Public procurement notice: Voluntary Ex Ante Transparency Notice
Published: 2019-06-20
Buyer: Norfolk and Norwich University Hospitals NHS Foundation Trust
Country: UK
Contract type: Works
Procedure: Contract award without prior publication
CPV classification: 45000000: Construction work | 45200000: Building and civil engineering work | 45210000: Building construction work | 45215100 | 45215140
Estimated value: 6000000 GBP

Technical requirements: Norfolk and Norwich University Hospitals NHS Foundation Trust (‘the Trust’) intends to enter into a deed of variation with Octagon Healthcare Ltd (‘Octagon’) in respect of an existing PFI contract for Norfolk and Norwich University Hospital. The variation will be to provide for additional works to the Norfolk and Norwich University Hospital PFI building.
Under the existing PFI arrangement Octagon was required to develop and construct a hospital and following completion of works is required to service the hospital.
The variation will include a positive obligation to construct a new Interventional Radiology Unit (‘the Unit’) on the roof of the hospital with an estimated value of 6 000 000 GBP.
The PFI contract was entered into on 8.1.1998 for a duration of 60 years at an estimated value of 144 000 000 GBP with Octagon. Octagon were required to design, construct, operate and finance Norfolk and Norwich University Hospital and to provide facilities management services.
The proposed variation to the PFI contract is to provide for works to expand the current hospital building to create additional space for interventional radiology equipment. The Unit will be sited on the roof of the existing PFI hospital.
The works themselves are being funded by the Trust with capital, and paid as stage payments during construction, and so will not increase the PFI borrowing requirement.
The variation requires Octagon to ensure the Unit is built to an agreed timetable (and if it is not LADs will apply). Octagon is responsible for appointing and managing (and if necessary replacing) a construction sub-contractor. There may be permitted extensions of time in accordance with the construction sub-contract.
A suite of collateral warranties will be provided, for the benefit of the Trust, from the construction sub-contractor and other members of the professional team.
The Trust has involvement in determining whether practical completion has occurred and Octagon is responsible for ensuring that any snagging matters are attended to.
The Trust is obliged to provide a cleared site and to work collaboratively with Octagon and the construction sub-contractor so that Trust activities and the building work can be delivered in parallel.
In relation to IV2.1 the previous publication concerning this procedure was advertised in 1995 under reference 9911-95.
The Trust considers that it is permissible to enter into a deed of variation with Octagon to undertake the additional works because a change of contractor cannot be made for economic or technical reasons and Article 72(1)(b) of Directive 2014/24/EU and Regulation 72(1)(b) of the Public Contracts Regulations 2015 (as amended) apply.
The works to deliver the Unit have become necessary in order to meet an increased demand as part of a clinical pathway for more patients.
With limited space for development the Trust initiated a feasibility study in December 2015; via a variation request to Octagon in accordance with the PFI agreement; to investigate development opportunities on the roof of Blocks 30 and 31 of the PFI building. The initial brief for this feasibility study was for these blocks to provide either office accommodation or additional ward space. Due to constraints of the existing building and the susceptibility of the adjacent Clinical Imaging building to traditional construction methods a modular solution was investigated. On completion of the initial feasibility study it became apparent that the adjacency of Block 31 to our existing IRU, Cardiology and Critical Care Units as well as being close to ED for rapid access for stroke and PPCI patients provided an excellent opportunity to address the Trust’s number one risk on its risk register. The feasibility study was therefore developed to provide an advanced design and budget for a business case to NHSi for the expansion of the interventional radiology service (‘IRS’).
The Trust considers that it essential for the Unit to be on the roof in order to be in close proximity to the existing IRS and the connections with inpatients and operational management. In addition there are important clinical links to anaesthetics, vascular, ED for transfer of emergency and stroke patients and for escalation to surgery in an emergency. The options appraisal within the IRU business case confirmed that, within the context of the constrained PFI hospital site, the proposed rooftop facility is the optimal location which delivers the broadest range of clinical and operational benefits and the optimal value for money solution. Taken together, the IRU development on the roof will significantly improve the efficiency and delivery of clinical services for the Trust.


Winner: Octagon Healthcare Ltd
Award value: 6000000