Official UK procurement notice
Retail Development · UK public procurement notice
Authority: The Shrewsbury and Telford Hospital NHS Trust (Central government)
What is being bought
Published requirement descriptionThe Shrewsbury and Telford Hospital NHS Trust ("SATH") intends to enter into contractual arrangements with Noviniti Dev Co 1 Limited ("Noviniti") and Compass Contract Services (UK) Limited ("Compass") and Compass Group (UK and Ireland) Limited (as Guarantor) in respect of a new retail and administrative use development being constructed by SATH at the Princess Royal Hospital in Telford ("the Hospital") ("the Building") . The documents to be executed by SATH comprise a Principal Agreement for Underleases ("S2AFL") and a Licence for Alterations ("LTA") to be granted to Noviniti to permit Noviniti to undertake internal alterations and fit-out works pursuant to Noviniti's lease of the ground floor of the Building ("Noviniti Works"). The contractual arrangements are structured as a land transaction exempt from the Public Contracts Regulations 2015 (“PCR”) and the Concession Contracts Regulations 2016 (“CCR”).
CPV: Construction work for commercial buildings
The lotProcurement structure
single lot · no lot value publishedLot #1SATH intends to enter into the S2AFL with Noviniti, Compass and the Guarantor and the…
SATH intends to enter into the S2AFL with Noviniti, Compass and the Guarantor and the LTA with Noviniti. Under the S2AFL and the LTA, Noviniti has the right to undertake the Noviniti Works at the Building. Following completion of the Noviniti Works, Noviniti will grant leases of the retail space to Compass and a lease of the communal space to SATH. SATH will be obliged to accept leases of the retail space directly from Noviniti if Compass defaults. SATH has structured the contractual arrangements as a land transaction exempt from the Public Contracts Regulations 2015 and the Concession Contracts Regulations 2016.
Procedure terms & legal framework
From the official record- Procedure method
- Award procedure without prior publication of a call for competition
- Legal basis
- CELEX · 32014L0024 Public Contracts Regulations 2015 (Directive 2014/24/EU)
- Procurement category
- Works
- Notice status
- Awarded without competition
- Procurement threshold
- Unspecified in notice
- Regulatory regime
- Standard
- Commercial structure
- Stand-alone contract (no framework)
- Competition type
- Direct award (no call for competition)
- GPA / WTO covered
- Unspecified in notice
- Recurring procurement
- Unspecified in notice
- First published
- 6 Apr 2023, 12:17 BST
- Last source update
- 3 Jul 2023, 15:53 BST
- FTS notice number
2023/S 000-018873- Classification (CPV)
- Delivery area
- Official registry OCID
ocds-h6vhtk-03bd40Find a Tender
- Why no open competition
- The procurement falls outside the scope of application of the directive
- Published justification
The subject of this notice is the proposal by SATH to enter into the contractual arrangements contained in the S2AFL and the LTA. These arrangements follow-on from the Agreement for Lease dated 19 May 2023 entered into between SATH and Noviniti ("S1AFL") relating to the grant to Noviniti of a lease of the ground floor of the Building for a term of 33 years ("the Noviniti Lease"). Completion of that lease will take place following completion by SATH of the relevant parts of the building works being undertaken by SATH in the construction of the Building. The S1AFL was the subject of a VEAT Notice published by SATH on 6 April 2023.<br/><br/>Under the terms of the S2AFL Noviniti is not obliged to undertake the Noviniti Works but if it fails to do so, SATH may terminate the Noviniti Lease. the Noviniti Lease contains a break right in favour of SATH in the event that Noviniti does not commence the Noviniti Works by an agreed deadline. It has a similar break right where Noviniti fails to complete the Noviniti Works by an agreed deadline. <br/>Where Noviniti completes the Noviniti Works then under the S2AFL it may call for Compass and the Guarantor to accept leases of the retail areas within the Building for a term of 15 years and for SATH to accept reversionary leases of those areas for a further term of 15 years. (There is also a provision for SATH to accept a lease of the communal areas of the Building at a peppercorn rent and to accept a sublease from Compass of one of the retail units at a peppercorn rent.) <br/>SATH considers that the arrangements fall within the land exemption under Regulation 10(1)(a) PCR and/or regulation 10(11)(a) CCR.<br/><br/>Noviniti is under no obligation to serve notice to elect to carry out the Noviniti Works. No public works contract arises due to the lack of an enforceable obligation. <br/><br/>Following completion of the Noviniti Lease Noviniti has the exclusive right to undertake the Noviniti Works for as long as the Noviniti Lease remains in operation and until such time as any of SATH break rights under the Noviniti Lease become capable of exercise.
Commercial outcome & contract awards
Published awards, contracts and bid statistics, not a forecast| Awarded to | Value | Date | Status |
|---|---|---|---|
| Noviniti Dev Co 1 Limited | — | — | Awarded |
| Noviniti Dev Co 1 Limited | — | — | Awarded |
Contracts
Contract 018873-2023-1 · Noviniti Dev Co 1 Limited
- Signed
- 3 Jul 2023
- Value
- —
- Status
- active
Contract 010137-2023-1 · Noviniti Dev Co 1 Limited
- Signed
- 3 Apr 2023
- Value
- —
- Status
- active
Bid statistics published by the authority
| Lot | Bids | SME | VCSE | Valid bid range |
|---|---|---|---|---|
| SATH intends to enter into the S2AFL with Noviniti, Compass and the Guarantor and the… | — | — | — | £1,000,000 – £3,000,000 |
| Whole notice | — | — | — | £1,000,000 – £3,000,000 |
Contracting authority & participating public bodies
Dispute resolution & review bodies
- Royal Courts of JusticeReview body
Bidders & participating suppliers
2 commercial parties on the notice- Noviniti Dev Co 1 LimitedAwarded supplier
- Noviniti Dev Co 1 LimitedAwarded supplier
Official documents & specifications
Official links; attachments are not copiedNo document links were published on the notice.