Gateway Three

Officer Delegated Decision Report - Procurement For All Procurement Awards, Waivers, Contract Extensions & Variations

Brixton Town Centre Public Art Work Administration and Contract Requisition Number Management

Wards Ferndale, Coldharbour, Tulse Hill, Brixton Hill

Report authorised by: Dorian Leatham, Interim Executive Director, Housing, Regeneration and Environment

Report Prepared and Submitted by: Shola Davies, Project Manager – Physical Regeneration Room 213, Lambeth Town Hall Lead officer’s name title, Brixton Hill address and phone number: London SW2 1RW 0207926-2586

Is this report for a request to recommend approval for a waiver to procurement rules?

Yes No

PB Date: Thursday 29 th July 2010 SPB Date: N/A Department: Housing, Regeneration & Environment Gateway 1 date (if relevant) N/A Gateway 2 date N/A Business unit code 908.9998.C2270.C1101.C480810015.00000 Business unit: Physical Regeneration Name, phone and mobile Shola Davies 0207 926-2586 Mobile:07947-406-502 numbers of presenter:

Executive Summary A waiver of contract standing orders is required for a contract variation and extension to complete the installation of permanent art pieces devised with local businesses and local artists. This project has evolved through wide-ranging engagement with local traders, artists and stakeholders; producing projects that they feel would enhance the commercial area and visitor experience for Brixton Town Centre. The permanent art projects have been through the

Officer Delegated Decision Report - Procurement Corporate Procurement Team V7 – 23 May 2010 1 conception and consultation phases. Owing to the variety of partners, stakeholders and local business engaged in the project, more proposals and more preparatory work has significantly increased the scope of works. These art pieces are for external installation and they will become Lambeth assets. During 2009-2010 three of the more complex installations were subject to unforeseen delays in the determination of the respective planning applications. This had an impact on timelines for the fabrication and installation, and the budget. These need to be completed through this contract extension and variation. This variation and extension is required to proceed with manufacture, fabrication and installation of the art works. Summary of Financial Implications The cost of the project, £118,450 will be met from Physical Regeneration capital budget. This is made up of works costs of £112,219 for fabrication and installation and £6,231 management & administration.

Reason for Exemption from Disclosure There is no part 2 to this report

Recommendations 1. To grant a waiver to clause 8.1 of Contract Standing Orders which requires competition and in accordance with the provisions of 3.1.13 of the Procurement Guide. 2. That the contract awarded to Camilla Goddard for Brixton Town Centre Public Art Work Administration and Management be varied and extended for the term of 3 months at an additional cost of £118,450 (resulting in a total aggregate cost of £254,290).

Approvals I have seen this report and approve it for onward submission to PB and or SPB:

Signature ______Date ______Alison Young, Head of Physical Regeneration

I approve the above recommendations:

Signature __ Signed off on August 13th, 2010 – signature is not included on this document for fraud prevention ___ Date ______Christina Thompson, Chair of the Procurement Board

Delegated Authority I / We approve the above recommendations:

Signature ______Date ______Dorian Leatham, Interim Executive Director HRE

Officer Delegated Decision Report - Procurement Corporate Procurement Team V7 – 23 May 2010 2 Scheme of Delegation Note: For total contract values within the thresholds listed below, the relevant signatories must sign this report. (For variations consider the total contract value including the variation amount.)

Over £10 million Executive Director of Finance and Resources More than £1 million up to and including £10 million Executive Director and Divisional Director of Resources More than £100,000 up to and including £1 million Divisional Director and Divisional Director of Resources More than £50,000 up to and including £100,000 Head of Service or Assistant Director Up to and including £50,000 Business Unit Manager or other Manager

Waiver Approval:

Value of Waiver Authorising Officers More than £500,000 and greater • Departmental Executive Director • Strategic Procurement Board Approval • Procurement Board Approval • Business Unit Manager More than £25,000 up to and including £500,000 • Departmental Executive Director • Procurement Board Approval • Business Unit Manager Up to and including £25,000 • Divisional Director of Resources • Business Unit Manager

Declarations of Interest (or exemptions granted): Yes None

Interest or Exemption Declaring Officer’s Name

* Add or subtract rows as needed.

Consultation Date Report Department or Name of person consulted Date sent response section Organisation received reference Internal Marianne Downie Physical Regeneration 22/07/10 22/07/10 Throughout Steve Fowers Divisional Support 22/07/10 22/07/10 Throughout Martin Pulle Finance & Resources 22/07/10 26/07/10 3.0 Andrew Pavlou Legal Team 22/07/10 26/07/10 4.0

Report History Is this a Key Decision (£500k+), a Non-Key Key Decision Non-Key Decision Decision or For Information? For Information If a Key Decision (£500k+), enter the date it was (Enter date here) first entered into the Forward Plan: If the answer to the above is ‘No’, state the reason at right:

Officer Delegated Decision Report - Procurement Corporate Procurement Team V7 – 23 May 2010 3 Background Documents Brixton Masterplan Tender & contract documents for – Brixton Town Centre Public Art Works Administration & Management (ODD part 1 & part 2 for – Brixton Town Centre Public Art Works Administration & Management) Brixton Visioning Framework

Appendices Appendix 1 - Brixton Town Centre Public Art Programme Appendix 2 – Oracle Transition Report July 2010

Officer Delegated Decision Report - Procurement Corporate Procurement Team V7 – 23 May 2010 4 1.0 Context 1.1 The business case (and approval to commence procurement report) was presented to DCB in March 2008. A mid value procurement exercise was carried out during July – September 2008. Gateway 3 papers were presented to Procurement Board on 11 th September 2008 for this project. A contract variation and extension are required to complete the fabrication and installation of the permanent art pieces devised with local businesses and local artists. 1.2 Future Brixton is a strategic regeneration initiative led by the Physical Regeneration team. A key aim of the Future Brixton programme is to attract inward investment for the physical regeneration of Brixton Town Centre, driving the sustainable development of Brixton’s economy, and addressing wider issues around the physical environment, community safety and crime. 1.3 Lambeth Council has been investing in a Public Arts Scheme in Brixton Town Centre to develop representative and innovative public art schemes to improve problem areas within the town centre. Extensive engagement and partnership work with local businesses and local artist has already led to the implementation of several projects at an installed value of £1,000 - £10,000 each. With the implementation of more complex projects pending.

2.0 Proposals & Reasons 2.1 Approval is sought for a waiver of contract standing orders to agree a contract variation and extension to complete the fabrication, installation and management of permanent art pieces devised with local businesses and local artists. Installation was always scheduled to roll into 2010 with funding available within the Physical Regeneration capital budget. 2.2 Additional funds and in-kind contributions have been achieved from premises owners to offset the costs of some site specific proposals. A contract variation is required to deliver the remaining project tasks and ensure our commitments to the artists, premises owners and manufacturers. 2.3 In partnership with Lambeth’s Consultation Officer there has been wide-ranging engagement with local retailers, artists and stakeholders. The project has grown as the result of cooperative working and produced more proposals that they feel would enhance the commercial area and visitor experience in Brixton Town Centre. Several art pieces are mid way through completion and additional resources are required to complete the works. 2.4 Additionally where significant delays were incurred gaining planning permission on the larger and complicated art pieces, the community support, momentum and expectation for project delivery was and remains very high. Consequently additional proposals were designed, fabricated and installed in partnership with Coldharbour Lane retailers, Brixton Town Centre Director and the project team. 2.5 These art pieces are for external installation and they will become Lambeth assets. Agreements have been made between property owners, local artists and Lambeth to deliver and host these projects, with full ownership of the pieces to be retained by London Borough of Lambeth 2.6 Management of public art and commissioning is highly specialised, consultancy services for this procurement were awarded to Camilla Goddard, who has performed well and dealt with political sensitivities in the community, she has gained the trust and support of local business to promote proactive engagement and cooperative working to ensure that the works and services associated with this project are achieved. The project is a highly successful quick win for key sites around the town centre, complementing the objectives of Brixton Masterplan to revitalise the town centre, it is hugely supported by the Ward Councillors.

Officer Delegated Decision Report - Procurement Corporate Procurement Team V7 – 23 May 2010 5 2.7 Waiver A waiver to clause 8.1 of Contract Standing Orders this requires competition and in accordance with the provisions of 3.1.13 of the Procurement Guide. The total aggregate cost of the contract will then become £254,290 for works and services (original contract value £135,840 + variation of £118,450).

Value for Money 2.8 Value for money has been obtained by requiring that the contractor Camilla Goddard obtains three quotes for work or supplies from sub contractors. . 2.9 Cashable Savings None 2.10 Non-cashable Savings The project has been successful in improving the physical fabric of the premises. There will be more savings related to social cohesion, and building civic pride. This project has helped change perceptions of the town centre, attracting inward investment and becoming more of a destination for tourists and visitors. A monetary value for these savings cannot be calculated at this stage.

3.0 Comments from Executive Director of Finance & Resources 3.1 The Future Brixton Public Art project is an approved capital programme that has been funded by Lambeth Council since 2008-09 financial year. The project’s actual spend to date from 2008-09 is £154k. There is an available capital fund budget of £159k in this current financial year of 2010-11. 3.2 This project encompasses both revenue and capital expenditure. Expenses incurred in engaging with local communities, businesses and artist for example, would be expected to be funded from revenue budgets. It is recommended that the Project team ensures that there is sufficient revenue budget to deliver non capital works from the business unit Projects budget. The current revenue projects budget is £437k, of which £247k is not contractually committed so far.

4.0 Comments from Director of Legal and Democratic Services 4.1 The Council has adopted the Procurement Guide which governs all procurement activities conducted by officers. The Guide says that to assess the level of delegated power required for extending or varying contracts the value of such extensions or variations should be added to the value of the original contract. The Procurement Guide also says that a contract may be extended or varied where there are express terms in the original contract enabling such; otherwise it must be treated as a waiver. In this case the authority to award has been delegated to the Departmental Executive Director as this is a waiver. Authorising Officers must ensure, before using their delegated powers, that, they have obtained the consent of the Departmental Procurement Board.

4.2 The EU procurement regime applies to the matters in this report by virtue of the Public Contracts Regulations 2006. Under these Regulations where the services are set out in Schedule 3 part B the full application of the Regulations do not apply and the Council has no duty to publish a contract notice in the official journal. Although this contract is not subject to the full requirement of the Regulations the European Commissioners have advised that in the light of the Treaty of Rome 1957 such contracts should be competitively tendered to provide fairness, transparency and to ensure that there is no discrimination against an applicant from another EU member state. In addition case law suggests that powers to vary or extend contracts should not be used excessively. Accordingly it would be prudent to follow the procedure in the Regulation for negotiated extensions/variations. They say:

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Additional services are required from the contractor that through unforeseen circumstances has not been included in the original contract. It must be the case that the additional services:

• Cannot be technically or economically separated from the original contract without great inconvenience to the contracting authority, or

• Although separable, are strictly necessary for the completion of the original contract

It should be noted that the aggregate value of all contracts must not exceed 50% of the value of the original contract for part A services. This would not apply to part B services but using the rule as guidance would be in the spirit of the Treaty of Rome. . 4.3 The Council’s Constitution requires that all decisions, which require expenditure between the sums of £100,000 and £500,000, must be published in Officer’s Decisions. In addition a copy of this report should be sent to the Committee Continuity Officer at least five clear day before the recommendation is acted upon.

5.0 Results of Scrutiny and Consultation Views: N/A 6.0 Organisational Implications 6.1 Risk Management: No significant risks identified at this stage of the project. Equalities Impact Assessment 6.2 An Equalities Impact Assessment has been undertaken for this project, the rating is high. The work carried out by Camilla Goddard will be part of the process of satisfying the requirements in the Race Relations (Amendment) Act 2000, Equality Act 2006 and the Disability Discrimination Act 2005 and improving the quality of life within the area. Around age, sexuality, disability and gender issues the impact could be high. Physical Regeneration and the consultant will ensure that when commissioning the art pieces are suitable to Brixton and the local communities, encouraging consultation and involvement from numerous groups. Around race issues would be high. The ward has the eighth largest non White British population in the borough according to the 2001 Census. There will be an expectation that the project will engage with the local community and play a role in promoting good community relations. Around faith issues the impact could be high. Lambeth has a very diverse population, according to the 2001 census of which almost 70% belong to a faith or religion. Around social inclusion issues would be high. The Public Arts Project is seeking to socially engage with the local community when commissioning the individual projects.

Community Safety Implications 6.3 All contractors are required to ensure that personal safety for staff and visitors to Brixton Town Centre is integral to the works and function of all work associated with these art projects.

Responsible Procurement Implications 6.4 The project requires the consultant to work with contractors and professionals from conception to installation ensuring high energy efficiency and sustainability standards, to reflect best practice. A key aim of the project is to develop representative and innovative public art schemes to improve problem areas within the town centre. The public art projects are changing the perception of the town centre, attracting inward

Officer Delegated Decision Report - Procurement Corporate Procurement Team V7 – 23 May 2010 7 investment, and developing public confidence in the Council as a delivery body for physical regeneration.

Staffing & Accommodation Implications 6.5 None. Any Other Implications 6.6 None.

7.0 Timetable for Implementation 7.1 The table below shows the stages, milestones and deadlines for implementing the contract.

No. Item Description Due Date 1 Resume project Aug 2010 2 Completion of works Dec 2010

8.0 Contract Management & Monitoring 8.1 Shola Davies is the appointed Project manager for the project from Physical Regeneration. Camilla Goddard provides weekly progress reports to the project manager including any issues arising. A gateway 4 contract review report will be completed quarterly for this project.

8.2 Measurable aims and outcomes of the contract. No. Item Description Due Date 1 The Heron – Maggi Hambling piece installed Jul 2010 2 Foxes & Cherries – Lucy Casson Sep 2010 3 Granville Arcade Sep 2010 4 Ritzy side panels Sep 2010 5 Coldharbour Shutters Oct 2010 6 Electric Lane Outdoor Gallery - Photofusion Nov 2010 7 Brixton Coat of Arms - Hew Locke Nov 2010 8 Brixton Speaks – Will Self Dec 2010 9 Refugee & Oval House project Dec 2010

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