Agenda item

RESOLVED:

1.       That the appointment of selected building contractors to the Orbis Construction Framework be approved.  

2.       In order to reduce timescales for awarding contracts under the Orbis Construction Framework, authority to award contracts above £500,000 in value, where a mini-competition tender procedure has been followed, be delegated to the Chief Property Officer, in consultation with the Leader of the Council, Cabinet Portfolio Holder, Assistant Director of Procurement and Section 151 Officer.

Reasons for Decisions:

Property Services are responsible for delivery of Surrey County Council’s capital construction projects which are estimated to be £200m over the next 4 years.

In order to deliver these projects Property and Procurement Services developed a Delivery Model for Major Capital Projects which involves the use of a suite of complementary procurement arrangements. The Delivery Model includes existing regional frameworks and other frameworks for construction works and services which are used by the Council. Where local markets exist for construction contracts the Delivery Model allows for tendering local building contractors in accordance with the Council’s Procurement Standing Orders.

            The use of a combination of complementary procurement arrangements will ensure best value is obtained particularly in terms of quality of service and reduced contract award timescales.

Sussex Cluster Construction Framework which formed part of the Delivery Model expired on 28 February 2017. Sussex Cluster Construction Framework will be replaced with a new Orbis Construction Framework which will supplement the Delivery Model with a flexible procurement arrangement.

Procurement and Property Services undertook a restricted tender procedure to select a group of building contractors with demonstrable experience and capacity to deliver construction projects between £1,000,000 and £10,000,000 in value. The tender for the new Orbis Construction Framework is at a stage where Cabinet approval is required in order to conclude the tender procedure and appoint successful building contractors to the Framework.

This new Orbis Construction Framework will enable rapid contractor deployment via mini-competition route. In order to reduce timescales for awarding contracts above £500,000 in value, Cabinet is requested to delegate authority to award contracts to Chief Property Officer in consultation with the Leader of the Council, Cabinet Portfolio Holder, Assistant Director of Procurement and Section 151 Officer.

This proposed schedule of delegation is the same as the previous schedule which was approved by Cabinet on 31 January 2017 for Assets & Infrastructure contracts over £500,000 in value. 

Cabinet will exercise control over commitment of expenditure via a forward plan tracker, Member updates and by the continuing need for Cabinet approval for the business case of projects before they are formally tendered.

[The decision on this item may be called in by the Corporate Services Select Committee]

The Cabinet Member for Property and Business Services said that the new Orbis Construction Framework would supplement a number of procurement arrangements which were available to Surrey County Council to deliver capital construction projects.

He also informed Cabinet that the objectives of the Framework would put an emphasis on the delivery of social value benefits in the local community such as creation of employment, training and apprenticeships opportunities for residents and sub-contracting opportunities for local contractors.

Finally, he confirmed that the Framework would be split into two value banded lots:

·         Lot 1 for works between £3m and £10m

·         Lot 2 for works between £1m and £3m.

The financial details relating to this Framework were set out in a part 2 annex.

RESOLVED:

1.       That the appointment of selected building contractors to the Orbis Construction Framework be approved.  

2.       In order to reduce timescales for awarding contracts under the Orbis Construction Framework, authority to award contracts above £500,000 in value, where a mini-competition tender procedure has been followed, be delegated to the Chief Property Officer, in consultation with the Leader of the Council, Cabinet Member for Property and Business Services, Assistant Director of Procurement and Section 151 Officer.

Reasons for Decisions:

Property Services are responsible for delivery of Surrey County Council’s capital construction projects which are estimated to be £200m over the next 4 years.

In order to deliver these projects Property and Procurement Services developed a Delivery Model for Major Capital Projects which involves the use of a suite of complementary procurement arrangements. The Delivery Model includes existing regional frameworks and other frameworks for construction works and services which are used by the Council. Where local markets exist for construction contracts the Delivery Model allows for tendering local building contractors in accordance with the Council’s Procurement Standing Orders.

            The use of a combination of complementary procurement arrangements will ensure best value is obtained particularly in terms of quality of service and reduced contract award timescales.

Sussex Cluster Construction Framework which formed part of the Delivery Model expired on 28 February 2017. Sussex Cluster Construction Framework will be replaced with a new Orbis Construction Framework which will supplement the Delivery Model with a flexible procurement arrangement.

Procurement and Property Services undertook a restricted tender procedure to select a group of building contractors with demonstrable experience and capacity to deliver construction projects between £1,000,000 and £10,000,000 in value. The tender for the new Orbis Construction Framework is at a stage where Cabinet approval is required in order to conclude the tender procedure and appoint successful building contractors to the Framework.

This new Orbis Construction Framework will enable rapid contractor deployment via mini-competition route. In order to reduce timescales for awarding contracts above £500,000 in value, Cabinet is requested to delegate authority to award contracts to Chief Property Officer in consultation with the Leader of the Council, Cabinet Portfolio Holder, Assistant Director of Procurement and Section 151 Officer.

This proposed schedule of delegation is the same as the previous schedule which was approved by Cabinet on 31 January 2017 for Assets and Infrastructure contracts over £500,000 in value. 

Cabinet will exercise control over commitment of expenditure via a forward plan tracker, Member updates and by the continuing need for Cabinet approval for the business case of projects before they are formally tendered.