Delivery of pre-construction services in relation to the delivery of Phase 1 of the development at Victory Quay (Tipner East)

The award of the contract is permitted in accordance with section 41 and paragraph 6 of Schedule 5 to the Procurement Act 2023 on the basis that:

(a) Due to an absence of competition for technical reasons, only PMC is able to deliver the pre-construction services under the PCSA; and

(b) There is no reasonable alternative for the delivery of the Phase 1 works.

Under an earlier PCSA, local contractor PMC completed complex and technical whole site remediation & capping works. Followed by a 500-meter sea wall which is due to be completed by September 2025. The PCSA also included PMC entering detailed negotiations with the LPA, The Marine Management Organization, Environment Agency and Natural England to obtain a FRAP and MMO Licence for work on the shore of Tipner Lake a SSSI & RAMSAR. These licenses are in PMC's name and restrict operations between April and November due to over wintering birds.

Of particular note:

1. PMC has specific know-how (in relation to the site and works already delivered) that is essential to the effective delivery of the pre-construction services, infrastructure works and Phase 1 works (and the continued success of the overall build programme for the site as a whole) which would be prohibitively timely and expensive for another contractor to acquire and, as such, would be an unreasonable alternative for the pre-construction services;
2. Phase 1 is required to be compatible with ongoing infrastructure works that are already being provided by PMC under separate contracts (particularly in relation to the sea wall and the drainage infrastructure works that will be required for Phase1 and the future phases) and there are therefore technical interoperability requirements which necessitate a direct award to PMC;
3. The site adjoins the Tipner intertidal lake which is included within national and international nature conservation designations (Portsmouth Harbour Site of Special Scientific Interest (SSSI), Portsmouth Harbour Special Protection Area (SPA), Dorset and Solent Coast SPA and Portsmouth Harbour Ramsar Site) and areas containing ecological interest. It is in an extremely ecologically and environmentally sensitive location and is monitored by all the relevant ecological agencies. When combined with a historical contamination legacy, it requires a detailed understanding and construction methodology to deliver and to avoid biodiversity conflict. This is particularly relevant to subterranean ground works and works alongside the foreshore, to minimize the risk to the immediately adjoining tidal lake ecology, the chalk aquifers, wading & over wintering birds, and biodiversity within the mud flats including a Protected Bass nursery area.
4. VIVID is in receipt of Homes England grant funding that requires the infrastructure works and key Phase 1 works to be completed by March 2027. Due to timing constraints imposed by this funding, VIVID requires a contractor with specific knowledge of the site and the operational requirements for Phase 1. Given PMC's prior involvement in delivering substantially similar works on the site (including PMC's technical knowledge and specific know-how in relation to the site), PMC is uniquely placed to deliver the Phase 1 design services and works as a result of the initial enabling works that have already been carried out by PMC on-site.

Given the above, VIVID considers that PMC is uniquely placed to deliver the pre-construction services for Phase 1 on the basis that there is an absence of competition for technical reasons, and that there is no reasonable alternative to PMC delivering key services and works within the required timescales.

Whilst the relevant services and works are delivered under Phase 1, VIVID will be commencing a regulated procurement exercise in accordance with the competitive flexible procedure under the Procurement Act 2023 for the delivery of the remaining phases.