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UK-Basildon: Cinema construction work.

Preliminary Questions
This notice is published by:
Directive 2014/24/EU

Section I: Contracting authority/entity

I.1) Name and addresses
Basildon Borough Council
The Basildon Centre, Basildon, SS14 1DL, United Kingdom
Tel. +44 1268533333, Email: procurement@basildon.gov.uk
Contact: Mark Davis MA MBA LLM
Main Address: www.basildon.gov.uk
NUTS Code: UKH3

I.4) Type of the contracting authority (in the case of a notice published by a contracting authority)
Regional or local authority

I.5) Main Activity (in the case of a notice published by a contracting authority)
General public services


Section II: Object

II.1) Scope of the procurement

II.1.1) Title: East Square Cinema Developement.
Reference number: CP-2018-0127/Re-Procurement

II.1.2) Main CPV code:
45212150 - Cinema construction work.

II.1.3) Type of contract: WORKS

II.1.4) Short Description: This is a voluntary ex ante (VEAT) notice. This notice is to indicate that Basildon Borough Council intends to contract with our Preferred Bidder, McLaren Construction (South) Ltd for the construction of a cinema in East Square, Basildon.

II.1.6) Information about lots
This contract is divided into lots: No

II.1.7) Total value of the procurement (excluding VAT)
Value: 16,404,778
Currency: GBP


II.2) Description

II.2.2) Additional CPV codes:
Not provided

II.2.3) Place of performance:
UKH3 Essex


II.2.4) Description of the procurement:
This is a voluntary ex ante (VEAT) notice. This notice is to indicate that Basildon Borough Council intends to contract with our Preferred Bidder, McLaren Construction (South) Limited for the construction of a cinema in East Square, Basildon .

II.2.5) Award criteria
(Directive 2014/24/EU / Directive 2014/25/EU)
Quality criterion - Name: Logistics, Programme Management and Social Value / Weighting: 60

Cost criterion - Name: Quality / Weighting: 60
Cost criterion - Name: Price / Weighting: 40



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:
Not provided

Section IV: Procedure

IV.1) Description

IV.1.1) Type of procedure: Negotiated procedure without prior publication (in accordance with Article 32 of Directive 2014/24/EU)

IV.1.3) Information about framework agreement
The procurement involves the establishment of a framework agreement: No

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:
Notice number in OJ S: Not provided

Section V: Award Of Contract/Concession

Award of Contract/Concession No: 1
Contract No: CP-2018-0127/Reprocurement Lot Number: Not Provided Title: East Square Cinema Development

V.2) Award of contract/concession

V.2.1) Date of contract award decision: 10/12/2019.

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, No. 1:
McLaren Construction (South) Ltd
McLaren House, 100 Kings Road, Brentwood, Essex, CM14 4EA, United Kingdom
NUTS Code: UKH3
The contractor/concessionaire will be an SME: Yes


V.2.4) Information on value of the contract/lot/concession:
Initial estimated total value of the contract: Not Provided
Total value of the contract/lot/concession 16,404,778
Currency: GBP

V.2.5) Information about subcontracting:
The contract is likely to be subcontracted: No


Section VI: Complementary Information

VI.3) Additional Information:
To view this notice, please click here:
https://www.delta-esourcing.com/delta/viewNotice.html?noticeId=456058230
GO-20191213-PRO-15686051 TKR-20191213-PRO-15686050
VI.4) Procedures for review

VI.4.1) Review Body
Basildon District Council
The Basildon Centre, Basildon, SS14 1DL, United Kingdom
Tel. +44 1268533333

V1.4.2) Body responsible for mediation procedures:
Royal Courts of Justice
The Strand, London, WC2A 2LL, United Kingdom
Tel. +44 2079476000.

VI.4.3) Review procedure
Not Provided

VI.4.4) Service from which information about the review procedure may be obtained
Royal Courts of Justice
The Strand, London, WC2A 2LL, United Kingdom
Tel. +44 2079476000

VI.5) Date of dispatch of this notice: 13/12/2019


Annex D1 - General Procurement
Justification for the award of the contract without prior publication of a call for competition in the Official Journal of the European Union
Directive 2014/24/EU

1. Justification for the choice of the negotiated procedure without prior publication of a call for competition in accordance with Article 32 of Directive 2014/24/EU

No tenders or no suitable tenders/requests to participate in response to: Not provided



The works, supplies or services can be provided only by a particular economic operator for the following reason: Not Provided

Extreme urgency brought about by events unforeseeable for the contracting authority and in accordance with the strict conditions stated in the directive: Yes

Additional deliveries by the original supplier ordered under the strict conditions stated in the directive: No

New works/services, constituting a repetition of existing works/services and ordered in accordance with the strict conditions stated in the directive: No









3. Explanation

Please explain in a clear and comprehensive manner why the award of the contract without prior publication in the Official Journal of the European Union is
lawful, by stating the relevant facts and, as appropriate, the conclusions of law in accordance with the directive: (500 words maximum)
Basildon Borough Council (`the Council¿) undertook a competitive procurement exercise in accordance with the Public Contracts Regulations 2015 ('PCR') to secure the services of a developer to undertake the required works being the construction of a cinema and associated developments. In July 2019 the successful applicant commenced the works. In October 2019, the successful applicant entered into administration, rendering them unable to undertake the contract. The Council, in a bid to ensure the ongoing and efficient realisation of the works at hand, have in accordance with Reg. 32(c) PCR procured a replacement provider as set out in this notice, following a competition involving unsuccessful applicants from the original procurement exercise.
Foreseeability
In the original procurement process the Council undertook due diligence assessments on each applicant to assess their appropriateness to undertake the works. The applicant¿s were scored utilising the PAS91 standard as developed by the British Standards Institute and the Department for Business, Innovation and Skills. The successful applicant scored amongst the top applicants.On the basis that the successful applicant appeared by all objective standards to be of good commercial health, entirely capable of performing the contact and scored well in a high threshold financial due diligence assessment, it follows that their sudden administration was unforeseeable.
Urgency
There is an urgent need to appoint a new contractor since the Council is now exposed to substantial financial risk with the stalling of the delivery of the project. The Cinema is due to be completed by April 2021 and the estimated direct quantum loss for the Council if the project is not delivered on time is in excess of £1.5m. Loss of these public funds could adversely impact on the delivery of other critical regeneration projects. The Council also envisages considerable indirect loss to its area including; loss of economic growth and investment in the area which was anticipated should the project have been delivered on time; loss of social development opportunities and ongoing security measures required in securing the site. It is clear as a matter of fact upon assessment of the background to this case that the Council has not caused, by its actions or inactions, the circumstances to which it now finds itself. The urgency has been caused by the unforeseeable administration of the appointed contractor.
Timeline
The time limits for the open or restricted procedures or competitive procedures with negotiation cannot be complied with without the realisation of the risks set out above. The earliest that works could re-commence should a procedure under Regulation 32(c) be utilised is January 2020 which would allow the project to be kept to schedule. The practical reality of utilising a procurement procedure on a contract of this size and complexity (which would necessitate site visits, supplier days, detailed submissions to ensure the appropriate quality of bid), other than that allowed for in Regulation 32, would be a recommencement of works in July 2020, fatally compromising the ability of the project to be delivered in time. This includes utilising an accelerated procedure.


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