Agenda Item No
The Vale of Glamorgan Council
Cabinet Meeting: 12 January, 2015
Report of the Cabinet Member for Children's Services
Llantwit Learning Community: Acceptance of Tender
Purpose of the Report
1. To seek Cabinet approval for the acceptance of the competitive tender of JB Leadbitter (Bouygues UK) for refurbishment and new build works at Llantwit Learning Community.
2. Capital cost for the scheme is increased to £20,700,000.00
1. That this report is noted and its contents and recommendations considered in connection with the Part II report later in the agenda.
Reasons for the Recommendations
1. To allow the Part I and II reports to be considered together and to permit execution of a formal contract between the Council and JB Leadbitter (Bouygues UK).
3. At the Cabinet meeting of 16th November 2011 (Cabinet Minute C1523 refers) the Vale's Band A programme of projects was reported and approved for submission to the Welsh Government (WG) based on 50% grant support from the Welsh Government.
4. The submission of the Band A programme of projects was successful and in December 2011 a Conditional Offer was received from the Welsh Government (subject to the approval of business cases for each scheme and statutory approvals where applicable) for £10.48 Million of Welsh Government grant support towards the total cost of £20.96 Million (revised in September 2014 to £13.4965 Million of Welsh Government grant to support the total project cost of £28.8985 Million) to transform and enhance various schools in Llantwit Major and Barry. The availability of Welsh Government funding would be subject to prior approval of business cases for projects over £5m and business justification cases for projects under £5m.
5. Following the submission of Band A of the Vale's School Investment Programme, the schemes have been further developed in consultation with Members and the Welsh Government and the Programme now includes:
• Ysgol Gymraeg Nant Talwg (new 210 place primary school building). Recently completed.
• Ysgol Gymraeg Dewi Sant (new 210 place primary school building).
• Oak Field Primary and Ysgol Gymraeg Gwaun y Nant (new 210 place school building for Oak Field, extension and remodelling of Gwaun y Nant).
• Llantwit Learning Community (new 420 place primary school, refurbishment of comprehensive school main block and new build to replace other buildings).
6. The enhanced Llantwit Learning Community scheme estimated at £19.75m was previously reported to cabinet on 18th November 2013 (minute C2081).
7. An update report on the implementation of Llantwit Learning Community was reported to Cabinet on 30th June 2014 (minute C2378) where approval was given to tender the project.
Relevant Issues and Options
8. Tenders for the works have recently been sought. The tender process utilised the South East Wales Schools and Capital Funding (SEWSCAP) Contractor Framework.
9. Three tenders were received and opened on 14th November 2014. These have subsequently been evaluated by AECOM (consultant cost manager) based on the 70/30% price/quality criteria stated in the tender documentation.
10. The tender documentation required tenderers to submit a design solution addressing stipulated Employer's Requirements. JB Leadbitter (Bouygues UK) proposals are considered to be the most compliant in terms of satisfying these requirements. The tender sum exceeds the current Construction Budget due to increases in preliminary costs and fees as a result of rising construction inflation. Rather than carrying out extensive value engineering to reduce the scheme an increase in the project budget is requested. It is recommended that an initial Professional Services (PSC) Contract is formalised with JB Leadbitter (Bouygues UK) to enable ongoing development of the second stage proposals by the Project Team.
11. Further details of AECOM's tender evaluation are outlined in the Part II item on this agenda. It recommends acceptance of the tender submitted by JB Leadbitter (Bouygues UK).
12. JB Leadbitter (Bouygues UK) proposal is based on use of a model school template developed by JB Leadbitter (Bouygues UK) in collaboration with HLM Architects. This utilises a standardised design while still affording flexibility to clients and end users. This approach is intended to permit refinement of design over subsequent schemes by use of established teams resulting in improved programme and lower costs through ongoing lessons learnt and supply chain engagement.
13. A model school template similar to that referred to above has been used at Ysgol Gymraeg Nant Talwg. This is the first such school in Wales and has been very well received by Welsh Government who have used the scheme as one of three projects demonstrating best practice for a 21st century school. Representatives of many other local authorities have visited the site and presentations on the scheme have been made to the other 21 authorities in Wales. We are successfully using this approach on Ysgol Gymraeg Dewi Sant and on Ysgol Gwaun y Nant/Oak Field primary school.
Resource Implications (Financial and Employment)
14. The capital cost for provision of Llantwit Learning Community is estimated to be £19,750,000. This amount is currently included within the Capital Programme for the years 2014/15 to 2018/19.
15. The capital programme is increased by £950k in 2015/16 and funded from existing reserves; the revised capital cost of the scheme will be £20,700,000.
16. In addition to the main contract works that are the subject of this report, the approved budget will be required to fund associated fees and ancillary works.
17. The project is jointly funded by the Council and contributions from Welsh Government via the 21st Century schools programme.
18. Any increased staffing costs arising due to the expansion of the schools will be funded from the Learning and Skills revenue budget via the formula allocation to schools.
Sustainability and Climate Change Implications
19. New build elements of the scheme will meet BREEAM excellent rating significantly reducing the running costs and carbon emissions arising from the building.
Legal Implications (to Include Human Rights Implications)
20. It will be necessary to enter into a formally executed contract with JB Leadbitter (Bouygues UK).
Crime and Disorder Implications
21. There are no direct crime and disorder implications arising from this matter.
Equal Opportunities Implications (to include Welsh Language issues)
22. Llantwit Learning Community will provide excellent educational facilities for children living in the neighbourhood.
23. The development of Llantwit Learning Community progresses LS2 to 'Develop, consult on and implement a School Reorganisation Programme to ensure the right schools are provided in the right places.' included within the Corporate Plan 2013-17.
24. The schemes detailed in this report contribute towards service outcome 3, objective 9 'Learners have access to an appropriate range of quality provision' of the Learning and Skills Directorate Service Plan 2013/17.
Policy Framework and Budget
25. This is a matter for Executive decision.
Consultation (including Ward Member Consultation)
26. Consultation has taken place with relevant Officers and Ward Members.
Relevant Scrutiny Committee
27. Lifelong Learning.
Jane Wade Operational Manager (Property)
Sian Davies Director of Resources
Paula Ham Head of Strategy, Community Learning & Resources
Alan Jenkins Head of Financial Services
Carolyn Michael Operational Manager (Accountancy)
Mike Walsh Principal Lawyer
Jennifer Hill Director of Learning and Skills