Kirkgate Market Phase 2 (Великобритания (Англия, Шотландия, Уэльс) - Тендер #50130849)

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Voluntary ex ante transparency notice

Directive 2014/24/EU

Section I: Contracting entity

I.1) Name and addresses

Leeds City Council

CIVIC HALL,CALVERLEY STREET

LEEDS

LS11UR

UK

Contact person: Ellie Lomas

Telephone: +44 1135351648

E-mail: eleanor.lomas@leeds.gov.uk

NUTS: UKE42

Internet address(es)

Main address: https://www.leeds.gov.uk/

I.4) Type of the contracting authority

Regional or local authority

I.5) Main activity

General public services

Section II: Object

II.1) Scope of the procurement

II.1.1) Title

Kirkgate Market Phase 2

II.1.2) Main CPV code

45000000

II.1.3) Type of contract

Works

II.1.4) Short description

Kirkgate Market Phase 2 comprises of a number of works, outlined below, following on from successful completion of Phase 1 works.

- Stripping out existing market units

- Carrying out some structural repairs and strengthening where required to existing units.

- Installing modern mechanical and electrical services to the units.

- Repairs to roofs and guttering

- Repairs to drainage where required.

II.1.6) Information about lots

This contract is divided into lots: No

II.1.7) Total value of the procurement

Value excluding VAT: 5 396 476.44 GBP

II.2) Description

II.2.2) Additional CPV code(s)

45000000

II.2.3) Place of performance

NUTS code:

UKE42

II.2.4) Description of the procurement

Negotiated Proecedure without prior publication of a notice following successful Kirkgate Market Phase 1 delivery and satisfactory price submitted for subsequent Phase 2 works.

II.2.5) Award criteria

Criteria below:

Price

II.2.11) Information about options

Options: No

II.2.13) Information about European Union funds

The procurement is related to a project and/or programme financed by European Union funds: No

Section IV: Procedure

IV.1) Description

IV.1.1) Type of procedure

Award of a contract without prior publication of a call for competition

Justification for selected award procedure:

The procurement falls outside the scope of application of the Directive

Explanation:

Bermar Building Company Limited won in competition and delivered Phase 1 of essential health and safety works at the 1875 Kirkgate Market Blockshops. The contract was awarded in January 2022 in the sum of £3,609,781 with works starting in late January 2022 which have now been completed. The contractor has delivered a high quality of performance of the works on phase 1.

Bermar Building Company Limited were appointed following a competitive procurement exercise which was a retender (second attempt) issued to contractors from Constructionline. This approach was necessary as a previous procurement exercise via the YORBuild construction framework yielded interest but no tender submissions. Tenders were received and Bermar Building Comapny Limited were awarded the contract following evaluation.

As part of the procurement exercise it was stated in the tender documents that subject to good performance on site for phase 1 and satisfactory price for further phases, then these subsequent phases might be awarded at the Council"s discretion to the contractor who undertook the phase 1 works to provide continuity and avoid interruptions.

Current market conditions in the construction industry are still proving challenging in terms of lack of interest in tendering, increasing prices of labour, materials, and the inflationary increases being experienced. These conditions are affecting contractor interest in procurements and the prices being received when bids are submitted.

Given the constraints of the site environment, including the market continuing to be a live working environment, out of hours working, liaison with traders, and the potential for other contracts running concurrently, there is a material risk that if the works are competitively tendered there will again be limited or no interest from contractors in bidding for the works. If this occurs the current relationships between Bermar and the Council and Bermar and the traders could be lost.

Furthermore, by running a competitive procurement process this will result in delays to the works of several months due to the processes involved in conducting a procurement exercise, awarding a contract, demobilising Bermar, and mobilising the successful contractor. Additional costs for the Council will also be incurred in terms of loss of revenue income from lettings, compensation payments to traders, and staff resource. There is a need to conclude the works as soon as practicable, as these pertain to health and safety issues, which are the principle focus of the works overall.

The procurement process run for the phase 1 works, though not covered under the PCRs 2015, was compliant with Leeds City Council Contract Procedure Rules and the process, subsequent evaluation and award was open, fair, and transparent.

The publication of this notice is to rectify the award of the contract to Bermar Building Company Limited despite the value being under the PCR 2015 works threshold following a procurement process that was conducted in a compliant, but under threshold, manner.

IV.1.8) Information about Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: No

Section V: Award of contract/concession

V.2 Award of contract/concession

V.2.1) Date of conclusion of the contract/concession

02/01/2024

V.2.2) Information about tenders

The contract has been awarded to a group of economic operators: No

V.2.3) Name and address of the contractor

Bermar Building Company Limited

01052886

Bradford

UK

NUTS: UKE42

The contractor is an SME: Yes

V.2.4) Information on value of the concession and main financing terms (excluding VAT)

Total value of the concession/lot: 5 396 476.44 GBP

V.2.5) Information about subcontracting

Section VI: Complementary information

VI.3) Additional information

Bermar Building Company Limited won in competition and delivered Phase 1 of essential health and safety works at the 1875 Kirkgate Market Blockshops. The contract was awarded in January 2022 in the sum of £3,609,781 with works starting in late January 2022 which have now been completed. The contractor has delivered a high quality of performance of the works on phase 1.

Bermar Building Company Limited were appointed following a competitive procurement exercise which was a retender (second attempt) issued to contractors from Constructionline. This approach was necessary as a previous procurement exercise via the YORBuild construction framework yielded interest but no tender submissions. Tenders were received and Bermar Building Company Limited were awarded the contract following evaluation.

As part of the procurement exercise it was stated in the tender documents that subject to good performance on site for phase 1 and satisfactory price for further phases, then these subsequent phases might be awarded at the Council"s discretion to the contractor who undertook the phase 1 works to provide continuity and avoid interruptions.

Current market conditions in the construction industry are still proving challenging in terms of lack of interest in tendering, increasing prices of labour, materials, and the inflationary increases being experienced. These conditions are affecting contractor interest in procurements and the prices being received when bids are submitted.

Given the constraints of the site environment, including the market continuing to be a live working environment, out of hours working, liaison with traders, and the potential for other contracts running concurrently, there is a material risk that if the works are competitively tendered there will again be limited or no interest from contractors in bidding for the works. If this occurs the current relationships between Bermar and the Council and Bermar and the traders could be lost.

Furthermore, by running a competitive procurement process this will result in delays to the works of several months due to the processes involved in conducting a procurement exercise, awarding a contract, demobilising Bermar, and mobilising the successful contractor. Additional costs for the Council will also be incurred in terms of loss of revenue income from lettings, compensation payments to traders, and staff resource. There is a need to conclude the works as soon as practicable, as these pertain to health and safety issues, which are the principle focus of the works overall.

The procurement process run for the phase 1 works, though not covered under the PCRs 2015, was compliant with Leeds City Council Contract Procedure Rules and the process, subsequent evaluation and award was open, fair, and transparent.

The publication of this notice is to rectify the award of the contract to Bermar Building Company Limited despite the value being under the PCR 2015 works threshold following a procurement process that was conducted in a compliant, but under threshold, manner.

VI.4) Procedures for review

VI.4.1) Review body

The High Court of Justice

London

UK

VI.5) Date of dispatch of this notice

08/01/2024

Information added to the notice since publication.

Additional information added to the notice since it"s publication.

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