Invitation to Tender Leisure Development Partner Framework Agreement

Invitation to Tender Leisure Development Partner Framework Agreement

1. Introduction Like almost every other local authority across the country, the Forest of Dean District Council needs to take some tough decisions to help deliver its medium term financial plan. Although we run an extremely efficient service already, as one of the discretionary services our leisure provision has received close examination and an options appraisal has been completed. Instead of focussing on any leisure service reduction, Cabinet have expressed a clear preference for using some of our capital funds for invest to save initiatives to help achieve further financial efficiencies, whilst at the same time enhancing our product. Following a soft market test completed during 2012, the Forest of Dean District Council is seeking to appoint an experienced and established Development Partner to assist with any capital invest to save schemes at some of our existing leisure centres. It is envisaged these will be mainly refurbishments but may include additional facilities. It is the Council s intention to appoint the partner under a four year framework agreement, expected to be from April 2013 to March 2017. An option to extend for a further year may be included. This reflects one of the recommendations from the options appraisal that we consider a mixed economy of operational management. We would expect therefore that any other management body appointed by this Council would be able to make use of the framework agreement. The potential value of the framework agreement is estimated to be 1,000,000 over the lifetime of the agreement for this Council. If others do draw down on the framework agreement there is the potential this could be higher (subject to the EU limit for works). 2. Requirements The primary aims of the project are: to improve the quality of the product on offer to residents and visitors to the District to improve the commercial viability of the leisure service through invest to save capital developments The development partner will provide a turnkey solution for a range of capital projects, underpinned by the principles of affordability, value for money, flexibility and long term service sustainability. Given the possibility of a mixed economy of providers, any predefined level of support in areas such as sales and marketing, brand and literature development, staff training and professional development cannot be specified. However there is the possibility that the successful development partner could be asked to provide such support as part of the framework agreement. The options appraisal has identified some potential projects, but the appointed development partner would be expected to consider these against alternative suggestions they may have to achieve the stated aims. The Council would fully fund the agreed projects, so there is not seen to be a need for the development partner to provide any financing options.

The development partner would assist in reviewing and prioritising any proposals in order increase profitability in the shortest possible time. The development partner will manage the project from concept to completion providing feasibility studies and robust whole life business plans addressing the capital, equipment, maintenance, operational, energy, consumable and funding costs. A feasibility study and business plan should be completed for each proposal. The feasibilities would establish the size and scope of the potential developments and evaluate market conditions to determine financial viability to provide a commercial cost benefit assessment. The development partner should be able to demonstrate value management during all phases of the project taking into consideration feasibility, design, project management, construction, commissioning, maintenance and operations. The development partner would provide project management services and act as the principle contractor coordinating the design, construction, commissioning and handover of the completed project. This Council intends to have just one contract - with our development partner. The development partner would provide all the relevant professional services associated with a design and build project. All contractors should carry employer s liability insurance (five million pounds minimum); public liability insurance (five million pounds minimum) and professional indemnity insurance (two million pounds minimum). The development partner would be responsible for managing all the associated construction risk, stage payments and maintaining the development programme. They should also provide the role of CDM Coordinator as required by the Construction (Design and Management) Regulations 2007. Any procurement undertaken by the development partner must show complete transparency and comply with this Council s Contract Procedure Rules, the Public Contracts Regulations 2006 and any appropriate EU Regulations. This Council (or its appointed contractor) would continue to have operational control over any new development or refurbishment. The development partner should be in a position to provide evidence of: A proven track record of success in this field, working in this way particularly with local authorities Partnership working and their professional relationship with contractors, architects and other industry professionals Feasibility, financial planning and robust business planning Project design, construction and management including design innovation and creativity Compliance with health and safety requirements

3. Draft timetable Target Dates Activity 19 December 2012 Contract notice published and Tender available to potential providers 25 January 2013 Tender Return Date 01 February 2013 Evaluation of Tenders completed WB 11 Feb 2013 Provider interviews/presentations (if required) 15 Feb 2013 Contract Award 01 April 2013 Contract Commencement 4. Authority Named Contact Point The Authority s named contact point for the procurement is: Andy Barge Group Manager Customer Services Tel: 01594 812383 email: andy.barge@fdean.gov.uk 5. Instructions for completion Recipients are invited to complete their submission and any supporting information asked for, to the Authority by the due date for return in accordance with the procedures set out in the paragraph below entitled Submission of Completed Tenders. Failure to provide the required information or make a satisfactory response to all the hard gate evaluation criteria will mean that submission is not evaluated any further. In the event that none of the responses are deemed satisfactory, the Council reserves the right to terminate the procurement. Potential providers are advised neither to make any assumptions about their past supplier relationships with the Council, nor to assume that such prior business relationships will be taken into account in the evaluation procedure unless explicitly stated. The Council will not reimburse any costs incurred in connection with preparation and submission of responses to this tender. The Council reserves the right to terminate this tender process at any time and under no circumstances shall the Council incur any liability in respect of this tender or any supporting documentation. Any canvassing direct or indirect - of any Councillor or employee may result in disqualification. 6. Queries about the procurement If the Authority considers any question or request for clarification to be of material significance, both the question and the response will be communicated, in a suitably anonymous form, to all potential providers who have responded.

All responses received and any communication from potential providers will be treated in confidence but will be subject to this paragraph. 7. Additional Information The Authority expressly reserves the right to require a potential provider to provide additional information supplementing or clarifying any of the information provided in their tender response. The Authority will seek independent financial and market advice to validate information declared, or to assist in the evaluation. It is the Council s view that TUPE will not apply. 8. Consortia, retained contractors and sub-contracting Where a consortium or sub-contracting approach is proposed, all information requested should be given in respect of the proposed prime contractor or consortium leader. Relevant information should also be provided in respect of consortium members, retained contractors or sub-contractors who will play a significant role in the delivery of services or products under any ensuing contract. The Authority recognises that arrangements in relation to consortia, retained contractors and subcontracting may be subject to future change. Service providers/suppliers should therefore respond in the light of such arrangements as are currently envisaged. Potential providers are reminded that any future change in relation to consortia, retained contractors and sub-contracting must be notified to the Authority so that it can make a further assessment by applying the selection criteria to the new information provided. Details should also be provided in relation to the proportion of any contract awarded that the potential provider proposes to subcontract. 9. Potential provider contact point Potential providers are asked to include a single point of contact in their organisation for their response to the tender. The Authority will not be responsible for contacting the potential provider through any route other than the nominated contact. The potential provider must therefore undertake to notify any changes relating to the contact promptly. 10. Freedom of Information In accordance with the obligations and duties placed upon public authorities by the Freedom of Information Act 2000 (the FoIA ), all information submitted to the Authority may be disclosed in response to a request made pursuant to the FoIA. In respect of any information submitted by a potential provider that it considers commercially sensitive the Potential Provider should:

1. clearly identify such information as commercially sensitive; 2. explain the potential implications of disclosure of such information; and 3. provide an estimate of the period of time during which the potential provider believes that such information will remain commercially sensitive. 4. Please submit responses to 1, 2 or 3 as an Annex with the completed tender. Where a Potential Provider identifies information as commercially sensitive, the Authority will endeavour to maintain confidentiality. Potential providers should note, however, that, even where information is identified as commercially sensitive, the Authority might be required to disclose such information in accordance with the FoIA. Accordingly, the Authority cannot guarantee that any information marked commercially sensitive will not be disclosed. 11. Submission of completed tenders You must submit three hard copies of your completed tender no later than 15.00 on 25 January 2013;. Completed tenders may be submitted at any time before the closing date, but will not be opened until the submission deadline has passed. All Tenders shall be addressed to the Solicitor to the Council in a plain sealed envelope endorsed with the word Tender Do Not Open followed by the subject matter Leisure Development Partner Framework Agreement. No other name or mark should indicate the sender. Please note that completed tenders received after the submission deadline will be rejected. 12. Provider Selection The Authority may disqualify any potential provider who fails to: 1. Comply with the requirements identified in the Statement of Good Standing and/or fails to certify that it has fulfilled these requirements 2. Provide a satisfactory response to any questions in the tender or inadequately or incorrectly completes any question The potential providers who are not disqualified in accordance with the above grounds shall be evaluated on the qualification criteria which take into account the economic and financial standing and the technical capacity and professional capability of the potential provider. The Authority may seek independent financial and market advice to validate information declared or to assist in the evaluation.

13. Specification Section A: Minimum requirements You must meet the minimum requirements outlined below in order to for your submission to proceed to stage 2 of the evaluation. Please answer all of the questions. Response 1.01 I certify that the information supplied is accurate to the best of my knowledge. I understand that if I give false information I would not be considered for further inclusion in this procurement process. 1.02 I certify that I have not canvassed or solicited any member, officer or employee of the council and any other companies in the group of which the council forms part, in connection with the award of the Tender and that to the best of my knowledge and belief no person employed by me/us or acting on my behalf has done such an act. 1.03 I declare that my company will notify the Council immediately it becomes aware of any actual or potential conflict of interest which may arise between the interests of the Council and my company or any of our clients and that my company will take immediate steps to remove the cause of any such conflict to the complete satisfaction of the Council. 1.04 1.05 I certify that our organisation holds employers liability, public liability and professional indemnity insurances to the required level. I certify that this is a bona fide submission, and that I have not fixed or adjusted the amount of the tender by or under or in accordance with any agreement or arrangement with any other person.

I also certify that I have not done and I undertake that we will not do at any time before the hour and date specified for the return of this tender any of the following acts: 1.06 Communicate to a person other than the person calling for those tenders the amount or approximate amount of the proposed tender, except where the disclosure, in confidence, of the approximate amount of the tender was necessary to obtain insurance premium quotations required for the preparation of the tender. 1.07 Enter into any agreement or arrangement with any other person that they shall refrain from tendering or as to the amount of any tender to be submitted. 1.08 Offer or pay or give or agree to pay or give any sum of money of valuable consideration directly or indirectly to any person for doing or having done or causing or having caused to any other tender or proposed tender for the said work any act or thing of the sort described above. 1.09 I further certify that the principles described in 1.05-1.07 have been, or will be, brought to the attention of all sub-contractors, suppliers and associate companies providing services or materials connected with the tender, and any contract entered into with the subcontractors, suppliers or associated companies will be made on the basis of compliance with the above principles by all parties.

In this certificate, the word person includes any persons and any body or association, corporate or otherwise; and any agreement or arrangement includes any such transaction, formal or informal, and whether legally binding or not. 1.10 1.11 I confirm that I accept that any breach of the conditions of this Declaration of Bona Fide Tender will inevitably lead to the rescission of the agreement by this Council. I declare that my company has submitted all relevant certificates in relation to the payment of tax in accordance with the Income and Corporation Taxes Act 1988 relating to the company and any subcontractors employed to work on a Forest of Dean District Council contract and will submit any further certificates in the event of change to either the company or any sub-contractors' tax status or due to the appointment of any future sub-contractors. 1.12 1.13 1.14 1.15 I have read the specification provided in your Invitation to Tender and, subject to and upon the conditions contained therein, I offer to undertake to deliver against the specification described in the said Invitation to Tender in such manner as may be required. The prices detailed in this tender are valid for acceptance for 6 months from the final day for the submission of tenders and I confirm that the terms of the tender will remain binding and may be accepted by you at any time within that period I agree that the construction, validity, performance and execution of any contract that may result from this tender shall be governed by and interpreted in accordance with English Law and shall be subject to the exclusive jurisdiction of the Courts of England and Wales I agree to bear all costs incurred in connection with the preparation and submission of this tender and to bear any further costs incurred prior to the award of any contract

Section B: General company information This section requests the basic information about your organisation. It is not scored as part of the tender evaluation process. 2.01 Company Trading Name 2.02 Company Trading Address 2.03 Post Code 2.04 Main contact name 2.05 Position in company 2.06 Telephone number 2.07 Email address for contact person 2.08 Company status e.g. registered charity; private limited company; public limited company 2.09 Company registration number 2.10 Registered Charity Registration Number Section C: Data Protection and Freedom of Information The Authority is committed to open government and to meeting their legal responsibilities under the Freedom of Information Act 2000 ( FoIA ). Accordingly, all information submitted to a public authority may need to be disclosed by the public authority in response to a request made pursuant to the FoIA. 3.01 I understand that by receiving this request, potential providers agree to keep confidential the information contained in it or made available in connection with any further enquiries or provided during the course of the procurement process 3.02 Please specify the question number with reasons if anything contained in your submission is confidential. Forest of Dean District Council will use reasonable endeavours to keep such information confidential but does not guarantee to do so if it is obliged to disclose such information pursuant to its duties under the Freedom of Information Act 2000. 3.03 Please confirm that you have read, understand and agree with all preceding notes

Quality Criteria The Authority has chosen not to restrict the length of responses. This decision has been made to allow the Tenderers the opportunity to make full responses, but you are requested to you re your responses as concise as possible. Section D: Example feasibility and business plan 4.01 Please provide an example feasibility plan and business plan for the refurbishment of the fitness suite facility in line with the Authority s proposed scope of works as provided with this document at Appendix 2. Should you be successful the Authority anticipates working with you to reach a final and agreed Business Plan specific to our projects prior to contract award. Please consider: Predicted growth plans, based on the proposed expansion A feasibility report and a commercial cost benefit assessment How you would undertake the refurbishment works to ensure the centre remains open and fully operational during the refurbishment An outline delivery programme for the development Section E: Main contractor procurement This section relates to the procurement of contractors to undertake any construction element of the project and for the supply of fitness equipment or other items needed to provide the turnkey solution described. 5.01 Taking account of this Council s Contract Procurement Rules and your normal Development Partner operating model, please demonstrate how you will procure a contractor to undertake the refurbishment or construction works required for the project. What will be the contractual arrangement between this Council and the contractor(s) you procure to carry out the works? 5.02 5.03 Please provide details of your warranty process for any work that would be undertaken as part of any agreement. How would any such warranties transfer if this Council outsourced management responsibilities to another body? Section F: Risk and Innovation 6.01 Detail how you as the Development Partner share the financial risk of such projects? 6.02 6.03 6.04 How would your delivery fee percentage change if the Council was open to sharing risk during the delivery stage? The Council currently propose to fully fund any agreed projects. Specifically referencing increased income generation following the investment, please detail any gain share mechanisms your organisation would be willing to explore with the Council, clearly identifying how this could reduce the Council s risk. Please detail any other innovative solutions being suggested by your organisation for this project that could lead to the optimum risk to reward balance for the Council.

Section G: Technical capacity and capability 7.01 Please provide details of similar projects or case studies, of comparable scope, completed in the last two years. Please include a project name, project start date and duration, client contact details and contract value. 7.02 Please provide CV s of relevant personnel that would be involved. 7.03 Please give details of any relevant quality approvals and internal quality management systems. Please provide details, including any corrective actions taken, for any of the following events that have occurred in the last five years: 7.04 7.05 Deductions for liquidated damages Contracts cancelled or not renewed Withdrawal from contract Any contractual claims For each full year from 2008 to 2012 to date, covering all projects managed, please detail: i. The number of employees in your company ii. The number of fatalities iii. The number of Major Injuries reported iv. The number of 3-day accidents v. The number of Dangerous Occurrences reported For each full year from 2008 to 2012 to date, covering all projects managed, please detail: 7.06 7.07 i. Any Improvement Notices ii. Any Prohibition Notices iii. Any prosecutions iv. Any actions pending Please summarise any contracts terminated for poor performance in relation to Health and Safety within the last three years, or any contracts where damages have been claimed by the contracting authority Section H: Fees and charges For each of the following bandings, please state the fully inclusive percentage fee that would apply from concept to completion: 0 to 299,999 8.01 300,000-499,999 500,000-699,999 700,000-999,999 1,000,000 plus

8.02 8.03 Please detail any upper capped limit that would apply to the fee charged in each of the bandings. Please provide details of any volume discounts, retrospective rebates or any other incentives your organisation would be prepared to offer should other partner organisations utilise the framework agreement?

14. Tender evaluation scoring Section Information requested Maximum points available A Minimum requirements Pass or Fail B General company information Not scored Information only C Data Protection and Freedom of Information Not scored Information only D E F G H Stage 1: Hard gates Feasibility and business plan Main contractor procurement Risk and Innovation Technical capacity and capability Fees and Charges On receipt each tender will be checked for: 1. Completeness and inclusion of all required documents (section A to J) 2. Public Contracts Regulation 23 Statements (section A) 3. Level of insurance cover The minimum requirements at section A are the mandatory hard gates that must be passed for the submission to qualify for any further consideration in the evaluation process. The checking process will also determine that none of the circumstances described in Regulation 23 apply. Stage 2: Soft gates Tenders that pass the hard gates will then be evaluated and assessed further against the soft gates, using the following scoring and weighting. Appendix 1 shows the evaluator s score sheet. Assessment Score Interpretation High level of Confidence Good level of Confidence Some Concerns Major Concerns 8 10 Full response exceeding requirement and well evidenced with relevant examples. Exceptional demonstration of the relevant ability, understanding, experience, skills, resources & quality measures required to provide the specified solution. Response identifies factors that will offer potential added value, with good evidence to support the response 5 7 Good response with satisfactory detail and evidence. Satisfies the requirement with some additional benefits. Above average demonstration of the relevant ability, understanding, experience, skills, resource & quality measures required to provide the supplies / services. Response identifies factors that will offer potential added value, with evidence to support the response 1 4 Part response with some shortcomings in evidence /information provided. Satisfies the requirement with some reservations about relevant ability, understanding, experience, skills, resource & quality measures required to provide the supplies / services, with limited or no evidence to support the response 0 Does not meet the requirement. Does not comply and/or insufficient information provided to demonstrate the ability, understanding, experience, skills, resource & quality measures required to provide the supplies / services, with little or no evidence to support the response.

The following weighting factors will apply: Category % Weighting Feasibility and business plan 10 Main contractor procurement 5 Delivery programme 5 Risk 5 Innovation 5 Technical capacity and capability 10 Fees and Charges 60 Total 100 Stage 3: Consensus Following completion of the Stage 2 scoring exercise, checking and ratification of the scores will be carried out and a consensus view taken and recorded. In the event that a consensus cannot be reached, the decision of the Project Sponsor will be final.

1. Hard Gates Appendix 1 Evaluator s Score Sheet Section Requirement Score Guidance All Section A Section A Evaluator s comments: All questions answered, and all supporting documentation/information provided. Regulation 23 Statement of Good Standing and all other declarations confirmed Adequate insurances in place or assurances provided that they would and could be in place Pass/Fail If a significant proportion of questions remain unanswered (without reasonable explanation) and/or there is an absence of any supporting information, the tender is to be disqualified. Details are to be summarised below. The provider will not be contacted to seek any missing information, request any missing documentation or for completion of missing signatures. Pass/Fail Pass No conditions apply in the Statement of Good Standing and all declarations confirmed Fail Indication of conditions applying in the Statement of Good Standing or no certification of other declarations Pass/Fail Pass Necessary levels of insurances in place or assurances given Fail Necessary levels of insurances not in place (disqualified)

2. Economic and financial standing Financial reference report Annual accounts All responses Requirement Score Guidance No adverse indications Please supply audited accounts for the past three years of trading Supplementary information considered if financial reference report gives cause for concern Pass = 10 Fail = 0 A financial reference report will be undertaken as well as the professional view of the accountant. Any providers still scoring a High or Maximum risk following the checks and the accountants interpretation will be automatically disqualified from the process. Evaluator s comments:

3. Example feasibility and business plan Section Requirement Score Guidance D Example feasibility and business plan Use the generic soft gate assessment scoring. Example plans aligned to the project in scope. Growth plans and a commercial viability assessment included. Delivery considered. Evaluator s comments:

4. Main Contractor Procurement Section Requirement Score Guidance E Procurement routes have been understood and comply with the Council s rules. Use the generic soft gate assessment scoring. Proposed procurement routes show transparency and are in line with the Council s rules. The suggested route balances compliance, flexibility and securing value for money. Warranties explained. Evaluator s comments:

5. Risk and Innovation Section Requirement Score Guidance E Risk to the Council has been considered against other innovative solutions Use the generic soft gate assessment scoring. The need for a single contract route has been understood, but innovative thought has been given to possible options for the Council to consider. Evaluator s comments:

6. Technical capacity and capability Question Requirement Score Guidance 7.01 Details of similar projects or case studies 0-10 Use the generic soft gate assessment scoring 7.02 CV s of relevant personnel 0-10 Use Generic Interpretations 7.03 Details of quality approvals and internal quality management systems 1 Provided = 1, No information = 0 7.04 Deduction for liquidated damages 1 No = 1, Yes = 0 7.05 7.06 7.07 Contract cancelled or not renewed 1 No = 1, Yes = 0 Withdrawn from contract 1 No = 1, Yes = 0 Subject of any contractual claims 1 No = 1, Yes = 0 Details of corrective actions following any yes responses to 7.04 Health and safety record. No adverse indications all information complete and acceptable. Evaluator s comments: SECTION SCORE (Maximum = 34) 0-4 1 mark per corrective action can be given. 0-10 Use the generic soft gate assessment scoring. If there are major concerns this may lead to disqualification from the process

7. Fees and charges Spending band ( ) % fee Upper capped limit (if applicable) 0 299,999 300,000 499,999 500,000 699,999 700,000 999,999 1,000,000 plus Tenders should be ranked according to the total price of each spending band (based on the top of the band). The maximum total score (100) is awarded to the lowest acceptable bid, with other tender values being scored in proportion to the lowest bid. For evaluation purposes three projects with assumed costs of 250,000; 400,000; and 620,000 will be used. The following example illustrates the process: Company Fee Price score Company A 15,000 100 Company B 16,000 94 Company C 18,000 83 Company D 22,000 68

Appendix 2 Floor plans

CONTRACT FOR LEISURE DEVELOPMENT PARTNER FRAMEWORK AGREEMENT TENDER DECLARATION Name and Address of Tenderer Telephone Number E-mail I / We agree that the insertion by me / us of any conditions qualifying this tender or any unauthorised alteration of any of the Tender documents shall not affect the requirements of the specification and may cause the tender to be rejected. I / We agree that this tender shall remain open to be accepted or not by the Council and shall not be withdrawn for a period of six months from 18 January 2013. 1. Unless and until a formal agreement is prepared and executed this tender together with your acceptance thereof in writing shall constitute a binding contract between us. 2. I / We certify that the details of this tender have not been communicated to any other person or adjusted in accordance with any agreement or arrangement with any other person. 3. I / We understand that you are not bound to accept the lowest or any Tender you may receive. 4. I / We certify that this is a bona fide Tender. Signature(s) (print in full) Position in Organisation

To: Forest of Dean District Council Reference: DECLARATION OF NON-COLLUSION LEISURE DEVELOPMENT PARTNER FRAMEWORK AGREEMENT The essence of open tendering is that Forest of Dean District Council shall receive bona fide competitive tenders from all firms tendering. In recognition of this principle, I/We certify that this is a bona fide tender, intended to be competitive and that I/We have not and will not (either personally or by anyone on my/our behalf):- 1) Fix or adjust the amount of the tender (or the rate and prices quoted) by agreement with any other person; 2) Communicated to anyone, other than the person calling for this tender, the amount or approximate amount or terms of the proposed tender (except other than in confidence, where essential to obtain professional advice or insurance premium quotations required for the preparation of the tender); 3) Enter into any agreement or arrangement with any other person that he shall refrain from tendering or as to the amount or terms of any tenders to be submitted; 4) Canvass or solicit any member, officer or other employee of the Council in connection with the award of this or any other Council contract or tender; 5) Offer, give or agree to give any inducement or reward in respect of this or any other Council contract or tender. Dated Name Position held Address of Tenderer Signature