Agenda and minutes

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The Cabinet Member referred those present to Agenda Item 1 as shown on the agenda in respect of filming at this meeting and asked that those present reviewed and noted the information contained therein.

The Cabinet Member will advise of any items they have decided to take as urgent business.

None

There were no Declarations of Interest.

The report will seek Cabinet Member approval for a variation of the Council’s existing contract with GVA Bilfinger for the provision of commercial advice for the High Road West scheme by increasing the maximum contract sum from £499k to £679k. The increased sum is due to the fact that procurement process will take longer than originally envisaged when GVA were appointed due to the complex nature of the Scheme.

The Cabinet Member considered a report which sought approval for a variation of contract with GVA Bilfinger for the provision of commercial advice for the High Road West scheme from £499k to £679k. The increased sum was due to the complexity of the scheme resulting in the procurement process taking longer than originally envisaged when GVA were appointed.

RESOLVED

That the Cabinet Member for Housing, Regeneration and Planning:

To grant approval for the variation of the Council’s existing contract with GVA Bilfinger for the provision of commercial advice for the High Road West scheme by increasing the maximum contract sum from £499k to £679k.

Reasons for decision

GVA have to date led commercial and property negotiations for the Scheme on behalf of the council, as well as preparing the business case considered by Cabinet in December 2015 for the preferred delivery structure and detailed financial model. This proved instrumental in securing £62m of Housing Zone funding for North Tottenham. As such, they are the best fitted organisation as they have the detailed knowledge and understanding to support the progression and completion of the procurement in a timely fashion. Therefore, it is recommended that the existing contract be varied to ensure that there is consistency of commercial advice as procurement, land assembly and business relocation work progresses.

Alternative options considered

The current maximum contract sum for the GVA contract does not provide sufficient cover to support the procurement process and concluding the development agreement nor could it provide funding for the further ad hoc work closely related to the Housing Zone. 

An alternative would be for the Council to commence a new procurement process for a commercial advisor. This could take a minimum of three months from commencement to appointment, which would cause delay to the procurement process for the Scheme. The successful tenderer, if not GVA, would not have GVA’s in-depth familiarity with the commercial advice already received and even with a detailed handover from GVA on all of the work to date, it would be very difficult to ensure consistency in the ongoing advice. The OJEU procurement process for a development partner was launched on 31 May 2016, with the preferred bidder due to be selected by Cabinet in summer 2017. Procurement of a commercial advisor would divert officer resources from evaluation of bidder submissions and would risk delay to the development partner procurement. The handover would also incur additional costs for the Council in a climate of significant cost pressure. This was not considered a viable option or one that delivers value for money.

A second option was for the current contract to remain as is without variation. Currently the amount left in the contract will not cover the work required to take the procurement to completion and therefore represents a risk to the process.

Both options were discounted in consultation with Procurement and Legal.

To consider any items of urgent business admitted under Item 2 above.

None.

That the press and public be excluded from the remainder of the meeting as the items below contain exempt information, as defined under Paragraph 3, Part 1, Schedule 12A of the Local Government Act 1972.

RESOLVED

That the press and public be excluded from the remainder of the meeting as the items contained exempt information, as defined under paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972. 

As per Item 4

As per Item 4.

As per Item 2

As per Item 2.