Works - 533871-2018

05/12/2018    S234    - - Works - Contract notice - Competitive procedure with negotiation 

United Kingdom-Birmingham: Construction work

2018/S 234-533871

Contract notice

Works

Legal Basis:

Directive 2014/24/EU

Section I: Contracting authority

I.1)Name and addresses
Highways England
The Cube, 199 Wharfside Street
Birmingham
B1 1RN
United Kingdom
E-mail: smpprocurement@highwaysengland.co.uk
NUTS code: UK

Internet address(es):

Main address: https://www.gov.uk/government/organisations/highways-england

Address of the buyer profile: https://highways.bravosolution.co.uk/web/login.shtml

I.2)Information about joint procurement
I.3)Communication
The procurement documents are available for unrestricted and full direct access, free of charge, at: https://highways.bravosolution.co.uk/web/login.shtml
Additional information can be obtained from the abovementioned address
Tenders or requests to participate must be submitted electronically via: https://highways.bravosolution.co.uk/web/login.shtml
Tenders or requests to participate must be submitted to the abovementioned address
I.4)Type of the contracting authority
National or federal agency/office
I.5)Main activity
Other activity: Highways construction schemes and upgrade of roadside technology and associated road assets.

Section II: Object

II.1)Scope of the procurement
II.1.1)Title:

Smart Motorways Alliance and Associated Works

II.1.2)Main CPV code
45000000
II.1.3)Type of contract
Works
II.1.4)Short description:

Highways England seeks to appoint 6 partners to create the Smart Motorway Programme Alliance ("SMP Alliance") over a 10.5 year period, including a mobilisation and a further period to complete outstanding works.

One Partner shall provide production management services (Lot 1), 2 Partners shall be digitally enabled designers (Lot 2) and 3 Partners shall undertake on-site assembly and construction role (Lot 3). The Alliance will develop, design, and build multiple road schemes under a single Alliance Contract. Partners will operate from a centralised Production Hub to coordinate delivery.

The Alliance will increase lane capacity on all parts of the strategic road network through embedding technology and converting hard shoulders to all-lane running. Where required, the Alliance will also deliver associated works to coordinate wider HE programme of works. The Alliance may also support HE deliver the wider autonomous and connected vehicles road implementation strategy

II.1.5)Estimated total value
Value excluding VAT: 7 000 000 000.00 GBP
II.1.6)Information about lots
This contract is divided into lots: yes
Tenders may be submitted for maximum number of lots: 2
Maximum number of lots that may be awarded to one tenderer: 1
The contracting authority reserves the right to award contracts combining the following lots or groups of lots:

Not applicable

II.2)Description
II.2.1)Title:

Production Management Partner

Lot No: 1
II.2.2)Additional CPV code(s)
71500000
71520000
71521000
71530000
71541000
79418000
II.2.3)Place of performance
NUTS code: UK
Main site or place of performance:

England - National

II.2.4)Description of the procurement:

Highways England is looking to appoint a partner to be accountable for the programme-wide management activities within the production hub function over the term of the alliance agreement (10,5 years) and thereafter to oversee completion of works called off under lots 2 and 3. Such works expected to complete within 2 to 3 years of expiry of the term of the Alliance Agreement.

The production management partner will act as a catalyst for integration and collaboration between all seven Alliance Members (6 Partners and Highways England) within the Production Hub while providing capability in the service areas specifically related to delivery control and coordination and investing in the capability and competence development of Highways England to enable a programmatic approach that supports realisation of the intended benefits of an alliance model. The outcomes of the production hub function include the following, as a minimum:

1) Business Integration — managing and integrating resources from multiple companies to create and sustain effective and efficient programme delivery;

2) Delivering services within the Production Hub in a leadership or supporting role as required;

3) Programme management office to enable delivery plan to be successfully delivered safely, to time, cost and quality and with robust change control;

4) Supply chain management strategy — facilitate delivery of collaborative procurement hub, category management and wider supply chain performance;

5) Technology and information strategy — facilitate and deliver technology architecture strategy to enable efficiency single source of the truth;

6) Logistical management and scheduling — facilitate delivery of strategic coordination of plant material and resources across inventory storage and manufacturing assembly to smooth resource levels and effective sequencing;

7) People strategy — support alliance board and develop recruitment, skills and retention strategy to drive high performing culture;

8) Continuous improvement, innovation and best practice identified at the scheme level and shared across the programme to support consistently high performing and continuously improving teams in both design areas and in all three construction areas;

9) Commercial management — facilitate delivery of effective cost, commercial and financial management function to the alliance;

10) Communications — lead effective communications strategy and business reporting management;

11) Governance and risk management — provide effective risk controls to facilitate operational and strategic delivery;

12) Quality management and assurance — provide an effective quality management system and controls to maximise operational efficiency;

13) Business Change and Innovation — provide catalyst for business opportunities and deliver effective project management to successfully implement change.

The specific resources and structure will be reviewed annually to reflect needs of forward design and build works programme.

Further information is provided in the descriptive document

II.2.5)Award criteria
Price is not the only award criterion and all criteria are stated only in the procurement documents
II.2.6)Estimated value
Value excluding VAT: 350 000 000.00 GBP
II.2.7)Duration of the contract, framework agreement or dynamic purchasing system
Duration in months: 126
This contract is subject to renewal: no
II.2.9)Information about the limits on the number of candidates to be invited
Envisaged minimum number: 3
Maximum number: 5
Objective criteria for choosing the limited number of candidates:

Selection criteria for the questions are provided in the procurement documents.

II.2.10)Information about variants
Variants will be accepted: no
II.2.11)Information about options
Options: no
II.2.12)Information about electronic catalogues
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

Lot value is for guidance only. The value will be subject to the programme scale and agreed resources profile across the alliance partners, which will vary depending upon ability for HE, design and construction partner’s ability to self-deliver. A package order will be issued to confirm resource need, with resources embedded in a centralised Production Hub.

II.2)Description
II.2.1)Title:

Digitally Enabled Design Partner

Lot No: 2
II.2.2)Additional CPV code(s)
71000000
71250000
71300000
71311210
71320000
71322500
71510000
II.2.3)Place of performance
NUTS code: UK
Main site or place of performance:

England - National

II.2.4)Description of the procurement:

The Digitally-Enabled Design Partners will provide outline and detailed civil engineering design for smart motorway schemes. They will be accountable for delivery of the project control framework stages 1-7, including:

— principal designer for allocated schemes,

— design knowledge management,

— surveys (supported by supply chain and on-site assembly partner),

— environmental assessment and design,

— statutory and consent management,

— maximising use of digital design including Building Information Modelling (BIM),

— providing designs solutions to meet scheme needs,

— promoting industry practice for road designas an alliance partner, the design partners will promote and lead the standardisation and use of digital solutions to reduce the need for bespoke design and maximise efficiency. They will develop and apply a consistent approach to design whereby standardised SMP designs are developed for use across all on-site assembly areas to drive efficiencies across the value chain.

The Design Partners will promote and manage the utilisation of the HE promoted “Rapid Engineering Model” system to better inform designs, while standardising the methods, and running digital rehearsals implementing a cyclical dynamic, where processes and capabilities are tested to deliver right first time, optimised on site assembly. The supply chain is critical to developing the flexibility, efficiency, and speed to deliver the right product efficiently.

Design partners will provide resource and expertise to deliver centralised production hub activity to maximise alliance objectives and delivery of efficient programme. As part of the contract award, the 2 Alliance design partners will provide personnel to sit within the production hub and shall appoint representatives to the alliance board with a mandate to deliver all SMP schemes.

At contract award, the design partners’ will be assigned to one of 2 UK regions (North and South) Candidates must provide their preferences as part of their expression of interest. The candidate with the highest qualifying score for this lot will be awarded their preferred region, and remaining region allocated to the 2nd ranked qualifying bidder.

The alliance contract will include a work allocation procedure. Further details regarding how the design services for schemes will be awarded to the two successful design partners can be found in the descriptive document.

II.2.5)Award criteria
Price is not the only award criterion and all criteria are stated only in the procurement documents
II.2.6)Estimated value
Value excluding VAT: 700 000 000.00 GBP
II.2.7)Duration of the contract, framework agreement or dynamic purchasing system
Duration in months: 126
This contract is subject to renewal: no
II.2.9)Information about the limits on the number of candidates to be invited
Envisaged minimum number: 6
Maximum number: 8
Objective criteria for choosing the limited number of candidates:

Selection criteria for the questions are provided in the procurement documents.

II.2.10)Information about variants
Variants will be accepted: no
II.2.11)Information about options
Options: no
II.2.12)Information about electronic catalogues
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

Lot value represents the optimistic maximum forecast if the complete smart motorways programme is fully funded over the 10 year term. Candidates should refer to the descriptive document for further detail, which confirms the latest funded position and expected number of schemes.

II.2)Description
II.2.1)Title:

On-site Assembly Partner

Lot No: 3
II.2.2)Additional CPV code(s)
45000000
45100000
45233000
45233100
45233130
71000000
71250000
71300000
71311210
71320000
71322500
71510000
II.2.3)Place of performance
NUTS code: UK
Main site or place of performance:

England – National

II.2.4)Description of the procurement:

The on-site assembly partner is responsible for constructing highways infrastructure, including the provision of traffic management and testing and commissioning of any infrastructure as part of handover to highway operational teams. Using in-house and supply chain resource to deliver schemes, interfacing with other Partners to support efficient and safe design with predictable cost and schedule outcomes. They will have specific responsibility for delivery for the following specific activities:

— principal contractor for allocated schemes,

— site mobilisation and site logistics,

— site safety and temporary works,

— integration and coordination of roadside technology to connect to Highways England Traffic Management System,

— site surveys,

— environmental assessment and design,

— asbestos surveys,

— management and delivery of construction activities,

— site performance control,

— site level engineering,

— installation and technology commissioning,

— commission and handover management,

— customer service and external stakeholder management.

On-site assembly partners will provide resource and expertise to deliver centralised production hub activity to maximise Alliance objectives and delivery of efficient programme. It will specifically lead and promote usage of off-site construction activity. They will work with alliance partners to standardise construction materials, methods and design to maximise productivity and innovation.

At contract award, on-site assembly partner’s will be assigned to one of three UK regions (North, Midland and South). Candidates must provide their preferences as part of their expression of interest. The candidate with the highest qualifying score for this lot will be awarded their preferred region, and remaining region allocated to the 2nd and 3rd ranked qualifying bidder.

The alliance contract will include a work allocation procedure. Further details regarding how the construction services for schemes will be awarded to the 3 successful on-site assembly partners can be found in the descriptive document.

II.2.5)Award criteria
Price is not the only award criterion and all criteria are stated only in the procurement documents
II.2.6)Estimated value
Value excluding VAT: 5 950 000 000.00 GBP
II.2.7)Duration of the contract, framework agreement or dynamic purchasing system
Duration in months: 126
This contract is subject to renewal: no
II.2.9)Information about the limits on the number of candidates to be invited
Envisaged minimum number: 6
Maximum number: 12
Objective criteria for choosing the limited number of candidates:

Selection criteria for the questions are provided in the selection questionnaire guidance document

II.2.10)Information about variants
Variants will be accepted: no
II.2.11)Information about options
Options: no
II.2.12)Information about electronic catalogues
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

Lot value represents the optimistic maximum forecast if the complete smart motorways programme is fully funded over the 10 year term. Candidates should refer to the descriptive document for further details, which confirms the lower funded position and expected number of schemes.

Section III: Legal, economic, financial and technical information

III.1)Conditions for participation
III.1.1)Suitability to pursue the professional activity, including requirements relating to enrolment on professional or trade registers
List and brief description of conditions:

As detailed in the SQ Guidance Document.

Constructionline (https://www.constructionline.co.uk/) is the UK Government's national pre-qualification register for construction contractors and consultants.

Candidates may demonstrate their suitability for a number of aspects in the selection process through providing their registration number for their valid and up to date Constructionline account. Contractors or incorporated joint ventures (single legal entities) submitting an application should provide their Constructionline registration number. For unincorporated Joint Ventures submitting an application each member of the group should provide their individual Constructionline registration number.

Constructionline members are requested to ensure their profile is valid and up to date for the purposes of this tendering process. Where candidates do not have a Constructionline account with an applicable level of membership, the SQ provides the opportunity to demonstrate their suitability through other means, in accordance with the procurement documents.

Candidates cannot express an interest as a joint venture in the same lot if they express an interest as a single entity.

A form of guarantee will be required as part of this tender.

III.1.2)Economic and financial standing
Selection criteria as stated in the procurement documents
III.1.3)Technical and professional ability
Selection criteria as stated in the procurement documents
III.1.5)Information about reserved contracts
III.2)Conditions related to the contract
III.2.2)Contract performance conditions:

See procurement documentation.

III.2.3)Information about staff responsible for the performance of the contract

Section IV: Procedure

IV.1)Description
IV.1.1)Type of procedure
Competitive procedure with negotiation
IV.1.3)Information about a framework agreement or a dynamic purchasing system
The procurement involves the establishment of a framework agreement
Framework agreement with several operators
Envisaged maximum number of participants to the framework agreement: 6
In the case of framework agreements, provide justification for any duration exceeding 4 years:

Extended term is necessary due to

Programme uncertainty requires flexibility

Upfront investment: model requires initial investment to enable efficiencies

Cultural Alignment: model requires long term alignment

Market Capability: enables HE to drive industry change

Skills Shortage: enables investment in skills

For further detail please refer to the Descriptive Document

IV.1.4)Information about reduction of the number of solutions or tenders during negotiation or dialogue
Recourse to staged procedure to gradually reduce the number of solutions to be discussed or tenders to be negotiated
IV.1.5)Information about negotiation
The contracting authority reserves the right to award the contract on the basis of the initial tenders without conducting negotiations
IV.1.6)Information about electronic auction
IV.1.8)Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: yes
IV.2)Administrative information
IV.2.1)Previous publication concerning this procedure
IV.2.2)Time limit for receipt of tenders or requests to participate
Date: 18/01/2019
Local time: 13:00
IV.2.3)Estimated date of dispatch of invitations to tender or to participate to selected candidates
IV.2.4)Languages in which tenders or requests to participate may be submitted:
English
IV.2.6)Minimum time frame during which the tenderer must maintain the tender
Duration in months: 6 (from the date stated for receipt of tender)
IV.2.7)Conditions for opening of tenders

Section VI: Complementary information

VI.1)Information about recurrence
This is a recurrent procurement: no
VI.2)Information about electronic workflows
VI.3)Additional information:

Highways England will be holding a Selection Stage Briefing Event to provide an overview of the procurement vehicle for the smart motorways programme. The one day event will be held in Central Birmingham. Details of the venue will be sent to your supplied contact details nearer the time.

We are inviting a maximum number of two attendees per organisation. If you would like to attend the face to face session, please complete the form using the following survey monkey link below by 12:00 p.m. on 6.12.2018. Please note, we cannot consider invite requests after this date. https://www.surveymonkey.co.uk/r/selectionbriefingevent

To Express Interest in this Tender

1) Register for a free account at https://highways.bravosolution.co.uk

2) Click the “PQQs Open To All Suppliers” link. (These are Selection Questionnaires (SQ) open to any registered supplier). Click on the relevant PQQ to access the content. Click the “Express Interest” button at the top of the page. This will move the PQQ into your “My PQQs” page. (This is a secure area reserved for your projects only). You can now access any attachments by clicking “Buyer Attachments” in the “PQQ Details” box

3) Click “My Response” under “PQQ Details”, you can choose to “Create Response” or to “Decline to Respond” (please give a reason if declining). You can use the “Messages” function to communicate with Highways England and seek any clarification. Follow the onscreen instructions to complete the PQQ. You must then submit your reply using the “Submit Response” button at the top of the page. If you require any further assistance please consult the online help or the eTendering help desk.

Expressions of interest must be submitted from the candidates' registered office address. Each member of a Joint Venture (JV) must submit a letter from their own registered office confirming all company names in the proposed JV. Candidates can only participate in one JV.

This procurement falls within the scope of HM revenue and customs' construction industry scheme.

Successful candidates will be appointed to fulfil the duties of Principal Designer and Principal Contractor under the Construction (Design and Management) Regulations 2015.

Highways England will assess the SQs to produce a single shortlist of candidates for all lots at the selection stage and invite candidates to submit tenders for the award stage. Prior to selecting the candidates to proceed to the next stage, Highways England will produce a ranking of candidates that it intends to take forward to the negotiation stage. Prior to award Highways England will re-assess the financial capacity tests to ensure that candidates have the required financial standing in relation to those lots or combination of lots where it is proposed to validate the tender. Highways England reserves the right, in its sole discretion, to exclude candidates at this stage or at SQ stage.

Candidates must identify the lots they have applied for and clearly state their order of preference (if applying for more than one lot) using the form provided. Candidates may not change their lot preferences after submission of their completed SQ and may only tender for the lots for which they are invited. The candidate carries the financial risk of tendering for multiple lots.

Highways England reserves the right not to accept the highest scoring, or any, tender. Candidates should note that tenders are submitted at the supplier's own cost and risk. Highways England may cancel the competition or part of it for any reason, and candidates’ costs will not be reimbursed. Highways England expressly reserves the right:

(i) not to award any contract as a result of this tendering exercise commenced by publication of this notice; and

(ii) to make whatever changes it may see fit to the content and structure of the tendering competition; and in no circumstances will Highways England be liable for any costs incurred by candidates.

Further information is provided in the procurement documents

VI.4)Procedures for review
VI.4.1)Review body
See details at VI.4.3)
See details at VI.4.3)
See details at VI.4.3)
See details at VI.4)
United Kingdom
VI.4.2)Body responsible for mediation procedures
VI.4.3)Review procedure
Precise information on deadline(s) for review procedures:

Highways England will incorporate a minimum 10 calendar day standstill period at the point information on award of the contract is communicated to candidates.

Appeals must be lodged in accordance with the Public Contracts Regulations 2015 (SI 2015 No. 102) as amended.

VI.4.4)Service from which information about the review procedure may be obtained
VI.5)Date of dispatch of this notice:
30/11/2018