To seek approval for an exemption from the standard procurement process for the appointment of Heaton Design and Engineering Ltd (HDE) to deliver the design, engineering, and project management services for the previously agreed Clacton Leisure Centre Heating System Replacement project.

Following consultation with the Section 151 Officer, to approve an exemption from procurement rules to appoint Heaton Design and Engineering Ltd for the detailed specification, design, tender preparation, and project management of the Clacton Leisure Centre Oil Boiler Replacement at a cost of £113,080 (including 10% contingency), on the grounds of urgency, due to the time pressures.

The total budget will be funded by the previously approved £1,368,730 (Salix grant of £1.2 million, with an additional Council contribution of £165,000).

Tendring District Council (TDC) has secured a Salix grant of £1.2 million, with an additional Council contribution of £165,000, to replace the oil boiler at Clacton Leisure Centre with sustainable technologies.

Due to strict grant timelines and the operational risk of relying on a single boiler, an urgent consultant appointment is required.

Procurement options include direct award via frameworks, phased procurement, or exemption under urgency provisions due to this project being time critical. Failure to act promptly may result in loss of funding and increased financial liability.

1.         Mini Competition via Framework (e.g. NEPRO3)

While this route allows for a direct appointment under call-off terms, it still requires a competitive tender process within the framework, including contractor selection and a minimum two-week tender window. Previous experience with NEPRO3 has highlighted delays in contract issuing and administrative inefficiencies. Additionally, this route would incur a 7.5% surcharge (£7,710), reducing value for money and increasing project costs. The estimated timeline of 8–10 weeks poses a significant risk to meeting Salix funding deadlines.

2.         Design and Build Framework (e.g. ECF3)

This option offers integrated delivery and potential efficiencies but introduces risks around impartiality in design validation and contractor self-certification. The process would take up to three months and may not attract sufficient market interest within the required timeframe. While compliant, this route does not align with the timeline of the project. Additionally, an informal Expression of Interest (EOI) was completed, resulting in one contractor showing interest, two requesting a specification, and one declining interest, which presents a risk.

3.         Phased Procurement Below RFQ Threshold

Splitting the consultancy scope into phases under the £50K threshold risks breaching procurement regulations due to perceived disaggregation. This approach also risks non-compliance with Salix grant conditions and could result in clawback of funding. It is not considered a viable or compliant option.

4.         Do Not Proceed

Abandoning the project would result in the loss of the £1.2 million Salix grant and leave Clacton Leisure Centre reliant on a single, end-of-life oil boiler. This would expose the Council to significant financial risk, service disruption, and reputational damage. The full cost of system replacement would fall to the Council, with no external funding support.