324-338 Bensham Lane Works Contract

CPV: Construction work

Procedure method

Negotiated without publication of a contract notice

Legal basis

CELEX · 32014L0024 Public Contracts Regulations 2015 (Directive 2014/24/EU)

Procurement category

Works

Notice status

Awarded

Procurement threshold

Unspecified in notice

Regulatory regime

Standard

Commercial structure

Stand-alone contract (no framework)

Competition type

Competitive procedure

GPA / WTO covered

Yes (GPA)

Recurring procurement

Unspecified in notice

First published

26 Mar 2024, 17:07 GMT

Last source update

26 Mar 2024, 17:07 GMT

FTS notice number

2024/S 000-009916

Classification (CPV)

Construction work

Delivery area

UK

Official registry OCID

ocds-h6vhtk-044d3f Find a Tender

Why no open competition

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

Published justification

Optivo Development Services Limited (ODSL) is a subsidiary within the Southern Housing Group. ODSL intends to award the Contract to Oakwood Building Contractors Limited ("Oakwood") pursuant to Regulation 32(2)(c) of the Public Contracts Regulations 2015 ("PCR"), for the reasons set out below:

DCB (Kent) Limited ("DCB") were originally appointed to carry out the development works at the site under a building contract with ODSL. Kinovo Plc ("Kinovo") provided a parent company guarantee ("PCG") in respect of DCB's performance of the building contract.

In May 2022 DCB entered into administration. Pursuant to the terms of the PCG, Kinovo were required to arrange for the completion of the works, subject to ODSL's agreement. Accordingly, Kinovo took steps to procure a replacement building contractor, but have not been able to secure a proposal that is acceptable to ODSL both in terms of the price payable for the completion of the works and the experience and credentials of the proposed replacement contractor.

In light of the above ODSL has decided to take direct control of the selection and appointment of a replacement contractor. ODSL now wish to appoint Oakwood as the replacement contractor.

Regulation 32(2)(c) allows a contracting authority to award a contract under the negotiated procedure without prior publication "insofar as is strictly necessary where, for reasons of extreme urgency brought about by events unforeseeable by the contracting authority, the time limits for the open or restricted procedures or competitive procedures with negotiation cannot be complied with"

ODSL is relying on this exemption to award the Contract to Oakwood on the following basis:

(i) The events that have given rise to the need to appoint Oakwood on an urgent basis without undertaking a competitive tender process in accordance with the PCR were not foreseeable by, or attributable to, ODSL - such events being DCB entering into administration originally, and Kinovo subsequently being unable to secure a proposal for the completion of the works that is acceptable to ODSL;

(ii) If a contractor is not appointed urgently to complete the remaining works this will result in ODSL incurring significant additional costs (to add to the costs that it has already incurred);

(iii) Any further delay in completing the works could also give rise to health and safety issues and/or security issues on site.

Publisher note: The Contracting Authority intends to enter into this contract following a minimum 10 day calendar day standstill period starting on the day after this notice is published in the UK Find a Tender Service. The Public Contracts Regulations 2015 (SI 2015 No 102) (as amended) (the Regulations) provide for aggrieved parties who have been harmed or who are at risk of harm by a breach of the Regulations to bring proceedings in the High Court. Any such proceedings must be brought within the limitation period specified by the Regulations according to the remedy sought.

• Oakwood Building Contractors LimitedAwarded supplierGB-COH: 02085761 Suite 4 Oaks House, 12 - 22 West Street, Epsom, Surrey, KT18 7RG, Epsom, South East, KT18 7RG

No document links were published on the notice.