The Highways Agency will divide its new £5,000 million Collaborative Delivery Framework into four Lots- one for engineering design and three for construction - and will ask suppliers to prove their capability to tackle larger contracts worth up to £450 million as the four year framework progresses.
The Agency released details of how it plans to procure the programme at a special suppliers’ day on Tuesday at which more than 100 contractors were represented. Major Projects Director Peter Adams and Commercial and Procurement Director David Poole explained at the event that average contract size would increase as the four-year framework, which has a two-year extension option, progresses.
The design framework will include between eight and 12 firms who will be asked to work on projects worth from £25 million to as much as £450 million in the latter stages of the framework.
The construction framework will be divided into three ‘lots’; in Lot 1 three to five contractors will handle contracts starting at £25 million each, which will rise to £50 million over time; Lot 2 will involve between four and six firms handling contracts worth between £25 million and £100 million, and these contractors will have to be capable of delivering projects worth up to £450 million by the end of the framework; Lot 3 contractors will work on contracts worth at least £100 million, which will rise to £450 million.
Contractors will be able to qualify for only one of the Lots and will work closely with other supply chain members to manage risk, earning bonuses for coming in under budgets, as happens now on the agency’s Managed Motorways programme.
Procurement begins in October and the new framework will begin when the existing £2,000 million Major Projects Framework ends in March 2014. The agency says this larger framework is designed to promote collaboration between supply chain members and to help them to raise their performance and capabilities.
Bid evaluation is to consider long-term value as well as price, health and safety, quality and sustainability. Commitment to continuous improvement and innovation will also be looked for.
The agency says smaller companies – tier two and three suppliers - will be encouraged to bid for the smaller projects.
