Competitive Dialogue Strategic Maintenance East Thames Group

Competitive Dialogue Strategic Maintenance East Thames Group

Multiple housing organisations across London and the South East.

UK-London: repair and maintenance services

2012/S 22-035886

Contract notice


Directive 2004/18/EC

Section I: Contracting authority

I.1)Name, addresses and contact point(s)

East Thames Group Limited
29-35 West Ham Lane
For the attention of: Mark Revell
E15 4PH London

Internet address(es):

General address of the contracting authority:

Further information can be obtained from: The above mentioned contact point(s)

Specifications and additional documents (including documents for competitive dialogue and a dynamic purchasing system) can be obtained from: The above mentioned contact point(s)

Tenders or requests to participate must be sent to: The above mentioned contact point(s)

I.2)Type of the contracting authority

Body governed by public law
I.3)Main activity

Housing and community amenities
I.4)Contract award on behalf of other contracting authorities

The contracting authority is purchasing on behalf of other contracting authorities: yes

Spitalfields Housing Association Limited
78 Quaker Street
E1 6SW London

Westcoast Housing Association Limited
Channelsea Business Centre, Channing Road, Newham
E15 3ND London

Tamil Community Housing Association Limited
Unit 2, Fountayne Business Centre, Broad Lane
N15 4AG London

Arhag Housing Association Limited
Unit B, Ground Floor, Mary Brancker House, 54-74 Holmes Road, Kentish Town
NW5 3AQ London

The Industrial Dwellings Society (1885) Limited
5th Floor, Ockway House, 41 Stamford Hill
N16 5SR London

Karin Housing Association Limited
Cavell Street
E1 2JA London

Broxbourne Housing Association Limited
Scania House, 17 Amwell Street
EN11 8TS Hoddesdon

Estuary Housing Association Limited
Maitland House, 8th & 9th Floors, Warrior Square
SS1 2JY Southend-on-Sea

Basildon Borough Council
The Basildon Centre, St Martin’s Square
SS14 1DL Basildon

Braintree District Council
Causeway House, Bocking End, Braintree
CM7 9HB Essex

Brentwood Borough Council
Town Hall, Ingrave Road, Brentwood
CM15 8AY Essex

Castle Point Borough Council
Kiln Road, Thundersley, Benfleet
SS7 1TF Essex

Chelmsford Borough Council
Civic Centre, Duke Street, Chelmsford
CM1 1JE Essex

Colchester Borough Council
Customer Service Centre, PO Box 884, Town Hall
CO1 1FR Cholchester

Epping Forest District Council
Civic Offices, High Street, Epping
CM16 4BZ Essex

Essex County Council
County Hall, Market Road, Chelmsford
CM1 1QH Essex

Harlow District Council
Civic Centre, The Water Gardens, Harlow
CM20 1WG Essex

Maldon District Council
Princes Road, Maldon
CM9 5DL Essex

Rochford District Council
Council Offices, South Street, Rochford
SS4 1BW Essex

Southend on Sea Borough Council
Ground Floor, Civic Centre, Victoria Avenue, Southend on Sea
SS2 6ER Essex

Tendring District Council
Town Hall, Station Road, Clacton on Sea
CO15 1SE Essex

Thurrock Council
Civic Offices, New Road, Grays
RM17 6SL Essex

Uttlesford District Council
Council Offices, London Road, Saffron Walden
CB11 4ER Essex

Broxbourne Borough Council
Bishops’ College, Churchgate, Cheshunt
EN8 9XQ Hertfordshire

Dacorum Borough Council
Hemel Hempstead Civic Centre, Marlowes, Hemel Hempstead
HP1 1HH Hertfordshire

East Hertfordshire District Council
The Causeway, Bishop’s Stortford
CM23 2EN Hertfordshire

St Albans District Council
Civic Centre, St Peters Street, St Albans
AL1 3JE Hertfordshire

Stevenage Borough Council
Daneshill House, Danestrete, Stevenage
SG1 1HN Hertfordshire

Three Rivers District Council
Three Rivers House, Northway, Rickmansworth
WD3 1RL Hertfordshire

Watford Borough Council
Town Hall, Watford
WD17 3EX Hertfordshire

Welwyn Hatfield Borough Council
Council Offices, The Campus, Welwyn Garden City
AL8 6AE Hertfordshire

Hertfordshire County Council
County Hall, Pegs Lane, Hertford
SG13 8DQ Hertfordshire

Hertsmere Borough Council
Civic Offices, Elstree Way, Borehamwood
WD6 1WA Hertfordshire

North Hertfordshire District Council
Council Offices, Gernon Road, Letchworth
SG6 3JF Hertfordshire

London Borough of Havering Council
Town Hall, Main Road, Romford
RM1 3BB London

London Borough of Barking and Dagenham Council
Civic Centre, Rainham Road North, Dagenham
RM10 7BN London

City of London
PO Box 270, Guildhall
EC2P 2EJ London

London Borough of Redbridge Council
PO Box No. 2, Town Hall, 128-142 High Road, Ilford, Essex
IG1 1DD London

London Borough of Waltham Forest
Town Hall, Forest Road
E17 4JF London

London Borough of Newham Council
Newham Dockside, 1000 Dockside Road
E16 2QU London

London Borough of Hackney Council
Hackney Service Centre, 1 Hillman Street
E8 1DY London

London Borough of Tower Hamlets
Town Hall, Mulberry Place, 5 Clove Crescent
E14 2BG London

A2Dominion Housing Group
15th Floor Capital House, 25 Chapel Street
NW1 5WX London

Affinity Sutton
Level 6, 6 More London Place, Tooley Street
SE1 2DA London

AmicusHorizon Group
Grosvenor House, 125 High Street
CR0 9XP Croydon

Genesis Group
Capital House, 25 Chapel Street
NW1 5DT London

The Hyde Group
30 Park Street
SE1 9EQ London

Osborn House, Osborn Terrace
SE3 9DR London

Metropolitan Housing Trust
Cambridge House, Mayes Road
N22 6UR London

Network Housing Trust
Olympic Office Centre, 8 Fulton Road
HA9 0NU Wembley

Triathlon Homes LLP
Fleet House, 59/61 Clerkenwell Road
EC1M 5LA London

Poplar Harca Limited
167a East India Dock Road, Poplar
E14 0EA London

Tower Hamlets Homes Limited
Jack Dash House, 2 Lawn House Close, Marsh Wall
E14 9YQ London

MHS Homes (formerly Medway Housing Society)
Broadside, Leviathan Way
ME4 4LL Chatham

North London Muslim Housing Association Limited
15B-15C Urban Hive, Theydon Road
E5 9BQ London

Bahay Kubo Housing Association Limited
1st Floor, Caxton House Community Centre, 129 St John’s Way
N19 3RQ London

Catalyst Housing Group
Ealing Gateway, 26-30 Uxbridge Road
W5 2AU London

1-3 Highbury Station Road
N1 1SE London

Family Mosaic
Albion House, 20 Queen Elizabeth Street
SE1 2RJ London

Notting Hill Housing
1 Butterwick, Rear of Metro Building, Hammersmith
W6 8DL London

Peabody Trust
45 Westminster Bridge Road
SE1 7JB London

Southern Housing Group
59/61 Clerkenwell Road
EC1M 5LA London

Section II: Object of the contract

II.1.1)Title attributed to the contract by the contracting authority:

Strategic Maintenance.
II.1.2)Type of contract and location of works, place of delivery or of performance

Service category No 1: Maintenance and repair services
Main site or location of works, place of delivery or of performance: London.
NUTS code UKI12

II.1.3)Information about a public contract, a framework agreement or a dynamic purchasing system (DPS)

The notice involves a public contract
II.1.4)Information on framework agreement
II.1.5)Short description of the contract or purchase(s)

This contract notice is for the procurement of a public contract with a linked framework agreement attached as an additional but secondary component.
East Thames Group Limited is seeking to procure for itself and its subsidiaries (together ‘ETG’) a long-term strategic maintenance supplier to invest in, develop and provide a range of strategic maintenance services through a strategic maintenance agreement (“the Contract”) and to enter into a separate framework agreement for the provision of such strategic maintenance services to any of the contracting authorities listed in Annex A (“Participating Bodies”) (“the Framework Agreement”).
ETG currently envisages that at the end of the procurement process the Contract and any Framework Agreement would be awarded to the successful supplier in its own right. However ETG is interested in exploring with the suppliers that are invited to participate in competitive dialogue what benefits, if any, there would be in establishing a joint venture (probably a joint venture company) with the supplier to whom the Contract is awarded for the principal (although not necessarily the only) purpose of employing the staff. If ETG were to proceed with a joint venture for the principal purpose of employing the staff, it would anticipate that such a joint venture would be established at or before the date on which the services delivered under the Contract were to commence. In addition, ETG is also interested in exploring with the suppliers that are invited to participate in competitive dialogue what benefits, if any, would be realised by ETG procuring as part of this procurement a strategic private sector partner with which to form a joint venture (probably a joint venture company) and to which the Contract and any Framework Agreement would be awarded. It is anticipated that any joint venture would trade. It is further anticipated that the earliest that such a joint venture would be established would be 2018, being five years after the contract start date. In summary, ETG therefore reserves the right as part of the current procurement to procure alongside the delivery of the Contract and any Framework Agreement, a partner with which to form a joint venture either for the principal (although not only) purpose of employing the staff or to both deliver the Contract and the Framework Agreement and to employ the staff or entirely at ETG’s discretion not to pursue either joint venture route further.
The Contract is for a period of 7 years commencing on or around April 2013, with the option exercisable at ETG’s discretion to extend the Contract for a period of up to 4 years initially, and subsequently for a further period of up to 4 years. The total maximum length of the Contract is 15 years.
The principal requirements under the Contract are anticipated to be as follows:
In respect of ETG’s residential properties (approximately 4508 houses and 8763 flats) and non-residential properties (including community facilities, communal areas in residential estates, and approximately 53 commercial units):
— provide a strategic asset management service and associated support (working with ETG) to develop, refine and deliver the property strategy over a number of years to meet ETG’s objectives in relation to the quality of service to customers and the sound management of its operational assets,
— deliver, in an integrated way, the comprehensive set of technical services (planned, statutory compliance, responsive, cyclical and void services) as described in detail below, including the integration and co-ordination of specialist services which would ideally only be sub-contracted at the second tier of the supply chain,
— provide demonstrable efficiency through a long-term focus on procurement efficiency and supply chain stability,
— provide a direct customer contact facility for the management of responsive repairs including telephony, web-based and possibly kiosk systems also including sms systems for keeping customers up-to-date with information in relation to logged issues,
— provide the integrated asset and asset management IT systems to support the strategic and operational maintenance service including real-time reporting and interface with ETG’s systems,
— overall operate as a long-term partner to ETG taking a balanced view of risks and opportunities and working collaboratively to develop options and opportunities and mitigate risks for both partners.
In respect of various commercial properties, including ETG’s head office in West Ham Lane, to provide an additional hard facilities management service including lifecycle assessment and forward maintenance planning for component replacement, mechanical and electrical servicing, plumbing and drainage, lift maintenance, cyclical decoration, maintenance and installation of the infrastructure for enabling technologies, Health and Safety compliance testing including fire safety, electrical safety and water hygiene, business continuity and emergency planning.
The successful supplier will be required to have:
— an appreciation of ETG’s business and service requirements and an appetite to deliver them effectively including a flexibility in working within ETG’s overall customer and corporate approach to its business,
— the management expertise, operational structures and experience in place to take on a disparate group of employees from existing contracts and develop them into a modern workforce working efficiently to a coherent strategy, appropriately supported by technology and infrastructure,
— an awareness of the needs of ETG’s different customer groups and the importance of sharing the outlook and values of the business as a whole,
— an appetite for investment in the service if the scale, scope and length of the contract make this viable and appropriate opportunities present themselves,
— evidence of a breadth and depth of supply chain which could add value in terms of procurement costs,
— a focus on continuous improvement as well as sharing risk in a way which is optimal for both parties and ETG’s customers,
— at an organisational level, the ability to develop trusted working relationships and outcome-focussed governance structures to which both parties are committed at an organisational and personal level,
— an ability to include relevant corporate and social responsibility issues into the management and delivery of services where appropriate and sensible from a business perspective,
— the ability to support etg’s economic and social regeneration objectives, and accordingly to embrace the concept of sustainable development and community benefit, and will be required to work with etg to deliver employment/training opportunities and other community benefits.
It is anticipated that the core requirements in respect of the technical services that may be included in the Contract will comprise the following:-.
Major Repairs/Capital Works:
— planned/capital component renewals – kitchens, bathrooms, windows, roofs, rewires, central heating, lifts,
— major capital works – estate improvements, remodelling, structural repairs,
— aids and adaptations – minor and major.
Reactive Repairs and Maintenance:
— reactive maintenance,
— void maintenance – day to day and voids security,
— handyman service.
Planned Maintenance/Cyclical Servicing:
— grounds maintenance,
— estates cleaning,
— gas servicing and repairs,
— cyclical decorations,
— electrical testing and repairs– landlords annual and individual 5 year periodic testing,
— electrical PAT testing,
— Communal heating/power maintenance inc CHP, Solar PVs and renewables,
— security/access systems – warden call, CCTV, electric gates and door entry,
— TV aerials,
— roof fall arrest safety systems,
— fire detection systems (active and passive) – fire alarms, equipment, fire doors, emergency lighting, dry risers, AOVs,
— lightning conductors,
— water hygiene,
— boosted water systems,
— pest control,
— lifts and hoists and specialist equipment maintenance,
— trees maintenance,
— playground maintenance.
Statutory Compliance:
— the management, delivery and reporting of a comprehensive statutory compliance service in relation electricity, gas and water services including legionella testing which discharges in full ETG’s legal responsibility on these areas,
— compliance with requirements such as decent homes and any subsequent policies or initiatives,
— management of asbestos – identification, testing and removal,
— statutory compliance surveys – fire risk assessments, property stock condition/mot surveys, playground inspections etc.
ETG further reserves the right to include the following services within the scope of the Contract:
— consultant design services ie surveyors, engineers, architects for projects,
— energy efficiency green deal provider,
— managing agent services in relation to existing, newly-developed properties or acquisitions,
— support ICT, telecommunications and similar services to customers and customer properties, WiFi etc,
— sustainable energy services,
— the delivery of minor capital works schemes such as loft conversions, urban infill, property reconfiguration and refurbishment and small new build work, for example community facilities or playgrounds.
This list is not exhaustive and consideration may be given both during the procurement process and the contract term to the inclusion of additional services or options for additional services which will assist in delivering the services and principal outputs listed above.
In addition to the Contract ETG is seeking to procure a Framework Agreement for the benefit of the Participating Bodies and it is anticipated that any such Framework Agreement would commence in or around April 2015 for a period of four years. ETG is acting as a central purchasing body through which the Participating Bodies may wish to procure substantially similar services to those included in the Contract under the separate Framework Agreement but without any obligation on the Participating Bodies to participate. Accordingly it is the intention that the Participating Bodies should be able to rely on this procurement to purchase such services without the need for any further procurement process.
The duration of an individual call-off contract under any Framework Agreement will not necessarily be limited to four years but will be governed by the subject matter of the call-off contract concerned. The form of the call-off contract will be agreed during the current procurement process subject to the right to make specific amendments in respect of an individual call-off.
It is anticipated that the Contract will commence in or around April 2013 and that the services to be delivered under the Contract will be made available starting in or around April 2013. ETG envisages entering into any Framework Agreement in or around April 2015 and the timing of any call-offs under the Framework Agreement will be a matter to be decided between the relevant Participating Body and the supplier.
No guarantee or warranty is given as to the nature or volume, if any, of the services or the number of call-offs, if any, under any Framework Agreement.
ETG reserves the right to award only the Contract and not to award any Framework Agreement or alternatively for the Contract and any Framework Agreement to commence on different dates.
It should also be noted that in the event of re-structuring of ETG this procurement and / or the Contract and any Framework Agreement awarded will pass to the successor bodies of ETG and / or the Participating Bodies as relevant and appropriate.
II.1.6)Common procurement vocabulary (CPV)

50000000, 50710000, 50334400, 50413200, 50720000, 50721000, 50750000, 50800000, 50870000, 50531200, 50531100, 45112700, 45211000, 45211310, 45215210, 45261215, 45261220, 45261900, 45262660, 45262690, 45262700, 45262800, 45300000, 45310000, 45311000, 45312000, 45312311, 45312320, 45313100, 45330000, 45331000, 45333000, 45343200, 45400000, 45421100, 45421151, 45430000, 45440000, 45451000, 45452000, 45453000, 45454000, 45454100, 51100000, 51300000, 71000000, 51514100, 71242000, 71251000, 71314300, 71315400, 71421000, 77211500, 77314000, 90650000, 90900000, 90922000, 72253000, 70331000, 70330000, 70332200, 72212430, 72212610, 72000000, 72210000, 72212000, 79993000

II.1.7)Information about Government Procurement Agreement (GPA)

The contract is covered by the Government Procurement Agreement (GPA): yes

This contract is divided into lots: no
II.1.9)Information about variants

Variants will be accepted: yes
II.2)Quantity or scope of the contract
II.2.1)Total quantity or scope:

Estimated value excluding VAT:
Range: between 135 000 000,00 and 325 000 000,00 GBP
II.2.2)Information about options

Options: yes
Description of these options: It is anticipated that the Contract will be for an initial period of 7 years, with the option exercisable at ETG’s discretion to extend the Contract for a period of up to 4 years initially, and subsequently for a further period of up to 4 years.
Provisional timetable for recourse to these options:
in months: 72 (from the award of the contract)
II.2.3)Information about renewals

This contract is subject to renewal: no
II.3)Duration of the contract or time limit for completion

Starting 1.4.2013. Completion 31.3.2028

Section III: Legal, economic, financial and technical information

III.1)Conditions relating to the contract
III.1.1)Deposits and guarantees required:

Parent company guarantees, deposits, bonds or other forms of appropriate security may be required for the Contract and any Framework Agreement. Further details will be included in the tender documents.
III.1.2)Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:

To be developed in competitive dialogue.
III.1.3)Legal form to be taken by the group of economic operators to whom the contract is to be awarded:

ETG will require the Contract and any Framework Agreement to be with a legal entity. It reserves the right to require groupings of contractors to take a particular legal form or to require a single contractor to take primary liability. Members of any consortium shall be jointly and severally liable. Legal bodies shall be companies, partnerships or unincorporated joint ventures.
III.1.4)Other particular conditions

The performance of the contract is subject to particular conditions: no
III.2)Conditions for participation
III.2.1)Personal situation of economic operators, including requirements relating to enrolment on professional or trade registers

Information and formalities necessary for evaluating if the requirements are met: As set out in the pre-qualification questionnaire.
III.2.2)Economic and financial ability

Information and formalities necessary for evaluating if the requirements are met: As set out in the pre-qualification questionnaire.
Minimum level(s) of standards possibly required: As set out in the pre-qualification questionnaire.
III.2.3)Technical capacity

Information and formalities necessary for evaluating if the requirements are met:
As set out in the pre-qualification questionnaire.
Minimum level(s) of standards possibly required:
As set out in the pre-qualification questionnaire.
III.2.4)Information about reserved contracts
III.3)Conditions specific to services contracts
III.3.1)Information about a particular profession

Execution of the service is reserved to a particular profession: no
III.3.2)Staff responsible for the execution of the service

Legal persons should indicate the names and professional qualifications of the staff responsible for the execution of the service: no

Section IV: Procedure

IV.1)Type of procedure
IV.1.1)Type of procedure

competitive dialogue
IV.1.2)Limitations on the number of operators who will be invited to tender or to participate

Envisaged number of operators: 5
Objective criteria for choosing the limited number of candidates: As set out in the pre-qualification questionnaire.
IV.1.3)Reduction of the number of operators during the negotiation or dialogue

Recourse to staged procedure to gradually reduce the number of solutions to be discussed or tenders to be negotiated yes
IV.2)Award criteria
IV.2.1)Award criteria

The most economically advantageous tender in terms of the criteria stated in the specifications, in the invitation to tender or to negotiate or in the descriptive document
IV.2.2)Information about electronic auction

An electronic auction will be used: no
IV.3)Administrative information
IV.3.1)File reference number attributed by the contracting authority:
IV.3.2)Previous publication(s) concerning the same contract

IV.3.3)Conditions for obtaining specifications and additional documents or descriptive document

Time limit for receipt of requests for documents or for accessing documents: 7.3.2012 – 12:00
IV.3.4)Time limit for receipt of tenders or requests to participate

9.3.2012 – 12:00
IV.3.5)Date of dispatch of invitations to tender or to participate to selected candidates

IV.3.6)Language(s) in which tenders or requests to participate may be drawn up

IV.3.7)Minimum time frame during which the tenderer must maintain the tender
IV.3.8)Conditions for opening tenders

Section VI: Complementary information

VI.1)Information about recurrence

This is a recurrent procurement: no
VI.2)Information about European Union funds

The contract is related to a project and/or programme financed by European Union funds: no
VI.3)Additional information

1. As referred to in II.1.5, ETG is seeking to procure in addition to the Contract a Framework Agreement which it is anticipated would come into effect in April 2015 for a period of four years. With reference to II.1.2, the relevant service category for the Framework Agreement is the same as the Contract.
2. The information required by II.1.4 is as follows: This is a Framework Agreement with a single operator and would be for a term of four years. The estimated value of purchases for the entire duration of any Framework Agreement is estimated excluding VAT to be in the range of 100 000 000 to 175 000 000 GBP. These values are in addition to the values stated in II.2.1, which relate only to the Contract.
3. ETG reserves the right to award only the Contract and not to award any Framework Agreement. The duration of an individual call-off contract under any Framework Agreement will not necessarily be limited to the four year period referred to above but will be governed by the terms of the call-off contract.
4. It is for those invited to participate in dialogue to satisfy themselves of the position, but it is the initial view of ETG that the Transfer of Undertakings (Protection of Employment) Regulations 2006 will apply to the Contract and potentially any services outsourced under the terms of any Framework Agreement.
5. Although the majority of the services for the Contract will be delivered in Inner London – East and therefore the main NUTS code is UKI12, services will also be provided in London (UKI), Kent (UKJ4), Essex (UKH3) and Hertfordshire (UKH23).
6. ETG proposes to hold a market information day on 23.2.2012. Attendance at the market information day is by invitation only, and interested organisations should contact ETG at the following email address to request an invitation: Places are limited and therefore invitations are not guaranteed.

VI.4)Procedures for appeal
VI.4.1)Body responsible for appeal procedures

High Court
Royal Courts of Justice Strand
WC2A 2LL London

VI.4.2)Lodging of appeals

Precise information on deadline(s) for lodging appeals: ETG will incorporate a minimum 10 calendar day standstill period at the point information on the award of the contract is communicated to tenderers. Applicants who are unsuccessful shall be informed by ETG as soon as possible after the decision has been made as to the reasons why the Applicant was unsuccessful. If an appeal regarding the award of the contract has not been successfully resolved, The Public Contracts Regulations 2006 (SI 2006 No. 5) provide for aggrieved parties who have been harmed or are at risk of harm by breach of the rules to take legal action. Any such action must be brought within the applicable limitation period. Where a contract has not been entered into, the Court may order the setting aside of the award decision or order ETG to amend any document and may award damages. If the contract has been entered into the Court may, depending on the circumstances, award damages, make a declaration of ineffectiveness, order ETG to pay a fine, and/or order that the duration of the contract be shortened. The purpose of the standstill period referred to above is to allow the parties to apply to the Courts to set aside the award decision before the contract is entered into.
VI.4.3)Service from which information about the lodging of appeals may be obtained

VI.5)Date of dispatch of this notice:31.1.2012