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CD158 Western Lands: detailed site capacity studies - Homes England funding

Key information

Decision type: CEO

Directorate: Development

Reference code: CD158

Date signed:

Decision by: David Lunts, Chief Executive Officer, Old Oak and Park Royal Development Corporation

Executive summary

This decision form seeks approval to receive £50,000 from Homes England as a contribution to OPDC expenditure on consultancy services for technical assurance of development site capacities (the work is being led by Gort Scott Architects). The commission is feeding into a developing strategic outline business case for the Western Lands strategy, on which Homes England and OPDC are collaborating.

OPDC appointed Gort Scott Architects in January 2021 from the TfL's Architecture, Design and Urbanism (ADUP) framework through a competitive procurement process. The balance of the contract is being funded from the OPDC's Western Lands development budget for financial year 2020/21, as approved in CD149.

Decision

That the Chief Executive approves:

  • Receipt of £50,000 from Homes England to part-fund the commission of Gort Scott to provide technical due diligence in support of the development of the Western Lands strategy. Total expenditure on the contract will remain within the £80,000 approved under CD149.

Part 1: Non-confidential facts and advice

In January 2020, the Board approved OPDC's revised 'Western Lands' delivery approach. At its 13 October meeting, the Board approved a delegation to the CEO to approve detailed expenditure proposals, drawing down the Development Team's Western Lands budget of £440,000, to support the development of a Western Lands business case and delivery strategy. Further to that delegation, CD149 approved expenditure of up to £80,000 for the services of an architecture practice to provide design analysis to support the development of the business case. The commission was awarded to Gort Scott Architects.

Homes England (HE) officers are working in close collaboration with OPDC to develop the business case and HE has confirmed it is able to provide funding to support for this external consultancy.

This form seeks approval for the receipt of £50,000 from HE to part fund the Gort Scott commission, reducing net OPDC expenditure to £30,000.

The proposal and how it will be delivered

The Proposal

Since their appointment in January 2021, Gort Scott Architects have been working on detailed site capacity studies of the public sector landholdings in the Western Lands. These studies will provide technical due diligence on development viability appraisals that OPDC has already, and further to CD148, commissioned Savills to undertake.

The commission is due to be completed at the end of March 2021. Following feedback on the strategic outline business case, there may be a further phase of this work required, subject to approval.

Delivery method

OPDC carried out a competitive procurement process in line with OPDC's Contracts and Funding Code to appoint Gort Scott, from the Architecture, Design and Urbanism (ADUP) panel. HE staff were on the panel that reviewed the tender documents and a contract is in place between OPDC and Gort Scott.

In line with HE's internal governance arrangements, the contract with Gort Scott will be varied to make this a tripartite contract between HE, Gort Scott and OPDC. Transport for London (TfL) Commercial and TfL Legal are assisting with this.

OPDC will continue to have overall responsibility and day to day management of the contract with Gort Scott and wil pay Gort Scott for the services provided. OPDC will reclaim HE's contribution of £50,000 by submitting evidence to HE that Gort Scott has carried out the work to the value of the claim.

Objectives of the study

OPDC and Homes England are seeking to achieve a coordinated approach to the major strategic development and regeneration of these sites to support the creation of an urban district that will realise the full potential for development and placemaking in Old Oak which has been created by the significant investment in the Elizabeth Line and High Speed 2. The preparation of a credible business case requires a detailed understanding of the viability and deliverability of several delivery scenarios.

Strategic fit

This proposal supports OPDC's Western Lands strategy; a revised delivery approach which was approved by the Board in January 2020.

OPDC must have 'due regard' to the need to eliminate unlawful discrimination, harassment and victimisation as well as to the need to advance equality of opportunity and foster good relations between people who share a protected characteristic and those who do not.

OPDC's infrastructure, development and funding work is at an early stage and does not have any identifiable equalities impact. As and when specific proposals or recommendations from this work be brought forward, the equalities impact will be considered at that time.

The consultant team has been appointed from the GLA's Architecture, Design and Urbanism (ADUP) framework where five per cent of the total evaluation score is allocated to social value.

Project governance and assurance

The Development Director will act as Senior Responsible Officer (SRO) for this procurement, and the subsequent management of the contract. Day to day management of the work will be led by the Head of Design with support from the Principal Urban Designer.

Regular project meetings will be held to monitor project progress, with the OPDC/Homes England Client Group and consultant in attendance.

Risks and issues

At a strategic level, the primary risks associated with this commission are in line with the risks attached to the overall Western Lands programme regarding funding and delivery. It is anticipated that this commission will play a valuable role in mitigating some of these risks by providing a robust assessment of site capacity as well as evidence to support the need for a central role for OPDC in coordinating delivery of development and infrastructure so as to maximise the opportunity to create an exemplary new urban district.

In terms of the risks and issues associated with the specific tasks being commissioned, these primarily relate to:

  • The need for a bespoke agreement mechanism that meets both HE's and OPDC's requirements. This is currently in the process of being finalised, and therefore this risk is being managed.
  • The requirement for HE to authorise the funding contribution before 31 March 2021. This requires tripartite agreement to be in place between OPDC, HE and Gort Scott. Although there have been some delays to this process, this risk is being managed by ensuring that as far as possible the paperwork is ready to be processed as soon as the tripartite agreement is in place.

Other considerations

There are no other considerations that need to be noted in the taking of this decision.

Conflicts of interest

No one involved in the preparation or clearance of this Form, or its substantive proposal, has any conflict of interest.

The receipt of £50,000 from Homes England will reduce OPDC's expenditure to £30,000 and can be contained within the existing budget.

The maximum expenditure will be £80,000.

The report above indicates that the decision request of the Chief Executive falls with the OPDC's objects of securing the regeneration of the Old Oak and Park Royal area and its powers to do anything it considers appropriate for the purpose of its objects or purposes incidental to those purposes, as set out in the Localism Act 2011.

In taking the decisions requested, the Chief Executive 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 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 and foster good relations between persons who share a relevant protected characteristic 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 (6) of this report.

Officers have indicated in paragraph 2.1 and 2.4 of this report that the services have been procured in accordance with the OPDC's Contracts and Funding Code and the Public Contracts Regulations 2016. Officers must ensure appropriate documentation is put in place and executed in relation to HE's contribution to the services being provided.

Signed decision document

CD158 Western Lands: site capacity studies -Homes England funding

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