Urban development construction work in London

Date: 2021-09-24

Section I: Contracting authority

I.1)Name and addresses

Official name: GLA Land and Property Ltd (GLAP) (a wholly owned subsidiary of the Greater London Authority)
Postal address: 5 Endeavour Square London
Town: London
NUTS code: UK United Kingdom
Postal code: E20 1JN
Country: United Kingdom
Contact person: Bethan James
E-mail: Bethan.James@royaldocks.london.gov.uk
Internet address(es):
Main address: http://www.london.gov.uk

I.4)Type of the contracting authority

Regional or local authority

I.5)Main activity

Housing and community amenities

Section II: Object

II.1)Scope of the procurement

II.1.1)Title:

Silvertown Quays, Royal Docks

II.1.2)Main CPV code

45211360 Urban development construction work

II.1.3)Type of contract

Works

II.1.4)Short description:

Silvertown Quays (SQ) is a 50-acre brownfield site in Royal Docks, London owned by GLA. In June 2013, after a procurement process, GLA entered into a Master Development Agreement (MDA) with the developer, The Silvertown Partnership LLP (TSP). In June 2018, a joint venture of Starwood (SOF-11 Developments UK Holdco Lux S.à r.l.) (SW) and a group company of Lendlease Europe Holdings Ltd (LL) acquired control of TSP. In 2018, the parties entered into documents including a Deed of Variation of the MDA; see Mayoral Decision 2280 30/05/2018 (https://www.london.gov.uk/decisions/md2280-silvertown-quays), VEAT notice published 09/06/2018 (https://ted.europa.eu/udl?uri=TED:NOTICE:247611-2018:HTML:EN:HTML&tabId=1&tabLang=en), CAN notice published 26/06/2018 (https://ted.europa.eu/udl?uri=TED:NOTICE:272398-2018:HTML:EN:HTML&tabId=1&tabLang=en).

The parties have now made additional changes to the MDA, as described at II.2.4 below. These changes are considered permissible under regulation 72 PCR.

II.1.6)Information about lots

This contract is divided into lots: no

II.1.7)Total value of the procurement (excluding VAT)

Value excluding VAT: 3 000 000 000.00 GBP

II.2)Description

II.2.3)Place of performance

NUTS code: UK United Kingdom

II.2.4)Description of the procurement:

SQ is a 50-acre brownfield site in Royal Docks, London owned by GLA. In June 2013, following a procurement for a development partner for a mixed use development at SQ, GLA entered into a MDA with the developer, TSP.

In June 2018, a joint venture of a Starwood entity (SOF-11 Developments UK Holdco Lux S.à r.l.) (SW) and a group company of Lendlease Europe Holdings Ltd (LL) (the JV) acquired sole control of TSP. The parties entered into associated documents, including a Deed of Variation of the MDA. For more details, see Mayoral Decision 2280 of 30th May 2018 (https://www.london.gov.uk/decisions/md2280-silvertown-quays), VEAT notice published on 9 June 2018 (https://ted.europa.eu/udl?uri=TED:NOTICE:247611-2018:HTML:EN:HTML&tabId=1&tabLang=en) and CAN notice published on 26 June 2018 (https://ted.europa.eu/udl?uri=TED:NOTICE:272398-2018:HTML:EN:HTML&tabId=1&tabLang=en).

The parties have recently made additional changes to the MDA concerning the following: (i) Minimum Requirements for 50% Affordable Housing and a minimum non-residential area, as well as associated financial changes; (ii) Milestone Events and associated Milestone Dates; (iii) potential division of Phases into Sub-Phases; (iv) Funding Condition and Headlease Grant Conditions; (v) Brand Pavilions (e.g. now required to be in a cluster rather than an avenue); and (vi) other minor changes.

A detailed description of the changes outlined in the preceding paragraph is included in Part 1 of the associated Mayoral Decision 2784, which is publicly available on the GLA’s website (london.gov.uk) or here https://www.london.gov.uk/decisions/md2784-silvertown-quays-changes-master-development-agreement. These changes were also described in the VEAT notice published on 03.09.2021 and available here https://ted.europa.eu/udl?uri=TED:NOTICE:448156-2021:HTML:EN:HTML&tabId=1&tabLang=en.

The authority considers these changes to be permissible under regulation 72 of the Public Contracts Regulations 2015 (PCR) on the basis that they do not constitute substantial modifications within the meaning of that provision. Even if the changes were considered substantial, the authority considers that they would fall within the exemptions laid down in Regulations 72(1)(b) and 72(1)(c) PCR.

For more detailed reasoning, see the contract modification notice to be published at the same time as this contract award notice.

II.2.5)Award criteria

Quality criterion - Name: Various qualitative measures such as design employment placemaking and delivery capability / Weighting: 60

Price - Weighting: 40

II.2.11)Information about options

Options: no

II.2.13)Information about European Union funds

The procurement is related to a project and/or programme financed by European Union funds: no

II.2.14)Additional information

Section IV: Procedure

IV.1)Description

IV.1.1)Type of procedure

Award of a contract without prior publication of a call for competition in the Official Journal of the European Union in the cases listed below

The procurement falls outside the scope of application of the directive

Explanation:

In 2011, GLA ran a competitive dialogue procedure to procure a developer to deliver the SQ Scheme, leading to the selection of TSP. GLAP entered into the MDA with TSP in June 2013.

Various changes have subsequently been made to the MDA. The changes are outlined at section II.2.4 above and described more fully in Part 1 of Mayoral Decision 2784, which is publicly available on the GLA’s website (london.gov.uk https://www.london.gov.uk/decisions/md2784-silvertown-quays-changes-master-development-agreement). These changes were also described in the VEAT notice of 03.09.2021 available here https://ted.europa.eu/udl?uri=TED:NOTICE:448156-2021:HTML:EN:HTML&tabId=1&tabLang=en .

GLA considers these changes to be permissible under regulation 72 PCR on the basis that they do not constitute substantial modifications within the meaning of that provision. Even if the changes were substantial, GLA considers that they would fall within the exemptions laid down in Regulations 72(1)(b) and 72(1)(c) PCR. For more detailed reasoning, see the contract modification notice to be published at the same time as this award notice.

IV.1.3)Information about a framework agreement or a dynamic purchasing system

IV.1.8)Information about the Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: no

IV.2)Administrative information

IV.2.1)Previous publication concerning this procedure

Notice number in the OJ S: 2013/S 136-235311

IV.2.8)Information about termination of dynamic purchasing system

IV.2.9)Information about termination of call for competition in the form of a prior information notice

Section V: Award of contract

A contract/lot is awarded: yes

V.2)Award of contract

V.2.1)Date of conclusion of the contract:

07/06/2013

V.2.2)Information about tenders

Number of tenders received: 3

Number of tenders received from SMEs: 0

The contract has been awarded to a group of economic operators: no

V.2.3)Name and address of the contractor

Official name: The Silvertown Partnership LLP
Postal address: 20 Triton Street, Regent’s Place
Town: London
NUTS code: UK United Kingdom
Postal code: NW1 3BF
Country: United Kingdom

The contractor is an SME: no

V.2.4)Information on value of the contract/lot (excluding VAT)

Total value of the contract/lot: 2 600 000 000.00 GBP

V.2.5)Information about subcontracting

The contract is likely to be subcontracted

Short description of the part of the contract to be subcontracted:

Not known.

Section VI: Complementary information

VI.3)Additional information:

VI.4)Procedures for review

VI.4.1)Review body

Official name: High Court (England Wales and Northern Ireland)
Town: London
Country: United Kingdom
Internet address: http://judiciary.gov.uk