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Cabinet 1 October 2003 Unrestricted Service Head (Property & Facilities

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Cabinet 1 October 2003 Unrestricted Service Head (Property & Facilities Committee: Date: Classification: Report No: Agenda Item Cabinet 1st October Unrestricted No: 2003 Report of: Title: Service Head (Property & Facilities Office Accommodation Strategy – Management) Development of New Civic Headquarters – Selection of Tenderers Originating Officer(s): Graeme Peacock Wards Affected: All 1. SUMMARY 1.1 This report deals with the selection process for tenderers to be invited to submit detailed proposals for the development of the New Civic Headquarters at the LEB site in Bethnal Green. 2. RECOMMENDATIONS 2.1 That the following consortia be invited to submit detailed proposals for the construction of the new Civic Headquarters: (1) Countryside / Skanska / Alsop Architects (2) Mapeley / Delancy / Barratt / MacCormack Jamieson Prichard Architects (3) Urban Catalyst / Costain / Penorye and Prasad Architects (4) Taylor Woodrow / Broadway Malyan Architects 2.2 That the evaluation of bids submitted be based on: - Technical Evaluation - Financial Evaluation - Architectural Evaluation - Public Consultation and that the Service Head (Property & Facilities Management) be authorised to agree with RIBA arrangements for the architectural evaluation element. LOCAL GOVERNMENT ACT, 2000 (SECTION 97) LIST OF BACKGROUND PAPERS USED IN PREPARATION OF THIS REPORT Brief description of background paper Name and telephone number of holder and address where open to inspection New Civic Headquarters / Office Accommodation Strategy Graeme Peacock ext. 4240 D:\modernGov\Data\Committ\Intranet\Cabinet\20031001\Minutes\Office Accommodation Strategy devpt of new civic HQ selection of tenderers Final_CAB_011003_AT0.doc 3. BACKGROUND 3.1 Cabinet on 30th April 2003 agreed plans for implementing the Council’s Office Accommodation Strategy, including the development of a new Civic Headquarters on the LEB site and a timetable and procurement route to achieve this. 3.2 C B Richard Ellis and Dearle & Henderson have been appointed as advisers to the authority to assist in this process, with particular reference to the invitation of tenders under the selected Design and Build procurement route. 3.3 Formal notice of the Council’s intention to proceed with the development of the new Civic Headquarters was placed in OJEC in accordance with European Community procurement requirements. This was supplemented by a full-page advertisement in the Estates Gazette. These documents emphasised the Council’s desire for a high quality landmark building and the importance of high quality architectural elements of the scheme. To provide information to prospective bidders, a project brochure and expression of interest questionnaire were produced. Interested bidders were asked to submit details of the proposed structure of their development team, including architects and project managers and development funding, together with information on their teams’ track record and experience of similar projects. In total 125 brochures and questionnaires were requested and issued, and a number were also circulated direct to targeted developers. 4. THE SELECTION PROCESS 4.1 By the closing date of 1st September 2003, some 15 expressions of interest had been received (details are set out in Appendix A). 4.2 A pare-tender evaluation of the expressions of interest identified that for various reasons five of the submissions were weaker than the competition. The other 10 firms were invited to present their proposals in interviews on 8th and 9th September. 4.3 The interviews comprised a 30 minute presentation and 15 minutes of questions by the interviewing panel. Each consortium was scored on a range of criteria, with particular emphasis on quality of architectural ideas, project management skills and relevant experience. 4.4 The quality of the presentations was very high, and it was encouraging to see the calibre of architects, developers and consultants expressing an interest in this proposal. 4.5 The interview panels’ impressions and scoring of the consortium is set out at Appendix B. On the basis of these evaluations there were five bidding teams who clearly outscored the other five. The five bidders who were left in the running at this stage were:- D:\modernGov\Data\Committ\Intranet\Cabinet\20031001\Minutes\Office Accommodation Strategy devpt of new civic HQ selection of tenderers Final_CAB_011003_AT0.doc - Countryside / Skanska / Alsop Architects - Mapeley / Delancy / Barratt / MacCormack Jamieson Pritchard Architects - Taylor Woodrow / Broadway Malyan Architects - Urban Catalyst / Costain / Penorye & Prasad Architects - Wates / Bisset Adams Architects 4.6 A draft development brief was issued to all five of these consortia and they were asked to confirm that they were happy to proceed on the basis of that brief. At that stage Wates/Bisset Adams Architects withdrew on the grounds that uncertainty about values of the sites for disposal would not enable them to prepare an appropriate bid. All the other firms agreed they were happy to proceed on the basis of the draft development brief. 4.7 A maximum of four developers proceeding to the next stage is considered ideal, and it is therefore proposed to proceed with the four highest rated consortia. However, it is felt desirable to have a reserve consortium in case one of the four, for any reason, decided to withdraw at a later stage. It is therefore proposed that the next highest rated consortium, led by Dawnay Day Group be regarded as such a reserve consortium. 5. EVALUATION OF TENDERS 5.1 The tender evaluation process is scheduled for early 2004. This is a once in a lifetime opportunity for the Council to secure a high quality civic building which reflects the vigour and diversity of the local community. It is therefore, proposed that the evaluation process have four elements within it. 5.1.1 Technical Evaluation – an evaluation to ensure that the proposals meet the Council’s requirements for its democratic and corporate functions, that the proposed design is flexible, workable, economic and effective. This evaluation would be undertaken by officers of the Council and its technical advisors C B Richard Ellis and Dearle & Henderson. 5.1.2 Financial Evaluation – an evaluation of the capital cost of the proposals for the new building; values generated by the disposal of the surplus sites; the likely running costs of the proposed building; and its impact on other corporate costs. This evaluation would be undertaken by officers of the Council and its specialist advisors C B Richard Ellis and Dearle & Henderson. 5.1.3 Architectural Evaluation – an evaluation of the architectural merits of the particular schemes, how effectively each scheme acts as a landmark as a reflection of the vigour and diversity of the local community, and as a democratic space that engages the citizens of Tower Hamlets. It is proposed to consult with the Royal Institute of British Architects on how best to manage this element of the evaluation. D:\modernGov\Data\Committ\Intranet\Cabinet\20031001\Minutes\Office Accommodation Strategy devpt of new civic HQ selection of tenderers Final_CAB_011003_AT0.doc 5.1.4 Public Consultation – an invitation to the public via LAP’s, via East End Life, via public consultation meetings with developers presenting their proposals, via public exhibitions of the proposals to express a view on the particular merits of each scheme proposed. 6. OBSERVATIONS OF THE CHIEF FINANCIAL OFFICER 6.1 No specific financial implications emanate from this report, which seeks Cabinet approval for consortia to be invited to submit proposals and tenders for the construction of new Civic Headquarters. The selection process to determine the consortia was undertaken in accordance with Financial Regulations. 6.2 Comments regarding the funding package for the new Civic Headquarters were contained in the report outlining plans for the Council’s Accommodation Strategy considered and approved by Cabinet in April 2003. 7. CONCURRENT REPORT OF THE CHIEF LEGAL OFFICER 7.1 This report seeks Cabinet’s approval to invite the four consortia identified in para 2.1 to submit detailed bids as part of the tendering process for the development of a new Civic Headquarters at the LEB site at Cambridge Heath Road, Bethnal Green. 7.2 The contract is being tendered in accordance with EU Public Regulations for Works contract as the estimated value of the proposed contract exceeds the EU threshold of £3.86 million. A notice was accordingly placed in the OJEC and also the Estates Gazette in compliance with the Council’s Financial Regulations. 7.3 The contract is being tendered using the negotiated procedure under the EU Regulations for Works as this will allow for more flexibility during negotiations of a complex procurement. 7.4 The four consortia have been selected following pre-tender evaluation of submission of expressions of interest and following interviews and submissions. 7.5 Cabinet is also asked to agree the evaluation criteria set out in para 5.1, which will be applied to the next stage of the tendering process. 7.6 There are no other legal implications arising out of this report. 8. EQUAL OPPORTUNITIES IMPLICATIONS 8.1 The new Civic Headquarters will be designed to be accessible to all sections of the community and that will form a key element of the evaluation to be conducted early in 2004. D:\modernGov\Data\Committ\Intranet\Cabinet\20031001\Minutes\Office Accommodation Strategy devpt of new civic HQ selection of tenderers Final_CAB_011003_AT0.doc 9. ANTI POVERTY IMPLICATIONS 9.1 There are no anti-poverty implications contained within this report. 10. RISK
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