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Construction work

Published 17/05/2021

Location Unknown

Country UK

Status Contract award notice

CType Works

Tender Details
Reference2021/S 094-248721
Award CriteriaLowest price
ProcurementContract award without prior publication
Main ActivitiesGeneral public services
Common Procurement VocabularyConstruction work
Bridge construction work
Repair and maintenance services
Repair
maintenance and associated services of vehicles and related equipment
Architectural
construction
engineering and inspection services
Agricultural
forestry
horticultural
aquacultural and apicultural services
Date Published17th May 2021

Location Unknown

Country UK

Status Contract award notice

CType Works

Contract award notice

Results of the procurement procedure

Works

Legal Basis:
Directive 2014/24/EU

Section I: Contracting authority

I.1)Name and addresses
Official name: Oxfordshire County Council
Postal address: County Hall
Town: Oxford
NUTS code: UKJ14 Oxfordshire
Postal code: OX1 1ND
Country: United Kingdom
Contact person: Ms Amy Keylock
E-mail: Amy.Keylock@Oxfordshire.gov.uk
Internet address(es):
Main address: http://www.oxfordshire.gov.uk
Address of the buyer profile: http://www.oxfordshire.gov.uk
I.4)Type of the contracting authority
Regional or local authority
I.5)Main activity
General public services

Section II: Object

II.1)Scope of the procurement
II.1.1)Title:

Highway Maintenance, Design, Construction and Other Services  CPU 455

Reference number: DN530639
II.1.2)Main CPV code
45000000 Construction work
II.1.3)Type of contract
Works
II.1.4)Short description:

The highways contract is for the contractor to develop, with the Council, a high performing comprehensive highways service. The highways contract encompasses highway maintenance, design, construction, transport planning consultancy, with other services including but not limited to vehicle and grounds maintenance.

On 13 July 2010 the Council entered into the highways contract with Atkins Ltd (‘Atkins’) to provide the above works following a tender process commenced by contract notice 2008/S 210-279078 dated 29 October 2008. The highways contract is for a contract period of 10 years commencing 1 April 2010, extendable by up to a further 10 years. So far, the contract has been extended by 3 years so that the contract period expires end of March 2023. The values set out at II.1.7) of this contract award notice represent the estimated remaining value of the highways contract across the possible remaining term.

In 2013 Atkins contracted to sell its highways maintenance business to Skanska Construction UK Ltd (‘Skanska’). The sale proceeded by way of an asset sale and included the plant and equipment required to operate the highways maintenance business of Atkins, the transfer of leases or rights to use properties and facilities previously used by the highways maintenance business, and the transfer of approximately 1 200 employees, including around 80 in the central management and business support functions. It also included the transfer of customer contracts, including the highways contract with the Council. The highways contract between the Council and Atkins permitted assignment by Atkins of the benefit of the contract with the consent of the Council. Atkins requested consent to assign the benefit of the contract to Skanska and the Council consented to such assignment. The highways contract also provided that the original provider should remain legally responsible for performance of the contract, even if the benefit of the contract is assigned. The Council relied on this provision.

A VEAT notice was published in OJEU in September 2013.

Skanska have contracted to sell its highways maintenance business to Milestone Infrastructure Ltd (‘Milestone’). The sale was by way of an asset sale, and includes plant and equipment required to operate the highways maintenance business of Skanska, the transfer of leases or rights to use properties and facilities previously used by the highways maintenance business, and the transfer of approximately 1 200 employees, including around 80 in the central management and business support functions. It also includes the transfer of customer contracts, including the highways contract with the Council. The sale to Milestone completed on 30 April 2021. The Council has entered into a contract in the form of a Deed of Novation to novate the underlying highways contract (the ‘Contract’) to Milestone Infrastructure Ltd. The novation took effect on the completion of the sale on 30 April 2021.

In addition, the Council published a voluntary ex-ante transparency notice (2021/S 056-142734) with respect to the novation of the contract on 22 March 2021.

II.1.6)Information about lots
This contract is divided into lots: no
II.1.7)Total value of the procurement (excluding VAT)
Lowest offer: 97 000 000.00 GBP / Highest offer: 166 000 000.00 GBP taken into consideration
II.2)Description
II.2.2)Additional CPV code(s)
45221110 Bridge construction work
50000000 Repair and maintenance services
50100000 Repair, maintenance and associated services of vehicles and related equipment
71000000 Architectural, construction, engineering and inspection services
77000000 Agricultural, forestry, horticultural, aquacultural and apicultural services
II.2.3)Place of performance
NUTS code: UKJ14 Oxfordshire
II.2.4)Description of the procurement:

The highways contract is for the contractor to develop, with the Council, a high performing comprehensive highways service. The highways contract encompasses highway maintenance, design, construction, transport planning consultancy, with other services including but not limited to vehicle and grounds maintenance.

On 13 July 2010 the Council entered into the highways contract with Atkins Ltd (‘Atkins’) to provide the above works following a tender process commenced by contract notice 2008/S 210-279078 dated 29 October 2008. The highways contract is for a contract period of 10 years commencing 1 April 2010, extendable by up to a further 10 years. So far, the contract has been extended by 3 years so that the contract period expires end of March 2023. The values set out at II.1.7) of this contract award notice represent the estimated remaining value of the highways contract across the possible remaining term.

In 2013 Atkins contracted to sell its highways maintenance business to Skanska Construction UK Ltd (‘Skanska’). The sale proceeded by way of an asset sale and included the plant and equipment required to operate the highways maintenance business of Atkins, the transfer of leases or rights to use properties and facilities previously used by the highways maintenance business, and the transfer of approximately 1 200 employees, including around 80 in the central management and business support functions. It also included the transfer of customer contracts, including the highways contract with the Council. The highways contract between the Council and Atkins permitted assignment by Atkins of the benefit of the contract with the consent of the Council. Atkins requested consent to assign the benefit of the contract to Skanska and the Council consented to such assignment. The highways contract also provided that the original provider should remain legally responsible for performance of the contract, even if the benefit of the contract is assigned. The Council relied on this provision.

A VEAT notice was published in OJEU in September 2013.

Skanska have contracted to sell its highways maintenance business to Milestone Infrastructure Ltd (‘Milestone’). The sale was by way of an asset sale, and includes plant and equipment required to operate the highways maintenance business of Skanska, the transfer of leases or rights to use properties and facilities previously used by the highways maintenance business, and the transfer of approximately 1 200 employees, including around 80 in the central management and business support functions. It also includes the transfer of customer contracts, including the Highways Contract with the Council. The sale to Milestone completed on 30 April 2021. The Council has entered into a contract in the form of a Deed of Novation to novate the underlying Highways Contract (the ‘Contract’) to Milestone Infrastructure Ltd. The novation took effect on the completion of the sale on 30 April 2021.

In addition, the Council published a voluntary ex-ante transparency notice (2021/S 056-142734) with respect to the novation of the contract on 22 March 2021.

For the purposes of the award criteria at II.2.5) below, although the field has been completed in this notice, the award criteria for the contract is the award criteria applied when this was originally awarded in 2010. Award criteria are not applicable to the contract award covered by this notice because in this instance the Council was only seeking to novate the Contract to a replacement contractor in accordance with regulation 72(1)(d)(ii) of the Public Contracts Regulations 2015.

II.2.5)Award criteria
Price
II.2.11)Information about options
Options: no
II.2.13)Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds: no
II.2.14)Additional information

Section IV: Procedure

IV.1)Description
IV.1.1)Type of procedure
Award of a contract without prior publication of a call for competition in the Official Journal of the European Union in the cases listed below
  • The procurement falls outside the scope of application of the directive
Explanation:

The Council considers the effect of entering into the Deed of Novation to be a permitted modification to the Contract under regulation 72 of the Public Contracts Regulations 2015 and, as such, the Deed of Novation is not an opportunity that required prior publication.

In particular, the novation to Milestone falls within the safe harbour at regulation 72(1)(d) on the basis that a new contractor replaces the one to which the Council had initially awarded the contract. More specifically:

1) Milestone is replacing the original contractor following a corporate restructuring in the form of a business sale to Milestone. This business sale has the consequence of the universal succession of Milestone into the position of the initial contractor (within the meaning of regulation 72(1)(d)(ii));

2) Milestone fulfils the criteria for qualitative selection initially established in the procurement of contract; and

3) The novation of the Contract to Milestone does not entail any other substantial modifications to the contract, and is not aimed at circumventing the application of the Public Contracts Regulations 2015.

For the reasons set out in this notice, the modification to the Contract by way of the Deed of Novation is permitted under the Public Contract Regulations 2015, and the Council is permitted to enter into the Deed of Novation without the prior publication of a call for competition.

IV.1.3)Information about a framework agreement or a dynamic purchasing system
IV.1.8)Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: yes
IV.2)Administrative information
IV.2.1)Previous publication concerning this procedure
Notice number in the OJ S: 2021/S 056-142734
IV.2.8)Information about termination of dynamic purchasing system
IV.2.9)Information about termination of call for competition in the form of a prior information notice

Section V: Award of contract

A contract/lot is awarded: yes
V.2)Award of contract
V.2.1)Date of conclusion of the contract:
30/04/2021
V.2.2)Information about tenders
Number of tenders received: 1
The contract has been awarded to a group of economic operators: no
V.2.3)Name and address of the contractor
Official name: Milestone Infrastructure Ltd
National registration number: 10260164
Postal address: Abel Smith House, Gunnels Wood Road
Town: Stevenage
NUTS code: UK United Kingdom
Postal code: SG1 2ST
Country: United Kingdom
The contractor is an SME: no
V.2.4)Information on value of the contract/lot (excluding VAT)
Lowest offer: 97 000 000.00 GBP / Highest offer: 166 000 000.00 GBP taken into consideration
V.2.5)Information about subcontracting

Section VI: Complementary information

VI.3)Additional information:
VI.4)Procedures for review
VI.4.1)Review body
Official name: High Court of England and Wales
Postal address: Royal Courts of Justice
Town: London
Postal code: WC1A 2LL
Country: United Kingdom
VI.5)Date of dispatch of this notice:
12/05/2021
More Tenders »
Tender Details
Reference2021/S 094-248721
Award CriteriaLowest price
ProcurementContract award without prior publication
Main ActivitiesGeneral public services
Common Procurement VocabularyConstruction work
Bridge construction work
Repair and maintenance services
Repair
maintenance and associated services of vehicles and related equipment
Architectural
construction
engineering and inspection services
Agricultural
forestry
horticultural
aquacultural and apicultural services
Date Published17th May 2021