Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
I.1) Name and addresses
BIRMINGHAM CITY COUNCIL
10 Woodcock Street
BIRMINGHAM
B4 7WB
UK
E-mail: cps@birmingham.gov.uk
NUTS: UKG31
Internet address(es)
Main address: https://www.birmingham.gov.uk/
Address of the buyer profile: www.in-tendhost.co.uk/birminghamcc
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
Provision of Repairs & Maintenance, Gas Servicing and Capital Improvement Works Programmes - Interim Contracts 2024-2026
Reference number: P0787_2023
II.1.2) Main CPV code
45300000
II.1.3) Type of contract
Works
II.1.4) Short description
The appointment by Birmingham City Council of two Contractors for the provision of Responsive Repairs & Maintenance Services, Gas Servicing and Capital Improvement Work Programmes (including Major Adaptations) and Standalone Projects regarding the Council's housing stock in all areas of Birmingham. The contract period is for two years commencing 1st April 2024 to 31st March 2026.
II.1.6) Information about lots
This contract is divided into lots:
Yes
II.1.7) Total value of the procurement
Lowest offer:
423 000 000.00
GBP/ Highest offer:
603 000 000.00
GBP
II.2) Description
Lot No: 1
II.2.1) Title
North, West and East
II.2.2) Additional CPV code(s)
09300000
45200000
45300000
45400000
50510000
50530000
50700000
50850000
51100000
51510000
71000000
II.2.3) Place of performance
NUTS code:
UKG31
II.2.4) Description of the procurement
Birmingham City Council is the largest local authority in Europe and one of the largest social landlords in the country with a stock portfolio of approximately 60,000 properties. The Council requires contracts to provide a day to day repair service, (including 24 hours cover for emergency repairs); repair work to void properties prior to re-letting; cyclical repairs; planned maintenance and improvement programmes; retrofit works to the Council's housing stock to reduce carbon impact, disabled adaptations; inspection services; planning supervisor services; design specification; work planning and quality control, together with customer relations and the appropriate financial and administrative support. The scope of the gas and heating installations, servicing and maintenance workstream includes providing an annual service to all appliances, in line with the Council's statutory obligation. The Council has bespoke contract terms and a 'price per' approach for repairs (Price per Property), gas servicing and repairs (Price per Gas & Heating) and capital elemental works (Price per Element), voids are priced via the National Housing Federations Schedule of Rates and standalone projects are priced separately priced. The Council is committed to providing quality services to customers. Contractors are required to assist the Council in achieving and furthering this objective through continuous service improvement. The Council has established key performance indicators which contractors are expected to consistently meet. Under this contract the contractors and their supply chains are required to actively participate in the achievement of the Contracting Authority's social, economic and environmental objectives.
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
Lot No: 2
II.2.1) Title
South
II.2.2) Additional CPV code(s)
09300000
45200000
45300000
50510000
50530000
50700000
50850000
51100000
51510000
71000000
II.2.3) Place of performance
NUTS code:
UKG31
II.2.4) Description of the procurement
Birmingham City Council is the largest local authority in Europe and one of the largest social landlords in the country with a stock portfolio of approximately 60,000 properties. The Council requires contracts to provide a day to day repair service, (including 24 hours cover for emergency repairs); repair work to void properties prior to re-letting; cyclical repairs; planned maintenance and improvement programmes; retrofit works to the Council's housing stock to reduce carbon impact, disabled adaptations; inspection services; planning supervisor services; design specification; work planning and quality control, together with customer relations and the appropriate financial and administrative support. The scope of the gas and heating installations, servicing and maintenance workstream includes providing an annual service to all appliances, in line with the Council's statutory obligation. The Council has bespoke contract terms and a 'price per' approach (for repairs (Price per Property), gas servicing and repairs (Price per Gas & Heating) and capital elemental works (Price per Element), voids are priced via the National Housing Federations Schedule of Rates and standalone projects are priced. The Council is committed to providing quality services to customers. Contractors are required to assist the Council in achieving and furthering this objective through continuous service improvement. The Council has established key performance indicators which contractors are expected to consistently meet. Under this contract the contractors and their supply chains are required to actively participate in the achievement of the Contracting Authority's social, economic and environmental objectives.
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:
The works, supplies or services can be provided only by a particular economic operator for the following reason: absence of competition for technical reasons
Explanation
In January 2023 Birmingham City Council (the Council) commenced a procurement for the provision of Responsive Repairs and Maintenance Services, Gas and Heating Servicing, Capital Improvement Work including Major Adaptions and Retrofit Works to Council Housing Stock (approximately 60,000 properties), contract reference P0787, for the value of £1.4 billion which was advertised on the Find a Tender Service, notice reference number 2023/S 000-001326. The intention of that procurement was to source two contractors, one for each lot for a five year contract with the option to extend for a further five years. The procurement was conducted under the competitive procedure with negotiation. The procurement proceeded through the SQ stage to the ISIT (Invitation to Submit Initial Tenders) stage. The Council took the decision to abandon the procurement in August 2023 following receipt of initial tender submissions, when the commercial evaluation presented challenges due to the scale and scope of the works required. In addition, as a result of work which the Council had carried out since the tender had been published regarding its capital programme, there had been a significant increase in the volume and values of works required. The Council undertook an objective assessment of its options and reached the conclusion that entering into negotiations with its two incumbent providers to secure interim contracts for a two year period would best meet its needs. The negotiations have focused on securing better value for money for the Council through a reduction in cost, service continuity and improvement in resident services, a more balanced approach to risk, increased throughput of the planned programme and a new approach for materials supply. The Council will rely on Reg 32(2)(b)(ii) of the Public Contract Regulations 2015 in awarding these contracts, where the works, supplies or services can be supplied only by a particular economic operator where competition is absent for technical reasons. The decision taken to work with the incumbents was due to the Council's view that competition is absent in this particular case due to the time required to mobilise and transition to new contractors in time for the new contracts to commence from the 1st April 2024. The award of these interim contracts will provide the Council sufficient time to undertake a service review, re-procure long-term contracts, mobilise and exit/transition and for these reasons believes that no other suppliers could meet the Council's requirements during this interim contract period.
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
Yes
Section V: Award of contract
Lot No: 1
Contract No: P0787_2023
Title: P0787_2023 Provision of Repairs & Maintenance, Gas Servicing and Capital Improvement Works Programmes - Interim Contract 2024-2026 - North, West and East
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
20/03/2024
V.2.2) Information about tenders
Number of tenders received: 1
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Equans Regeneration Limited
1738371
Newcastle upon Tyne
NE12 8BU
UK
NUTS: UKC
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
Lowest offer:
259 700 000.00
GBP
/ Highest offer:
371 300 000.00
GBP
V.2.5) Information about subcontracting
Section V: Award of contract
Lot No: 2
Contract No: P0787_2023
Title: Provision of Repairs & Maintenance, Gas Servicing and Capital Improvement Works Programmes - Interim Contract 2024-2026 - South
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
15/03/2024
V.2.2) Information about tenders
Number of tenders received: 1
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Fortem Solutions Limited
04638969
Letchworth Garden City
SG6 4ET
UK
NUTS: UKH
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
Lowest offer:
163 300 000.00
GBP
/ Highest offer:
231 700 000.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.4) Procedures for review
VI.4.1) Review body
High Court of England and Wales
Royal Courts of Justice, Strand
London
WC2A 2LL
UK
VI.5) Date of dispatch of this notice
25/03/2024