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England and Wales High Court (Technology and Construction Court) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Technology and Construction Court) Decisions >> Neology UK Ltd v The Council of the City of Newcastle Upon Tyne & Ors [2020] EWHC 2958 (TCC) (06 November 2020) URL: http://www.bailii.org/ew/cases/EWHC/TCC/2020/2958.html Cite as: [2020] EWHC 2958 (TCC) |
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BUSINESS AND PROPERTY COURTS
OF ENGLAND AND WALES
TECHNOLOGY AND CONSTRUCTION COURT (QBD)
Fetter Lane, London, EC4Y 1NL |
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B e f o r e :
____________________
NEOLOGY UK LIMITED |
Claimant |
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- and - |
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(1) THE COUNCIL OF THE CITY OF NEWCASTLE UPON TYNE (2) GATESHEAD METROPOLITAN BOROUGH COUNCIL (3) COUNCIL OF THE BOROUGH OF NORTH TYNESIDE |
Defendants |
____________________
Mr Joseph Barrett (instructed by DAC Beachcroft LLP) for the Defendants
Hearing dates: 21 and 22 October 2020
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Crown Copyright ©
Covid-19 Protocol: this judgment was handed down by the judge remotely by circulation to the parties' representatives by email and release to Bailii. The date and time of hand-down is 10.30am on 6 November 2020
Mr Justice Kerr:
Introduction
Facts
Clean Air Zones
The Framework Agreement
The Invitation to Tender
"You should read the ITT carefully. It is important that you understand the Council's needs and requirements as:
- you need to be able to demonstrate that you can meet those requirements in the information which you provide;
.
You must comply with all instructions and include the signed undertaking in your submission."
"The ITT will state whether the tenders are going to be evaluated on the most economically advantageous tender or the tender which offers the lowest price.
In either case the Council will evaluate your tender using the following process:
- The Council's evaluation panel for this procurement exercise, will check the tenders to make sure tenderers have kept to the requirements.
- If compliant we will evaluate the information provided against the evaluation criteria as set out in the ITT.
- The Council will clarify your tender as needed."
"Q1: Installation, Mobilisation, Operation - Overall 50% weighting
Q2: Support and Resource - Overall 25% weighting
Q3: Management and Communication - Overall 15% weighting
Q4: Social Value and Climate Change - Overall 10% Weighting."
"5.1 Tender Information.
Please provide your proposals by responding to each of the questions in the Tender Response Forms (ITT Schedule 5 and 5b), giving consideration to the associated evaluation weightings and our expectations and objectives expressed throughout the specification document . ."
"sets out the Tyneside Authorities' requirements in respect of the operation and maintenance of a network of ANPR cameras, associated infrastructure, and supporting ICT systems to deliver a functioning charging [CAZ] for Newcastle to capture non-compliant vehicles operating within the boundary of the [CAZ], and interface with external systems."
"You must not exceed the prescribed word limit for each question, should you exceed the word limit the Evaluation Panel will not take into consideration any additional words."
"Diagrams/photographs and examples of the documentation can be included and do not form part of the word count. However, no appendices can be included or embedded in the document to support your answer."
Neology's Bid
"Question 1 - Installation, Mobilisation, Operation
The Tyneside Authorities must ascertain how you intend to install mobilise and operate the ANPR Camera Network and Support Infrastructure. Please provide detail, denoting clear timelines using appropriate methodology and tools demonstrating a clear understanding of the specification and key requirements. It is permitted to attach documents to the response for this question. Your response should look to include but not be limited to:
An outline Design and Installation Plan for the entire project.
A draft Installation Programme in line with section 2.6.7 of ITT Schedule 1a Specification Engineering and Construction.
Suggestion of alternative placement of ANPR cameras. Please justify how your design meets the requirements and is the best fit solution (If you do not intend to suggest alternative placements please state and provide any feedback necessary, particularly if you deem that any intended ANPR locations are unsuitable)
A draft mobilisation plan in line with the section 2.6.6. of ITT Schedule 1a Specification Engineering and Construction
An outline Commissioning Manual including documented processes and procedures for the installation and Testing of the Outstation Systems.
A draft Data Volume Model including expected volume of data flow and available bandwidth.
An outline Software Schedule detailing the software utilized for the delivery of the contract, key stages of the timeline and referencing all software development and testing."
"Commissioning and Testing of Out-stations
In order to minimise time on-site, decouple site activities from the critical path and ensure material supplied is validated, we will be conducting a comprehensive test regime before material arrives on-site. The camera out-stations will undergo a Factory Acceptance Test, the cameras will be updated to the latest firmware and be configured specifically before leaving the factory with a SIM card installed. As with all phases of testing, the client is welcome to visit our facility to be part of the quality assurance process. This is something which some clients, such as Transport for London, prefer to participate in whereas other clients are comfortable being in attendance for later phases of the project testing. Should further configurations be required for a specific camera be required [sic] then this can be completed remotely via a secure remote connection.
A detailed commissioning manual is also supplied as supporting evidence."
"The Detailed Planning stage shall provide the necessary detail of the Software components and their use to enable the Tyneside Authorities to understand the role and function of the software in this contract. The Software Schedule shall break down into appropriate detail, the works which are required to be undertaken by the different software teams, for example:
- Build & Installation
- Configuration
- Testing (see section below)
- Training
- Acceptance".
"The Authorities need to understand how you intend to support and provide relevant resources to this project. Please address the following points and include any other aspects you deem suitable to illustrate your competence when delivering the project in this area.
Describe how you will ensure robust maintenance support teams, consisting of both a back-office support team for software issues and a front-office responsive team for hardware/maintenance.
Include your resource proposal for the entire project and how this will ensure an efficient and effective operation. Identify appropriate teams, disciplines and/or subcontractors.
Provide an outline Employment and Skills plan that sets out the positive impact that this contract will have on the local economy through supply chain opportunities for local businesses and employment/skills.
Provide details of our current quality management and asset management systems.
Provide an overview of proposed project reporting in line with the examples stated in the specifications. Note any additional reporting that can be offered based on experience of projects of similar size and nature.
Provide recent examples of the following; Technical Construction File, Disaster Recovery Plan, Risk Register and an Exit Plan encompassing a Hand back plan and Decommissioning."
"Neology would adopt a strategy of "think, buy, support local" in order to support employment opportunities for residents based in Tyneside (thereby explaining the positive impact the Contract would have through supply chain opportunities for local business and, separately, on employment and skills).
b. The arrangements between Neology and its sub-contractors are such that there is an expectation that persons based in Tyneside would be employed on the project (local opportunities for employment skills as per this requirement in Q2).
c. Candidates from the local area would have an advantage in the employment process by virtue of their local knowledge (as above).
d. Neology would work with its partners to ensure that their apprentices are given a chance to work on the Clean Air Zone (as above).
e. Neology would provide work experience at all levels and career stages (as above).
f. Data would be kept and provided to Newcastle setting out the jobs created by the scheme in the local area (as above).
g. Neology produced a table showing how it intended to generate £180,000 of value to the local area across the term of the contract. That value would manifest itself in matters such as:
i. Offering jobs to the long term unemployed (as above).
ii. Apprenticeships and work experience (as above).
iii. Identifying, where possible, the use of local suppliers and businesses. Neology gave the example of its use of locally based engineering teams from SSE (in accordance with the requirement to address supply chain opportunities)."
"The Authorities need to have a good level of confidence that this project can be managed in a focused and considered way in order to deliver the timescales required. Please respond to the points below and include any other relevant detail to support your response in this area.
Please provide an overview of how you propose to interface with Newcastle City Council Highways, Streetlighting, Urban Traffic Management and Back Office as detailed in the specifications.
Provide details of how you will provide the required Training and Guidance, including examples of the required documentation."
"Neology provided a table setting out the project governance structure. That table set out who from Neology and other stakeholders would be involved in each stage of the project governance process. Neology was not, however, able to make this section more specific to the Tyneside Authorities, as Newcastle did not provide bidders with the details of the senior team who would be involved in the governance of the project."
"Social Value means getting the best outcomes of the people of Newcastle and the North East from the money we spend, this includes economic and environmental considerations. We require the successful Contractor to work towards developing ways to improve the economic and environmental well-being of Newcastle upon Tyne at every stage of its operations.
The City Council is looking to develop several Community benefit outcomes, the key benefits have been listed below in section 2.1 As part of this long-term Contract please outline what Community benefits you could deliver to the city of Newcastle Upon Tyne based on the examples below.
Contractors can propose additional Community benefits outcomes to those listed.
Community Benefit Outcomes and Description of Requirements
Job for Long Term Unemployed (12 months +)
Modern Apprenticeship
Supply Chain Development (SME)
Jobs for Unemployed
Work Experience Placement [five days structured placement]
Accredited Training to Employees
Equipment/Product Donations
Industry Awareness Day (Full Day)
Sponsorship
Work experience placement [one day of structured work experience]
Charitable donations
Communal area refurbishment
Industry Awareness
Day (Half Day) Volunteering
Toolbox Talks
"
"On 3 April 2019, Newcastle City Council declared a Climate Emergency and the intent [is] to make Newcastle carbon neutral by 2030.
We have an ambitious programme of interventions of what we as a council can influence through our policies, programmes, projects and services, but this fundamentally requires a whole city approach, with businesses, universities, the private sector, residents and communities going on this journey with us.
Please provide details of how, from design and maintenance thought to handover and potential decommission, your organisation intends to limit the negative aspects of climate change within this project by identifying potential opportunities, constraints and risks to ensure a positive impact on air quality and the wider environment.
Please detail how you intend to provide support and guidance to the local you [sic] SME's you engage with throughout this contract and how they can limit the negative impacts of Climate Change."
Evaluation of tenders
The contract award decision
"The response had both acceptable and poor elements. The panel acknowledged the proactive approach to camera placement and that a clear and proactive pre assessment had been carried out. However, the response to the request for an outline Commissioning Manual the panel thought was brief, without any reference to the actual testing that should take place and that a summary of the key stages of commissioning would have been advantageous. The response to the request for an outline Software Schedule was deemed poor. The panel would have expected the response to state specific software used, off the shelf and/or bespoke systems and reference any development if necessary."
"The panel appreciated the fact that the considerable experience of the team was listed. Including a resource profile and [sic] would have been advantageous, as noted in the API interface. The response to the request for an outline Employment and Skills plan was more of an outline of the Social Value the bidder would bring to the contract and therefore the question was deemed not answered."
"The panel felt that the response was good but generic in parts and not tailored specifically to Newcastle City Council."
"A good and comprehensive response offering wide range of Social Value with some innovative ideas, although the panel notes some financial assumptions have been made. Also, some consideration given to the environmental impact of this project."
Neology's challenge to the award decision
The outcome report
The claimant's summary judgment application
"[The court] does not hear evidence from a person offered up as a candidate for the role of reasonable tenderer. In a disputed case, the court will, no doubt, need to have explained to it certain technical terms and will have to be informed of some of the particular circumstances of the terms or industry in question, which should have been known to informed tenderers. However, evidence as to what the tenderers themselves thought the criteria required is, essentially, irrelevant "
The first defendant's application to lift the automatic stay
"If Siemens is able to continue to consolidate its market position in circumstances where it has not submitted the most economically advantageous tender, Neology will be at a significant competitive disadvantage in the marketplace, and indeed may be forced out of it, the consequences of which cannot properly be assessed and are not limited to financial loss."
Conclusion; disposal