Special circumstances and reasons for urgency Agreed.

Resolved:

1.         That the consortium Bouygues Partnership for Education and Community (BPEC) be granted Selected Bidder status in relation to the Authority’s procurement of its Building Schools for the Future programme;

2.         That the Corporate Director Children’s Services be authorised, after consultation with the Corporate Director Resources, the Assistant Chief Executive (Legal) and Lead Member Children’s Services to:

i           approve and sign on behalf of the Authority the letter granting Selected Bidder status, having resolved any outstanding commercial issues within the Council’s affordability envelope;

ii          meet the Selected Bidder costs in the event that Contractual Close cannot be achieved by 31st December 2008, authorise the approval of the Final Business Case, finalise and execute any documents, agreements and any ancillary documents required to implement the Building Schools for the Future programme;

3.         That the Corporate Director Resources be authorised to sign the Certificates required by Section 3 of the Local Government (Contracts) Act 1997;

4.         That the adoption of a capital estimate for the Wessex Centre of £4.0m be approved and the Corporate Director, Children Services be authorised to approve the acceptance of the related tender for the Wessex Centre, within the agreed funding allocation of £4.0m including works, fees and Furniture, Fixtures and Equipment; and

5.         That the Corporate Director, Children Services proceed to tender for the D&B contract to deliver the new HUB facilities at the Wessex Centre.

Action by:

CORPORATE DIRECTOR, CHILDREN’S SERVICES (K. COLLINS)

Service Head, Building Schools for the Future,Children’s Services (A. Sutcliffe)

The Chair informed members of the Cabinet that the special circumstances and reasons for urgency associated with the proposals were detailed on the front page of the report. The Cabinet subsequently agreed the special circumstances and reasons for urgency as set out on the front page of the report and also set out below:

·                    The report was unavailable for public inspection within the standard timescales set out in the Authority’s Constitution, because of the continuation of legal negotiations between the parties which it had been anticipated would be completed in time for publication of the agenda for this meeting of the Cabinet.

·                    Chief Officers recommend that a cabinet decision in respect of the selection of the Selected Bidder is taken at the earliest opportunity to ensure that the Building Schools for the Future (BSF) programme can be implemented within the timescales for the reasons set out in the report.

Mr Collins, Corporate Director Children’s Services, at the request of the Chair, in introducing the report summarised the salient points contained therein and in particular:

·                    Outlined the next stages in the procurement timeline for the BSF Wave 3 Programme: Selection of a Preferred Bidder in August 2008, Financial Close in December 2008 and start of construction at St Paul’s Way School by January 2009.

·                    Highlighted that the BSF funding envelope had increased from approximately £185 million, when this matter was last discussed by the Cabinet, to approximately £240 million, following negotiations between the Authority and the Department of Schools and Families. Also  highlighted the transformation of the school estate in the 21^st Century, the new sixth form at Bethnal Green and new secondary school that this funding would yield.

·                    Outlined difficulties encountered during the procurement process to date, and the close scrutiny that the one remaining bidder had been placed under by the Partnership for Schools advisers to ensure achievement of value for money and delivery of the BSF programme outcomes for the young people of Tower Hamlets.

·                    Summarised the background of Bouygues Partnership for Education and Community, the partner identified by the procurement process for its capacity to deliver the BSF Programme and also to drive up standards.

Councillor Hawkins, Lead Member Children’s Services:

·                    Welcomed the major proposals set out in the report for their potential to transform the teaching and learning community.

·                    Thanked the Officer Team for their contribution to the achievement of the positive position the Authority now found itself in, in relation to the BSF Programme, a priority for the Council.

·                    Commented that the Authority was committing substantial resources to the BSF Programme and she therefore wanted to assure her Cabinet colleagues that the proposed decision was robust. Accordingly Councillor Hawkins requested that the Corporate Director Children’s Services detail the checks and balances in the legal framework, associated with the proposals, which ensured quality and value for money and also to give an assurance to members of the Cabinet that the proposals were financially robust in the context of the current economic downturn, driven by oil prices and the credit crunch.

·                    Requested that the Corporate Director Children’s Services outline for members of the Cabinet the lessons learned and benefits gained as a consequence of Tower Hamlets moving forward with Bouygues Partnership for Education and Community, in the context of their operational experience as the chosen BSF Programme partner for the London Borough’s of Waltham Forest and Westminster.

The Chair commented that investment in education had transformed Tower Hamlets into one of the top performing education authorities in the country and one that was continuously improving. Education was a priority for the Administration and demonstrated its aspirations to maximise life chances for the adults and leaders of tomorrow. The Chair also extended his thanks, and those of the Cabinet, to the Officer Team which had successfully secured this additional funding for investment in the Borough’s educational facilities and acceleration of improvement in this sphere.

Mr Collins, Corporate Director Children’s Services and Ms Sutcliffe, Service Head Building Schools for the Future, at the request of the Chair, responded to the matters raised by Councillor Hawkins, Lead Member Children’s Services and also to further requests for clarification/ assurance, in relation to a number or matters including:-

·                    The key importance of developing a strong client side structure to ensure effective performance and delivery by the Local Education Partnership (LEP), and that in forming the client team there was a recognition of the principle of “investing to save” with placement of appropriately skilled staff able to deliver greater value.

·                    Whether the procurement process for the BSF Programme had been sufficiently robust firstly to identify all potential bidders; secondly, in the context of 2 out of 3 of those bidders shortlisted withdrawing from the process prior to submission of a detailed solution, to give assurance that this development was not contrived and that the remaining bidder, now recommended for preferred bidder status, would deliver.

The Chair in Moving the recommendations as set out in the report, once again thanked Ms Sutcliffe, Service Head Building Schools for the Future, Children’s Services, and her Officer Team, for their contribution to the positive position the Authority now found itself in, in relation to the BSF Programme; and it was:-

Resolved:

1.         That the consortium Bouygues Partnership for Education and Community (BPEC) be granted Selected Bidder status in relation to the Authority’s procurement of its Building Schools for the Future programme;

2.         That the Corporate Director Children’s Services be authorised, after consultation with the Corporate Director Resources, the Assistant Chief Executive (Legal) and Lead Member Children’s Services to:

i           approve and sign on behalf of the Authority the letter granting Selected Bidder status, having resolved any outstanding commercial issues within the Council’s affordability envelope;

ii          meet the Selected Bidder costs in the event that Contractual Close cannot be achieved by 31st December 2008, authorise the approval of the Final Business Case, finalise and execute any documents, agreements and any ancillary documents required to implement the Building Schools for the Future programme;

3.         That the Corporate Director Resources be authorised to sign the Certificates required by Section 3 of the Local Government (Contracts) Act 1997;

4.         That the adoption of a capital estimate for the Wessex Centre of £4.0m be approved and the Corporate Director, Children Services be authorised to approve the acceptance of the related tender for the Wessex Centre, within the agreed funding allocation of £4.0m including works, fees and Furniture, Fixtures and Equipment; and

5.         That the Corporate Director, Children Services proceed to tender for the D&B contract to deliver the new HUB facilities at the Wessex Centre.