New Hospital Programme – Hospital 2.0 Alliance (H2A) Framework

Location

Works and Services will be performed at different sites in the UK in accordance with the NHP plan for implementation. See Section II.2.4.1 below.

Description

NHS England (NHSE) has concluded a competitive dialogue procurement under the Public Contracts Regulations 2015 for the establishment of the Hospital 2.0 Alliance Framework (“H2A Framework”) and the Hospital 2.0 Alliance Agreement. These two instruments form the basis of a multi-supplier integrated delivery model created to deliver the New Hospital Programme (NHP). The H2A Framework provides the mechanism for awarding Call-Off Contracts for major capital works, including detailed design, construction, commissioning, and handover of hospital schemes. The Hospital 2.0 Alliance Agreement establishes the collaborative enterprise environment for NHSE, the Trusts, and the appointed H2A Contractors to foster alliance working and standardise design and delivery across the programme. The Hospital 2.0 Alliance Agreement (Alliance Agreement) which is a cross-programme collaboration agreement (a contract for services with a facility to award task orders for minor constructability and advisory services); and The Hospital 2.0 Alliance Framework (H2A Framework) itself from which Call-Off Contracts for the delivery of specific Schemes/Works will be made. Works under the H2A Framework will be awarded via Call-Off Contracts using Collaborative Allocation, Mini-Competition or Direct Award procedures.In accordance with the terms of the Procurement Documents, NHSE has awarded ten (10) places on the H2A Framework. The H2A Contractors will provide expertise and experience in construction and integration works on major complex life critical programmes to allow NHP to develop a more standardised approach to design and delivery, unlock efficiencies and accelerate delivery in one of the biggest hospital building programmes in a generation.The H2A Framework (and Alliance Agreement) has been procured by and for the use of NHSE in respect of its needs and requirements for the New Hospital Programme and any wider NHSE requirements. The H2A Framework may also be used by those Contracting Bodies referred to in Section II.2.14 (Additional Information) below. The H2A Framework and/or Alliance Agreement may also be transferred in whole or in part to another public body (or bodies) that during the term of the Framework Agreement/Hospital 2.0 Alliance Agreement assume NHSE’s delivery obligations (in whole or in part) to deliver the New Hospital Programme or new NHS hospitals through another iteration of the New Hospital Programme.

Total Quantity or Scope

The New Hospital Programme (NHP) was created to deliver the biggest hospital building programme in a generation. It is an enduring programme intended to develop capacity, value for money efficiency and skills over many years through collaboration, standardisation and cooperation. The Hospital 2.0 Alliance Framework (“H2A Framework” or “Framework Agreement”) has been established as a multi-supplier framework agreement for major capital works for hospital build, refurbishment and ancillary works required by NHSE, including the detailed design, construction, commissioning and handover of major hospital schemes including but not limited to NHP waves 1 to 3, as set out in the ‘NHP plan for implementation’.Following the conclusion of this procurement, successful Tenderers have entered into two instruments:- The Hospital 2.0 Alliance Agreement (Alliance Agreement), which is a cross-programme collaboration agreement (a contract for services with a facility to award task orders for minor constructability and advisory services); and- The Hospital 2.0 Alliance Framework (H2A Framework) itself, from which Call-Off Contracts for the delivery of specific Schemes/Works will be made.The H2A Contractors will provide expertise and experience in construction and integration works on major complex life-critical programmes to allow NHP to develop a more standardised approach to design and delivery. The Framework Agreement may also be used by those Contracting Bodies referred to in Section VI.3 (Additional Information) below. NHSE also reserves the right to transfer the Framework Agreement (or any Call-Off Contract and/or the Hospital 2.0 Alliance Agreement) in whole or in part to another public body (or bodies) that during the term of the Framework Agreement/Call-Off Contract/Hospital 2.0 Alliance Agreement assume NHSE’s delivery obligations (in whole or in part) to deliver the New Hospital Programme or new NHS hospitals through another iteration of the New Hospital Programme.Works and Services will be awarded via Call-Off Contracts under the Framework Agreement. These will be awarded via the following call-off procedures: Collaborative Allocation, Mini-Competition and Direct Award. It is NHSE’s intention for Call-Off Contracts to be awarded using Collaborative Allocation where NHSE and the Trusts consider that the unamended Model Call-Off Contract is appropriate and will secure value for money. It is intended (though not guaranteed) that all H2A Contractors will be awarded a Call-Off Contract or contracts.The Alliance Agreement establishes the collaborative enterprise environment critical to facilitating the strategic aims of the NHP. In addition to call-offs under the Framework Agreement, NHSE (and potentially other Contracting Bodies) has the right to award services contracts for ancillary constructability and advisory services through the Alliance Agreement, instructed by way of task orders. All Tenderers awarded a place on the Framework Agreement have entered into the Alliance Agreement.In accordance with the terms of the Contract Notice and Procurement Documents, the six (6) unsuccessful but compliant Tenderers have been invited to join the Alliance Agreement as Environment Participants.The procurement was conducted in accordance with the Competitive Dialogue procedure pursuant to the Public Contracts Regulations 2015 (PCR), reg. 30.

Award Detail

Renewal Options

1. Programme of Schemes: The indicative programme/schedule of the Schemes to be awarded via Call-Off Contracts under the Framework Agreement will be subject to internal business case approvals and may therefore be subject to change during the term of the Framework Agreement. 2. Alliance Agreement Task Orders: The Alliance Agreement includes a provision for issuing services contracts to H2A Contractors for constructability, design and testing advice. Any such services will be instructed by way of task orders in accordance with the terms of the Alliance Agreement. This is to facilitate consultation on constructability and supply chain as Hospital 2.0 is developed. Any task orders issued will be based on average industry rates.3. Common Procurement Routes: NHSE may establish framework agreements and other procurement arrangements and/or direct the use of existing arrangements for the benefit of the NHP (“Common Procurement Routes”). 4. Transfer to replacement contracting authority: NHSE reserves the right to transfer the Framework Agreement (or any Call-Off Contracts and/or the Alliance Agreement) in whole or in part to another public body (or bodies) that during the term of the Framework Agreement (or any Call-Off Contracts and/or the Alliance Agreement) assume NHSE’s delivery obligations (in whole or in part) to deliver the New Hospital Programme or new NHS hospitals through another iteration of the New Hospital Programme.5. Extension to the duration of the Framework Agreement: The initial term of the Framework Agreement is 6 years. NHSE reserves the right at its discretion to extend the term of the Framework Agreement for a further 6 years on notice, subject to approval by HMG. The length of the Framework Agreement is necessary to achieve the ethos of the Hospital 2.0 Alliance, being to create a programmatic alliance between NHSE, NHP, Trusts, H2A Contractors and other partners (as exemplified by the Alliance Agreement) to leverage the benefits of optimised capacity, efficiency, common supply chain and lessons learnt from repeat construction performance. Additionally, not only does the length of the Framework Agreement seek to align with the NHP ‘plan for implementation’, it also aims to assure the increasing and enduring capability and capacity of the industry beyond the completion of the final Schemes completed under the Framework Agreement.

Award Criteria

CPV Codes

• 45215140 - Hospital facilities construction work
• 45112700 - Landscaping work
• 50700000 - Repair and maintenance services of building installations
• 45215000 - Construction work for buildings relating to health and social services, for crematoriums and public conveniences
• 51120000 - Installation services of mechanical equipment
• 71300000 - Engineering services
• 45110000 - Building demolition and wrecking work and earthmoving work
• 45213312 - Car park building construction work
• 45215100 - Construction work for buildings relating to health
• 45233000 - Construction, foundation and surface works for highways, roads
• 45350000 - Mechanical installations
• 45351000 - Mechanical engineering installation works
• 45450000 - Other building completion work
• 48000000 - Software package and information systems
• 48100000 - Industry specific software package
• 50710000 - Repair and maintenance services of electrical and mechanical building installations
• 51100000 - Installation services of electrical and mechanical equipment
• 71000000 - Architectural, construction, engineering and inspection services
• 71240000 - Architectural, engineering and planning services
• 71241000 - Feasibility study, advisory service, analysis
• 71242000 - Project and design preparation, estimation of costs
• 71245000 - Approval plans, working drawings and specifications
• 71315000 - Building services
• 71333000 - Mechanical engineering services
• 71334000 - Mechanical and electrical engineering services
• 71356400 - Technical planning services
• 71400000 - Urban planning and landscape architectural services
• 71500000 - Construction-related services
• 71541000 - Construction project management services
• 72224100 - System implementation planning services
• 90712000 - Environmental planning

Indicators

• Options are available.
• Award on basis of price.

Other Information

The Framework Agreement (and Alliance Agreement) has been procured by NHSE for and on behalf of itself and all NHS Trusts, NHS Foundation Trusts, DHSC and other NHS Bodies. The Secretary of State (DHSC) and NHSE may also use the Framework Agreement for any wider NHSE requirements. NHSE also reserves the right to transfer the Framework Agreement (or any Call-Off Contract and/or the Alliance Agreement) in whole or in part to another public body(ies) that assume NHSE’s delivery obligations (in whole or in part) to deliver the New Hospital Programme or new NHS hospitals through another iteration of the New Hospital Programme.The total value of the Framework Agreement (and Alliance Agreement) is estimated as £37,000,000,000 (excluding VAT). The estimated value is to be treated as an estimate only and does not constitute a guaranteed or cap on spend under the Framework Agreement. It should also be noted that pursuant to the terms of the Procurement Documents and Framework Agreement, the Framework Agreement is not exclusive, and NHSE/other Contracting Bodies may procure or commission the provision of Works and/or Services which are the same or similar to those covered by the Framework Scope through any other means and with any other contractor.The duration of 144 months (12 years) is the maximum possible duration for the Framework Agreement. However, the Framework Agreement will be for an initial term of six (6) years and NHSE reserves the right (at its absolute discretion) to extend the term of the Framework Agreement for a further period of six (6) years, subject to approval by HMG.Additional Information regarding Award Criteria - in accordance with the Contract Notice, II.2.5) Award criteria, NHSE published on the basis that 'Price is not the only award criterion and all criteria are stated only in the procurement documents'. In accordance with the terms of the Contract Notice and Procurement Documents, Tenderers were required to submit their Final Tenders on the basis of fixed fee percentages and on that basis Final Tenders were evaluated on quality criteria only (PCR 2015, reg 67(4)).Additional Information regarding Contract Value - in accordance with the terms of the Contract Notice, the estimated value of the H2A Framework and Alliance Agreement is published in this contract award notice, but the Framework and Alliance Agreement have 0 guaranteed value. The figures included in section V.2.4 are the lowest and highest fixed fee percentages applicable to all Call-Off Contracts awarded via Collaborative Allocation as per the terms of the Procurement Documents and terms of the Framework as awarded.