Basildon Borough Council: East Square Cinema Developement

UK-Basildon: Cinema construction work.

Preliminary Questions
   This notice is published by:
   Directive 2014/24/EU

Section I: Contracting authority/entity

I.1) Name and addresses
       Basildon Borough Council
       The Basildon Centre, Basildon, SS14 1DL, United Kingdom
       Tel. +44 1268533333, Email: procurement@basildon.gov.uk
       Contact: Mark Davis MA MBA LLM
       Main Address: www.basildon.gov.uk
       NUTS Code: UKH3

I.4) Type of the contracting authority (in the case of a notice published by a contracting authority)
      Regional or local authority

I.5) Main Activity (in the case of a notice published by a contracting authority)
      General public services


Section II: Object

II.1) Scope of the procurement
   
   II.1.1) Title: East Square Cinema Developement.
      Reference number: CP-2018-0127/Re-Procurement
      
   II.1.2) Main CPV code:
      45212150 - Cinema construction work.
   
   II.1.3) Type of contract: WORKS
   
   II.1.4) Short Description: This is a voluntary ex ante (VEAT) notice. This notice is to indicate that Basildon Borough Council intends to contract with our Preferred Bidder, McLaren Construction (South) Ltd for the construction of a cinema in East Square, Basildon.
   
   II.1.6) Information about lots
      This contract is divided into lots: No

   II.1.7) Total value of the procurement (excluding VAT)
      Value: 16,404,778      
      Currency: GBP


II.2) Description

   II.2.2) Additional CPV codes:
      Not provided

   II.2.3) Place of performance:
      UKH3 Essex
   
   
   II.2.4) Description of the procurement:
    This is a voluntary ex ante (VEAT) notice. This notice is to indicate that Basildon Borough Council intends to contract with our Preferred Bidder, McLaren Construction (South) Limited for the construction of a cinema in East Square, Basildon .    
   
   II.2.5) Award criteria
   (Directive 2014/24/EU / Directive 2014/25/EU)
   Quality criterion - Name: Logistics, Programme Management and Social Value / Weighting: 60
               
   Cost criterion - Name: Quality / Weighting: 60
   Cost criterion - Name: Price / Weighting: 40
         
      
      
   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

   II.2.14) Additional information:
    Not provided    
      
Section IV: Procedure

IV.1) Description
   
   IV.1.1) Type of procedure: Negotiated procedure without prior publication (in accordance with Article 32 of Directive 2014/24/EU)          
   
   IV.1.3) Information about framework agreement
         The procurement involves the establishment of a framework agreement: No    
   
   IV.1.8) Information about the Government Procurement Agreement (GPA)
         The procurement is covered by the Government Procurement Agreement:Yes
         
IV.2)Administrative Information

   IV.2.1) Previous publication concerning this procedure:
      Notice number in OJ S: Not provided       
   
Section V: Award Of Contract/Concession
      
Award of Contract/Concession No: 1
Contract No: CP-2018-0127/Reprocurement   Lot Number: Not Provided    Title: East Square Cinema Development

V.2) Award of contract/concession
      
      V.2.1) Date of contract award decision: 10/12/2019.
      
      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/concessionaire, No. 1:
          McLaren Construction (South) Ltd
       McLaren House, 100 Kings Road, Brentwood, Essex, CM14 4EA, United Kingdom
       NUTS Code: UKH3
   The contractor/concessionaire will be an SME: Yes    
   
         
      V.2.4) Information on value of the contract/lot/concession:
         Initial estimated total value of the contract: Not Provided          
         Total value of the contract/lot/concession 16,404,778         
         Currency: GBP

      V.2.5) Information about subcontracting:
         The contract is likely to be subcontracted: No          


Section VI: Complementary Information

   VI.3) Additional Information:
      To view this notice, please click here:
https://www.delta-esourcing.com/delta/viewNotice.html?noticeId=456058230
GO-20191213-PRO-15686051 TKR-20191213-PRO-15686050   
   VI.4) Procedures for review
   
      VI.4.1) Review Body
          Basildon District Council
       The Basildon Centre, Basildon, SS14 1DL, United Kingdom
       Tel. +44 1268533333
   
      V1.4.2) Body responsible for mediation procedures:
                Royal Courts of Justice
       The Strand, London, WC2A 2LL, United Kingdom
       Tel. +44 2079476000.

      VI.4.3) Review procedure
      Not Provided    
      
      VI.4.4) Service from which information about the review procedure may be obtained
          Royal Courts of Justice
       The Strand, London, WC2A 2LL, United Kingdom
       Tel. +44 2079476000
   
   VI.5) Date of dispatch of this notice: 13/12/2019


Annex D1 - General Procurement
Justification for the award of the contract without prior publication of a call for competition in the Official Journal of the European Union
Directive 2014/24/EU

1. Justification for the choice of the negotiated procedure without prior publication of a call for competition in accordance with Article 32 of Directive 2014/24/EU

   No tenders or no suitable tenders/requests to participate in response to: Not provided

   
   
   The works, supplies or services can be provided only by a particular economic operator for the following reason: Not Provided
   
   Extreme urgency brought about by events unforeseeable for the contracting authority and in accordance with the strict conditions stated in the directive: Yes
   
   Additional deliveries by the original supplier ordered under the strict conditions stated in the directive: No

   New works/services, constituting a repetition of existing works/services and ordered in accordance with the strict conditions stated in the directive: No

   

   

   



3. Explanation

   Please explain in a clear and comprehensive manner why the award of the contract without prior publication in the Official Journal of the European Union is
   lawful, by stating the relevant facts and, as appropriate, the conclusions of law in accordance with the directive: (500 words maximum)
   Basildon Borough Council (‘the Council’) undertook a competitive procurement exercise in accordance with the Public Contracts Regulations 2015 ('PCR') to secure the services of a developer to undertake the required works being the construction of a cinema and associated developments. In July 2019 the successful applicant commenced the works. In October 2019, the successful applicant entered into administration, rendering them unable to undertake the contract. The Council, in a bid to ensure the ongoing and efficient realisation of the works at hand, have in accordance with Reg. 32(c) PCR procured a replacement provider as set out in this notice, following a competition involving unsuccessful applicants from the original procurement exercise.
Foreseeability
In the original procurement process the Council undertook due diligence assessments on each applicant to assess their appropriateness to undertake the works. The applicant’s were scored utilising the PAS91 standard as developed by the British Standards Institute and the Department for Business, Innovation and Skills. The successful applicant scored amongst the top applicants.On the basis that the successful applicant appeared by all objective standards to be of good commercial health, entirely capable of performing the contact and scored well in a high threshold financial due diligence assessment, it follows that their sudden administration was unforeseeable.
Urgency
There is an urgent need to appoint a new contractor since the Council is now exposed to substantial financial risk with the stalling of the delivery of the project. The Cinema is due to be completed by April 2021 and the estimated direct quantum loss for the Council if the project is not delivered on time is in excess of £1.5m. Loss of these public funds could adversely impact on the delivery of other critical regeneration projects. The Council also envisages considerable indirect loss to its area including; loss of economic growth and investment in the area which was anticipated should the project have been delivered on time; loss of social development opportunities and ongoing security measures required in securing the site. It is clear as a matter of fact upon assessment of the background to this case that the Council has not caused, by its actions or inactions, the circumstances to which it now finds itself. The urgency has been caused by the unforeseeable administration of the appointed contractor.
Timeline
The time limits for the open or restricted procedures or competitive procedures with negotiation cannot be complied with without the realisation of the risks set out above. The earliest that works could re-commence should a procedure under Regulation 32(c) be utilised is January 2020 which would allow the project to be kept to schedule. The practical reality of utilising a procurement procedure on a contract of this size and complexity (which would necessitate site visits, supplier days, detailed submissions to ensure the appropriate quality of bid), other than that allowed for in Regulation 32, would be a recommencement of works in July 2020, fatally compromising the ability of the project to be delivered in time. This includes utilising an accelerated procedure.


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