This report seeks members’ endorsement of the commencement of a procurement exercise(s) via the Procure Partnerships Framework and the Pagabo Framework (or other suitable framework) to allow for the direct appointment of two separate main Tier 1 contractors that will lead to two direct awards, one to develop the design and undertake the construction works in relation to the highways, public realm and active travel schemes across the Birkenhead Waterfront Programme and the second award to immediately in early 2024 commence the construction works in Birkenhead Town Centre in relation to the Conway Street/Europa Boulevard Movement Project and Grange Road/Charing Cross/Grange Road West Movement Project

(1)  That the commencement of a procurement exercise(s) via the Procure Partnerships Framework and the Pagabo Framework (or other suitable alternative procurement framework) be approved to allow for the direct appointment of two separate main Tier 1 contractors that will lead to two direct awards of construction contracts to develop the design and to undertake the construction works in relation to the highways, public realm and active travel schemes across the Birkenhead Waterfront Programme and to undertake construction works in Birkenhead Town Centre in relation to the Conway Street/Europa Boulevard and Grange Road/Charing Cross/Grange Road West Movement Projects.

(2)  That the Director of Regeneration and Place be authorised to make direct appointments in relation to the above procurement exercises including in due course via the Pagabo framework for the Birkenhead Waterfront Programme, (where the design needs to be developed through an initial pre-construction services agreement with the contractor prior to the main construction contract) for the contracts referred to in recommendation (1) upon receipt of suitable bids from the relevant contractors; and

(3)  that the above recommendations be deemed urgent and therefore not subject to the procedure for re consideration.

The Birkenhead Waterfront and Central Birkenhead (Town Centre) Programmes have been awarded significant funding from the Levelling Up Fund (LUF), Future High Streets Fund (FHSF), Active Travel Tranche 3 (ATF T3) and Town Deal (TD). All the Programmes are time limited. These time related pressures are exacerbated by the current high levels of inflation in construction costs and the availability of suitable contractors in a very competitive marketplace due to similar funding awards in many other authorities. Choice of the recommended procurement route and the use of a suitably qualified and experienced main contractors will bring significant benefits and efficiencies to the process, will greatly aid project certainty, ensuring that funding deadlines are met, and the Programmes are delivered as efficiently as possible.

The public realm and highway infrastructure projects are key projects within the Birkenhead 2040 Framework Strategy. Birkenhead Waterfront is one of the 8 spatial priorities and the immediate Woodside location contained within this area is one of the specific catalyst projects identified as it has the potential to deliver a significant quantum of residential units on brownfield land and so directly supports the Council’s Local Plan targets.

Supporting the economy is a further priority and Birkenhead Town Centre plays a very important economic function as the home of the high street. The FHSF and ATF T3 projects directly support the revitalisation of the retail core alongside phase 1 of the new Business Commercial District, as well as enabling planned high quality residential development locally and other investments.

Sustainable travel is at the heart of the Birkenhead 2040 Framework and emerging Local Plan. The funding streams in this report feed into a range of schemes in these Programme areas and alongside the movement focused projects are part of a wider regeneration programme to deliver a prosperous, inclusive economy to benefit local residents.

The Council is already signed up to the Procure Partnerships Framework for utilisation under an existing access agreement. There are significant efficiencies in utilising the Procure Partnerships and Pagabo Frameworks to secure the appointment of suitably qualified main contractors which will allow the Council to speed up the delivery of a number of individual regeneration projects across Birkenhead Waterfront and Town Centre Programme areas.

A previous procurement exercise was carried out in 2023 following a report to Economy, Regeneration and Housing Committee on 23 January 2023. The approach taken under that exercise looked to award a single contract covering all elements of the work packages for Birkenhead Town Centre and the Waterfront project. The returned submissions did not provide the best financial outcome for the Council and under the terms of the Procure Partnerships Framework utilised for this tender exercise the Council is not obliged to award either contract, nor face financial penalties for not making any award. In the interests of seeking best value the intention (subject to members’ approval) is to make two separate direct awards, one covering the Birkenhead Waterfront Programme and the other covering the two Birkenhead Town Centre projects (Conway Street/Europa Boulevard Movement and Grange Road/Charing Cross/Grange Road West Movement).

Given the urgency to progress delivery of the schemes, a further procurement exercise has already commenced in advance of this committee cycle to facilitate, subject to this Committee endorsing the process, the award of separate direct award. Committee is also requested to authorise the Director of Regeneration and Place to make direct awards on the Town Centre construction and Waterfront contracts.

The Council could decide to not progress with the procurement exercise(s). If members so resolved, then the process could be stopped without penalty. This is not considered to be an appropriate option given that funding has been secured and supporting regeneration and sustainable travel is in line with the Council’s emerging Local Plan, the Birkenhead 2040 framework and the commitments to addressing the climate and environment emergency, improving the health of Wirral’s residents and encouraging alternative modes of transport to the private car.

The use of open tendering has been considered but discounted due to the additional time that this process would require. The Council has already fully tested the market via the previous procurement process earlier in 2023 and the utilisation of a fully compliant frameworks to now make these awards still allows the Council to maintain an open and transparent procurement process whilst delivering the best financial outcomes for the Council and maximising the value added from the grant funding available. This approach will enable delivery to be in line with that required by funding bodies whilst striving to maintain the required programme outcomes.

The Council could consider other tendering methods such as a traditional full tender using “Find A Tender” but that would introduce the significant risk to the delivery of time critical infrastructure projects to the possible detriment of Birkenhead Waterfront, Town Centre, and the Council’s emerging Local Plan. That process can be lengthy to accommodate advertisement of the scheme, assessment of interested parties, due diligence review, shortlisting and ultimate tendering; given the timeframes associated with this project it is not deemed feasible to utilise this route.

Furthermore there is considerable demand for main contractor services of this nature and these need to be secured without delay. All funding provided by ATF T3 is to be contractually committed to be spent by 31st March 2024 and it is imperative to avoid further delay and commence activity to deliver the projects.