Key information
Decision type: Director
Reference code: DD2420
Date signed:
Decision by: Philip Graham, Executive Director, Good Growth
Executive summary
The SfLCF continues to invest in the estate and equipment of skills providers, with a further funding round planned in 2020. The Fund continues to support the delivery of high-quality skills that employers need, in settings that are modern, fit-for-purpose and provide spaces that will support learners across London.
This Decision requests approval for expenditure of up to £150,000 funding from the £5m of
revenue funding contained within the overall SfLCF, as detailed in MD2142, to cover costs of technical/specialist due diligence in support of assessment of proposals received for the remaining delivery of the SfLCF.
Decision
Part 1: Non-confidential facts and advice
Skills for Londoners Capital Fund (SfLCF) launched in April 2017 with a total of £114m available for investment in the estate and equipment of London's skills providers. It supports the delivery of high-quality skills that employers need, in buildings that are inspiring and fit-for-purpose and reflect the working environments, collaborative spaces and the new ways of working of industry’s workplaces and spaces.
Round 1, held in 2017/18, awarded £32m to 62 projects through the main fund, the Small Projects and Equipment Fund and the Development Support Fund. In April 2019 as part of SfLCF Round 2, the LEAP Investment Committee awarded 17 projects £57.6m funding including £7.2m from the Mayor’s Construction Academy (MCA) fund.
It is proposed that expenditure of up to £150,000 is approved for enhanced specialist due diligence services for upcoming rounds of SfLCF.
The expenditure of £150,000 for enhanced specialist due diligence services was endorsed at the LEAP Programme Board meeting on 12th September 2019.
We are seeking to procure and appoint specialist due diligence services to carry out an assessment of project applications (including cost and building surveying), to ensure the viability of projects applying to the SfLCF. The advice will be separated into a separate consultancy contract for cost and construction/property advice respectively.
Building surveyor services will provide the GLA (for individual project applications) an appraisal of construction/property issues including technical, risk management, programme, legal, environmental, building regulation and restoration matters.
Cost consultant services will provide the GLA with an appraisal of individual project applications which may include, but not limited to the assessment of construction costs against project outcomes; projected construction costs against industry benchmarks; the adequacy and value of any contingencies included in the project and any other related activities to complete the due diligence and appraisal of project applications.
The current due diligence service contract is due to expire, and a new contract is required. The remaining SfLCF will be delivered through a forthcoming round and will require detailed due diligence on successful proposals. In order to ensure procurement efficiencies, the service will be sourced for ongoing services through a call-off contract in line with the previous procurement, to allow for future rounds, with appropriate break clauses in place should the service not be required.
Officers will liaise with TfL Commercial to procure the services required competitively in accordance with the GLA’s Contracts and Funding Code.
The GLA is required, in the exercise of its functions, have due regard to the need to:
a) eliminate discrimination, harassment, victimisation and any other conduct that is prohibited by or under the Equality Act 2010;
b) advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it; and
c) foster good relations between persons who share a relevant protected characteristic and persons who do not share it.
Proposals for the due diligence contract will have to demonstrate their understanding of the Mayor’s Equality, Diversity and Inclusion Strategy to ensure projects are evaluated and monitored will meet the strategies priorities and help to reduce the disability, gender and race employment gaps in addition to meeting the Public Sector Equality Duty. This encompasses integration of the Accessible London Supplementary Planning Guidance and Policy D5 of the draft London Plan (both of which support the latest inclusive design standards BS8300-1:2018 and BS8300-2:2018).
- key risks and issues
- links to Mayoral strategies and priorities
- The due diligence exercise will assess SfLCF projects at application stage to determine if they will deliver high-quality learning and training environments through the development, modernisation and rationalisation of facilities through viable good value construction projects and as necessary will also be subject to design review during the design and implementation phase. Design reviews will be undertaken by a panel of Mayor’s Design Advocates.
- Investments through the SfLCF will contribute to the Mayor’s and the LEAP’s drive to make London a better place in which to live and work and to visit, through delivery approaches that secure the highest levels of social, economic and environmental value.
- SfLCF programme overall aligns with relevant policies of the draft London Plan and contribute positively to the Mayor’s planning objectives relating to Design (Chapter 3), Social Infrastructure (Chapter 5), Green and Sustainable Infrastructure (Chapters 8 and 9), transport (Chapter 10), affordable housing (Chapter 4, Policy H6 and H7) and the Mayor’s Affordable Housing and Viability Supplementary Planning Guidance.
- In alignment with the London Environment Strategy, SfLCF programme is supporting projects to integrate creative solutions to environmental sustainability and demonstrating how they align with the Mayor’s environmental priorities. The due diligence exercise will assess project ambitions to achieve maximum environmental benefits by meeting BREEAM ‘Outstanding’ for new build projects and ‘Excellent’ for refurbishment projects.
- The Economic Development Strategy (EDS) priorities are supported by the SfLCF and due diligence of the outputs of projects to encourage collaboration with local businesses, employers and local authorities to support the creation of jobs within the local area and the delivery of training to support growth sectors.
- The wider programme aims to align with the key priorities set in the Skills for Londoners Strategy and this will be detailed in the specification during procurement.
- c. consultations and impact assessments
Any future round will be based on a direct response from existing and potential providers. Currently officers are gathering evidence of need to support a new round of SfLCF. There is also a an email address on the SfLCF webpage to send any queries. Officers have complied with GDPR legislation.
No one involved in drafting or clearing this form has any conflicts of interest to declare.
Approval is being sought for expenditure of up to £150,000 on technical advice services relating to technical due diligence activity including cost consultancy and building advice for the remaining delivery for the Skills for Londoners Capital Fund.
The proposed expenditure of £150,000 will be funded from the £5m revenue allocation earmarked to support the Skills Londoner Programme as approved by MD2142. It is expected that the procurement of the specialist advice will commence in 2019-20 but costs will be incurred in the 2020-21 financial-year supporting delivery of the next phase of projects.
The foregoing sections of this report indicate that the activity in respect of which approval and approval of the same concerns the exercise of the GLA’s general powers to do such things as may be considered to be facilitative of and conducive to the promotion of economic development and wealth creation in Greater London and have complied with the GLA’s related statutory duties to:
a) pay due regard to the principle that there should be equality of opportunity for all people;
b) consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the United Kingdom; and
c) consult with appropriate bodies.
In taking the decisions requested, the Director must have due regard to the Public Sector Equality Duty; namely the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010, and to advance equality of opportunity and foster good relations between persons who share a relevant protected characteristic (race, disability, gender, age, sexual orientation, religion or belief, pregnancy and maternity and gender reassignment) and persons who do not share it (section 149 of the Equality Act 2010). To this end, the Director should have particular regard to section 3 (above) of this report.
The services required must be procured by Transport for London’s Commercial team who will determine the detail of the procurement strategy to be adopted in accordance with the GLA’s Contracts and Funding Code. Officers must ensure that appropriate contract documentation is put in place and executed by the successful bidder(s) and the GLA before the commencement of the services required.
Signed decision document
DD2420 Skills for Londoners technical due diligence