Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
I.1) Name and addresses
London Legacy Development Corporation
5 Endeavour Square, Westfield Avenue
London
E20 1JN
UK
Contact person: Brian Walsh
Telephone: +44 2032881800
E-mail: procurement@londonlegacy.co.uk
NUTS: UKI
Internet address(es)
Main address: www.queenelizabetholympicpark.co.uk
I.4) Type of the contracting authority
Body governed by public law
I.5) Main activity
Other: Development and regeneration
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
East Wick and Sweetwater – Modifications to Development Agreement
II.1.2) Main CPV code
45000000
II.1.3) Type of contract
Works
II.1.4) Short description
Modifications to a Development Agreement for the development of the site known as East Wick and Sweetwater in the Queen Elizabeth Olympic Park.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
800 000 000.00
GBP
II.2) Description
II.2.2) Additional CPV code(s)
45211000
II.2.3) Place of performance
NUTS code:
UKI
Main site or place of performance:
LONDON
II.2.4) Description of the procurement
London Legacy Development Corporation (LLDC) entered into a Development Agreement (DA) with East Wick and Sweetwater Projects (Holdings) Limited on 27 February 2015 for the development of the site known as East Wick and Sweetwater in the Queen Elizabeth Olympic Park, Stratford, London. The DA was varied by a supplemental agreement and deed of variation dated 14 July 2016, a deed of variation dated 26 July 2016, a deed of variation dated 15 December 2017 and a deed of variation dated 21 December 2018. The parties have entered into a further deed of variation and ancillary documents to amend the DA to incorporate various modifications including the following: (i) Reduction in share of returns payable to LLDC; (ii) A private unit by private unit overage provision for further payments to LLDC above the fixed returns for sales of private units; (iii) Simplifications to the arrangements governing LLDC’s share of Private Rental Sector revenues whereby 16% of the Private Rental Sector units in Phases 2-7 are owned outright by LLDC; (iv) Modifications to termination payments to cover costs incurred; (v) Introduction of tighter development milestones requiring specified delivery by the Contractor in respect of each of the phases; (vi) “Golden Brick” arrangements in respect of blocks containing 100% affordable housing units or 100% private rented units; and (vii) the removal of Phase 6 from the DA.
LLDC considers that the modifications have been brought about by circumstances which a diligent contracting authority could not have foreseen, they do not change the overall nature of the contract and the price has not increased by more than 50% of the value of the original contract. The modifications have been brought about as a result, inter alia, of adverse market conditions which have been caused in part and exacerbated by the COVID-19 pandemic. LLDC therefore considers that Regulation 72(1)(c) of the Public Contracts Regulations 2015 applies.
Furthermore, LLDC considers that the modifications are not “substantial” for the purposes of Regulations 72(1)(e) and (8). The modifications do not render the contract materially different in character from either the original DA or the immediately preceding version. Whilst some of the modifications when considered alone are in the Contractor’s favour, LLDC has sought to counterbalance this with modifications in its own favour, so that the effect on the overall economic balance is neutral. LLDC therefore considers that Regulation 72(1)(e) also applies. As a result, LLDC considers that the modifications may be made without a new procurement procedure.
II.2.5) Award criteria
Cost criterion: N/A
/ Weighting: 0
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 procurement falls outside the scope of application of the Directive
Explanation
See explanation at Section II.2.4.
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
07/10/2022
V.2.2) Information about tenders
Number of tenders received: 1
Number of tenders received from SMEs: 0
Number of tenders received from tenderers from EU Member States: 0
Number of tenders received from tenderers from non-EU Member States: 0
Number of tenders received by electronic means: 0
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Eastwick and Sweetwater Projects (Holdings) Limited
09459001
350 Euston Road,, Regents Place,
London,
NW1 3AX
UK
NUTS: UKI
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 800 000 000.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.3) Additional information
To view this notice, please click here:
https://www.delta-esourcing.com/delta/viewNotice.html?noticeId=719849409
GO Reference: GO-20221010-PRO-21110013
VI.4) Procedures for review
VI.4.1) Review body
London Legacy Development Corporation
5 Endeavour Square, Westfield Avenue
London
E20 1JN
UK
VI.5) Date of dispatch of this notice
10/10/2022