Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
I.1) Name and addresses
Cardiff Council
County Hall, Atlantic Wharf
Cardiff
CF10 4UW
UK
Telephone: +44 2920873732
E-mail: environmentprocurement@cardiff.gov.uk
NUTS: UKL22
Internet address(es)
Main address: https://www.cardiff.gov.uk
Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0422
I.2) Joint procurement
The contract is awarded by a central purchasing body
I.4) Type of the contracting authority
Regional or local authority
I.5) Main activity
General public services
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Fairwater Community Campus
II.1.2) Main CPV code
45214220
II.1.3) Type of contract
Works
II.1.4) Short description
The Authority awarded an enabling works contract to ISG Construction Limited (“ISG”) on 22nd February 2023 via the SEWSCAP3 framework agreement. Subsequent to that, and in accordance with SEWSCAP3, the Authority entered into a main works contract on 22nd December 2023.
ISG Construction Ltd filed for administration on 19 September 2024 and construction works ceased.
As a interim solution to address issues brought about by ISG entering into administration and to address the urgent issues associated with protecting the project/site, the continuation of construction works and to allow sufficient time to undertake a compliant procurement process, the Authority has novated the enabling works and main works contracts for construction for a short-term interim period to the main sub-contractor appointed under the main works contracts.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
88 441 349.00
GBP
II.2) Description
II.2.2) Additional CPV code(s)
45000000
45214220
45214230
45214200
II.2.3) Place of performance
NUTS code:
UKL22
II.2.4) Description of the procurement
The scope of the project includes the construction of three new build schools so as to:
- Replace the Cantonian High School buildings with new build accommodation on the same site expanding the school from six forms of entry (6FE) to eight forms of entry (8FE) with sixth form provision for up to 250 pupils;
- Expand the Specialist Resource Base (SRB) for learners with an Autism Spectrum Condition (ASC), hosted at Cantonian High School from 20 to 30 places in purpose built accommodation in the new school buildings;
- Relocate Woodlands High School to the Fairwater Road site from its current site adjacent to Trelai Park and increase the capacity from 140 places to 240 places in new build accommodation;
- Relocate Riverbank Special School to the Fairwater Road site from its current site adjacent to Trelai Park, and increase the capacity from 70 to 112 places in new build accommodation.
II.2.5) Award criteria
Price
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
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Award of a contract without prior publication of a call for competition
Justification for selected award procedure:
Extreme urgency brought about by events unforeseeable for the contracting authority and in accordance with the strict conditions stated in the Directive
Explanation
The Negotiated Procedure without Prior Publication is being followed and is justified under Regulation 32(2)(c) and/or 32(2)(a) for the award of a public works contracts
Having awarded the enabling works and main works contracts to ISG and the work having commenced, ISG filed for administration on 19th September 2024 and all work immediately ceased at the site leaving some elements of works partly completed with other elements having not yet commenced. The site has been handed back to the Authority and has been secured.
The main works contracts contained completion dates of December 2025 for Cantonian High School, July 2026 for the Special Schools and Health and Well-being Block August 2026. Pupils at Cantonian High School are currently accommodated in temporary accommodation awaiting the completion of the new campus.
Due to the cessation of works at the site, there are not only health and safety and/or security risks of half-completed works but also significant risk of delays to the construction of the campus which will have a significant impact the school capacity to accommodate pupil numbers, standard of education provision (including pupils having to continue to be accommodated in temporary accommodation) and funding timescale.
Due to ISG Construction Ltd entering into administration the Authority (“CC”) has novated the main contract to a key member of the supply chain (Borley Engineering Services Limited (“BESL”) for a short-term duration & limited scope whilst CC undertakes a compliant tender process to formally appoint a replacement contactor.
Due to the current status of the building, e.g. incomplete envelope & exposed internal works, it is imperative that works to the envelope (such as windows, cladding etc), progress as planned through the forthcoming winter period. By appointing BESL as the interim emergency principal contractor, the project will allow workers back on site asap, ensure workers are paid for work done, minimise delays, keep costs down, protect jobs, & safeguard the supply chain while protecting the works completed so far by making payments in excess of 7mGBP to the existing subcontractors & suppliers for works already completed, in what is one of the UK’s largest education projects. This project is vital for the current & future generations of pupils in the three schools, & to the wider community, that will be utilising the new facilities on the campus.
Please see refer to VI.3 for further information
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
Yes
Section V: Award of contract
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
07/11/2024
V.2.2) Information about tenders
Number of tenders received: 1
Number of tenders received from SMEs: 1
Number of tenders received from tenderers from EU Member States: 0
Number of tenders received from tenderers from non-EU Member States: 1
Number of tenders received by electronic means: 1
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Borley Engineering Services Ltd
1 Alexandra Gate, Ffordd Pengam, Tremorfa
Cardiff
CF242SA
UK
NUTS: UK
The contractor is an SME:
Yes
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 88 441 349.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.3) Additional information
Mobilising the novation with the BESL has taken place relatively quickly, including the novation of the supply chain agreements. Novation of contracts will protect the terms of these contracts & pre-agreed fixed pricing should be preserved. Retaining the existing supply chain will save costs in handover / mobilisation & other additional costs relating to restart. CC has determined it is impossible to run any form of compliant procurement exercise within the accelerated timescale due to the complexity of development of tender documents for a project part constructed.
CC has undertaken a review of the current project status & risks & believe a short-term duration of an estimated 22 wks will be necessary to allow CC to undertake a compliant procurement exercise & to address the immediate circumstances of extreme urgency which requires the site to be protected & urgent works to continue as soon as possible.
There is an urgent need to continue & complete the works carried out to date. CC has determined it is impossible to run any form of compliant procurement exercise within the accelerated timescale afforded within the open procedure or mini competition off the SEWSCAP framework, due to the complexity of development of tender documents for a project part constructed. Indicative timescales are as follows:
Develop Tender Pack:4–6wks
Allow sufficient time for Bidders to review tender & submit:8wks
Tender Evaluation:3wks
Award decision:3wks
Mobilise and Contract Start:4 wks
CC has taken independent advice to review all options regarding conducting a new procurement including the use of frameworks. The original procurement process was a mini-competition pursuant to the SEWSCAP3 framework agreement. The project is now more complex given the partly built status and a longer period is now needed due to the added complexity. There is accordingly insufficient time to conduct a procurement process using any procedure (including accelerated timescales) or undertake a framework competition.
CC has novated the main contract for a short-term duration and limited scope to mitigate further delays, by maintaining the supply chain (including the viability of the supply chain) and mobilising on site as soon as possible. Delays on programme have a significant impact on the school capacity to accommodate pupil numbers, standard of education provision and funding timescale. This is an exceptional situation where extreme urgency has been brought about by events unforeseeable and not attributable by CC, making it impossible for CC to conduct a regulated procedure within prescribed time limits due to the critical nature of the works both in terms of health and safety, viability of the supply chain, state and condition of partly completed works and the required delivery date of the campus. The award (by way of novation of the original enabling and main works contracts) to BESL is strictly necessary and to allow CC the requisite period of time to undertake a full procurement exercise. Whilst the initial contract award is to novate the entire contract for a sum of 88M GBP, CC will immediately vary the contract to instruct BESL to pick up the interim works and carry out these works to completion (as defined) the intention is for a 22 wk contract at an approximate cost of 33MGBP. BESL agrees to novate the contract to a replacement contractor at an identified stage of the works which will be defined in the scope
(WA Ref:145856)
VI.4) Procedures for review
VI.4.1) Review body
High Court
Royal Courts of Justice, The Strand
London
WC2A 2LL
UK
Telephone: +44 2079477501
VI.5) Date of dispatch of this notice
15/11/2024