Purpose

On 18th July 2024 the Partner, Shareholder and
Trustee Executive Sub-Committee (PSTESC) considered a report (at
Annexe 1) concerning a property at 13 Marketfield Way, Redhill that
has been received from a developer under the terms of a Section 106
planning agreement. The developer has also provided a capital
contribution for the fit-out the premises to enable a letting.
Approval was sought, inter alia, to use the developer-funded
capital contribution to fund finishing and fitting-out works to the
property.
 
PSTESC Resolved to approve the allocation of
the £0.379 million capital contribution from the developer of
13 Marketfield Way to fund fitting-out works. This was a Key
Decision.
 
A tender exercise was run for this contract
through the Council’s procurement system, In-tend. Seventeen
bidders responded. Officers then undertook a quality evaluation of
bidders responses to a Quality Questionnaire comprising of six
questions, which accounted for 40% of the submission score, which
was then added to the price score (Lowest Price/Tenderer’s
Tendered Sum x Criteria Weighting), which accounted for 60% of the
submission score.
 
Following the completed evaluation of the
tender responses, this identified the successful tenderer, with the
highest combined quality and price score indicating the most
advantageous tender. This evaluation methodology is designed to
provide a structured and auditable approach to evaluating the
tender responses submitted by bidders. This identified CCM
Interiors Ltd, as the successful tender.
 
The tender price for the fit out of 13
Marketfield Way is £428,794.29. This exceeds the developer
contribution by £49,794.29. Within this we have removed the
contingency of 30k leaving a shortfall of £19,794.29 The
shortfall will be accounted for by further value engineering
throughout the duration of the project, property capital budget and
additional funding opportunities sought by our new leaseholders. A
further value engineering exercise cannot take place until we issue
the contract award.
 
CCM Interiors Ltd: 83.92%
Alternate Bidder – A: 83.17%
Alternate Bidder – B: 83.03%
Alternate Bidder – C: 82.60%
Alternate Bidder – D: 82.40%
Alternate Bidder – E: 82.38%
Alternate Bidder – F: 82.29%
Alternate Bidder – G: 81.58%
Alternate Bidder – H: 79.47%
Alternate Bidder – I: 78.72%
Alternate Bidder – J: 77.83%
Alternate Bidder – K: 76.98%
Alternate Bidder – L: 73.25%
Alternate Bidder – M: 72.61%
Alternate Bidder – N: 65.83%
Alternate Bidder – O: 59.33%
 
Officers carried out the tender exercise on
the understanding that they had authority to award the contract,
but it has subsequently come to light that the PSTESC resolution
did not explicitly contain this delegated authority, which
otherwise requires an Executive decision.
 
The Legal Services Manager has reviewed the
report and has concluded that the context and wording of the report
makes it clear that the intention was to let the contract and
utilise the developer contribution, and that it is not necessary to
refer the contract award back to Executive for a confirmatory
decision.
 
The Deputy Chief Executive (Strategic Lead for
Place), the Chief Finance Officer, the Portfolio Holder for
Finance, Assets and Governance and the Chairman of the Overview and
Scrutiny Committee have been consulted and are all in agreement
with the decision.
 

Decision

To grant delegated authority to the Head of Property to award the
contract for the fitting out works at 13 Marketfield Way to CCM
Interiors Ltd for the sum of £428,794.29.

Reasons for the decision

The reason for awarding the contract to CCM Interiors Ltd for the
sum of £428,794.29 is that theirs was the winning bid based
on the analysis of quality submission and scoring method set out in
the ITT document

Alternative options considered

The alternative option would be not to award
the contract at this time, but to report again to Executive
requesting delegated authority for an award.
 
This is not recommended, as the delay in doing
so would cause significant operational problems for the incoming
tenant, YMCA and their sub-tenant, Alliance for Better Health CIC.
Furthermore, a new tender exercise would need to be run, as the
winning bid is only valid for no more than 90 days following
submission and this would result in additional delays and possible
an increased contract cost