To ask the Scottish Executive what the procurement process is for the new Southern General Hospital.
NHS Greater Glasgow and Clyde is the procuring authority. The board''s procurement strategy utilised the competitive dialogue procedure to facilitate discussion with bidders around pre-determined technical and commercial matters. The outcome of the competitive dialogue is the selection of a preferred partner who will contract with the board under a National Engineering and Construction contract (NEC) agreement to (i) design and construct the new laboratory building and (ii) design and construct the new adult and children''s hospital under a target/maximum price arrangement.
This arrangement provides for the contract to be awarded following evaluation of the bids which were submitted on 11 September 2009. Post contract award, concurrent activities of the contractor are commencing the design and build of the laboratories element of the project, whilst undertaking design development of the hospitals element of the project. The (design development) culminates in the full business case compilation and approvals (October/November 2010): this forming an essential gateway which must be achieved to allow the commencement of the construction of the new hospitals element of the project.
The terms of the contract awarded (including the overall target/maximum price for the works and programme dates and activity schedule milestones) are based on the preferred contractor''s final tender response at the end of the competitive dialogue process. As is noted above, specific gateway criteria (including necessary business case approvals) are incorporated into the design development, programme and activity schedule in the contract through to the commencement of construction of the adult and children''s hospital.
In 2008, the board considered the time and cost implications of the bidding market in its procurement strategy and considered that the route adopted should reflect the market requirements and the commercial drivers of bidding a scheme of this size, nature and type: this was supported by the market sounding and engagement process that took place with potential bidders during third quarter 2008.
In summary, the stages of the procurement can be summarised in outline as follows:
Stage | Heading | Outline Activities/Milestones |
Stage 0 | Competitive Dialogue | Bid and design development leading to submission of technical and cost information in final tenders. Identify maximum target price and agree pain/gain share. Select contractor “ contract award. |
Stage 1 | Construct Laboratories | Consecutive to Stage 0 and concurrent with Stage 2. |
Stage 2 | Detailed Design of Adult, Children''s and Infrastructure to FBC Submission | Design development of adult and children''s hospitals. |
Stage 3 | Construct Adult and Children''s Hospital | Consecutive to Stage 2. |
Stage 3A | Demolition of Surgical Block and associated buildings and completion of soft landscaping | Consecutive to Stage 3. |
This contract is based on the standard template NEC3 “ Engineering and Construction Contract Option C Target Contract with Secondary Option Clauses as stated in Contract Data. Fuller details of this contract are available at http://www.neccontract.com/.