Public procurement notice: Works Concession
Published: 2019-08-22
Buyer: Cardiff Council
Country: UK
Contract type: Works
Procedure: Concession award procedure
CPV classification: 45000000: Construction work | 45100000: Site preparation work | 45112700 | 45210000: Building construction work | 45212000: Construction work for leisure buildings
Estimated value: 150000000 GBP
Submission deadline: 2019-09-20
Award criteria: Other

Technical requirements: Cardiff Council (‘the Council’) is the freeholder of the site on which it wishes to develop a music/entertainment and events arena with a capacity of up to 15 000 (‘the Arena’). The Council is seeking to appoint a developer and operator to design, construct, maintain and operate the Arena. The Council will contribute financing towards the delivery of the scheme. The successful bidder will be granted a 99-199 year lease from the Council for the Arena development. The developer will be responsible for securing the initial consortium member operator (and any successor operators) to operate the Arena for a concession period of 40-45 years. The scheme will also involve the delivery of a hotel development, connecting road infrastructure and public realm spaces.
The Council’s financial contribution to the scheme will be through a funding agreement with the developer for up to 30 000 000 GBP or alternatively through an income strip lease arrangement over the term of the concession. Bidders are expected to submit tenders on both of these basis. Further details are provided in the descriptive document and other concession documents available through the portal referred to in l.3) above.
The level and availability of the Council’s financial contributions are subject to the Council’s decision making and internal approval processes and details will confirmed to participating bidders during the competition. Prospective bidders should note that the Council reserves the right to vary the available funding and financing approaches during the procurement process.
The Council or developer will be required to acquire some land immediately adjacent to the site to be made available for the delivery of the Arena.
The applicants with the 3 highest scoring compliant SQ responses will be invited to the tender stage of the competition process.
The estimated values in II.1.5 and II.2.6 represents the estimated capital cost. It does not include the estimated operator operating revenue that may be achieved through the operation of the Arena.
However, potential returns will depend on many commercial factors including (but not limited to) the performance of the developer and operator and market conditions. Bidders should seek independent legal and commercial advice in relation to the potential value of the opportunity and the scheme as a whole.
The successful bidder may be required to help achieve social and/or environmental policy objectives relating to recruitment, training and supply-chain initiatives. Contract conditions may relate to these considerations.
The Concession Contracts Regulations 2016 (‘CCR’) apply to this scheme. The Council intends to follow a process similar to the Competitive dialogue procedure described in the Public Contracts Regulations 2015 (as amended) (‘PCR’). The Council reserves the right to deviate from the formalities of the PCR in conducting the competition due to the flexibilities permitted by the CCR.
Submission of applications must be by way of completion and return of the SQ pre-qualification questionnaire (‘SQ’) by the date and time specified in Section IV.2.2). The Council reserves the right not to accept submission of applications that are received after the deadline. Bidders are encouraged to submit their submission well in advance of the stated date and time in order to avoid issues such as technical difficulties with the electronic system that may be due to high volumes of traffic attempting to submit applications on the same date at the same time.
The contractor shall ensure that all contracts with subcontractors and suppliers which the contractor intends to procure following the Award date, and which the contractor has not, before the date of this contract, already planned to award to a particular subcontractor or supplier, are advertised through the Sell2Wales portal (www.sell2wales.gov.wales) and awarded following a fair, open, transparent and competitive process proportionate to the nature and value of the contract.
Under the terms of this contract the successful supplier(s) will be required to deliver community benefits in support of the authority’s economic and social objectives. Accordingly, contract performance conditions may relate in particular to social and environmental considerations. The community benefits included in this contract are:
Bidders should note that the concession documents (including the heads of terms and descriptive document) are draft documents at this stage, providing indicative information of the Council’s intended approach in the procurement process and are for general information only. The Council reserves the right to vary, amend and update any aspects of the procurement documents and final details and versions of the procurement documents will be confirmed to applicants successful in being selected to participate in the relevant tender stages of the procurement procedure.
The Council reserves the right not to award the opportunity or to award only part (or a different arrangement) of the opportunity described in this concession notice.
In accordance with Regulation 47 (Notice of decision to award a concession contract); Regulation 48 (Standstill Period) and Regulation 52 to 63 of the Concession Contracts Regulations 2016 (CCR 2016).

Eligibility requirements: Continues from II 2.14. However, potential returns will depend on many commercial factors including (but not limited to) the performance of the developer and operator and market conditions. Bidders should seek independent legal and commercial advice in relation to the potential value of the opportunity and the scheme as a whole.

Award value: 150000000