park. Established in 1983, it has over a quarter of a century’s experience in providing quality play for children and families who use the specialist services that their staff are able to provide. 1.2 Surveys conducted at the Charlie Chaplin site identified areas of concern regarding the existing building resources; the Assistant Director of Children’s Community Services and the Assistant Director of BSF backed this. These concerns include health & safety, environmental and hygiene problems. It was agreed that the existing facility does not have adequate space to provide dining facilities for children with disabilities. 1.3 Allocations were only confirmed at the end of November 2010 leaving a very tight timescale for consultation with Charlie Chaplin on the design brief. Further correspondence with DfE highlighted st that there will be no provision to carry over any unspent funding beyond 31 March 2011; therefore it is essential that contractors are commissioned to deliver a solution by the end of this financial year. 1.4 Taking into consideration the need for this resource, the financial urgency to commit the allocated st funding before 31 March 2011, and the requirement to commission a contractor with specialist experience of not only of building child friendly structures but also of working with children with special needs, three specialist contractors were approached to tender. 1.3 The proposed solution has been agreed with Charlie Chaplin’s Director and Board of Trustees following a series of presentations to both the Board of Trustees and a group of the playground’s users including children, parents and carers. 1.4 The ‘building’ is a single modular construction unit, prefabricated off-site to allow for a short construction phase of six weeks. This is so as to provide minimal interference with the activities of the centre. It will provide badly needed additional facilities to accommodate the increased numbers of children using the playground. The facilities include a kitchen, dining/multi-function area, two disabled toilets / changing rooms and two storerooms. The costs for the scheme cover design work, all statutory costs including the relevant surveys and planning fees. 2.0 Proposals & Reasons 3. 2.1 A tendering exercise for the appointment of a contractor able to deliver a design and build modular construction solution, which would be prefabricated off-site, to allow for quick installation, was undertaken. However, due to urgency a waiver is now sought from the requirement to comply with Contract Standing Order 8.1.The reason for seeking a waiver is that the council invited tenders from three instead of five tenderers. The reason for this was that the time constraints did not allow Council the time to find additional tenderers with experience of working within an adventure playground setting, with older children on the ASD spectrum. If the Council did not seek this waiver and failed to meet the external funding body’s deadline (to be contractually engaged the end of the 2010/2011 financial year), then external grant funding of £241,000 would be lost to the authority. 2.2 In view of the specialist nature of the commission, the needs of the client group and the imperative to deliver a prefabricated solution within the time constraints of the funding deadline, it was necessary to approach specialist contractors. Three contractors were identified. All three had carried out previous work in the Borough and had indicated (after visiting the Charlie Chaplin site and discussing the project with staff) that they would be interested to tender for a project. Because of the nature of this project, it was necessary to seek advice from Corporate Procurement. It was agreed that a minimum of 3 contractors could be issued ITTs, these were Muf Architects, Portakabin Limited and EcoSpace. However one of the bidders withdrew from the process the day before the tenders were due, citing time constraints. Therefore, a decision was taken to move the return date forward to allow more time for all contractors to submit tenders. Officer Delegated Decision Report - Procurement Corporate Procurement Team V9 – 4 October 2010 6 2.3 All suppliers were contacted and made aware that the submission date had been moved forward by an additional 3 days. Unfortunately, despite this one bidder still failed to submit a tender. Therefore as advised by procurement evaluation the scoring was carried out with the two remaining tenders received. The criteria on the evaluation matrix were developed using the contract specification, with scoring based on a 60/40 price to quality weighting. Although competition was reduced due to the unforeseen withdrawal of one of the potential bidders, the evaluation process was conducted thoroughly and involved a scoring panel of four including the Director of Charlie Chaplin Adventure Playground, the BSF Divisional Finance Manager, the CYPS Play & Sports Project Manager and a BSF Senior Project Manager. 2.4 This tendering exercise was carried out in accordance with competition procedures with three companies being asked to submit tenders. Two tenders were received before the deadline. 2.5 The tender specifications addressed key priority areas identified in conjunction with Charlie Chaplin staff and Trustees to best meet the outcomes of the overall Aiming High for Disabled Children programme. These are to enable inclusive access for children and young people with mobility / disability/ sensory needs to universal services (that are evidenced to be over and above normal Disability Discrimination Act (DDA) requirements) and support specialist service providers of short breaks. 2.6 The two tender prices received were as follows: MUF Architecture with Wood Newton / Atelier One Portakabin Ltd £202,635 £200,680 2.7 As Portakabin Ltd provided the required method statements and the lowest tender price; they have scored the highest score. The tender evaluation matrix gives a detailed assessment of the Portakabin Ltd tender in comparison to the other tender. 2.8 The costs submitted with Portakabin Ltd tender have been arithmetically checked and there are no errors. Portakabin Ltd have also provided a full programme of work. There are important deadlines for the projects as there are play activities planned on particular dates, which are linked to service level agreements. The programme submitted with the Portakabin Ltd tender confirms that they are able to meet the required completion deadlines and work around the service planning requirements of the Charlie Chaplin staff. 3.0 Value for Money 3.1 The tendering process has confirmed that the price from Portakabin Ltd is very competitive. A full analysis of the Portakabin Ltd tender in comparison to the other tenders received is given in the tender report matrix. This entire project has been commissioned to ensure that the authority does not st lose capital due to it not being committed prior to 31 March 2011. As highlighted by DfE in 2010, st there are no provisions to carry over unspent funding beyond 31 March 2011. 3.2 The over-riding principles governing the recommendation include but are not restricted to: • • • • • • • The Tender has a good understanding of the developments required by the Aiming High for Disabled Children Capital programme. The Tender provides a holistic locality and integrated approach to delivery of services for children with disabilities. Good track record of technical abilities and delivery, and confidence that the developments and services can be delivered by the due date. Established knowledge and experience of working with children with disabilities and their families in Lambeth. Assurance that developments will meet recognised quality standards. The proposal represents best value for money. Sustainability of the proposal. Officer Delegated Decision Report - Procurement Corporate Procurement Team V9 – 4 October 2010 7 3.3 An engagement event was held with parents/carers, staff and children to elicit feedback from all stakeholders on this project. 3.4 There are approximately 2000 children with a disability in Lambeth. The commonest disorders are communication disorders, moderate/severe learning disability and autism. Co-morbidities are common e.g. visual/hearing problems associated with learning disability. Compared to London and England, Lambeth appears to have a higher proportion of autistic children, and children with communication disorders. Parents and children through on-going engagement have clearly identified a need for better access to community based sports, play and leisure services – the barriers currently relate to a range of factors, including location and access to (affordable) transport, and concerns about the ability of providers to effectively include children with severe disabilities in universal settings. This project will directly address those concerns. 4.0 Cashable Savings 4.1 As this commission is the result of a bespoke one-off tendering exercise, there are no achievable cashable savings. 5.0 Non-cashable Savings 5.1 N/A 6.0 Volume Reduction 6.1 N/A 7.0 A total sum of £231,000 is available which is fully funded by the CYPS Children with Disabilities Team within the cost code 475.9998 capital code C300001187as part of the DfE ‘Aiming High for Disabled Children’ capital grant funding allocation to the authority. 8.0 Comments from Director of Governance & Democracy 8.1 Legal comments are contained within the body of this report. 9.0 Results of Scrutiny and Consultation Views 9.1 As the contract is valued at less than £500k the report has not been forwarded to the Chair of the Overview & Scrutiny Committee. 10.0 Organisational Implications Risk Management This project was tendered to meet the design and build requirement for a modular construction and has been evaluated to achieve that need. Prior to tendering, a detailed specification was drafted to ensure that all project needs would meet. A detailed project risk register has been developed, and will continue to be monitored and updated as the project progresses. Officer Delegated Decision Report - Procurement Corporate Procurement Team V9 – 4 October 2010 8 Risk Unforeseen circumstances on site lead to additional works Probability Impact Low Medium Low Low Contractor fails to deliver works within budget Low Medium Materials are late coming to site. Low High Theft or vandalism of property during construction Mitigation The site has already been subject to improvements in the past. Whilst it is possible that there are unknown services. A budget contingency is also held specifically to cover such eventualities. The Adventure Playground is a gated area, which are locked both during night time hours and due to Safeguarding requirements during working hours. The contractor is also required to maintain an insurance policy to cover such eventualities. Portakabin Ltd is a reputable firm who have delivered successfully on other similar schemes. The contract is a fixed price contract. The lead in times for a ‘portakabin’ are fixed to a period not exceeding six weeks and are constructed off site before being craned into position. 11.0 Equalities Impact Assessment 11.1 An EIA has been completed for the Primary & Community Programme. This rates all such building projects as LOW. There are no equalities impacts directly relating to this procurement. The design of the portakabin has taken into consideration access issues for those people who may be physically impaired. Appropriate actions have been taken to mitigate any negative impact. 11.2 The full Equality Impact assessment is available on request. 12.0 Community Safety Implications 12.1 There are no direct community safety implications directly relating to this project which is a play space that is kept securely locked during both working and non-working hours and is surrounded by 3m high perimeter fencing. Public confidence in accessing universal settings by children and young people with disabilities is a key issue in Lambeth as highlighted in the consultation carried as part of the AHDC programme, and which the Aiming High for Disabled Children Capital Grants Programme aims to address. The Capital Grant programme will be directly linked to wider training and capacity building initiatives including some that will improve parents’ confidence and challenge negative perceptions of what is possible. 13.0 Responsible Procurement Implications 13.1 There are no obvious barriers to services being provided, either in terms of equality and diversity or the way services will be delivered. The portakabin design meets the requirements of the Disability Discrimination Act (1995), Race Relations Act (2000), environmental management and the requirements of current Health and Safety legislation. 13.2 It was necessary to seek advice from Corporate Procurement to conduct commissioning using an slightly unorthodox process. As such, a minimum quantity of potential bidders had been invited to tender for this project, which allowed the contract to be awarded to a specialist supplier within the time boundaries required by external capital funding rules. Because these procurement measures were adopted, the Council can appropriately commit vital external capital funding from the DfE. Officer Delegated Decision Report - Procurement Corporate Procurement Team V9 – 4 October 2010 9 14.0 Staffing & Accommodation Implications 14.1 There are no staffing or accommodation issues related to this contract. 15.0 Any Other Implications 15.1 Informal advice from planning officers indicates that the scheme might proceed as permitted development. But even if this were not to be the case, officers would proceed at risk having made allowances for a minor application and a provisional sum is allowed within the contract to cover this eventuality. 16.0 Contract Management & Monitoring 16.1 The contract will be managed by an Assistant Project Manager from within the CYPS BSF Primary and Community Team in conjunction with the Project Manager for Play and Sports. 16.2 While technical issues will be addressed through weekly or fortnightly issues between the contractor and the Assistant Project Manager, any timetable implications will be discussed with the Chair of the Board of Trustees of Charlie Chaplin and the Director of the organisation. However, given the shortterm nature of the project (six weeks on site), it is not proposed to undertake any formal contract review or monitoring other than post contract review. 17.0 Timetable for Implementation 17.1 The table below shows the stages, milestones and deadlines for implementing the contract. No. 1 2 3 4 5 6 18.0 Item Description Contract Finalised Start of works at off-site Start of works on site Portakabin delivery Practical Completion of works Completion of 12 month defects liability period Due Date 30/03/2011 31/03/2011 18/04/2011 24/05/2011 13/06/2011 13/06/2012 Appendixes Tender Evaluation Matrix Officer Delegated Decision Report - Procurement Corporate Procurement Team V9 – 4 October 2010 10