Market Testing Announcement
25.01.2010
Following independent market assessment, Hull Citycare Limited, has appointed Sewell Group plc as its construction and facilities management partner for the next five years.
Citycare was formed as the Public Private Partnership delivery vehicle to lead the way in the transformation and improvement of primary healthcare facilities in Hull. The proposed programme of work at that time, and still today, formed part of NHS Hull's Local Improvement Finance Trust (LIFT) programme, which was part of a national initiative.
The last five years have been hugely successful for both public and private sector partners with Citycare delivering and maintaining nine schemes with capital expenditure totalling circa £50 million. The tenth project, Wilberforce Health Centre valued at £16m, is now underway.
Within the founding agreement, it was determined that the contract for constructing and maintaining the developments should be reviewed, by way of market testing, after five full years of operations. The purpose of this exercise would be to gauge the quality, price and deliverability of the products and services offered by the incumbent supplier, whilst comparing them with other similar organisations in the wider market.
A market testing project team was established including representatives of the Citycare Board and Sue Metcalfe (then Director of Commissioning NHS Hull) representing Hull's public sector partners in LIFT (NHS Hull, Kingston upon Hull City Council and Humber Mental Health Teaching Trust). The team developed the appraisal system in conjunction with Cyril Sweett (Citycare's independent facilitator for the market testing exercise - see Notes to Editors).
In the autumn of 2009, companies were invited to submit proposals for building and maintaining Citycare's next tranche of projects. In view of the specialist nature of LIFT schemes, direct approaches were made to organisations active in this area of work. Five companies engaged in more detailed discussions with Cyril Sweett and three bidders elected to submit tenders from this process. An advert also featured on Citycare's website in order to encourage any further interest from appropriate parties.
Following final submissions, interview and appraisal of the three shortlisted bids, Hull-based Sewell Group was selected as preferred bidder. They were assessed in the following areas and their approach scored the most points overall:
- Approach and understanding of the LIFT model
- Experience and results
- Price
- Delivery
- Technical merit
- Approach to ongoing facilities management
- Local impact and legacy
Commenting on the appointment, Citycare's chair Charles Lewis, said: "Since 2005, we have enjoyed hugely successful development, learning and continuous improvement across all Citycare sites.
"This market testing exercise has been an excellent way to benchmark services, using tried and tested methods and supported by independent assessment.
"Citycare has always sought high quality, value for money services from all of its suppliers. Our customers can be reassured that best value and continuous improvement feature strongly in the Sewell Group proposal along with very competitive prices, in a highly competitive market.
"Whilst the past five years have been very good, the future for Citycare, our partners and their customers promises to be superb."
More projects are set to be announced during 2010.