Silchester Garages Site Development
INVITATION TO PARTICIPATE IN DIALOGUE AND DESCRIPTIVE DOCUMENT
Initial Solutions Stage
November 2010
Two hard copies and two electronic copies (on discs) of Initial Solutions must be submitted by
1pm on 31st January 2011
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Contents
1. Introduction 1
Part One: The Council’s Requirements – Descriptive Document 1
2. The Core Requirement 1
3. Housing 1
4. The Wider Objective 1
Part Two: The Procurement Process 4
5. The Process 4
6. Enquiries 6
7. Submission of Proposal 6
8. Fair Competition and Confidentiality 6
9. Evaluation 7
10. Residents’ Exhibition and Questionnaire 7
11. Exhibitions 8
12. Residents’ Questionnaire 8
Part Three: Bid Requirements 9
13. Bid Requirements 9
Part Four Terms and Conditions of Tendering 10
14. Confidentiality 10
15. Freedom of Information Act 2000 (“FOIA”) and Environmental Information Regulations 2004 (“EIR”) 11
16. Accuracy of Information 11
17. Disclaimer and Related Matters 12
18. Council’s Right to Reject 13
19. Canvassing 14
20. Non-Collusion 14
21. Copyright 15
22. Publicity 15
23. Amendments to ITPD Documents 15
24. Interpretation 16
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1. Introduction
The Royal Borough of Kensington and Chelsea (‘the Council’) is pleased to invite you to enter into dialogue with the Council to develop proposals for the Silchester Garage Site and wider Silchester Estate.
The Council is using the competitive dialogue procedure pursuant to the Public Contracts Regulations 2006 (the “2006 Regulations”). The aim of the competitive dialogue is to identify and define the means best suited to satisfy the Council’s needs as described within Appendices 1 and 2 (The Council’s Requirements).
This ITPD and Descriptive Document (“ITPD”) sets out how the Council will conduct the competitive dialogue procedure leading to selection of a Preferred Bidder and contract close and explains what Bidders are required to submit as their Initial Solutions.
This ITPD is issued further to the Council’s Contract Notice published in the Official Journal of the European Union (OJEU) on 29 July 2010 (Ref No. 2010/S 145-223705) (as amended on 30 July 2010 by OJEU additional notice 2010/S 146-224538). Three Bidders have been invited to participate in Dialogue.
For the purpose of Regulation 18(5) of the 2006 Regulations, this ITPD is accompanied by the Council’s contract documents set out in the Appendices.
1.1 This Document
This ITPD is arranged as follows:
Part One: The Council’s Requirements – Descriptive Document
Part Two: Procurement Process
Part Three: Bid Requirements
Part Four: Terms and Conditions of Tendering
1.2 Tender Appendices
Appendix 1: The Council’s Requirements for Housing
Appendix 2: The Council’s Requirements for the Education or Community Facility
Appendix 3: Draft Heads of Terms for Development Agreement
Appendix 4: Assessment Criteria and Evaluation Model
Appendix 5: The Residents Questionnaire for Evaluation Process
Appendix 6: Initial Solutions Checklist
Appendix 7: Tender Forms
1.3 Background Appendices
Appendix A - Briefing Note and Site Plan
Appendix B – Detailed breakdown of Silchester Esate Blocks by Tenure
Appendix C – Capital Work Suggested Contributions Employment, Training and Education
Appendix D – Silchester Estate Consultation Results for the scheme objectives (April 2010)
The Outline Planning Permission
The Unilateral Undertaking
All volumes of the ITPD Documents are also available with the background information for Bidders at: http://www.rbkc.gov.uk/businessandenterprise/procurement/buyerprofile-e-procurement.aspx
In the case of conflict between the contents of the hard copy of the ITPD Documents and those supplied electronically, the hard copy shall prevail.
The ITPD Documents set out the Council’s requirements in respect of the scheme, and issues for discussion as part of the competitive dialogue. In the event of any inconsistency, the ITPD Documents will take precedence over any documents previously issued by the Council.
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Part One: The Council’s Requirements – Descriptive Document
2. The Core Requirement
2.1 Bidders are required to submit a compliant Initial Solution which meets the Council’s core requirement. The core requirement is as follows. The Council requires a Provider to provide 63 units of affordable accommodation and to provide a community and/or education facility on the Silchester Garages Site in order to meet the all relevant requirements of a Unilateral Undertaking dated 23 July 2009, a copy of which is included with this ITPD.
2.2 Initial Solutions must be confined to the site defined in the existing Outline Planning Permission (‘OPP’), a copy of which is provided with this ITPD. This could be using the design as approved in the OPP, or could be an alternative design providing the same outputs. In either case, the housing element must be ready for occupation by May 2014.
2.3 The Council intends to offer the successful Provider a development agreement (“the Contract”) with an intention to enter into a lease for the land for 125 years. Draft Heads of Terms for this Contract are included at Appendix 3, and as part of their Initial Solutions Bidders are asked to comment on and mark up these Heads of Terms. It is intended that a draft of the contract will be provided once the number of participants in the dialogue has reduced to two. The preference is that the lease is entered once the new properties are ready for occupation but the Council is prepared to consider entering the lease at the outset of any development project provided suitable determination provisions are included for operation if the scheme is not successfully delivered by a long stop date or if the contract is terminated for any other reason.
2.4 The Council will expect the construction contractors engaged by the successful Provider to offer a collateral warranty to the Council with a right of step in to the construction agreements by the Council if the Contract between the Council and the Provider is terminated.
3. Housing
3.1 The affordable housing will consist of 30 units of social rented housing and 33 shared ownership units. The Council is likely to require the successful Bidder to enter into a covenant restricting the rents payable in respect of the social rented units. The Council will require 100% initial nomination rights to both the social rented and shared ownership units. (Full details of the Council’s requirements in relation to nomination rights are set out at Appendix 3.)
3.2 The Core Requirement described above forms the basis of Initial Solutions and of the eventual Final Tenders. The Contract will be awarded to the most economically advantageous tender and the evaluation process (which is described below) will give more weight to the Core Requirement. However Bidders should be aware of the wider objective described below and how their proposals in relation to it will be taken into account in the evaluation process.
4. The Wider Objective
4.1 The Council has a broader aspiration to regenerate the Silchester Garage Site and its surrounding area, which is one of the most deprived parts of the Royal Borough of Kensington and Chelsea. The focus of this Scheme is the southern part of the estate and specifically south of Shalfleet Drive. The Supplementary Planning Document (‘SPD’) (a draft of which can be obtained from http://www.rbkc.gov.uk/planningandconservation/planningpolicy/supplementaryplanning/silchestergaragesspd.aspx gives some indication of the area the Council is currently considering for the wider regeneration. Some preliminary consultation has been carried with residents, and through this the view has emerged that a wider regeneration scheme for the neighbourhood would be welcomed. Bidders should therefore be aware that the Council’s aspiration is for the 63 housing units and the community and/or education facility built on the Silchester Garages Site to be phase one of a wider regeneration scheme which will potentially involve the entire Silchester Estate in the longer term.
4.2 As identified in the OJEU notice the further aim of this procurement procedure is to identify a Provider with the technical ability, vision, experience and resources to initiate this transformation.
4.3 Bidders are therefore asked to submit as part of their Initial Solutions an outline proposal for the main scheme meeting the outputs and timescales of the Core Requirements but also providing added value through additional development on the estate (Wider Scheme Proposals). Wider Scheme Proposals should extend beyond the site defined by the existing OPP but should be contained within the area defined through the SPD.
4.4 The intention is to discuss and develop the Wider Scheme Proposals through the detailed dialogue phase (described below) and in the Final Tenders. However this must not distract from the Core Requirements which remain the first objective of this exercise.
4.5 The intention is that the Contract will contain a schedule and mechanism for the Council and the Contractor to develop and work up the Wider Scheme Proposals during the delivery of the Core Requirements (always based of course on the Wider Scheme Proposals submitted in outline during this bidding process so that the integrity of the competition is maintained). However Bidders should note:
4.5.1 The Council gives no guarantee, undertaking, representation or assurance whatsoever that the Wider Scheme will be developed or go ahead in any shape or form;
4.5.2 The Core Requirements must always be capable of standing alone and must not in any way be dependent (financially, or in design terms) on the Wider Scheme;
4.5.3 The Wider Scheme must be deliverable including in planning terms and those are some of the factors that will be taken into account as it is considered.
4.6 The Wider Scheme Proposals do not take primacy in the evaluation because the Council must first achieve the Core Requirement before moving on to the Wider Scheme.
4.7 Accordingly Bidders will note that there is an evaluation category which seeks to ensure that the Wider Scheme Proposals are feasible and meaningful, that the Bidder is willing to engage in the Wider Scheme and that the outline proposals are capable of being appended to the Contract for further development between the parties.
4.8 Bidders participate in this process on the understanding that the Wider Scheme may or may not be developed.
4.9 The Council’s preference is for a submission that will provide for the Core Requirements to be delivered and for there to be a commitment by the Provider to going ahead with the Wider Scheme provided that it is feasible and viable and acceptable in planning terms. The Wider Scheme may include development of private units for sale to subsidise the provisions of the affordable housing (and to that extent overage provision and s106 type benefits may be required).
Part Two: The Procurement Process
5. The Process
This is a competitive dialogue which is being conducted in accordance with the Public Contracts Regulations 2006. The following explains all the stages and how the process will be run. However, the Council reserves the right to add additional stages or to vary the process should the need arise (always, of course, within the terms of the Regulations).
5.1 Overall Timetable
In order to allow planning and delivery of the housing accommodation by May 2014, the timetable for this procurement is critical. It is intended to enter into the Contract no later than autumn 2011.
5.2 The Stages
The timetable below explains the process and the timetable for each of the stages in the procurement process. The Council reserves the right to change the timetable at any stage of the process, to add additional stages and to add further meetings.
Activity / Description / Date /Dialogue initiation meeting / Meeting with all three Bidders who are invited to participate in dialogue together where the Council will explain this ITPD and process and take immediate questions from the Bidding field. This is a chance for Bidders to seek early clarification and for the Council to ensure that Bidders have made an immediate start on reading and considering the documentation. / 10am -12 noon
3rd December 2010
Direction of Travel Papers / Bidders are invited to submit short papers setting out their direction of travel, a little about their emerging solutions and any questions they have about the Scheme, the Council’s Requirements or the documentation / By Thursday 16th December
Initial Solutions Dialogue Meetings / These are the first dialogue meetings and will take place for half a day with each Bidder. The dialogue session is the opportunity for the parties to discuss the Direction of Travel papers and to exchange comments or views. / Week Commencing 20th December
Clarification questions from Bidders / The Council reserves the right not to respond to any queries raised by Bidders after the deadline. / 21st January 2011
12 Noon.
Initial Solutions / Initial Solutions based on this ITPD are to be submitted in hard copy and electronically. / 31st January 2011
1 PM
Residents’ Exhibition / Each Bidder will be asked to exhibit their Bid to Residents whose views will be taken into account on evaluation (as explained in the evaluation model). / February 2011
Clarification and evaluation period / The Council will evaluate the initial solutions and seek written clarification as necessary
From this process the Council will invite the top two scoring Bidders to progress to the next (detailed) stage of the dialogue. / Concluded by end February 2011
Draft Call for Final Tenders issued / The two Bidders remaining in the process will be issued with a draft CFT so that they can participate in the detailed dialogue with clarity as to the eventual requirement and end game. This will include:
The evaluation model for the next stage
The draft Contract
The draft Nominations Agreement
The draft Lease / Early in the Detailed dialogue process:
March 2011
Detailed dialogue / This will comprise of meetings and marked up documentation across each discipline (planning, design, property, commercial, contractual etc).
The process will be commence with a plenary session for each Bidder and will outline the key areas of dialogue with all relevant disciplines present. A timetable of meetings and for exchange of documents will be agreed at that stage.
Plenary sessions will be help periodically to deal with “cross over” issues. / March – July 20011
Close of dialogue / Dialogue will be closed when the Council has identified one or more solutions capable of meeting its need.
Ideally the Council will not close dialogue until all issues have been resolved for both Bidders. However, given the strict timetable, if one Bid is taking inordinately long or there are significant areas of disagreement, the Council reserves the right when one solution meets its needs to confirm its final position, close dialogue and allow both Bidders to submit their final tenders. / July 2011
Call for final tenders (CFT) / Final Tenders prepared and submitted. In reality it is hoped that this is no more than a collation exercise by Bidders as the positions and documentation will have been worked up in dialogue. Of course it is always open for a Bidder to improve positions in their final tender. / July 2011
Selection of Preferred Bidder / The evaluation model will be applied to the Final Tenders and a preferred bidder selected. Clarifications will take place if necessary. / August 2011
Award of Contract / The preferred bidder period is expected to be short because the final tenders will represent the final agreed position. Accordingly this period is simply the clarification and confirmation of commitments. / September
Bidders may be required during the course of dialogue to carry out presentations of their proposals in meetings. However, the presentations and meetings will not be assessed.