Agenda and decisions

Procurement Board - Wednesday, 7 April 2021 10.00 am

Venue: Microsoft Teams Meeting. View directions

Contact: Carol Eddleston, Senior Democratic Services Advisor 

Items
No. Item

1.

Apologies for absence

2.

Declarations of interest

3.

To approve, as a correct record, the minutes of the meeting held on 11th March 2021 pdf icon PDF 389 KB

4.

Matters arising

5.

Decision items - Part 1 (open to the public)

5a

Request for Approval - Appointment of New Managing Agents - 100 Embankment and No 2 New Bailey pdf icon PDF 578 KB

Decision:

Salford City Council - Record of Decision

 

I Councillor Hinds, Lead Member for Finance and Support Services and chairman of the Procurement Board, in exercise of the powers contained within the Council Constitution do hereby approve the award of the contract as outlined in the table below:

 

Detail required

Answers

Title/Description of Contracted Service/Supply/Project

100 Embankment and 2 New Bailey Square

Name of Successful Contractor

Knight Frank LLP

Supplier Registration Number

(to be supplied by Corporate Procurement)

 

Type of organisation

(to be supplied by Corporate Procurement)

Limited Liability Partnership

Status of Organisation

(to be supplied by Corporate Procurement)

Non-SME

Contract Value

£319,340

Full Project

Contract Duration

36 months

Contract Start Date

03/05/2021

Contract End Date

03/05/2024

Optional Extension Period 1

24 months

Optional Extension Period 2

N/A

Who will approve each Extension Period?

Strategic Director (extension < £150k)

Contact Officer (Name & number)

James Kington 07855 146 516

Lead Service Group

Place

How the contract was procured?

(to be supplied by procurement)

Mini Competition

Framework Details (where applicable)

(procurement body, framework reference & title, start/ end date

OJEU Tender

Funding Source

Building Occupiers via Service Charge

Ethical Contractor

Mayor’s Employment Charter

Committed to sign up to the Charter

 

Accredited Living Wage Employer

 

 

 

 

The Reasons for the tender are that the buildings require a best in class approach to management to secure the best covenant of occupier for the building to ensure the property is a success. The management of Grade A office space is a specialist area and is provided by a small number of consultants within the property market.

 

Options considered and rejected were:

 

1.     Extend the current arrangements

The buildings are currently managed by Knight Frank ( 1 & 2 New Bailey) under an existing 3 year appointment which has now reached the end of its term and CBRE 100 Embankment, under a temporary appointment that was made prior to the practical completion of the building. Both these arrangements no longer meet procurement rules and as such have been re tendered.

 

2.     Bring the management in house

The management of Grade A office space is a specialist area and SCC do not have the in-house capability to deliver this service. Further more the appointment of an external manging agent reduces the costs and risks associated with these services to SCC

 

Assessment of Risk

The financial risk to the Council is mitigated by the fee for the property management services being recoverable from the occupiers of the two buildings as part of the building service charge.  Over 65% of the costs of the management fee for 2 New Bailey Square are already covered as a result of the lettings which have taken place in that building to date.  As yet, no occupiers are confirmed for 100 Embankment so all the running costs are payable by the Council.  However, as the building does not have tenants, the full suite of services is not being provided so the running costs will be reduced until tenants take  ...  view the full decision text for item 5a

6.

Any other business - Part 1 (open to the public)

7.

Date and time of next meeting

10:00am on Wednesday 21st April via MS Teams Live.