{meta} Agenda item - Request for Approval - Contract Award - New Classroom Block at Springwood Primary School (Craig Hall Site)

Agenda item

Decision:

Salford City Council - Record of Decision

 

I Paul Dennett, City Mayor, in exercise of the powers conferred on me by the Scheme of Delegation of the Council do hereby approve:-

 

(a)  The direct award of the following Stage 1 contract for a project approved under the current Schools Basic Need Corporate Capital Programme in accordance with the following:-

 

(i)    Approves the outcome of the mini-competition (Stage 1) procurement process conducted through the NHS Shared Business Services Framework to directly award the contract to MTX Contracts Limited as constructor partner to design and build a new modular classroom block for Springwood Primary School (Craig Hall site), Irlam.

 

(ii)  Approves that delegated officers acting on behalf of Salford City Council

progressing with the constructor partner in selecting a design and finalising costs for the delivery of the school in line with the agreed budget as Stage 2 of the procurement process.

 

(iii) Approves that a pre-construction agreement can be issued to cover the period of time between 20January 2020 up to when the formal contract is executed.

 

(iv) Authorises that interim payments be made to MTX Contracts Limited under the terms and conditions of the pre-construction agreement for advance works costs accrued up to a value of £1,629,040.00 pending the agreement of a contract under the Stage 2 process.

                                                                                         

 

Detail required

Title/Description of Contracted Service/Supply/Project

Appoint by direct award a contractor to design and build a new modular classroom block for Springwood Primary school (Craig Hall site)

Name of Successful Contractor

MTX Construction Limited

Supplier Registration Number

(to be supplied by Corporate Procurement)

                                04522396

Type of organisation

(to be supplied by Corporate Procurement)

Private Limited Company

          Status of Organisation                            

(to be supplied by Corporate Procurement)

SME

Contract Award Price

£1,629,040.00

Full Project

Contract Value Including Fees and approved QRA

(if applicable )

£1,784,573.00

Full Project

Contract Duration

31 weeks

Contract Start Date

20/01/2020

Contract End Date

24/08/2020

Optional Extension Period 1

months

Optional Extension Period 2

months

Who will approve each Extension Period?

Choose an item.

Contact Officer (Name & number)

Gregory Durkin 0161 779 4942

Lead Service Group

Children's Services

 

How the contract was procured?

(to be supplied by Corporate Procurement)

Framework Call-off (Direct)

Framework Details (where applicable)

(Procurement Body, Framework Reference & Title, Start/End Dates, Hyperlink, etc.)

 

NHS Shared Business Services Framework Agreement Schedule 5a Lot 7

Funding Source

Capital Programme

 

 

The Reasons are:   To enable the works to progress as programmed to start on site and be completed in time for the start of the new school term in September 2020. 

 

Options considered and rejected were:None.  All procedures are in accordance with normal Standing Orders.

 

Assessment of Risk: High. The works have been identified as a priority under the Pupil Place Planning Basic Need criteria. If the City Council does not increase its SEN school provision to meet the projected demand then the Council would not be fulfilling its statutory duty in relation to the provision of sufficient school places.

 

The works are required to be completed in time for the start of the new school term in September 2020 to provide sufficient capacity for pupil’s education and the. programme has been developed to achieve the delivery of the project to meet the necessary completion date. 

 

The source of funding is: The funding source available is from within the Schools Corporate Capital Programme and is detailed in reports previously submitted for approval.

 

Legal Implications: Supplied by:  Tony Hatton, Principal Solicitor, tel. 219 6323.

 

When commissioning contracts for the procurement of goods, services or the execution of works, the Council must comply with the Public Contracts Regulations 2015 PCR) and its own Contractual Standing Orders (CSO’s), failing which a contract may be subject to legal challenge from an aggrieved provider. The proposed award of the contract follows an appointment by direct call-off in accordance with the NHS Business Services Framework Agreement Schedule 5a Lot 7 under criteria relating to reasons of urgency.

 

The purpose of a framework agreement is to select through a procurement/evaluation process a number of providers who can meet the service requirements of the Council, as and when those services are required. If they are required then the Council will undertake an exercise to call off the services from one or more of the providers who have been selected to be on the Framework and this may be through any number of ways e.g. mini-competition, direct allocation etc depending on the circumstances. A contract will then be formed between the Council and the chosen provider/s.

 

The Council will need to have followed the procedure set out in the framework agreement for direct allocation to ensure the procurement process is compliant. The NHS Shared Business Services Framework Agreement allows for the appointment of a single contractor without competition where, for reasons of urgency, it is not reasonably practical to award a contract by way of mini competition. There is an identified need to provide increased provision for special need school places for the start of the school term in September 2020 and the least risk to the Council to meet its statutory requirement is to directly engage with and appoint a suitable design and build contractor who could meet the programme requirements. The procurement procedures therefore appear robust and compliant with the requirements of the City Council’s contractual standing orders and public procurement legislation.

 

In line with procurement procedures it is proposed to directly award the contract to MTX Contracts Limited for the design development, cost estimates and initial project delivery under a Stage 1 procurement process with the proviso that the full project costs will be reported back for contract agreement to Council under the completed Stage 2 process.

 

The procurement procedures therefore appear robust and compliant with the requirements of the City Councils CSO’s and public procurement legislation.

 

The award of the contract will commit the City Council to the formal arrangement and upon receipt of instructions Legal Services will assist in preparing the necessary contractual documentation to ensure the City Council’s position and interests are protected.

 

                                                          

 

Financial Implications: Supplied by Alex Archer (Finance Manager) Tel: 778 0498

 

The cost of the Phase 1 works can be met from within the budget provision for the scheme included under the approved 2019/20 Schools Corporate Capital Programme.

 

 

Procurement Implications: Heather Stanton (Category Manager – Corporate Procurement Team) Tel: 0161 686 6241

 

The contract was procured in accordance with Contractual Standing Orders under the Council’s Constitution governing contract procurement consistent with criteria for a direct call-off award to a single contractor under the NHS Shared Business Services Framework Agreement Schedule 5a Lot 7 for reasons of urgency.

 

Contact Officer: Cathy Starbuck - Assistant Director Tel. 0161 778 0183            

 

 

This decision is not subject to consideration by another Lead Member

 

The appropriate Scrutiny Committees to call-in the decision are Growth and Prosperity Scrutiny Panel and The Overview and Scrutiny Board.

 

 

 

Signed:           PAUL DENNETT             Dated:20 February 2020

                     City Mayor

 

 

This decision was published on 20 February 2020

This decision will come in force at 4.00pm on 27 February 2020unless it is called-in in accordance with the Decision Making Process Rules.

 

 

Supporting documents: