Purpose

To seek approval
for an exemption from the standard procurement process for the
appointment of Heaton Design and Engineering Ltd (HDE) to deliver
the design, engineering, and project management services for the
previously agreed Clacton Leisure Centre Heating System Replacement
project.

Content

Following
consultation with the Section 151 Officer, to approve an exemption
from procurement rules to appoint Heaton Design and Engineering Ltd
for the detailed specification, design, tender preparation, and
project management of the Clacton Leisure Centre Oil Boiler
Replacement at a cost of £113,080 (including 10%
contingency), on the grounds of urgency, due to the time
pressures.
 
The total budget
will be funded by the previously approved £1,368,730
(Salix grant of
£1.2 million, with an additional Council contribution of
£165,000).

Reasons for the decision

Tendring District Council (TDC) has
secured a Salix grant of £1.2 million, with an additional
Council contribution of £165,000, to replace the oil boiler
at Clacton Leisure Centre with sustainable technologies.
 
Due to strict grant timelines and the
operational risk of relying on a single boiler, an urgent
consultant appointment is required.
 
Procurement options include direct award
via frameworks, phased procurement, or exemption under urgency
provisions due to this project being time critical. Failure to act
promptly may result in loss of funding and increased financial
liability.

Alternative options considered

1.         Mini
Competition via Framework (e.g. NEPRO3)
 
While this route
allows for a direct appointment under call-off terms, it still
requires a competitive tender process within the framework,
including contractor selection and a minimum two-week tender
window. Previous experience with NEPRO3 has highlighted delays in
contract issuing and administrative inefficiencies. Additionally,
this route would incur a 7.5% surcharge (£7,710), reducing
value for money and increasing project costs. The estimated
timeline of 8–10 weeks poses a significant risk to meeting
Salix funding deadlines.
 
2.         Design
and Build Framework (e.g. ECF3)
 
This option offers
integrated delivery and potential efficiencies but introduces risks
around impartiality in design validation and contractor
self-certification. The process would take up to three months and
may not attract sufficient market interest within the required
timeframe. While compliant, this route does not align with the
timeline of the project. Additionally, an informal Expression of
Interest (EOI) was completed, resulting in one contractor showing
interest, two requesting a specification, and one declining
interest, which presents a risk.
 
3.         Phased
Procurement Below RFQ Threshold
 
Splitting the
consultancy scope into phases under the £50K threshold risks
breaching procurement regulations due to perceived disaggregation.
This approach also risks non-compliance with Salix grant conditions
and could result in clawback of funding. It is not considered a
viable or compliant option.
 
4.         Do Not
Proceed
 
Abandoning the
project would result in the loss of the £1.2 million Salix
grant and leave Clacton Leisure Centre reliant on a single,
end-of-life oil boiler. This would expose the Council to
significant financial risk, service disruption, and reputational
damage. The full cost of system replacement would fall to the
Council, with no external funding support.