Democracy

Meeting documents

Officer Delegated Decisions
Tuesday 17th March, 2020

State the Delegated Authority that you are relying on in order to make the decisionTees Advanced Manufacturing Park and Centre Square
Subject of decisionThe procurement of externally delivered and institutional quality, estate and facilities management services for the Council's commercial property investment assets at Tees Advanced Manufacturing Park and Centre Square.
Text of decisionTo utilise the procurement compliant Bloom framework to commission externally provided estate and facilities management services that the Council does not provide or does not have the capacity to provide.
Reason for decision· In Tees Advanced Manufacturing Park and Centre Square, the Council has developed a portfolio of commercial investment assets which require institutionally recognised estate and facilities management services to maintain the value of the assets for the long-term.
· In this respect, the Economic Growth division has developed an institutional-standard specification for these services in consultation with its commercial advisors, Cushman and Wakefield.
· It has been agreed between Economic Growth and the Head of Strategic Commissioning and Procurement and Property & Commercial Services — to recommend that the Council's Operations Team at Boho deliver the specification, acting as contract manager and retaining appropriate deliverable functions in house.
· That for externally required services, the Council works with Bloom to procure OJEU compliant EM/FM services. The final package of externally delivered services is subject to consultation internally and with Bloom. The proposals will not prejudice current estate management arrangements.
· The total value of internal and externally provided services for TeesAMP and Centre Square will be charged to tenants (or the Council for void units); and that these charges amount to circa £500k per annum (see Appendix 1 attached). The final package of services put to market (assuming a five-year term) will therefore exceed £150k and is therefore a delegated decision under the authority set out above.
· It should be noted that such arrangements are the minimum expectation of both market players in terms of future potential disposal of assets; and of the tenants/occupiers themselves.
· The Council and Bloom will work with Ashall and CPIL to ensure any bespoke elements of each scheme are included in the specification put to market.

OFFICER DELEGATED DECISIONS FORM
· Using Bloom will allow the Council to vary the arrangement with the procured provider as required to add other future strategic commercial property investments purchased by the Council.
Background on Bloom
Bloom has been the UK's exclusive operator of the NEPRO solution, on behalf of NEPO, since its original inception in 2012. NEPRO3 is the third evolution of the OJEU compliant solution which assists the UK public sector to buy and manage specialist professional services from a choice of regional and national suppliers. Bloom charges a commission of 5%. Bloom deliver NEPRO3 and provide a managed service enabling buyers to move quickly and at the lowest possible cost, whilst achieving better outcomes.
Audit and assurance compliance:-
· OJEU compliant procurement through national frameworks
· Ability to run highly sensitive / confidential sourcing events
· Fully transparent audit trail of all procurement decisions and actions
· A robust authorisation process with end to end gatekeeper approval, aligned to buyers' procurement policies and processes
· Ability to tailor specific contractual outcome requirements on a project by project basis at Work Order level
· Transparent performance and governance management for each project Value for Money:-
· Average savings of between 11% and 19%
· Compliant single tender with the option of "competition of one" approach to ensure best value from a preferred supplier
· Private sector best practice approaches to procurement through direct negotiation, benchmarking, eAuctions and contract management techniques
· Ability to use a "Target pricing" mechanism to guide suppliers to deliver affordable bids to meet budgets or targets
· Payment only on delivery of pre-agreed milestones with a unique level of control to ensure successful outcomes
Other options considered (if any)The requirements of an institutional standard EM/FM specification create a capacity issue in terms of delivery and business as usual. As such it is necessary to procure additional services beyond those currently available. In terms of procurement, Bloom provides a fully compliant route to ensuring the full spectrum of EM/FM services are procured as a package and are in place in time to coincide with the first tenancies at both sites, expected in late Spring. Standard procurement routes are available, but would take longer to put in place and are potentially more expensive: the Bloom commission of 5% is more than compensated for by average savings on of between 11% and 19% on the cost of services
Has an Impact Assessment been carried out - if so please attach a copy to the decision using the upload attachment screen which followsNo
Declarations of Interest by any member or relevant local government bodyNone
Who have you consulted as part of the decision making processExec Member for Resources and the Deputy Mayor / Executive Member for City Centre Strategy
Date of decision28 February 2020
Service areaGrowth & Place
Name of Delegated Officer making the decision - iKevin Parkes and James Bromiley
Name of the Officer making the decision - If power has been sub-delegated to another officer 
Issue date:-17 March 2020 by Bernie Carr
Creation date:-16 March 2020 15:56:00 by Karen Sproston
Background paper/Impact Assessment Delegated decision - TAMP Centre Square (158K/bytes)