Guest post by Philip Grant in a personal capacity.
1 Morland Gardens and the community garden, July 2022.
Two weeks ago, I shared with you an email I’d sent to Brent’s Legal Director, asking her to reconsider her view that the recent contract awarded for
the Council’s proposed Morland Gardens redevelopment was lawful. This was in
the light of information I’d obtained under an FoI request.
As I think it is important to give the Council a “right of reply” when
important points are raised with them and made public, I will ask Martin to
publish the full text of the email I received on 25 August. For completeness, I
will also include the response I sent on 30 August, and divide the two with an
illustration.
If you haven’t already done so, it will probably help to read my earlier
guest post (see “link” above). The first email, from Brent, is not “light
reading”, but it does give anyone who may be involved in similar disputes with
the Council a flavour of what they might expect! Here it is:
‘Dear Mr Grant
Thank you for
your email of 18 August that was received whilst I was on leave.
I have now had
an opportunity of reviewing your email.
I note that you
have helpfully highlighted key parts of your email on which you seek a response
from me.
You indicate:
I believe that Brent Council has failed to treat those “economic
operators equally and without discrimination” as required by Regulation 18(1).
This statement
relates to the process operated by Council Officers in the direct section of a
preferred contractor under Schedule 1 of the Network Homes Framework
Agreement. Paragraph 3.1 reads that:
‘Direct selection may be used where the Client or any Additional Client
considers that it will demonstrate best value for a Project. Subject to
paragraph 3.2, the Client or any Additional Client will make a decision on who
to directly appoint for a Project based on a best value assessment using a
combination of the Contractor’s tender submissions for the Framework and where relevant
the Contractor’s:
3.1.1 knowledge and experience
of, or relationship to, the site of a Project;
3.1.2 capacity (quantity of
work currently instructed) under the Framework;
3.1.3 previous performance
under the Framework; and/or
3.1.4 resources available for
the particular Project.’
It is clear that
under the Network Homes Contractors Framework, “Additional Clients” must carry
out an assessment using a combination of the Contractor’s tender submission for
the Framework and where relevant the various matters detailed in 3.1.1 –
3.1.4. Officer’s approach to the best
value assessment is contained in the Direct Award Evaluation Process Document,
particularly in paragraphs 2.3 – 2.6 and paragraph 2.9. There is no requirement under the direct award
procedure to contact bidders directly in carrying out such assessment.
Hill
Partnerships Ltd. detailed knowledge of the Morland Gardens site was considered
significant and as detailed in paragraph 2.6 of the Direct Award Evaluation
Process Document:
“It is felt this is a key element of the best value justification as the
supplier knows the site and the requirements of the project and would need
little time to provide a compliant tender for a call-off from the Network Homes
Contractor Framework Lot 3….”
You further state:
I also believe that the answer to question 6 of my FoI request, about
Brent Council’s contacts with Hill Partnerships Ltd over a possible contract
award under the NHCF, shows that there is a clear breach of Regulation 18(3).
As you indicate,
Regulation 18(3) of the Public Contracts Regulations 2015 (PCR 2015) states:
‘For that purpose, competition shall be considered to be artificially
narrowed where the design of the procurement is made with the intention of
unduly favouring or disadvantaging certain economic operators.’
I do not
consider that Officers selection of the Network Homes Contractors Framework was
in breach of Regulation 18(3) of the PCR 2015.
By its very nature, the use of any framework will unduly favour those
economic operators on the framework but the use of frameworks is provided for
in the PCR 2015. Indeed the PCR 2015
permits the use of single supplier frameworks.
The selection of a framework of itself is therefore not unduly favouring
or disadvantaging certain economic operators.
From the Direct
Award Evaluation Process Document it would appear that Officers followed the
direct award process as provided for in paragraph 3.1 of Schedule 1 of the
Network Homes Contractors Framework and as such it is not considered that this
process unduly favoured or disadvantaging certain economic operators.
You state:
The procurement process, which Cabinet approved on 20 June, was designed
“with the intention of unduly favouring” one particular economic operator, Hill
Partnerships Ltd.
Cabinet on 20th
June 2022 approved the following recommendations:
2.1 Approve the inviting of
a tender using a direct award process under the Network Homes Contractor
Framework agreement on the basis of the pre-tender considerations set out in
paragraph 3.6 of the report.
2.2 Delegate authority to
award the contract for the Morland Gardens Redevelopment Design and Build
contract following the successful outcome of the tender exercise to the
Strategic Director, Regeneration & Environment, in consultation with the
Cabinet Member for Finance, Resources & Reform.
For the reasons
detailed above, the selection of the Network Homes Contractor Framework
agreement of itself is not considered to be unduly favouring or disadvantaging
certain economic operators contrary to Regulation 18(3).
Further it was
indicated to Cabinet in the report that a contractor would be selected to
tender based on a best value assessment.
Cabinet in making its decision did not therefore know which organisation
would be identified for direct award.
In view of the
above, I do not consider that there has been an unlawful contract awarded for
the Morland Gardens project.
Best wishes
Debra Norman
Director of
Legal, HR, Audit and Investigations’
Regulation 18, Public Contracts Regulations 2015. (From the Government website)
This was my
response to Debra Norman’s email of 25 August:
This is an open email
Dear Ms Norman,
Thank you for your email of 25 August. Your response was not unexpected,
as I know that you will always seek to defend Brent Council and its staff.
I will not prolong this correspondence unnecessarily. You have set out
your position, and we will have to agree to disagree.
It is quite clear from the evidence (especially the answer to question 6
of my FoI request) that when Council Officers realised, at the end of May 2022,
that they would not be able to award the Morland Gardens contract to Hill
Partnerships Ltd under the Notting Hill Genesis Framework, they were looking
for a way to award the contract, to that contractor, as quickly as possible by
another means.
The Network Homes Contractor Framework provided the means, as it allowed
for the direct award of contracts, and Hill Partnerships Ltd were one of the
approved contractors under its Lot 3. The Direct Award Evaluation Process was
carried out, as required under the Framework, but in such a way (because of the
timeframe constraints imposed) that there was only one possible outcome.
That is why I still consider that the procurement process, approved by
Cabinet on 20 June, was designed “with the intention of unduly favouring” Hill
Partnerships Ltd, so that it breached the Public Contracts Regulations 2015.
Best wishes,
Philip Grant.
Question 6 and Brent’s response, from my Freedom of Information Act
request.
You can make up your own minds as to whether or not Brent Council’s 1
Morland Gardens contract was awarded unlawfully!
Philip Grant.