AGENDA ITEM NO.8

COMMUNITY SCRUTINY COMMITTEE
18th SEPTEMBER 2014

Update on the tender for Minor Building Works Frameworks under 150,000

To consider and comment on the following issues:

    ● That the Committee notes the new framework arrangements for minor buildings works for the Authority:

    1 - 10,000 and
    10,001 - 150,000

Reasons:

    ● To enable the delivery of numerous building related works within a framework agreement.

    ● To enable Committee members to exercise their scrutiny role.

To be referred to the Executive Board / Council for decision: NO

Executive Board Member Portfolio Holder:

    Cllr. Colin Evans (Street-Scene Portfolio Holder)

Directorate:
Technical Services

Name of Director:
Richard Workman

Report Author:
Mark V. Davies

Designations:

Director of Technical Services

Building & Operational Services Manager

Tel Nos. / E-Mail Addresses:

01267 224647
rworkman@carmarthenshire.gov.uk

01267 225815
mvdavies@carmarthenshire.gov.uk

EXECUTIVE SUMMARY

COMMUNITY SCRUTINY COMMITTEE
18th SEPTEMBER 2014

Update on the tender for Minor Building Works Frameworks under 150,000

    1. Background

    In June 2012 Property Services together with colleagues in Procurement, commenced an OJEU procurement process for a framework of 1-150,000, being the final building related framework for the authority, enabling the authority to procure construction work for values of 1 to over 12.5 million via frameworks.

    Due to the nature of this framework, and the contractors needed, officers carried out a meet the buyer’s event with Business Wales & CITB Wales to introduce the documentation to prospective contractors.

    An advert was placed in Sell2Wales on 12th June 2012 which resulted in approximately 100 organisations attending a presentation held on 27th June 2012, and subsequently a Contract Notice Advert was eventually placed in Sell2Wales on 2nd August 2013. A subsequent post tender ‘question and answer’ meeting was held mid-way during the process to again clarify any outstanding issues and the closing date for submission of the documentation was 29th October 2013. The tender evaluation was subsequently undertaken by a cross-departmental team and all contractors were notified of the outcome and as per OJEU (Official Journal of the European Union) regulations a 10 day standstill period was set aside for any bidder to challenge the result. The Framework was due to be operational as from April 1st 2014.

    A challenge was received by an unsuccessful contractor, and a joint meeting was held with representatives of Property Services, Legal and Procurement and after consideration it was considered prudent on a commercial basis that the process would stop and that the authority would re-tender. In view of the content of the challenge it was felt that the time would be best served to improve the documentation and adjust the framework to meet the needs of the Authority.

    As a result the work undertaken by the Home Improvement Team (within the Directorate of Social Care & Housing) was included in the documents, and as a result the banding was adjusted to 2 lots to meet their requirements, namely 1-10,000 and 10,001-150,000. Each lot had an initial target of 12 contractors being appointed to each band. The usual 1% tolerance was utilised enabling all contractors within 1% of the 12th or equal 12th position also being appointed.

    The re-tender was returned on May 27th 2014 and a cross department evaluation team consisting of staff from Social Care & Housing, Building Services; Property Design and Resources (for the financial aspect) was set up to undertake the evaluation based on the following criteria:

    Economic / Financial Standing
    Capacity & Capability
    Management
    Sustainability
    Health & Safety
    Project Quality
    Project Specific Costs

    2. Managing the Risk

    2.1. The main advantage to the authority of using a framework agreement is that we do not have to go through the full OJEU process every time a project arises, which drastically reduces the lead in time prior to delivering work schemes.

    2.2. A multi-supplier framework will allow the authority to select from a number of contractors for its requirements, minimising the risk of failure, and gives stability during the contract period.

    2.3. The current approach for procuring these works within the authority is left with budget managers; this places the authority at risk of non-compliance with OEJC regulations. Managing the works through the framework removes this risk.

    2.4. A cross departmental team has been convened to determine an open and transparent process for allocating the works. It is envisaged that this team will also monitor the framework during the contract period.

    3. Financial

    3.1. With the high volume of works in these categories, the framework approach reduces our procurement costs; it also results in reduced downtime between identifying the works and fulfilling it. This is particularly pertinent when funding streams are time bound.

    4. Outcome

    4.1. The evaluation team considered all the applications and scored each category for each application. The resulting outcome scored the following contractors as receiving satisfactory scores (as follows in alphabetical order):

 

1-10,000 lot

10,001-150,000

Amman Construction

Brynaman

Copefield Construction

Pont-Henri

A Wellington

Pyle

Contract Services

Port Talbot

AWD Construction

Swansea

John Weaver

Swansea

CCT Building

Penllergaer

Jones & Maher

Carmarthen

Geraint Williams

Pontarddulais

Lewis Construction

Llanelli

Morgan Construction

Ferryside

Lloyd & Gravell

Llanelli

R & NF Services

Llanelli

M Hiorns

Llanelli

RTC Contracting

Llanelli

Martin Taffetsauffer

Trimsaran

Solid Fuel Services

Ammanford

Morganstone

Llanelli

Tennison

Llanelli

TAD Builders

Llanelli

Towy Projects

Llangadog

T R Jones

Ammanford

W B Griffiths

Haverfordwest

Tycroes Group

Llanelli

WCS Environmental

Llandysul

WW Builders

Burry Port

The evaluation process has resulted in 13 contractors in each lot, and 20 new contractors to the authority.

The framework arrangements will be in place for 3 years commencing 1st September 2014.

DETAILED REPORT ATTACHED?

NO

IMPLICATIONS

I confirm that other than those implications which have been agreed with the appropriate Directors / Heads of Service and are referred to in detail below, there are no other implications associated with this report.

Signed:

Richard Workman

Director of Technical Services

Policy, Crime & Disorder and Equalities

Legal

Finance

ICT

Risk Management Issues

Staffing Implications

Physical Assets

NONE

NONE

NONE

NONE

NONE

NONE

NONE

CONSULTATIONS

I confirm that the appropriate consultations have taken in place and the outcomes are as detailed below:

Signed:

Richard Workman

Director of Technical Services

1. Local Member(s) – N/A
2. Community / Town Council – N/A
3. Relevant Partners – N/A
4. Staff Side Representatives and other Organisations – N/A

Section 100D Local Government Act, 1972 – Access to Information
List of Background Papers used in the preparation of this report:

THESE ARE DETAILED BELOW:

Title of Document

File Ref No. / Locations that the papers are available for public inspection

Minor Works Framework Tender

Property Services Division, Trostre Depot
(David Phelps, Gateway Support & QA Manager - 01554 784129)