Designed for Life: Building for Wales 3 National Frameworks

Transcription

1 Designed for Life: Building for Wales 3 National Frameworks Invitation to Tender Memorandum of Information National Frameworks May 2012 NHS Wales

2 Table of Contents Section 1. Introduction, Objectives and Core Principles 1.1. Introduction 1.2. Objectives 1.3. Core Principles 2. Proposal 2.1. Composition and Duration of National Frameworks 2.2. The Design and Construction Process 2.3. Specific Key Elements 2.4. The Framework Procurement Process 2.5. Evaluation Approach 3. Conditions of Bid 3.1. Purpose 3.2. Disclaimer 3.3. Governing Law 3.4. No obligation 3.5. Confidentiality 3.6. Candidate s good standing 3.7. Expenses 3.8. Freedom of Information 3.9. Non Collusion Framework Rules

3 3.11. Communications Protocol Fair Payment Charter Annexures Annexure A Annexure B Annexure C Annexure D Annexure E Annexure F Annexure G Annexure H Audit Protocol Fair Payment Charter Framework Structure diagram Process Map Business Case Flow Chart Project Roles & Responsibilities Matrix Weightings Etenderwales: Mandatory Requirements & FAQs

4 Section 1: Introduction, Objectives and Core Principles 1.1 Introduction This Invitation to Tender (ITT) is issued by NHS Wales Shared Services Partnership - Facilities Services (NWSSP-FS) for the Bid and Evaluation Phase of the procurement of the Designed for Life: Building for Wales 3 National Frameworks. The ITB provides guidance on the proposed shape of the National Frameworks, the proposed project and contract processes, the procurement process that is to be followed and the Conditions of Tender. The National Frameworks are one element of the NHS Wales construction procurement strategy. The strategy has three value bands as follows:- a) Works with a construction value of up to 4m will be let directly by NHS organisations at a local level in accordance with their Standing Financial Instructions. b) Works with a construction value of between 4m and 10m have been procured through the Designed for Life: Building for Wales 2 Regional Frameworks. c) Works with a construction value of above 10m will be procured through the Designed for Life: Building for Wales 2 National framework (this bid process). It is the intention that from July 2012 all NHS Wales projects with a construction value in excess of 10 million will be let under the new National Frameworks. NWSSP-FS are working with the xchangewales esourcing programme to seek bids for its Regional Frameworks. It is utilising Bravo Solution as the etendering package and will utilise Award as the eevaluation package for the Invitation to Tender (ITT) stage.

5 1.2 Objectives The objectives are to: Obtain Best Value for Money in procuring major health capital developments. Implement the Welsh Government s construction policy to ensure that the NHS in Wales complies with best practice models of procurement based on long-term strategic partnerships. Assist the NHS Wales to become an exemplar client for all major Construction Projects. Create an environment of collaborative working and continuous improvement that utilises strategic partnerships with integrated supply chains. The outputs/benefits that are to be realised through achieving these objectives are captured in the following targets:- Design and Construction Costs o Deliver projects at a total design and construction out-turncost which is 5% below the Final Project allowance Construction Cost as defined. Predictability o The number of projects to be completed within the Target Price to be 95% or greater. o The number of projects in construction to be completed on time to be in excess of 90%. Defects o The number of projects to be completed with zero defects at handover to be in excess of 90%. Accidents o The Accident Frequency Rate and Accident Incident Rate to be 20% less than the Average National AFR and the Average National AIR respectively; and

6 Sustainability o All new build construction projects to achieve a BREEAM score of excellent. All refurbishment construction projects to achieve a BREEAM score of very good. 1.3 Core Principles Designed for Life: Building for Wales 3 National Frameworks are to be built around a series of Core Principles which will be utilised to measure performance and behaviour. Organisations must consistently demonstrate their commitment to adhering to these principles for the benefit of NHS Wales. The Core Principles are: Best Value for Money All involved in the Frameworks must strive towards achieving best value for money both within the Framework and at individual project level. Best Value for Money (BVfM) is defined as the optimum combination of whole-life costs and quality (or fitness for purpose) of the good or service to meet the user s requirements. BVfM is not the choice of goods and services based on the lowest cost bid. Exemplar Client All involved in the Frameworks will assist the NHS in Wales to progress towards achieving Exemplar Client status as defined by the National Audit Office Maturity Matrix. The success of any project ultimately depends upon the leadership and capability of the Client. The majority of decisions about cost, quality and programme are made by the Client and those decisions need to be taken by knowledgeable, experienced and capable individuals who understand their business and the consequences of their requirements. It is recognised that there are shortcomings at present. NHS Wales intends that these skills are available to Local Health Boards and Trusts and will work towards this goal within the life of the Regional Frameworks. Integrated Supply Chains There will be Integrated Supply Chains to take Construction Projects from star of Outline Business Case stage to Project Closure. The Integrated Supply Chain will be led by a Supply Chain Partner.

7 Collaborative Working The National Frameworks and all projects shall embrace the concept of and put into effect collaborative working behaviours and processes. This is one of the most fundamental core principles and is a primary attribute of successful projects. It requires organisations to work together: in good faith and in a spirit of mutual trust and respect; to act in a co-operative and collaborative manner; to share information honestly and openly; and to highlight any difficulties at the earliest opportunity to achieve and advance the Project Objectives. To achieve Collaborative Working organisations will need to ensure: leadership; communication; planning; training; and development of common systems, processes and procedures. Continual Improvement All involved in National Frameworks must strive towards continual improvement at National, Project and Inter-Project levels for the benefit of NHS Wales. Performance Management All parties to the National Frameworks shall be subject to Performance Measurement at both National and Project levels. Effective Risk Management Led by the Project Manager all parties at project level will actively contribute towards effective Risk Management.

8 To achieve this Risks will be placed with those best able to manage them and take appropriate mitigating action; There will only be one Risk Register; it will be owned by the Project Manager but compiled in collaboration with all project parties; Risks will be reviewed and re-assessed collaboratively on a monthly basis Open Book Working An Open Book accounting regime will be applied to participants in the National Frameworks (including Supply Chain Members). To achieve this there will be two levels of audit: At National Framework level to audit those areas best carried out on a National basis; At Project level to audit those areas best dealt with at Project level. A copy of the Audit Protocol is attached as Annexure A. Fair Payment All parties to the National Frameworks must sign up to the Designed for Life: Building for Wales 3 Fair Payment Charter. (See Annexure B) Sustainable Development The Sustainable Development Scheme, One Wales; One Planet, was published in May 2009 and it states that sustainable development is the central organising principle for the Welsh Government. The NHS has also published its own sustainable development guidance for the planning, design, and construction of health and social care buildings, Health Technical Memorandum Sustainable health and social care buildings. This requirement has been adopted as a core principle of the Frameworks which will endeavour to meet the following minimum targets: Environmental Impact Assessment

9 All new build Framework capital projects must achieve a BREEAM (Building Research Establishment Environmental Assessment Model) rating of Excellent at pre-assessment, design and procurement and post-construction reviews. All refurbishment Framework capital projects must achieve a BREEAM rating of Very Good at pre-assessment, design and procurement and post-construction reviews. Energy The design of all new buildings and refurbishments for energy efficiency should adopt an energy hierarchy. Firstly all opportunities to reduce energy demand are explored, then energy efficiency measures are considered and finally the opportunities to exploit low carbon and renewable energy sources are evaluated. In compliance with the latest Welsh Government Ministerial planning policy statement on planning for sustainable buildings, a minimum standard CO2 (EPC) rating of 40 or better needs to be achieved. The baseline target for carbon emissions for wales is an annual 3% year on year reduction and the NHS in Wales is expected to act as an exemplar in contributing to achieving this target; All NHS Health Boards and Trusts in Wales must utilise at least 20% of energy consumed from renewable or low carbon technology sources by All new capital developments and major redevelopments must utilise at least 20% of energy consumed from renewable or low carbon technology sources by Specific targets and metrics on energy and carbon reduction for NHS Wales will be set by the requirements of the forthcoming Low Carbon strategy and all NHS Wales bodies will be expected to comply with these requirements. Recycling In future all major capital projects must demonstrate that they contain a minimum of 15% (by material value) of reused and recycled content.

10 Construction and demolition waste Towards Zero Waste was published by the Welsh Government in June 2010 it established the targets for Wales ambition of becoming a high recycling nation by 2025 and a zero waste one nation planet by The construction industry will need to reduce the amount of waste by 1.5 per cent every year until The Construction and Demolition Waste sector Plan is being consulted upon and establishes the outcomes, policies and actions for the sector. The requirements of these documents have been incorporated into the National Framework core principles with the intention to meet the targets established. All major capital projects carried out by NHS Wales, resulting in the production of construction and/or demolition waste, are required to put in place Site Waste Management Plans. The plan should also incorporate project specific targets in accordance with the priorities of the waste hierarchy and include methods to measure performance. For example, total waste arisings and waste to landfill should be recorded and measured in tonnes per 100m2 of internal floor area, tonnes of waste arisings should not exceed 13 tonnes* per 100m2 of internal floor area. *Standard industry benchmark BRE waste data by project type for new build only. Community Benefits Supply Chain Partners and Support Consultants shall use all reasonable endeavours to employ in the carrying out of projects, direct labour, subcontractors and suppliers who are based in the locality of the project. The key deliverables being: Increase the supply of local labour; Increase the skill level of individuals needed to deliver Designed for Life: Building for Wales 3 projects; Support SME collaborative development; Provide continuity of workload; Procure, where possible, materials and services locally;

11 Utilise opportunities to train Local Health Board or Trust Estates teams; Minimise disruption to local residents during the construction stage of the project; Communicate the Community Benefits Strategy, new developments and key successes

12 Section 2. Proposal 2.1 Composition and Duration of National Frameworks The National Frameworks will cater for capital projects with an estimated construction value over 10m (including enabling works but excluding Value Added Tax). This equates to projects with a total capital cost (Works Cost, Fees, Non-Works Cost, Equipment, Quantified Risk and Value Added Tax) exceeding 15m approximately. There will be three National frameworks:- - Project Manager (itt_35476) - Cost Adviser (itt_35475) - Supply Chain Partner (itt_35477) The above are the reference codes that will be used in the etenderwales/bravo system. Supervisor teams will be either appointed from within Local Health Boards or NHS Trusts or procured by the Project Manager on behalf of the Local Health Boards or NHS Trusts or be a mixture of both. It is intended that there will be three organisations appointed to each framework discipline. i.e. - 3 organisations for Project Manager - 3 organisations for Cost adviser - 3 organisations for Supply Chain Partner Each Supply Chain is required to be made up of the following disciplines: - One Constructor - Two Architects - Two Civil and Structural Engineers - Two Building Services Engineers

13 - Two Building Services Installers each covering both Electrical and Mechanical Installation - Two CDM Co-ordinators All National Frameworks will adopt the NEC3 suite of contracts. An outline of the proposed National Framework structure is attached as Annexure A. Designed for Life Building for Wales 3 will be procured on the basis of an initial 4 year contract with the option to extend by up to two years. Designed for Life Building for Wales 3 will be procured and managed by NWSSP-FS as the agent for the Welsh Government. Welsh Government representatives will sign the framework agreements with the successful bidders as sponsor of the frameworks. Contracts for specific projects will be subject to mini-competition between the successful bidders on each of the Frameworks, Contracts for specific projects which are let under the frameworks will be entered into between the successful bidders and the individual Local Health Boards or NHS Trusts responsible for the project. It will be open to all Local Health Boards or NHS Trusts in Wales (and also any other NHS bodies that may exist in Wales during the life of the framework, the Welsh Government, and other Welsh public bodies who wish to develop facilities jointly or in collaboration with the NHS) to let contracts under these frameworks for the duration of the frameworks. A Process map for the National Frameworks is attached as Annexure B.

14 2.2 The Design and Construction Process Refer to Annexure D for the Process Map, Annexure E for the Flowchart for the Business Case Process and Annexure F for the Schedule of Roles and Responsibilities matrix. Schedules of Services for all framework parties have been attached to the ITT document for information. The Project Manager, Cost Adviser and Supply Chain Partner will be appointed by a three-phase process: 1 st Phase To take the project from approval of Strategic Outline Case to Welsh Government approval of the Outline Business Case (post-riba Stage C). The Outline Business Case will set a Project Allowance for the Health Board/Trust. 2 nd Phase To take the project from Outline Business Case (RIBA Stage D) to Welsh Government approval of the Full Business Case (RIBA Stage H). As part of the duties of this stage, a Target Price is to be agreed upon completion of RIBA Stage H for inclusion in the Full Business Case, which when combined with other Health Board/Trust cost centres will not exceed the Project Allowance established in the 1 st Phase above. 3 rd Phase After Welsh Assembly Government approval, to take the project from finalisation of design, through construction to handover and settlement of final account. Upon approval of the Strategic Outline Case, NHS Health Boards or Trusts will be able to appoint a Project Manager and Cost Adviser from the various frameworks via a mini-competition process, to fulfil duties up to RIBA Stage C (approval of Outline Business Case by Welsh Government). The appointments will be made on the NEC3 PSC form of contract. They will always be appointed in advance of the Supply Chain Partners.

15 The Project Manager and Cost Adviser selection will involve the submission of a valid bid proposal and attendance at an interview. The Project Manager and Cost Adviser candidates will bid in competition for progressing the project to submission of Outline Business Case and will be expected to submit costed Activity Schedules based on the hourly rates submitted during the framework selection process for this phase. The commission will be for all stages, subject to contract termination conditions, with the costs of subsequent project phases based on costed Activity Schedules agreed at the end of phase 1. After appointment the Project Manager and the Cost Adviser will assist the Local Health Board or Trust in the preparation of the Project Selection Pack for the selection and appointment of a Supply Chain Partner. It should include a Project Initiation Document, a Brief/Works Information, a Schedule of Services, Contract Data Part 1, Exemplar Activity Schedules for the Outline Business Case stage and Contract Data Part 2 (for completion by the bidding parties). Each Supply Chain Partner will be expected to submit a valid bid proposal, attend an open day and an interview. In addition to hourly rates and percentages bid at framework selection stage, the bid proposal will also include a Costed Activity Schedule for the Outline Business Case stage which will be financially evaluated against the other two bids. The successful organisations will be required as a strict obligation to sign Project Agreements prior to commencement of the commission. Failure to do so may be counted as a breach of the Framework Agreement. The selected team will work with the NHS Health Board or Trust and other consultants engaged by the NHS Health Board or Trust, (e.g. Health Planners) to develop the service requirement, assist with the Option Appraisal to produce a Preferred Option and translate it into a Conceptual Proposal. Upon completion of the Conceptual Proposal and agreement with Welsh Government of an approved Project Allowance, an Outline Business Case may be submitted by the Health Board/Trust for approval by Welsh Government. The approved Project Allowance represents an out-turn budget for the Health Board/Trust within which all capital expenditure associated with the project must be met. The need for specialist Advisers, such as Town Planners, BREEAM assessors, Site Investigation Specialists shall be agreed between the

16 NHS Health Board or Trust and the Project Manager or between the Supply Chain Partner and Project Manager. Appointment of specialist Advisers will be either directly by the NHS Health Board or Trust or by the Supply Chain Partner. 2.3 Specific Key Elements Design Development It is important to recognise that the Designed for Life: Building for Wales 3 National frameworks are not Design and Build projects. The parties involved work collaboratively to deliver the project, jointly developing the design and specification within the cost, time and quality boundaries that are set from the Strategic Outline Business Case. Sufficient time must be allowed in the Programme to allow proper consideration of proposals before sign off. NHS Health Boards and Trusts will use the opportunities presented at end of Outline Business Case and end of Full Business Case stage with the presentation or refreshment of Works Information as convenient review and sign off points before continuing contractual relationships. Getting to Target Price under National Frameworks Introduction Getting to Target Price is the most difficult stage of the whole Designed for Life: Building for Wales 3 process. There are conflicting objectives and the process requires firm management and significant negotiation. The process for establishing a Target Price (the Prices) for the construction of the required facility commences from the initial appointment. A Project Allowance will be set by Welsh Government upon approval of the Outline Business Case. The Project Allowance represents the total amount of monies allocated to a Health Board /Trust by Welsh Government, within which the Health Board /Trust is required to manage the delivery of the capital project. A component part of the Project Allowance will be the Construction Cost which is a Price not to Be Exceeded. As the design for the required facility progresses through the RIBA work stages from stage D onwards, the Health Board /Trust will require periodic cost reports on the Construction Cost in order to manage within their set Project Allowance. At the end of RIBA Stage H the

17 Health Board /Trust will require a Target Price (the Prices) for inclusion in the Full Business Case. While approval to the FBC is awaited all necessary contractual documentation will be drawn up in readiness (once approval is received) for a speedy exchange of contracts and start on site. Firm Price The decision as to whether projects under the Designed for Life: Building for Wales 3 National Framework, shall be Firm or Fluctuating Price, will be made on the specifics of each individual project. Design Completion It is a requirement of Designed for Life: Building for Wales 3 that 70-80% of design (for each element including engineering services) should be progressed and completed in order to establish the Target Price for inclusion in the Full Business Case. This has been clarified to mean the achievement of RIBA Plan of Work Stage H for Partnering type contracts. It does not mean 70-80% cost certainty as this should have been achieved earlier in the process. It is expected that proper coordination of the building enclosure, structure and engineering services is part of this requirement. The purposes of this requirement for 70-80% design completion is to ensure that robust market testing of works packages can take place to ensure that the Target Price is sound and that everyone can have confidence in it. This level of design should also ensure there are no delays to construction activity because of incomplete or uncoordinated design. It is obviously difficult to measure design completion. To assist this, SCPs should provide detailed design sub-programmes linked back to RIBA Plan of Work stages showing design activities carried out by Architects, Civil and Structural Engineers and Building Services Engineers. The provision of such programmes will assist in identifying the key deliverables in achieving 70-80% design completion. In addition an assessment of the design fee expended upon completion of the Target Price as a proportion of the total fee should be provided as part of the Full Business Case submission submitted by the Health Board/Trust. This should provide a supplementary rule of thumb guide as to whether the target design

18 completion has been achieved and assist in the Welsh Government scrutiny/approval process. Target Price and Value for Money In order to assist the Welsh Government scrutiny process at Full Business Case stage, the establishment of the Target Price is required to demonstrate that all works packages either utilise rates and percentages tendered at ITT stage, are competitively tendered or are benchmarked at open market rates. It is imperative that all parties work to achieve hard Target Prices to ensure best value for money. This requires sufficient time being included in project programmes for the market testing process for sub-contract work packages. A hard Target Price ensures all parties have to work effectively and efficiently to complete the project within Target Price and achieve gain share. The term Guaranteed Maximum Price is sometimes used and is technically any Target Price with a 100% Pain share to the SCP. Procurement Procedure It is vital that a Procurement Procedure is produced by the SCP and agreed by the Project Manager identifying how the project is to be broken down into work packages and how each is to be procured as part of the OBC development and the establishment of the Project Allowance. The Procurement Procedure is required to be incorporated into the Works Information at commencement of FBC (Clause 11.2 (25)). This is especially important where in-house organisations are to be utilised by SCPs that may not be subject to market testing. Failure to follow this procedure may result in Disallowed Cost. The Project Cost Plan should also be re-cast to reflect the cost of the work packages (identified in the Procurement Procedure) from the previous elemental breakdown. Dependent upon the number of work packages subject to open market rates the Project Risk Register may need to be revised. Each of the works package elements in the Cost Plan should reflect the total expected cost of the works package after market testing. They should not include any SCP design costs but may include subcontract design costs.

19 Contract Data Rates and Percentages SCPs will provide at Framework appointment stage, rates for the following cost centres: All construction staff involved in taking forward the design, through approval of Full Business Case to Completion as scheduled.; All Supply Chain Member staff involved in taking forward the design, through approval of Full Business Case to Completion as scheduled.; Working Area establishment costs as scheduled. Competitively Tendered Prices The elements essential to the successful conclusion of this process are dependent upon sufficient time being allowed for: Design to advance to a minimum of 70-80% completion; Comprehensive and complete tender documentation to be prepared; Tenderers to prepare their bids; Proper evaluation and negotiation with tenderers. At the very least three bids per works package should be obtained. Bids should be opened jointly by the SCP and Cost Adviser. Evaluation When the bids have been received they need to be comprehensively evaluated, by the SCP and Cost Adviser, to ensure that the comparison is between apples and apples. The bids may need to be levelled to achieve this and therefore adjustments may need to be made for omissions or exclusions. The adjustments should be agreed with each works package subcontractor. In the bid documents the SCP should identify those attendances that it expects the bidding subcontractors to provide. All other attendances that are expected to be provided by the SCP to the subcontractors should be priced for in Preliminaries not against the works package. This should allow a more holistic approach to be taken considering the work packages as a whole and not in isolation.

20 SCP Risk in respect of work packages should be allowed for in the Risk Register and quantified in the SCP Quantified Risk build-ups. There should be no SCP Risk in Work Package costs. Subcontractor risk assessments should be covered in their bids. NHS Health Boards and Trusts need to carefully consider those risks which are best placed with the SCP and those it will bear itself. To enable this to happen a full list of all SCP and subcontract risks needs to be prepared for discussion between the NHS Health Board or Trust, the SCP, Project Manager and Cost Adviser. Some work packages may still have some work to be done in respect of Design Development. The design fees for this work should have been allowed by the subcontractor in its bid submission or, if the work is to be designed by the SCP, provision made in the SCP fees. If the subcontractor has included design fees a review will be necessary to ensure that there is no duplication of fee with the Design Consultants who have probably been commissioned for the provision of a full design service. The cost of the outstanding work will also need to be assessed. Theoretically it should be the difference between the Works Package element cost and the bid submission received from the subcontractor. If more funding is required it should be drawn from the Cost Plan Design Reserve or from savings made elsewhere. Unless previously agreed with the Cost Adviser, Design Development should not amount to more than 5% of the value of an individual works package or 2.5% of the total of all work packages. Post Target Price re-tendering of Works Packages On occasions it may be the case that some work packages are retendered after the Target Price has been agreed. If a package has to be re-tendered then it should be done in agreement with the Project Manager and under the same process as Pre-Target Price market testing. Gain Share for SCP For Stages 2 and 3, Gain share will be 0% gain 100% pain. For Stages 4, 5 and 6, Gain share will be limited to the first 2.5% of any savings apportioned 50%/50% between the NHS Health Board or Trust and the SCP. Savings over this amount will accrue 100% to the NHS Health Board or Trust.

21 2.4 The Framework Procurement Process The Framework Procurement Process for the three frameworks (Supply Chain Partner, Project Manager and Cost Adviser) has been broken down into three Phases: Phase 1: Short-listing Phase 2: Bid and evaluation Phase 3: Contract Phase 1: Short-listing The main elements of this Phase are: Issue of the Contract Notice via restricted procedure Issue (via BRAVO) the PQQ MoI and the PQQ PQQ responses from candidates Evaluation of Financial robustness Evaluation of Non-financial criteria Short-listing and notification Phase 2: Bid and evaluation The main elements of this Phase are: Issue (via BRAVO) of the ITT MoI and the ITT (Wednesday 30 th May 2012) Candidates to comment on proposed Framework Agreement v1 and return to Facilities Services by midday Wednesday 6 th June Facilities Services to consider comments on proposed Framework Agreement and issue Framework Agreement v2 by midday Monday 11 th June Candidates to return final comments on Framework Agreement v2 to Facilities Services by midday 13 th June Facilities Services to consider and issue finalised framework Agreement v3 by midday Friday 15 th June 2012.

22 ITT responses from short-listed candidates ITT evaluation Interviews Final selection and preparation of ITT Report and Recommendations Strategic Framework Board and Welsh Government approval Notification and debriefing Standstill period NWSSP-FS reserves the right to undertake office and site visits with the short-listed organisations and/or their Supply Chain Members following receipt of the ITT responses. Phase 3: Contract The main element of this Phase is: Execution of Contract documents. 2.5 Evaluation Approach Introduction In order to be awarded a place on the Designed for Life: Building for Wales 3 National Frameworks, candidates must succeed at both Shortlisting (PQQ) and Invitation to Tender (ITT) stages. The evaluation of submissions at each stage is separate, and success at PQQ will place all short-listed candidates on an equal footing as they enter the ITT stage. Scores from PQQ stage will not be carried forward into the ITT stage. The stages will be evidence based from which evaluators will be seeking verifiable evidence to substantiate statements submitted in pre-qualification and bid documentation and at interview. Selection criteria at ITT stage will be a combination of both financial and non-financial factors and will consider: Candidates proposed approach must meet the objectives and core principles of D4LBfW3 and be feasible, robust and cost effective.

23 Candidates proposed resources must have the knowledge and skills necessary to deliver the proposed approach and be available to meet the required timescales. Candidates pricing provide Best Value for Money Evaluation and Assessment Principles Candidates will need to respond to a number of pass/fail requirements and to agree to a number of required behaviours in order to proceed to acceptance on the frameworks. Where an element of the ITT operates on a pass/fail basis, it is made explicit in the ITT. A first trawl of ITT responses will be made reviewing the pass/fail questions. Failure by the candidate to satisfy the requirements of any pass/fail question will result in automatic exclusion from this tender process. A review will be conducted on the PQQ responses submitted in order to identify if any changes have occurred. Other questions are scored (as stated explicitly in the ITT). Any Project Manager or Cost Adviser candidate who provides two or more answers to any scored questions which receive a score of zero will be disqualified from further participation in this tender process. The above principle will also be applied to Supply Chain Partners and their individual Supply Chain Members. If any of the following individually score two zeros - Supply Chain Partner - Architect Company A - Architect Company B - Building Services Engineer Company A - Building Services Engineer Company B - Civil and Structural Engineer Company A - Civil and Structural Engineer Company B - Building Services Installer Company A

24 - Building Services Installer Company B - CDM Coordinator Company A - CDM Coordinator Company B The entire supply chain submission will be disqualified from further participation. Remaining candidates responses will then be assessed against pre-defined grading levels that will determine the score awarded for the answer to each question. Evaluators will be provided with guidance notes to ensure a common approach to evaluation. These Evaluator guidance notes will not be available to candidates but will be consistent with the scoring methodology set out below. Answers to the scored non-financial questions will be scored as follows: Level Generic Meaning Score Very High Confidence Issue is fully understood and readily achievable/manageable by the candidate Proposals address all of the issues Clear evidence of partnering in response provided Innovative approach with wide-ranging applications Adding value to the process Demonstrates understanding beyond stated requirements Strong, complete evidence with justification Evidence from multiple sources / sectors 100

25 High Confidence Issue is fully understood and achievable/manageable by the candidate Proposals address all of the issues Clear evidence of partnering in response provided Demonstrates full understanding of stated requirements Strong, complete evidence with justification Evidence from multiple sources / sectors 90 Good Confidence Issue is well understood and achievable/manageable by the candidate Proposals address all of the key issues Clear evidence of partnering in response provided Demonstrates good understanding of stated requirements Good evidence with justification 75 Low Confidence Issue is mostly understood and achievable/manageable in most parts by the candidate Proposals address most of the key issues Some evidence of partnering in response provided Basic understanding of stated requirements Evidence is light or vague in detail 55 Concerns Issue is partly understood and achievable/manageable in some parts by the candidate Proposals address some of the key issues Little evidence of partnering in response provided Basic understanding of stated requirements Evidence is light or vague in detail 30

26 Major Concerns Issue is poorly understood and potentially unachievable/unmanageable by the candidate Proposals address some of the issues Little or no evidence of partnering in response provided Little understanding of stated requirements Evidence is very light or very vague in detail 0 Each of the scored questions has been weighted. The weightings for each scored question are indicated for each of the frameworks in Annexure G. Interviews Interviews will be conducted and will be scored. The weightings for the interviews are indicated for each of the frameworks in Annexure G. Set questions will be asked of each candidate and the scoring methodology as described above will be adopted. Three weeks notice will be given to candidates of the time and location of interviews. Short-listing Scores will ultimately then be ranked according to their weighted scores and the top 3 candidates (the number being at NHS Wales Shared Services Partnership - Facilities Services discretion) will be invited to proceed to the next stage. Due Diligence Prior to confirming appointment to the framework, candidates financial and economic standing will be re-checked (but will not be scored, nor will it form part of the evaluation). If any candidate s situation has seriously deteriorated, to the point where they would no longer meet the requirements imposed at PQQ stage NWSSP-FS may disqualify that candidate and the next placed candidate will be invited to proceed to the next stage instead. Evaluation Team Structure The evaluation team will be comprised of parties from NHS Wales Shared Services Partnership, NHS Trusts & Local Health Boards, and independent Evaluators.

27 The team will be structured such that Evaluators will be charged with assessing a group of questions/responses for a number of candidates, dependant upon the volume of returns. All questions will be evaluated by at least two separate evaluators. Interviews will be held and will be scored. The interview panel will be consistent for each framework to be evaluated, Selective unannounced site visits may be undertaken for Candidates applying for the Supply Chain Partner frameworks. All scores will then be reviewed by a Moderation Panel prior to final short-listing. Support Software BRAVO and AWARD will be used to support the evaluation process, provide an audit trail and provide situation and feedback reports for the ITB stage. Annexure H indicates mandatory requirements and frequently asked questions associated with the electronic tendering process. Evaluation Report Once the Moderation Panel has reviewed the scoring and the final shortlisting has been completed, an Evaluation Report will be prepared and presented to the Design for Life: Building for Wales Strategic Framework Board and Welsh Government. Following sign-off of the Evaluation Report, all candidate organisations submitting an ITT shall be notified of their success/rejection. Unsuccessful candidates will receive notice of their scores and a statement of the reasons why they were unsuccessful. NHS Wales Shared Services Partnership - Facilities Services may at its discretion offer debriefing meetings or telephone calls (if requested) by appropriate members of the evaluation team.

28 Section 3: Conditions of Tender 3.1 Purpose This Invitation to Tender (ITT) has been prepared by NWSSP-FS and Morgan Cole solicitors for the purpose of supporting the application and selection process for candidates interested in being appointed as Supply Chain Partners (SCPs) or Support Consultants (SCs) for the Designed for Life : Building for Wales 3 National Frameworks. 3.2 Disclaimer None of the following: NWSSP-FS, the Welsh Ministers, their advisers or their directors, officers, members, partners, employees, other staff, agents or advisers of any such person, or any person or organisation representing such person: Makes any representation or warranty (expressed or implied) as to the accuracy, reasonableness or completeness of this ITT; Accepts any responsibility for the information contained in this ITT or for its fairness, accuracy or completeness; Shall be liable for any loss or damage (other than in respect of fraudulent misrepresentation) arising as a result of reliance on such information or any subsequent communication. Only the express terms of any written contract relating to the subject matter of this ITT, if and when it is executed, shall have any contractual effect in connection with the matters to which this ITT relates This ITT is intended as an introduction to the Designed for Life : Building for Wales 3 National Frameworks. It does not form the basis of any decision to enter into any contractual relationship with Local Health Boards or NHS Trusts in Wales or NWSSP-FS, acting as agent for the Welsh Government. This ITT does not purport to be all-inclusive or to contain all of the information that a candidate may require; those reading the documents must satisfy themselves of the meaning and importance of the details. Candidates are responsible for raising any queries via BRAVO (as set out in the ITT).

29 3.2.3 Candidates are reminded that they participate in this tender process at their own risk and cost. Neither NWSSP-FS, the Welsh Ministers, nor any Local Health Board or NHS Trust in Wales, nor any of their advisers shall be liable for any expenses incurred by the candidates in connection with the tender process either for these Framework Agreements or any subsequent contract pursuant to these Framework Agreements NWSSP-FS does not bind itself to accept the lowest or any bid, and reserves the right at its total discretion (acting in accordance with all applicable law), to award framework contracts in whole or in part, to any number of entities, or to terminate the tender process at any stage without making any award. 3.3 Governing Law The law of this tender process (and of any contract awarded pursuant to it) shall be the law of England and Wales, as it applies in Wales. 3.4 No obligation Candidates and other recipients of this ITT are reminded that the issue of documents from NWSSP-FS does not commit NWSSP-FS, the Welsh Government, or any NHS Local Health Board or Trust in Wales to: Proceed to invite Candidates to tender for, or appoint Candidates to, this Framework Agreement; Award any subsequent contract for individual projects pursuant to this Framework Agreement. 3.5 Confidentiality Candidates shall treat all documentation and supporting information provided in relation to this tender process ( Tender Information ) provided by NWSSP-FS as confidential at all times and shall safeguard it accordingly Candidates shall not disclose any Tender Information to any third parties, other than to their employees and professional advisors to the extent necessary for the purposes of this Designed for Life : Building for Wales 3 National Frameworks procurement ( this Procurement ).

30 3.5.3 Candidates shall ensure that all third parties to whom disclosure is made in accordance with above, shall keep any such information confidential Candidates shall not use any Tender Information received otherwise than for the purposes of this Procurement Candidates shall not either in whole or in part, copy or reproduce any part of the Tender Information without the prior consent of NWSSP-FS. 3.6 Candidates continued good standing Candidates are reminded of the provisions of Regulation 23 of the Public Contracts Regulations In the event that any of the circumstances set out in Regulation 23 apply (at any time during this Procurement), the candidate must immediately notify NWSSP-FS. Candidates are advised to check at each stage of the tender process that none of the circumstances in Regulation 23(1) or (4) apply to them, and a full copy of the text can be found at: [CTRL & CLICK to follow link] NWSSP-FS may at its discretion require any candidate to provide appropriate evidence such as a record of convictions to substantiate the position. 3.7 Candidates continued financial standing Candidates are reminded of the financial robustness tests which they are required to pass in order to be invited to tender (see the ITT for details). In the event that any candidate becomes aware (at any point in the tender process after the ITT process has been completed) of any matters which would mean that those tests would no longer be satisfied, the candidate must immediately notify NWSSP-FS. NWSSP-FS reserves the right to repeat the financial robustness tests as part of its precontract due diligence in respect of any candidate.

31 3.8 Expenses Candidates shall be responsible for and will bear all of their own costs, liabilities and expenses which may be incurred in the preparation of their response to the Pre-Qualification Questionnaire and the Invitation to Tender (plus any other costs liabilities or expenses of or incidental to this Procurement), regardless of whether a contract is awarded. 3.9 Freedom of Information Candidates should note that NWSSP-FS as part of Cwm Taf Local Health Board is bound by the provisions of the Freedom of Information Act 2000 ( FOIA ) and the Environmental Information Regulations If any candidate believes that any information it provides to NWSSP-FS is confidential in accordance with section 41 of the FOIA or commercially sensitive in accordance with section 43 of the FOIA, or should otherwise be protected from disclosure, the information must be marked as such and the candidate shall notify NWSSP-FS as to the reasons why it believes such information is confidential or commercially sensitive or should otherwise be protected NWSSP-FS shall use reasonable endeavours (but cannot guarantee) to keep candidates information designated in accordance with paragraph above, confidential. NWSSP-FS shall be responsible for determining in its absolute discretion whether the information provided by the candidate is confidential or commercially sensitive and is exempt from disclosure in accordance with the provisions of the FOIA NWSSP-FS may, acting in accordance with the Department of Constitutional Affairs Code of Practice on the Discharge of the Functions of Public Authorities under Part 1 of the FOIA be obliged under the FOIA, or the Environmental Information Regulations 2004, to disclose information concerning the candidate in certain circumstances without consulting the candidate or following consultation and having taken the candidate s views into account Non Collusion Candidates shall not enter into any agreement with any other candidate, person or body in respect of the value of any proposed tender or enter into any agreement not to tender.

32 Candidates shall not communicate the approximate value of their proposed tender, except where such disclosure, in confidence, is necessary to obtain insurance premium quotations or professional advice for the preparation of their tender Candidates shall not offer, pay or agree to pay any sum of money or valuable consideration either directly or indirectly to any person for doing the acts listed in and above NWSSP-FS may exclude from the tender process at any time any candidate who breaches the provisions of this paragraph Bribery Act Any candidate who at any point infringes the provisions of the Bribery Act 2010 will be disqualified from the tender process Framework Rules It is intended that there will be three Supply Chain Partners, three Project Managers and three Cost Advisers Candidates appointed to a framework will be required to operate throughout Wales and compete for every project regardless of the nature, location or value It will be a mandatory requirement for NHS Wales organisation to use Supply Chain Partner frameworks Client side frameworks i.e. Project Manager and Cost Adviser, will not be mandated as there may be circumstances when sufficient expertise is available from within the NHS to fulfil these functions. However consultancy organisations outside of the frameworks will not be allowed to fulfil this role A candidate (including any of their group companies and affiliated or subsidiary organisations) may only apply and be represented on either the Client side or the Supply Chain side, but NOT BOTH For the purposes of the above statement the following frameworks are deemed to be Supply Chain side :-

33 - Supply Chain Partner (including Supply Chain Members) For the purposes of the above statement the following frameworks are deemed to be Client side :- - Project Manager - Cost Adviser A candidate (including any of their group companies and affiliated or subsidiary organisations) may only apply for frameworks if they comply with one of the following two options :- Client side Option A Option B Project Manager Yes No Cost Adviser Supply Chain side Yes No Supply Chain Partner No Yes Architect No Yes Building Services Engineer No Yes Structural Engineer No Yes Building Services Installer No Yes CDM Coordinator No Yes

34 In accordance with Option A, a candidate (including any of its group companies and affiliated or subsidiary organisations) may apply for inclusion on the Project Manager Framework, the Cost Adviser framework or both frameworks, but is excluded from applying for any other frameworks. In accordance with Option B, a candidate (including any of its group companies and affiliated or subsidiary organisations) may apply for inclusion on the Supply Chain Partner framework, but is excluded from applying for any other frameworks If by reason of subsequent events (e.g. merger or acquisition), a group company, affiliate or subsidiary of an entity appointed as Project Manager, Cost Adviser or both, becomes involved in a Supply Chain Partner s team, the entity must forthwith inform NWSSP-FS and will be asked to elect which role they wish to continue to fulfil. Such an entity will not be permitted to continue in a situation where it is both a Client side adviser and a potential party to a Supply Chain side Framework If by reason of subsequent events (e.g. merger or acquisition), a group company, affiliate or subsidiary of an entity appointed as a Supply Chain Partner team (including Supply Chain Members) becomes involved in a Client side Framework, the entity must forthwith inform NWSSP-FS and will be asked to elect which role they wish to continue to fulfil. Such an entity will not be permitted to continue in a situation where it is both a Client side adviser and a potential party to a Supply Chain side Framework A Supply Chain Partner must include two Supply Chain Members for the following disciplines - Architect - Building Services Engineer - Civil and Structural Engineer - Mechanical and Electrical Installer