Bauleistung - 529280-2019

08/11/2019    S216    Works - Voluntary ex ante transparency notice - Negotiated procedure without a call for competition 

United Kingdom-Huyton: Building construction work

2019/S 216-529280

Voluntary ex ante transparency notice

Works

Legal Basis:

Directive 2014/24/EU

Section I: Contracting authority/entity

I.1)Name and addresses
Official name: Knowsley Metropolitan Borough Council
Postal address: Municipal Building
Town: Huyton
NUTS code: UKD7
Postal code: L36 9YU
Country: United Kingdom
Contact person: Mike Dearing
E-mail: mike.dearing@knowsley.gov.uk
Telephone: +44 1514433672

Internet address(es):

Main address: http://www.knowsley.gov.uk

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:

Development of Retail offering in Kirkby Town Centre

II.1.2)Main CPV code
45210000
II.1.3)Type of contract
Works
II.1.4)Short description:

As part of the Knowsley Metropolitan Borough Council’s (the ‘Council’) ‘Strategy for Knowsley 2016-2020’, the Council has committed to delivering a new retail offering in Kirkby town centre in order to regenerate the area. The Council has identified a number of sites in the town centre area, that it wishes to purchase in order to achieve its regeneration objective. The sites are currently owned by St Modwen Developments (Kirkby 2) Ltd (‘St Modwen’). It is a condition of sale of the Site that the Council enter into a development management agreement with St Modwen under which St Modwen will design and build a retail development and manage the leasing of that development. The value shown in the section below is the current estimated value but may vary upwards or downwards.

II.1.6)Information about lots
This contract is divided into lots: no
II.1.7)Total value of the procurement (excluding VAT)
Value excluding VAT: 21 500 000.00 GBP
II.2)Description
II.2.1)Title:
II.2.2)Additional CPV code(s)
45111000
45351000
45213111
44212381
45213312
65000000
71220000
71312000
90700000
71530000
70130000
79100000
II.2.3)Place of performance
NUTS code: UKD7
II.2.4)Description of the procurement:

The Council is acquiring further land interests in Kirkby Town Centre to facilitate regeneration. These are Kirkby Town Centre, on land north of Cherryfield Drive, Kirkby; the Shopping Centre known as St Chads Parade; and a bare development site known as land to the south of Cherryfield Drive which together comprise the ‘Sites’. All Sites are in Kirkby Town Centre. The Sites are currently owned freehold and long leasehold by St Modwen who have agreed to sell the Sites to the Council conditional on the Council entering into the Development Management Agreement (‘DMA’) with St Modwen.

Under the terms of the DMA, St Modwen will be responsible for the redevelopment of Kirkby Town Centre. This will include an obligation to procure, manage, monitor and supervise the design, construction and completion of a new retail development to be anchored by a Morrisons supermarket and more particularly defined under St Modwen’s planning consent authorising the erection of a mixed use development comprising a foodstore and non-food retail shops (Use Class A1) food and drink uses (Use Classes A3/A5), petrol filling station, car parking, landscaping, highways improvements and other associated works (including 3 electricity substations) on land bound by Norwich Way, Hall Lane, County Road and Irlam Drive, and the construction of a car park with ancillary works on land off Cherryfield Drive and Cherryfield Crescent dated 9.11.2017 and issued 20.11.2017 and referenced 17/00559/FUL).

St Modwen as current owner of the Sites is in the process of concluding prelets with 3 tenants, conditional on construction of the relevant units. Under the DMA St Modwen are also to be responsible for managing the leases of un-let space in the new retail development. The DMA also includes St Modwen carrying out car park works on the land to the South of Cherryfield Drive.

St Modwen intend to let the design and construction of the development to a main contractor. St Modwen shall also appoint letting agents. All design consultants have already been selected by St Modwen and/or the main contractor and they are also concluding the terms of a JCT contract to design and construct the development with GMI Construction Group plc (‘GMI’). Under the terms of the DMA, St Modwen will be obliged to procure collateral warranties (containing step in rights) in favour of the Council from the key design consultants, employer's agent and GMI.

It is the intention to start works covered by the DMA in December 2019.

II.2.5)Award criteria
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
II.2.14)Additional information

Section IV: Procedure

IV.1)Description
IV.1.1)Type of procedure
Negotiated procedure without prior publication
  • The works, supplies or services can be provided only by a particular economic operator for the following reason:
    • protection of exclusive rights, including intellectual property rights
Explanation:

The Council relies on Regulation 32(2)(b)(iii) to enter into a development management agreement with St Modwen.

As part of the Council’s ‘Strategy for Knowsley 2016-2020’, the Council committed to developing sustainable town centres. As part of this the Council would deliver a new retail, leisure and evening economy offering in Kirkby town centre.

The Council wishes to acquire land in and around the town centre in order to regenerate Kirkby town centre. St Modwen are currently the freehold and long leasehold owner of several strategic plots in Kirkby town centre that the Council wishes to acquire. There are no land owners within the centre other than the Council and St Modwen. The sites in question are on land north of Cherryfield Drive, Kirkby; the Shopping Centre known as St Chads Parade; and a bare development site known as land to the south of Cherryfield Drive (‘the Sites’) This notice concerns the Sites. St Modwen has exclusive rights over the Sites as the holder of the freehold and long leasehold interest with the reversion vested in the Council. St Modwen have agreed to the sale of the Sites to the Council, despite their existing exclusive rights, on the express condition that the parties enter into a Development Management Agreement simultaneously to a sale and purchase agreement. The Development Management Agreement will oblige St Modwen to deliver the works together with a number of design and build services. St Modwen will also be responsible for managing the leasing of the development.

Kirkby is a town of over 41,000 population. There is limited space suitable for this development. The relevant site is in the town centre and the Council has a longstanding commitment to new retail facilities in the existing town centre and in particular the provision of a retail foodstore. This proposal delivers that commitment. This site already has the benefit of planning permission for a retail park and has sufficient scale to deliver what is required by the planning permission in terms of parking, servicing and units.

This site has the benefit of 3 significant tenants already signed up to take leases within the retail park and therefore can be income producing for the Council and operational in the shortest amount of time.

There is no other site of equivalent scale in the town centre that can be delivered in the same timeframe at the same cost whether by private acquisition or by utilising CPO powers. There would be little benefit in the Council undertaking such a development from scratch in an alternative area as any new scheme would fail through competition with the current site. There is not sufficient capacity within Kirkby for 2 such retail parks.

The Council therefore has no option but to proceed with this transaction, bound by the position of St Modwen which has existing exclusive rights over the Sites, to ensure that the development is carried out without further delay which would be likely to result in detriment to the local area and local economy.

IV.1.3)Information about framework agreement
IV.1.8)Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: no
IV.2)Administrative information
IV.2.1)Previous publication concerning this procedure

Section V: Award of contract/concession

V.2)Award of contract/concession
V.2.1)Date of contract award decision:
05/11/2019
V.2.2)Information about tenders
The contract has been awarded to a group of economic operators: no
V.2.3)Name and address of the contractor/concessionaire
Official name: St Modwen Developments (Kirkby 2) Ltd
Postal address: Park Point, 17 High Street, Longbridge
Town: Birmingham
NUTS code: UKG31
Postal code: B31 2UQ
Country: United Kingdom
The contractor/concessionaire will be an SME: no
V.2.4)Information on value of the contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession: 21 500 000.00 GBP
V.2.5)Information about subcontracting
The contract/lot/concession is likely to be subcontracted
Short description of the part of the contract to be subcontracted:

Under the DMA St Modwen will be required to award a building contract to GMI and manage it to deliver the development. Specialist construction contractors will undertake specialist works when necessary. St Modwen will sub-contract professional services necessary for a design and build contract and will appoint letting agents in respect of the requirement to manage the leasing of the development.

Section VI: Complementary information

VI.3)Additional information:
VI.4)Procedures for review
VI.4.1)Review body
Official name: Knowsley Metropolitan Borough Council
Town: Huyton
Country: United Kingdom
VI.4.2)Body responsible for mediation procedures
VI.4.3)Review procedure
VI.4.4)Service from which information about the review procedure may be obtained
VI.5)Date of dispatch of this notice:
05/11/2019