Official UK procurement notice
Coventry City Centre South Development
Authority: Coventry City Council (Local council)
What is being bought
Published requirement descriptionBeginning in 2015, Coventry City Council undertook a regulated procurement process to procure a development partner with the commitment, expertise and resource to deliver a high quality, mixed use retail, leisure and residential regeneration scheme within Coventry City Centre.
The Memorandum of Information issued as part of the regulated procurement process stated the following:
"The Council considers that CCS will be more than just a retail scheme. The vision for CCS is instead for it to be a vibrant and successful mixed-use environment. The scheme will respect and where necessary, reinstate the historic street pattern of Coventry. It will not just be a place to shop, visit for leisure or live in but will instead be an environment where a range of activities come together and respond to increased demand for flexible lifestyles".
The Council was not prescriptive as to the mix of uses to be proposed by bidders in order to achieve the fundamental objective of regenerating this part of the City Centre.
The development partner has been appointed following the conclusion of the regulated procurement process and their responsibilities include: leading on pre-development tasks, including preparing a scheme design, planning and securing development finance. The development partner will also be responsible for the construction, marketing and letting of the scheme.
A Development Agreement was entered into with the development partner dated 21 March 2019. As a consequence of the following cumulative events:
- the extent of the changes in the retail, leisure and residential markets, and the occurrence and consequences of the Covid 19 pandemic which have taken place since the Development Agreement was entered into;
- the implications of the Covid 19 pandemic in terms of accelerating the contraction of retailing, leisure and the economic landscape as whole
- since 2019 there have been very significant changes in the residential market and widespread acceptance of the benefits of inclusion of a greater proportion of residential uses to reinvigorate town centres,
- the consequential requirement to include an element of affordable housing in the scheme as a condition of public funding
- the extent of rising inflation and its impact on construction costs as well as retailer costs and profitability; and
- the appointment of the Approved Funder, as part of satisfying the condition precedent in the Development Agreement titled "Funding Condition",
A number of modifications are required to be made to the Development Agreement (see further details in section II.2.14 below)
CPV: Construction work · Construction work for buildings relating to leisure, sports, culture, lodging and restaurants · Development of non-residential real estate · Flats construction work · Shop units construction work · Urban development construction work
The lotProcurement structure
single lot · no lot value publishedWhat it takes to wini
How this buyer will score bids.
The evaluation criteria and weights exactly as published on the notice, grouped by family (price, quality, social value and so on).
Evaluation split and conditions of participation as published; the tender pack may add morei
How this buyer will score bids.
The evaluation criteria and weights exactly as published on the notice, grouped by family (price, quality, social value and so on).
Published sub-criteria (4)
- Development Proposal: 30%
- Planning and Deliverability: 15%
- Legal: 10%
- Financial Proposal: 45%
Published award criteria (4)
- Development Proposal: 30%
- Planning and Deliverability: 15%
- Legal: 10%
- Financial Proposal: 45%
- Price carries 45 of 100 points: a 10% discount moves about 4.5 points. Quality carries 55 of 100: the paper moves it further than the discount.
Price arithmetic assumes straight proportional scoring; the tender pack may use another formula.
Procedure terms & legal framework
From the official record- Procedure method
- Negotiated without publication of a contract notice
- Legal basis
- CELEX · 32014L0024 Public Contracts Regulations 2015 (Directive 2014/24/EU)
- Procurement category
- Works
- Notice status
- Awarded
- Procurement threshold
- Unspecified in notice
- Regulatory regime
- Standard
- Commercial structure
- Stand-alone contract (no framework)
- Competition type
- Competitive procedure
- GPA / WTO covered
- Yes (GPA)
- Recurring procurement
- Unspecified in notice
- First published
- 14 Feb 2023, 17:08 GMT
- Last source update
- 14 Feb 2023, 17:08 GMT
- FTS notice number
2023/S 000-004570- Classification (CPV)
- Delivery area
- Official registry OCID
ocds-h6vhtk-03a5adFind a Tender
- Why no open competition
Extreme urgency brought about by events unforeseeable for the contracting authority/entity and in accordance with the strict conditions stated in the directive
- Published justification
The Council undertook a Competitive Dialogue under the Public Contracts Regulations 2015 ("PCR") and entered into a development agreement ("DA") with (1) Shearer Property Regen Limited (Contractor) and (2) Shearer Property Group Limited (Guarantor).
The Parties are making the modifications in II.2.14 ("Modifications") pursuant to regulation 72(1)(c) and/or 72(1)(e) PCR.
The Modifications will not alter the overall nature of the contract, which remains a DA to regenerate the city centre through mixed uses. It remains mixed-use scheme as envisaged in the original procurement documents, with the Modifications limited to changes to the composition of the retail and residential elements and the Council's funding position.
The Modifications are needed due to significant external events which could not have been foreseen by the Council acting diligently:
- The pandemic accelerated the levels of contraction in the retail offer of UK cities which reflects the wider structural changes in the retail sector and industry. This is evidenced by the spinoff effects of the failures of Beales, BHS and Debenhams, administration of House of Fraser and other major brands and the store rationalisation of the John Lewis Partnership which upended the UK retail sector. Since 2016, 388 Department stores have shut with currently only about 90 trading. Including a new anchor store in a retail scheme was a feasible prospect when the DA was signed; that is no longer achievable for this scheme;
- the pandemic and the lockdowns between Mar20 and Dec21 shrunk the whole economy, including the retail and leisure sectors;
- hyperinflation's impact on construction costs, retailer costs and profitability;
- the extent of the changes in the residential market and widespread acceptance of the benefits of greater proportions of residential uses to reinvigorate town centres and the consequential requirement to include affordable housing as a condition of funding.
The value of the Modifications do not exceed 50% of the value of the initially awarded contract (actual increase is around 17% of initial value).The Modifications will not, in the Council's view, materially change the character of the DA (which remains a DA with provisions for land assembly, planning and highway consents, funding, granting leases to the developer, and delivery of the development); introduce conditions which would have affected the initial procurement in any of the ways set out in regulation 72(8)(b) (as the invitation to participate in the procurement was "open ended" as regards the form of development and types of uses which would satisfy the regeneration objectives, so no additional candidates would have been attracted or admitted, nor a different tender accepted); change the economic balance of the DA (contract value and public funding increases are counterbalanced by developer's obligations, including regards affordable housing and increased overage for the Council); or extend the scope of the DA considerably (the scope remains the regeneration of City Centre South). The contractor is not changing.
The Modifications are therefore not a new contract but merely the modification of an existing contract, permitted under Regulations 72(1)(c) Regulation 72(1)(e) PCR.
- Review procedure
The Council will wait a minimum 10 clear calendar days before entering into a legally binding agreement to apply the Modifications to the Development Agreement
Commercial outcome & contract awards
Published awards, contracts and bid statistics, not a forecast| Awarded to | Value | Date | Status |
|---|---|---|---|
| Shearer Property Regen Limited | £422,365,635 † | — | Awarded |
Contracts
Contract 004570-2023-1 · Shearer Property Regen Limited
- Signed
- 21 Mar 2019
- Value
- £422,365,635
- Status
- active
Contracting authority & participating public bodies
Dispute resolution & review bodies
- High Court of JusticeReview bodyReview contact point
Bidders & participating suppliers
1 commercial party on the notice- Shearer Property Regen LimitedAwarded supplier
Official documents & specifications
Official links; attachments are not copiedNo document links were published on the notice.