Notice Information
Notice Title
22-173 Forge Island Redevelopment
Notice Description
Rotherham Metropolitan Borough Council (Council) has entered into further agreements with its development partner, Muse Developments Limited (Developer) in respect of the regeneration of Forge Island, Rotherham through the development of a new anchor leisure development. This project forms a key part of the Council's town centre regeneration masterplan.
Lot Information
Lot 1
The Council has entered into further contractual arrangements with its Developer to take the Forge Island development opportunity forward and realise the Council's aspirations for the site, within the context of challenging market and financing conditions. Additional information: For transparency, the total value of this procurement stated at II.1.7 (PS46,805,627) is made up of 2 contract sums as follows. PS2,910,847 is the cost of the enabling contract, with PS43,894,780 making up the remaining costs from the total value and form the Main Contract. The total construction cost is PS33,949,000. The total development cost of PS46,805,627 includes pre-construction costs, design marketing, professional fees, letting costs, tenant incentives and development management fees.
Procurement Information
In 2018, following a competition to secure best value, Muse Developments Limited (Muse) was selected as the development partner to deliver the regeneration of Forge Island, Rotherham. The arrangement was not considered to constitute a public works contract for the purposes of the Public Contracts Regulations 2015. The project envisaged that Muse would secure external funding but allowed for alternative options, including for the Council to partially or fully fund the development to be considered. Due to unforeseen market conditions, particularly shifts in the gilt market, the external funding available to Muse for the delivery of this project has significantly reduced. The Council was notified of this issue on the 13 September 2022. Against this backdrop, the Council has entered into a funding agreement with Muse to fund and retain the project and will take market standard security relating to this funding, including an obligation on Muse to develop in accordance with an agreed specification. The Council considers that the project is strictly necessary as a key part of the Rotherham Town Centre Masterplan and that acting as funder was the only reasonable option to secure delivery of the project (there being no alternative funding options available within a reasonable timescale or within a cost that would make the scheme viable) and considers that this proposal will secure best value for the Council. Maintaining the current programme is essential to enable satisfaction of existing contractual obligations with tenants. There was therefore an imperative to act urgently for the following reasons: - The scheme is anchored by a cinema, which has a date for satisfying conditionality of 31 December 2022. The scheme will no longer be viable if the cinema agreement falls away, setting delivery back likely in excess of 2-3 years and jeopardising the entire delivery of the scheme. Recent developments in the cinema market indicate that identifying a replacement would be very challenging. - Construction costs for the project had been tendered and fixed for a very limited period. Re-tendering of the construction works would add substantial additional inflationary cost and risk, threatening the viability of the project. Muse is in an exclusive position as it has developed designs, fully tendered and costed the scheme and has secured pre-lets with various occupiers meaning that competition would be absent for technical reasons. These designs and arrangements with occupiers, which are dependent on the agreement with the cinema proceeding, are exclusive rights that require protection. Given the complex nature of the project, and the extreme urgency described above, the Council considered that there was not sufficient time to conduct a new procurement procedure. The Council considered an accelerated procurement, concluding that it would be pointless as it would not allow bidders the opportunity to assemble a meaningful costed proposal or to secure deliverable agreements with end users. The Council therefore considered that it was permitted to utilise the negotiated procedure without prior publication on the basis of exclusive rights as a result of competition being absent for technical reasons (as provided for in Regulation 32(2)(b)(ii)) and, or in the alternative, on the basis of urgency (as provided for in Regulation 32(2)(c)). On the 26 September 2022, the Council published a F15: Voluntary Ex-Ante Transparency Notice (VEAT) (notice reference: 2022/S 000-026834) setting out its intentions.
Notice Details
Publication & Lifecycle
- Open Contracting ID
- ocds-h6vhtk-036b58
- Publication Source
- Find A Tender Service
- Latest Notice
- https://www.find-tender.service.gov.uk/Notice/035482-2022
- Current Stage
- Award
- All Stages
- Award
Procurement Classification
- Notice Type
- Award Notice
- Procurement Type
- Standard
- Procurement Category
- Works
- Procurement Method
- Limited
- Procurement Method Details
- Award procedure without prior publication of a call for competition
- Tender Suitability
- Not specified
- Awardee Scale
- Large
Common Procurement Vocabulary (CPV)
- CPV Divisions
-
- CPV Codes
45100000 - Site preparation work
45210000 - Building construction work
45212100 - Construction work of leisure facilities
45212150 - Cinema construction work
45212170 - Entertainment building construction work
45212171 - Entertainment centre construction work
45212400 - Accommodation and restaurant buildings
45212410 - Construction work for lodging buildings
45212411 - Hotel construction work
45212420 - Construction work for restaurants and similar facilities
45212421 - Restaurant construction work
45213100 - Construction work for commercial buildings
45213312 - Car park building construction work
45213313 - Service-area building construction work
45300000 - Building installation work
45400000 - Building completion work
45500000 - Hire of construction and civil engineering machinery and equipment with operator
Notice Value(s)
- Tender Value
- Not specified
- Lots Value
- Not specified
- Awards Value
- Not specified
- Contracts Value
- £93,611,291 £10M-£100M
Notice Dates
- Publication Date
- 15 Dec 20223 years ago
- Submission Deadline
- Not specified
- Future Notice Date
- Not specified
- Award Date
- 26 Sep 20223 years ago
- Contract Period
- Not specified - Not specified
- Recurrence
- Not specified
Notice Status
- Tender Status
- Complete
- Lots Status
- Cancelled
- Awards Status
- Active
- Contracts Status
- Active
Buyer & Supplier
Contracting Authority (Buyer)
- Main Buyer
- Rotherham Metropolitan Borough Council
- Contact Name
- Available with D3 Tenders Premium →
- Contact Email
- Available with D3 Tenders Premium →
- Contact Phone
- Available with D3 Tenders Premium →
Buyer Location
- Locality
- ROTHERHAM
- Postcode
- S60 1AE
- Postcode Area
- Sheffield
- Country
- England
-
- Major Region (ITL 1)
- TLE Yorkshire and The Humber
- Basic Region (ITL 2)
- TLE3 South Yorkshire
- Small Region (ITL 3)
- TLE34 Rotherham
- Delivery Location
- TLE31 Barnsley, Doncaster and Rotherham
-
- Local Authority
- Rotherham
- Electoral Ward
- Boston Castle
- Westminster Constituency
- Rotherham
Further Information
Open Contracting Data Standard (OCDS)
The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.