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Tri-Borough Executive Decision Report

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Tri-Borough Executive Decision Report Executive Decision Report Decision maker(s) at each authority and date of Cabinet meeting, Cabinet Member meeting or (in the case of individual Cabinet Cabinet Member for Planning Policy, Member decisions) Transport and the Arts, Councillor Tim the earliest date the Coleridge decision will be Date of decision 7 January 2014 taken Forward Plan reference: 04129/13/P/A Report title (decision AWARD OF CONTRACT FOR PROVISION OF ORCHESTRA subject) TO OPERA HOLLAND PARK. Reporting officer Head of Culture, Ian McNicoll Key decision Yes Access to Public information classification 1. EXECUTIVE SUMMARY 1.1. The City of London Sinfonia orchestra has been highly acclaimed as part of OHP productions over the years by critics and audience. This paper recommends the Council enters into a one year contract (with the option to extend for a further year) with the City of London Sinfonia as the resident orchestra for Opera Holland Park, 2014 at an annual fee of £340,000 plus VAT. 1.2. Due to the long-term artistic relationship that has been developed over ten years, as well as knowledge of the industry and the costs of other orchestras, the only provider that could fulfil the engagement, particularly within the existing budgets is the City of London Sinfonia. Therefore, it is proposed to not hold a competition to determine the award of contract in 2014. This is permissible under the Public Contract Regulations 2006 as it is a Part B service. This permits the Council to not hold a competition for the contract due to artistic reasons. However, it is proposed that a full tender exercise is conducted to award the contract in 2015 to demonstrate value for money. 2. RECOMMENDATIONS 2.1. That the Council enters into a one year contract with the City of London Sinfonia as the resident orchestra for Opera Holland Park 2014 (with the option to extend for a further year). 2.2. The contract will be awarded for the 2014 season at a fee of £340,000 plus VAT. 3. REASONS FOR DECISION 3.1 The orchestra is a critical part of the company’s artistic profile and output. Opera Holland Park’s offer is a fully produced opera with orchestra. A decision to contract an orchestra in advance of the season is required to allow sufficient time for the orchestra to be engaged and to prepare for and to enable publicity for the 2014 season to be carried out. 4 BACKGROUND 4.1 The City of London Sinfonia (CLS) was the replacement orchestra for the Royal Philharmonic Orchestra. Their first season was in 2004 and over the past ten seasons they have gone on to attain exceptional standards and critical acclaim. The City of London Sinfonia (CLS) was founded in 1971 by its Musical Director, Richard Hickox. Performances throughout the UK include regular engagements and appearances in concert series in all major UK cities. In London, the CLS regularly performs at the Barbican. 4.3 The quality of the resident orchestra is critical to the success of the season. Although it might be possible to engage an amateur orchestra at a lower fee than that quoted by the City of London Sinfonia, this possibility has to be balanced against the proven quality of the CLS’s performance over the past several years. Orchestra fees are calculated on the basis of Musician’s Union rates. Therefore, it is unlikely that any other orchestra of similar stature would quote significantly less as its fees would also be calculated on the basis of Musician’s Union rates, to which we must adhere. This means that it is unlikely that any other orchestra of similar quality and reputation would quote a significantly lower fee. There is a scale of charges and the CLS quote the lowest available rate under the agreements. 5 PROPOSAL AND ISSUES 5.1 The Council is obliged to pay any orchestra a fee based on Musicians’ Union (MU) rates. The City of London Sinfonia has quoted £340,000 plus VAT, which is a reduction of £80,000 on the 2013 cost. These costs have been incorporated within the projected production budget for the 2014 season. The fee is based upon negotiated MU rates that increase annually. The CLS will be providing various numbers of musicians for performances. The number of musicians fluctuates from year to year depending on the opera. The 2014 season has moderate demands with one opera, Turn of the Screw, being for a very small orchestra. 6 OPTIONS AND ANALYSIS 6.1 There are two options available for consideration: To engage the CLS as resident orchestra for 2014 season To widen the search for an equivalent standard orchestra at the same cost 6.2 In previous seasons, when CLS were first engaged, quotes from similar orchestras were acquired and found them to be, in some cases, £200,000 more in cost. In 2013, a meeting was held with another similar orchestra to explore possibilities and the orchestra refused to quote, knowing the current rate paid for CLS. Using published, negotiated MU rates for general and particular orchestras (i.e. London Symphony, London Philharmonic, the Philharmonia, Halle and BBC orchestras as well as Northern Sinfonia), officers have been able to determine that equivalent orchestras in London and one outside would cost between £409,000 and £495,000 per season. The CLS has a specially negotiated player rate between the MU and their members. Officers are therefore satisfied that the residency continues to offer very good value for money. 6.3 The Council’s Contract regulations allow for artistic appointment. Both Opera Holland Park and the CLS have a very public and reputable artistic partnership. This would be reviewed if any of the following was to take place. o The standard of performance fell below an acceptable level o The attitude and management changed significantly o The price exceeded the stated MU rate of pay by significant amounts 7 CONSULTATION 7.1 Regular consultation with the Friends of Opera Holland Park have shown a high degree of satisfaction with the CLS. Artistic personnel are also extremely satisfied with their performance. The orchestra has been highly acclaimed as part of OHP productions over the years by critics and audience alike. A small sample of the many excellent reviews from 2013 season is included below. "If the orchestra continues in the same form for the rest of the season, 2013 should be a truly memorable year at Opera Holland Park." Music OMH The City of London Sinfonia is in fine form and Stuart Stratford provides lots of dramatic pointers without using his baton as a bludgeon." Metro With the City of London Sinfonia playing their hearts out under the excitingly paced direction of Peter Robinson The Times The City of London Sinfonia’s sweet and smooth output can be counted as one of the highly successful elements." Sam Smith, Music OMH 8 PROCUREMENT 8.1 In general, above threshold Part B services should be subjected to competition. The design of the competition need not follow one of those given in the Directive (since they do not expressly apply to Part B services) but should ensure that the applicable parts of the Rules are complied with as well as General Treaty Principles. 8.2 When a contracting authority decides that it cannot hold a competition, it should be able to justify why not – whether for a Part A or Part B service. Making a direct award to a contractor always carries a risk of challenge but the risks are lower when the subject matter of the contract is Part B and lower still if persuasive justification can be put forward for not holding a competition. 8.3 In principle, there is no reason why a competition could not be held between bidders for the Opera Holland Park residency and given the fact that orchestras routinely perform internationally, it could be argued that such a competition would benefit from being promoted across the Union through a notice in the Official Journal. 8.4 It may be highly unlikely that an orchestra that has to travel from elsewhere in the European Union and pay for hotels could be cheaper than one based in the UK but that is a question that a competition is designed to resolve. It may also be true that some orchestras will be more suitable to provide for the residency than others. That too, would normally be a function of the competition to resolve. 8.5 However, if the Council is satisfied that ‘for artistic reasons’ (or for other persuasive reasons) a competition cannot be held, this would seem to be possible within the Rules. 8.6 It is important that the Cabinet Member is aware that: 1. The award of the residency to provide orchestra services to Opera Holland Park for the 2014 season is a Part B service under the Public Contract Regulations 2006 2. Part B services are subject to a lighter regime than those that are expected to attract cross-border interest; in particular, the Council has discretion to decide what level of publicity to give to Part B contract opportunities; and 3. The relevant subject matter expert has considered the matter carefully and has concluded that the long-term relationship and artistic relationship that has been developed over ten years, as well as knowledge of the industry and the costs of other orchestras, the only provider that could fulfil the engagement, particularly within the existing budgets is the City of London Sinfonia and that, therefore, it is not proposed to hold a competition to determine the award of contract.
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