Building Schools for the Future

Appendix A

Building Schools for the Future

Final Business Case - Design and Build

Addendum for

Oakfields Community College

Insert picture

Karen Robinson

BSF Project Director

BSF Team

Ground Floor, Civic Centre

Middlesbrough, TS1 2QQ

01642 729 557

JULY 2010 - PRIVATE AND CONFIDENTIAL

Table of contents

1 Executive Summary
1.1Project Overview ......
1.2Project Objectives ......
1.3Procurement / Competition ......
1.4Finance and Affordability ......
1.5Risk Allocation and Accounting Treatment ......
1.6Contract and Payment Mechanism ......
1.7Stakeholder Consultation and Project Management......
1.8Statutory Processes ......
1.9Gateway Review ...... / 4
6
6
6
6
7
7
7
8
2 Project Overview
2.1About Middlesbrough......
2.2 Programme Objectives ......
2.2.1Corporate Priorities ......
2.2.2The Education Vision ......
2.2.3Delivering the Education Vision ......
2.2.4General Design Requirements for All Schools......
2.2.5 Oakfields Community College Design Requirements ...... / 9
9
9
9
9
9
12
3 Objectives of the Project
3.1Project Description ......
3.2Project Objectives ......
3.2.1 Scope of Works and Design Strategy......
3.2.2 Design Principles......
3.3ICT / Design and Build Integration......
3.3.1Overview ......
3.3.2 ICT and Design and Build Integration Risk......
3.3.3 ICT and Design and Build Interface Process......
3.3.4 Operational Interface Matrix ...... / 17
19
19
19
19
19
19
20
20
4 Procurement and Competition
4.1Encouragement of Competition ......
4.2Framework to Shortlist ......
4.3ITT to Preferred Bidder ......
4.4Preferred Bidder to Financial Close ......
4.5Future Schools Procurement......
4.6Procurement Costs ...... / 21
21
21
21
21
21
5 Finance and Affordability
5.1Value for Money (PFI) ......
5.2Value for Money (Conventionally Funded Schemes) . . . . .
5.3Value for Money (ICT Projects) ......
5.4Affordability ...... / 22
22
22
22
6 Risk Allocation and Accounting Treatment
6.1Risk Allocation ......
6.2Accounting Treatment ...... / 29
29
7 Contract and Payment Mechanism
7.1Contracts ......
7.2Payment Mechanism ...... / 30
30
8 Stakeholder Consultation and Project Management
8.1Stakeholder Consultation ......
8.1.1 Stakeholder Consultation for ICT......
8.1.2Stakeholder Consultation for Design and Build ......
8.1.3 Stakeholder Consultation Going Forward......
8.2 Project Management ......
8.3Risk Management ...... / 31
31
31
35
35
39
9 Statutory Processes
9.1 TUPE......
9.2 School Re-organisation ......
9.3 Planning Approvals ......
9.4 Section 77 ...... / 40
40
41
42

Appendices

Appendix 1Risk Report

Appendix 2Affordability

Appendix 3N/A

Appendix 4N/A

Appendix 5N/A

Appendix 6N/A

Appendix 7 Construction Programme

Appendix 8Governing Body Agreements

Appendix 9Statutory Notices (Planning Approval)

Appendix 10N/A

Appendix 11Financial Proformas

Appendix 12Project Team

Appendix 13Carbon Calculator

Appendix 14N/A

Appendix 15Operational Matrix

Appendix 16N/A

Appendix 17N/A

Appendix 18N/A

Appendix 19N/A

Appendix 20N/A

Appendix 21Executive Approval to FBC Addendum

Appendix 22N/A

Appendix 23Section 151 Officer Letter

Appendix 24Student Conference

Appendix 25Scheme Drawings / CABE Report

Appendix 26 N/A

Appendix 27 N/A

Appendix 28N/A

Appendix 29N/A

Appendix 30N/A

Appendix 31DQI Report / Design Brief

Appendix 32N/A

1Executive Summary

This Final Business Case (FBC) addendum has been prepared to confirm the viability of one Design and Build scheme in relation to transforming Middlesbrough’s secondary education provision under the Building Schools for the Future (BSF) programme. Specifically, this addendum seeks a phased approval for Middlesbrough’s BSF project. This is necessary as a result of the phased build programmes, planning approvals and availability of cost data.

Approval is sought to draw down the funds necessary to fund the Design and Build of the following Future School:

• Oakfields Community College (amalgamation of Hall Garth and King’s Manor schools). Oakfields Community College is the name which has been chosen for the new school which will open in September 2010, within Middlesbrough’s previous business cases the scheme has been referenced as Acklam Base.

This addendum is Middlesbrough’s third and final FBC as Oakfields Community College is the last remaining Future School within the Authority’s BSF programme.

The main FBC referenced throughout this addendum provided information on Middlesbrough’s overall BSF programme and specific detail about the two sample schemes, Acklam Grange and Ormesby schools, plus Priory Woods school a non-sample scheme developed alongside Ormesby. The FBC was approved by the Department for Children, Schools and Families (DSCF) on the 17th November 2008.

The first Design and Build FBC addendum provided an update on Middlesbrough’s overall BSF programme and specific detailed information on Ashdale Pupil Referral Unit, Beverley and Tollesby schools. The first FBC addendum was approved by the DCSF for Ashdale on the 3rd December 2009 and for Beverley and Tollesby on the 12th January 2010.

The second Design and Build FBC addendum also provided an update on Middlesbrough’s overall BSF programme and specific detailed information on Trinity Catholic College. The second FBC addendum was approved by the DCSF on the 5th March 2010.

Middlesbrough is a Wave 2 BSF Authority and the programme has been procured through the National Academies Framework for the Design and Build contract and an Official Journal of the European Union (OJEU) process for the ICT managed service provider (ICT MSP) through competitive dialogue.

1.1 Project Overview

Middlesbrough has included all six Community and Voluntary Aided schools, all Secondary Special Educational Needs schools and the Key Stage 4 Pupil Referral Unit in its BSF programme. The relatively small number of schools involved dictates a single wave for the project.

Table 1 outlines the development of the scheme for Oakfields Community College since the Outline Business Case (OBC), as well as a reminder of all of Middlesbrough’s BSF schemes.

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Table 1 School Proposal

OBC Proposals / FBC Proposals
Existing provision / Proposal / Building
Handover / Proposal / Building Handover
Schemes outlined within this Addendum
Oakfields Community College (amalgamation of Hall Garth and King’s Manor schools) / New build school located on the current schools’ site / July 2011 / New build school located on the current schools’ site / June 2012 (note 1)
Schemes approved in earlier FBCs
Acklam Grange / New build school located on the same site / July 2010 / New build school built on the same site / July 2010
Ormesby / Remodel / January 2010 / New build school developed as a combined scheme with Priory Woods / July 2010
Priory Woods School / Remodel and new 16-19 block / July 2010 / New build school developed as a combined scheme with Ormesby / July 2010
Ashdale / New build on existing Parkwood site / August 2011 / New build on existing Parkwood site / October 2010
Tollesby School / Remodel on same site / July 2011 / New build developed as a combined scheme alongside Beverley / March 2011
Beverley School / Remodel on same site / July 2010 / New build developed as a combined scheme alongside Tollesby / March 2011
Trinity Catholic College
(amalgamation of Newlands FCJ and St David’s schools) / Remodel and extend the single 11-16 Roman Catholic VA School located at St David’s site / July 2011 / New build 11 – 16 Roman Catholic school on the existing Newlands site / July 2011

Notes for Table 1 School Proposal

1. Oakfields Community College’s delivery date has been delayed since the OBC stage due to a school competition; this was outlined in Section 9.2 of the main FBC, with updated information outlined within this FBC addendum.

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1.2 Project Objectives

Middlesbrough’s BSF project objectives remain as stated in the Strategic Business Case (SBC), OBC and main FBC. These are to deliver eight schemes within one BSF Wave that will transform all of Middlesbrough’s secondary schools.

1.3 Procurement/Competition

Middlesbrough’s BSF programme has been procured through the National Academies Framework for the Design and Build contract. The procurement process was based on the sample schemes, with the non-sample schemes called off as Future Schools under the batched National Academies Framework contract. The case for this approach was approved by Partnerships for Schools (PfS) and was set out in Section 3.2 of the OBC.

Middlesbrough’s main FBC which was approved by the DCSF on the 17th November 2008, contained information about Middlesbrough’s full BSF project, including full details of the procurement process and detailed information on the sample schemes Acklam Grange and Ormesby plus Priory Woods; a non-sample scheme developed alongside Ormesby due to the two schemes’ co-location.

The ICT Managed Service contract has been procured separately from the Design and Build contract via the OJEU route. A separate FBC was submitted for the ICT funding and was approved by the DCSF on the 18th September 2008.

Middlesbrough has selected Willmott Dixon as its contractor for the Design and Build contract and RM for the ICT MSP.

1.4 Finance and Affordability

The FBC addendum and its appendices confirm that the price submitted by the contractor for the Future School for Oakfields Community College is affordable and remains good value for money for the public sector.

Section 5 of this document sets out the value for money and affordability positions for Middlesbrough.

The Council’s Section 151 Officer has provided an assurance in relation to the affordability of the Design and Build schemes and the overall BSF programme. This is outlined in Section 5.4 of this document and a Section 151 letter is included at Appendix 23.

1.5 Risk Allocation and Accounting Treatment

Middlesbrough has assessed areas of risk and has allocated these between the relevant parties. Middlesbrough is utilising the PfS pre-procured framework contract within which risk allocation is identified and is accepting that risk allocation.

Any potential issues at implementation stage that require additional resources will be reviewed and managed as part of the overall contingency set aside for the BSF programme. This will include any costs arising from interface arrangements.

There are no significant accounting treatment issues in relation to this procurement with further details contained in Section 6.2.

1.6 Contract and Payment Mechanism

In agreement with PfS, Middlesbrough is procuring its BSF programme via the non-LEP route due to the size of the overall scheme and all schools being delivered through a single BSF wave. The Design and Build contractor has been procured through PfS’s National Academies Framework contract and the ICT MSP through an OJEU competitive dialogue process.

The PfS National Academies Framework does not contain a Payment Mechanism. The standard form batched contract has been used for the sample schemes plus Priory Woods with the non-sample schemes named within Schedule 19 of the contract enabling them to be called off as Future Schools. Details of the contract are outlined in Section 7.

Details of the ICT MSP contract and Payment Mechanism are outlined in Section 7 of the ICT FBC.

1.7 Stakeholder Consultation and Project Management

Middlesbrough has consulted with all relevant stakeholders at each stage in the process. This engagement has proven to be a consistent driver for the project, at the outset helping to shape the transformational vision and more recently ensuring commitment to the outcome of the procurement process and the Design and Build contractor.

Stakeholder consultation has been achieved through the adoption of clear and robust project management processes. These processes have helped to ensure stakeholder commitment and have continued to be used throughout the programme. Section 8 illustrates the stakeholder consultation that has taken place.

Section 8 and Appendix 12 of the main FBC set out the personnel of Middlesbrough’s project team to demonstrate that it has been resourced appropriately. It also set out the arrangements for supervising the delivery of the Design and Build and ICT contracts.

Middlesbrough has put in place significant resources for the duration of the project, including post contract close resources to monitor and maintain ongoing relations with both the ICT and Design and Build contractors to ensure that performance is continually monitored. Middlesbrough, with support from PfS, has constantly reviewed its level of resources and personnel deployed to the BSF project and has made changes when required to meet the needs of the programme.

1.8 Statutory Processes

Middlesbrough, in consultation with PfS, has followed the appropriate statutory processes in order to conclude the Design and Build procurement and reach Financial Close.

Section 9 of the main FBC set out the statutory processes in detail. This addendum outlines the planning position and provides an update to the main FBC.

Oakfields Community College is due to be presented to Middlesbrough’s Planning Committee on the 13th August 2010. Approval to this FBC addendum is sought in principle at this stage, the planning approval will be provided as soon as it gained to enable the FBC addendum to be approved.

1.9 Gateway Review

Section 1.9 of Middlesbrough’s main FBC, contained information regarding Middlesbrough’s Gateway Review. A Gateway Review 3 took place between the 3rd and 5th September 2008. The review highlighted the following areas of good practice:

• There was strong political buy-in to the BSF programme and a real desire by all for the project to succeed
• There is a good level of school engagement to the aims of the BSF programme, and stakeholders of all types appeared to have been informed of the initiative
• Middlesbrough has allocated sufficient resources, both internal and external, to this project
• The external consultants appear to have been managed effectively and the in-house technical input has been good
• Middlesbrough has a good concept of the educational and transformational improvements to be achieved from this investment
• The Project Team has given consideration to the resource needs required for the next phase of the project.

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