To ask the Scottish Executive what the value was of each tender for the new Southern General Hospital; what due diligence was carried out on each tenderer, and whether concerns have been expressed to the Scottish Executive regarding the successful tenderer.
The detailed process to evaluate the bids submitted was set out to all bidders prior to their preparing bids. The requirement to select the successful bidder was on the basis of the Most Economically Advantageous Tender (MEAT). This required the board to consider each of the tenders on a qualitative and quantitative basis. MEAT was defined in the process, and discussed with bidders, as the offer that provides the greatest ratio of quality points for each pound of price.
The qualitative part of the evaluation considered aspects in three key areas, namely; design, logistics and commercial and the detailed evaluation process set out to bidders was followed rigorously by the board.
The quantitative or financial score was based on a pricing structure that bidders were required to follow and is part of the New Engineering Contract (NEC) 3 suite of documents recommended for use by the Office of Government Commerce. This is an industry standard form of contract familiar to all bidders. Key elements of the financial evaluation were:
¢ The target and maximum price offered by bidders, and in particular affordability, and
¢ The bidders proposals for sharing both cost under and over spends (Pain/Gain).
Due diligence was undertaken on all bids to consider legal, financial and technical requirements that had been included in the OJEU advert. For further detail on the evaluation process I refer the member to the answer to questions S3W-29005 and S3W-29006 on 1 December 2009. All answers to written parliamentary questions are available on the parliament''s website, the search facility for which can be found at http://www.scottish.parliament.uk/Apps2/Business/PQA/Default.aspx.
A number of parliamentary questions and items of ministerial correspondence following the announcement of preferred bidder have been received and appropriately addressed.