Public procurement notice: Contract Notice
Published: 2016-06-25
Buyer: Herefordshire Council
Country: UK
Region: Herefordshire, Worcestershire and Warwickshire
Contract type: Works
Procedure: Competitive dialogue
CPV classification: 09323000 | 45000000: Construction work | 45211100 | 45211200 | 45211300
Estimated value: 10000000 GBP
Submission deadline: 2016-07-28
Award criteria: The most economic tender

Technical requirements: Herefordshire Council (‘The Council') is commencing a procurement via the Competitive Dialogue Process (‘the Process') for a Contract to appoint Provider(s), (primarily Developer(s) but potentially also Funder(s)), for the Council's long term strategic development and regeneration programme (‘the Programme'). The background to the Process is that the Council is currently seeking to provide regeneration and land development in Herefordshire across a range of initiatives, including the construction of the Hereford inner-city link road. In addition, the opening by British Land of the Old Market Shopping Centre in 2014 in the City Centre, the recent commitment of government funding to the creation of a university in Hereford and the recently adopted Local Development Framework Core Strategy (which proposes housing growth amounting to 16 500 new homes to 2031) form part of a wider regeneration plan for Herefordshire. The emerging economic masterplan, which builds on the regeneration objectives of the Core Strategy, sets out an ambitious plan for economic growth and the transformation of the physical environment within the County. Any Provider appointed to support the Programme may be expected to design and construct residential; non-residential; civic; commercial and community facilities, (including the management of some facilities as appropriate). The role of the Provider will include working with the Council to identify and progress opportunities (including feasibility, design and potentially the sourcing of funding) as opportunities are confirmed across the county. There may also be a requirement for a district heating network(s) (dependent upon the result of a current feasibility study, which is currently being considered by the Council). Further details of the Council's Commissioning Objectives can be found within the documents issued in support of the Process (‘the Process Documents'). Developer(s) and Funder(s) are sought who will achieve the Council's commissioning aim in the joint development of a contract model(s) which enable the delivery of high service standards and levels of end user satisfaction; plus the achievement of continuous improvement; process efficiencies and reductions in overall costs.
The Council welcomes participation from fully formed or potential consortia. The Contract model(s) will provide a framework for delivery of design and build; land investment projects and revenue generation opportunities through the operation of facilities (which may involve the creation of special purpose project vehicles). The Contract model(s) will seek to effectively balancing the risks between the Council; any Participating Authorities; Developer(s) and Funder(s), whilst being flexible enough to respond not only to the Council's and Participating Authorities' evolving building and regeneration requirements; statutory duties and responsibilities; but also to innovative developments within the construction and finance sectors. Generally, the Council seeks to work more closely with the community in delivering services and together with any Participating Authorities delivering services in Herefordshire, delivery partners and its town and parish councils, help to define and deliver services tailored to local needs in the county. The Council wishes to strengthen this approach by ensuring that services delivered by public and private sector partnerships and community groups are commissioned (and when applicable regulated) by the Council in such a way as to ensure local needs are met (not least in accordance with the Localism Act 2012 and the Social Value Act 2012 and any amendments thereto). The Council would welcome innovative ideas to support this and ensure the achievement of community benefits and social value. In addition, the delivery of community benefits is at the heart of the Council's approach to the commissioning of the Programme. Delivery of community benefits is of particular importance to the potential Contract(s)due to their strategic nature and core Commissioning Objectives of the achievement of regeneration; possible duration; level of investment and partnership working necessitated with their effective delivery. To this end the Council is seeking a Contract model which will support the Council in effective management of the Contract; strengthen the local supply chain; assure the reduction of environmental impacts and deliver the investment in the techniques; technologies and human resources to assure effective Programme delivery. The Council has drafted some Commissioning Objectives for the Programme, details of which can be found in the Process Documents. The Council has Construction Industry Training Board (CITB) accredited status and applicable aspects of Contract delivery will be set and monitored within the scope of this accreditation. Such initiatives should also seek to further the Council's objectives as set out in the Council's Corporate Plan and other policy documents as may be applicable. Please see the Process Documents for further details. As the potential extent of the Programme is very broad and particularly complex, specifically in respect of the legal and financial make-up of the Programme (including funding terms and the requirement to encompass the scope for the creation of special purpose project vehicles), the Council has opted to use the Competitive Dialogue process to conduct the procurement. This allows the dialogue not only of financial and legal make-up with Participants, but also allows for confirmation of feasibility and co-development of development solutions for specific sites during the Process. Indeed, it is an objective of the Process to appoint Provider(s) who will work successfully with the Council in the development of the Programme: in other words, to commission a strategic development ‘partner’ for the Council. The Council is working towards a Contract award date during spring 2017 aiming for a start on site during Autumn 2017. The Council has issued a PIN in respect of this procurement and carried out a market consultation. Details of this can be found within the Process Documents.
The length of the Contract has been set to a maximum period of 20 years to take account of the likely timing of the availability of strategic sites across the County and their associated responsible build-out. The Contract duration has provided for additional time to accommodate any cyclical changes in either the development or finance markets (which may slow the pace of development), which may occur over the lifetime of the Contract.
The broad scope of the Programme means that the Works and Services which are the subject of the Process are very broadly and not exhaustively described. The Council reserves the right to commission Works and Services within the scope of the CPV codes listed. The process for commissioning Works and Services within the scope of the Contract will be dialogued with Participants during the Process.
Therefore as the scope of the Programme is long term and potentially very wide, the extent of the Works and Services that may be required, may extend across the remit of a range of public sector and community organisations. To this end, the Contract will also be open for use for other Contracting Authorities. (As defined by the Public Contracts Regulations 2015(‘PCR') and their statutory successors and organisations created as a result of re-organisation or organisational changes. Please see the Process Documents for further details). The intention is to facilitate the potential for collaborative working between Contracting Authorities over the term of the Contract, given the potential for changes in strategy; policies and the structure of government administration which may occur over the term of the Contract.
In addition, it is the intention that the Contract may be used by other partners (which may for example include not for profit organisations, sporting clubs etc.), which are delivering services within the administrative area of Herefordshire (and within the administrative areas of such other Contracting Authorities as may use the Contract (‘Participating Authorities')). The intention being to allow for collaborative working with partners which are undertaking joint projects with the Council (and other Participating Authorities).
Participating Authority and collaborative partner usage will require the consent of the Council and the Provider(s). Participating Authority and collaborative partner usage of the Contract cannot be predicted nor guaranteed, transparency has been provided as to the maximum extent of this usage within the calculations of potential Contract value.
The value of the Contract is estimated between 10 000 000 and 1 000 000 000 GBP (British Pound Sterling — GBP). The anticipated Contract values have been very broadly but realistically estimated: the lower level of the range has been estimated on the basis of predicted developmental spend for the Council on the most limited level of potential development only (10 000 000).
The upper lever is based on a level of expenditure of 10 000 000 per annum over the lifetime of the Contract (200 000 000). Allowances of 400 000 000 have been included as a broad valuation of the extent of units for private sale and any revenue generating projects. An additional allowance of 100 000 000 has been included for the commissioning of any related funding and any increases in development spend for reasons which cannot be accurately predicted. However, expenditure levels will depend (for example) on the Programme as developed with the Contractor; feasibility of development sites; available funding; housing demand and market conditions and may vary in accordance with housing provision strategy, partnerships and other policies at a UK; national; regional; county and local level, and as such, expenditure levels cannot be guaranteed.
A further allowance of 300 000 000 has been included to cover any usage by Participating Authorities (again which cannot be guaranteed), making an estimated upper limit of 1 000 000 000. These are broad estimates and the Council reserves the right to vary these spend predictions categories (including accelerating the time-frame of spend to meet developmental requirements and utilisation of the spend allowance for Participating Authorities (should such usage not occur) during the Contract lifetime. However any such variance will be within the estimated upper limit of 1 000 000 000.
The Contract will be for an initial term of 10 years with additional provision of the option to extend the Contract by periods not exceeding in total 10 years, making a total maximum term of 20 years (for example 10 year initial period plus 3 extensions of 5 years plus 3 years plus 2 years). Any terms relating to the award of Contract extensions will be established as a result of dialogue during the Process. The Contract may not be extended beyond the maximum term and indeed, may not be extended at all.
The Council reserves the right to require groupings of Providers to take a particular legal form on contract award.
Candidates capabilities will be assessed using the Crown Commercial Services PQQ, please copy this link into your browser for details: Requirements on pre-qualification questionnaires — https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/524353/New_PQQ_requirements.pdf Additional project specific questions will be used to long list candidates to invite to participate in dialogue. Please see the Process Documents for further details.
Candidates will be assessed using the Crown Commercial Services PQQ (see above) and evaluated in accordance with the criteria within the Public Contract Regulations 2015. Please see the Process Documents for further details.


Eligibility requirements: Candidates will be assessed using the Crown Commercial Services PQQ (see above) and evaluated in accordance with the criteria within the Public Contract Regulations 2015. Please see the Process Documents for further details. Candidates will be assessed using the Crown Commercial Services PQQ (see above) and evaluated in accordance with the criteria within the Public Contract Regulations 2015. Please see the Process Documents for further details. Candidates will be assessed using the Crown Commercial Services PQQ (see above) and evaluated in accordance with the criteria within the Public Contract Regulations 2015. Please see the Process Documents for further details.
Candidates will be assessed using the Crown Commercial Services PQQ (see above) and evaluated in accordance with the criteria within the Public Contract Regulations 2015. Please see the Process Documents for further details.