Peabody Trust: Fish Island Village - Management Agreement

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UK-London: Commercial property management services.

Section I: Contracting Authority

   I.1) Name, Addresses and Contact Point(s):
       Peabody Trust
       Minster Court, 45-47 Westminster Bridge Road, London, SE1 7JB, United Kingdom
       Tel. +44 2038284233, Email: reena.nijjar@peabody.org.uk
       Contact: Reena Nijjar
       Main Address: www.peabody.org.uk
       NUTS Code: UKI

   I.2) Joint procurement:
      The contract involves joint procurement: No          
      In the case of joint procurement involving different countries, state applicable national procurement law: Not Provided
      The contract is awarded by a central purchasing body: No

   I.4)Type of the contracting authority:
      Body governed by public law

   I.5) Main activity:
      Housing and community amenities

Section II: Object Of The Contract

   II.1) Scope of the procurement

      II.1.1) Title: Fish Island Village - Management Agreement            
      Reference number: Not Provided

      II.1.2) Main CPV code:
         70332200 - Commercial property management services.


      II.1.3) Type of contract: SERVICES

      II.1.4) Short description: A Management Agreement for the provision of various project management, marketing and propertymanagement services in respect of ground floor commercial premises at Peabody's Fish Island Villagedevelopment in London.

      II.1.6) Information about lots
         This contract is divided into lots: No
            
      II.1.7) Total value of the procurement (excluding VAT)
          Value: 4,500,000
                  
         Currency:GBP            

   II.2) Description

      II.2.2) Additional CPV code(s):
      Not Provided

      II.2.3) Place of performance
      Nuts code:
      UKI - LONDON
   
      Main site or place of performance:
      LONDON
             

      II.2.4) Description of the procurement: The Management Agreement is for the provision of various project management, marketing and propertymanagement services in respect of ground floor commercial premises across the following elements ofPeabody's Fish Island Village development in London:
oMonier Road
oBlock B
oBlock C
oBlock D
oBlock E
oBlock F
oBlock G
oBlock H
oBlock K
oBlock L
Under the Management Agreement the service provider will be required to provide the following services inrespect of the commercial premises covered by the Agreement: :
a. Continued delivery of an ERDF-backed business support programme.
b. Continued design and project management activities in preparation for fitting out the commercial premises as workspaces.
c. Continued marketing activities to build market awareness and a tenant pipeline for the commercial premises.
d. Commercial property agency work

      II.2.5) Award criteria:
                  
      Cost criterion - Name: Price / Weighting: 100
            

      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: The Management Agreement will be for an initial term of 15 years, with a provision to extend (by agreement between the parties) for a further period of 10 years.


Section IV: Procedure

IV.1) Description

   IV.1.1)Type of procedure: Award of a contract without prior publication of a call for competition in the Official Journal of the European Union in the cases listed below (please complete Annex D1)


   IV.1.3) Information about a framework agreement or a dynamic purchasing system
      The procurement involves the establishment of a framework agreement: No       
      

   IV.1.6) Information about electronic auction
      An electronic auction has been used: 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
       Not Provided
   

   IV.2.9) Information about termination of call for competition in the form of a prior information notice
      The contracting authority will not award any further contracts based on the above prior information notice: No

Section V: Award of contract

Award Of Contract (No.1)

   Contract No: Not Provided    
   Lot Number: Not Provided    
   Title: Not Provided

   A contract/lot is awarded: Yes


   V.2) Award of contract

      V.2.1) Date of conclusion of the contract: 05/02/2019

      V.2.2) Information about tenders
         Number of tenders received: 1
         Number of tenders received from SMEs: Not Provided          
         Number of tenders received from tenderers from other EU Member States: Not Provided          
         Number of tenders received from tenderers from non-EU Member States: Not Provided          
         Number of tenders received by electronic means: Not Provided

      V.2.3) Name and address of the contractor

      The contract has been awarded to a group of economic operators: No
         
         Contractor (No.1)
             The Trampery Fish Island Village Limited, 09721500
             239 Old Street, London, EC1V 9 EY, United Kingdom
             NUTS Code: UKI
            The contractor is an SME: No

      V.2.4) Information on value of the contract/lot (excluding VAT)
         Initial estimated total value of the contract/lot: Not Provided          
         Total value of the contract/lot: 4,500,000
         Currency: GBP

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

   VI.3) Additional information: The Contracting Authority intends to enter into the Management Agreement following a minimum 10 daycalendar day standstill period starting on the day after this notice is published in the Official Journal of theEuropean Union. The Public Contracts Regulations 2015 (SI 2015 No 102) (as amended) (the Regulations)provide for aggrieved parties who have been harmed or who are at risk of harm by a breach of the Regulationsto bring proceedings in the High Court. Any such proceedings must be brought within the limitation periodspecified by the Regulations according to the remedy sought.
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   VI.4) Procedures for review

      VI.4.1) Review body
          high court
          The Strand, London, United Kingdom

      VI.4.3) Review procedure
         Precise information on deadline(s) for review procedures: Not Provided

      VI.4.4) Service from which information about the review procedure may be obtained
         Not Provided

   VI.5) Date of dispatch of this notice: 21/02/2019




ANNEX D

   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: protection of exclusive rights, including intellectual property rights

      Extreme urgency brought about by events unforeseeable for the contracting authority and in accordance with the strict conditions stated in the directive: No

      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
            Service contract to be awarded to the winner or one of winners under the rules of a design contest: No
      

      Purchase of supplies or services on particularly advantageous terms: No


   3. Explanation
          The Management Agreement is to be awarded to the Trampery Fish Island Village Limited (the Trampery)pursuant to Regulation 32(2)(b)(iii) of the Public Contracts Regulations 2015 (the Regulations). For the reasonsset out below, the Management Agreement can only be awarded to the Trampery for reasons connected withthe protection of exclusive rights, and no reasonable alternative or substitute exists.

On 23 December 2015 Peabody Enterprises Limited (PEL) entered into an Agreement for Lease with theTrampery pursuant to which PEL were to grant the Trampery a Lease of the commercial premises at the FishIsland Village development. The Trampery would then operate its business from the premises and pay PELan element of the profit it generated pursuant to the terms of a Profit Share Agreement which the parties wererequired to enter into on the grant of the Lease. The Agreement for Lease was not tendered in accordance withthe Regulations as it was considered to be an agreement for the disposal of an interest in land rather than apublic works or services contract for the purposes of the Regulations. On 5 April 2017 PEL assigned its interestin the Agreement for Lease to Peabody Trust (Peabody). Due to market changes it has now been decided thatthe Trampery will relinquish its right under the Agreement for Lease to be granted a Lease of the premises, andPeabody will instead enter into the Management Agreement with the Trampery under which the Trampery willbe required to provide the services described in this Notice in return for the payment of a monthly managementfee.
Peabody is of the view that the Management Agreement can only be awarded to the Trampery in this case dueto the pre-existing arrangements and rights that the Trampery has under the Agreement for Lease – namely,the right to be granted the Lease of the premises. No “reasonable alternative or substitute” exists because theTrampery will not agree to relinquish its rights under the Agreement for Lease unless Peabody agrees to enterinto the Management Agreement with it for the provision of the services. The absence of competition is notthe result of an artificial narrowing down of the parameters of the procurement. When PEL and the Tramperyentered into the Agreement for Lease originally it was not their intention that the approach would be altered laterdown the line and that a Management Agreement would be entered into instead of a Lease. Accordingly, theparties have not acted "artificially" with the intention of avoiding the application of the Regulations.
Accordingly, Peabody is of the view that the exemption under Regulation 32(2)(b)(iii) of the Regulations applies to the award of the Management Agreement to the Trampery in this case.