PAPER F2

Purpose : For Decision

Committee:	EXECUTIVE
Date:	7 MAY 2002
0Title:	EDUCATION CAPITAL PROGRAMME 2002/ 2003 CONTRACT STANDING ORDERS
	PORTFOLIO HOLDER – EDUCATION AND LIFELONG LEARNING

SUMMARY/PURPOSE

That members be asked to exempt 6 Education capital projects from a section of the new Standing Orders in order to allow their completion on time.

BACKGROUND

The Council’s newly approved Contract Standing Orders, which govern the way in which procurements are subject to the competitive process, require that the use of select/standing lists (ie those already compiled with appropriate contractors) should not be used for contracts which are estimated to cost more than £200,000. This means that they would, in normal circumstances, be the subject of open tendering where all prospective contractors who express an interest after national and local advertisement, would be invited to tender.

Unfortunately, the timescales for achieving this requirement initially in respect of six Education capital projects are not available: full open tendering would delay the start of each project by three to four months making it impossible to complete the projects in time for the new school year.

The new Standing Orders are due for review in 6 months.

The new procedure will affect 13 school projects – 6 immediately. These are at:

Medina House and

Watergate, where

the SCA for

reorganisation is £1,800;000

Ryde High £350,000

Cowes High £308,166;

Ventnor Middle £240,000;

Kitbridge Middle £800,000.

In particular if the new condition is applied the special school reorganisation cannot be completed by September 2003, as advertised publicly and funding may be lost on all these projects.

There is also a second point, that without additional staffing in Property Services to undertake the additional work some 53 projects under £200,000 will also be delayed in consequence.

OUTCOME OF CONSULTATIONS

The portfolio holders for Education and Life Long Learning and Resources have been consulted and support the proposal. The Strategic Director of Finance and Information (Section 151 Officer) has been consulted and has advised that in the circumstances, the requirement for open tendering should be suspended and instead existing select lists should be used to invite contractors to bid for the above work. He has also advised that the new Contract Standing Orders will be reviewed within six months to consider this issue and others that have been highlighted during their initial implementation.

Financial Regulations recommend that exemption from Standing Orders should be approved by the Directors’ Board.

The Directors’ Board will consider the matter at its meeting on 1 May 2000 and their decision will be reported orally to the meeting of the Executive.

FINANCIAL IMPLICATIONS

None.

LEGAL IMPLICATIONS

These projects are not subject to the threshold for the European Contracts Directive, but the Council’s own Standing Orders require the full procedure to be followed. For projects under the value of £200,000 the Council may invite tenders from contractors on its standing list. The request to waive this requirement of Standing Orders should be supported by the Directors’ Board as required by Standing Order 12.1.

OPTIONS

a) Accept that the six projects will be completed late and that the special school reorganisation will not be completed by September 2003.

b) Implement recommendations 1 and 2 below.

RECOMMENDATIONS

1. The requirement to advertise nationally be suspended on a temporary basis in respect of projects at the following schools to allow their completion on time: Medina House, Watergate, Ryde High, Cowes High, Ventnor Middle and Kitbridge.

2. These projects to be subject to competitive tender in the usual way. That the contractors from whom tenders will be sought be selected from the Authority’s approved list.

3. That the process be reviewed after 6 months as planned.

BACKGROUND PAPERS

None.

Contact Point: Andy Seaward, 823441

ALAN KAYE Strategic Director Education and Community Development

JILL WAREHAM Portfolio Holder - Education and Lifelong Learning