Edinburgh BioQuarter Health Innovation District: Procurement of a Private Sector Partner

Publication reference: 2021/S 000-027497
Publication date: 3 November 2021

F02: Contract notice

Section one: Contracting authority

one.1) Name and addresses

EBQ 3 Limited

NINE, 9 Little France Road, Edinburgh BioQuarter

Edinburgh

EH16 4UX

Email

info@edinburghbioquarter.com

Country

United Kingdom

NUTS code

UKM75 - Edinburgh, City of

Internet address(es)
Main address

https://edinburghbioquarter.com/

Buyer's address

https://www.publiccontractsscotland.gov.uk/Search/Search_AuthProfile.aspx?ID=AA30536

one.1) Name and addresses

The City of Edinburgh Council

Waverley Court, 4 East Market Street

Edinburgh

EH8 8BG

Contact

Brodie Smithers

Email

Brodie.Smithers@edinburgh.gov.uk

Telephone

+44 1314693922

Country

United Kingdom

NUTS code

UKM75 - Edinburgh, City of

Internet address(es)
Main address

http://www.edinburgh.gov.uk

Buyer's address

https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA00290

one.1) Name and addresses

Scottish Enterprise

Atrium Court, 50 Waterloo Street

Glasgow

G2 6HQ

Contact

Brodie Smithers

Email

adam.cunningham@scotent.co.uk

Telephone

+44 1414686024

Country

United Kingdom

NUTS code

UKM82 - Glasgow City

Internet address(es)
Main address

http://www.scottish-enterprise.com/

Buyer's address

https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA00398

one.1) Name and addresses

University Of Edinburgh

Charles Stewart House, 9-16 Chambers Street

Edinburgh

EH1 1HT

Contact

Brodie Smithers

Email

procurement.office@ed.ac.uk

Telephone

+44 1316502508

Country

United Kingdom

NUTS code

UKM75 - Edinburgh, City of

Internet address(es)
Main address

http://www.ed.ac.uk/schools-departments/procurement/supplying

Buyer's address

https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA00107

one.2) Information about joint procurement

The contract involves joint procurement

one.3) Communication

The procurement documents are available for unrestricted and full direct access, free of charge, at

https://www.publictendersscotland.publiccontractsscotland.gov.uk/esop/pts-host/public/pts/web/login.html

Additional information can be obtained from the above-mentioned address

Tenders or requests to participate must be submitted electronically via

https://www.publictendersscotland.publiccontractsscotland.gov.uk/esop/pts-host/public/pts/web/login.html

one.4) Type of the contracting authority

Body governed by public law

one.5) Main activity

Other activity

a strategic joint venture between EBQ3 Ltd, Scottish Enterprise, University of Edinburgh and City of Edinburgh Council


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

Edinburgh BioQuarter Health Innovation District: Procurement of a Private Sector Partner

Reference number

EBQ3-001

two.1.2) Main CPV code
  • 70110000 - Development services of real estate
two.1.3) Type of contract

Services

two.1.4) Short description

Edinburgh BioQuarter is one of Scotland’s largest health/life sciences innovation locations and a place where new ideas thrive to revolutionise health and wellbeing. It is a renowned destination for first-class clinical delivery, academic expertise and scientific research. It has developed over the past 20 years into one of the UK’s leading life sciences parks.

EBQ3 Ltd has been established by City of Edinburgh Council, Scottish Enterprise, and the University of Edinburgh (together the Contracting Authorities) with the objective to procure a private sector partner to work with them to invest in and accelerate the development of their vision at BioQuarter. The requirement of the private sector partner includes the delivery not only of new buildings, associated infrastructure and public realm on the available land, but also of health innovation services and community impact services, all in line with the “Primary Purpose” as described in the legal Heads of Terms. The private sector partner will be responsible for raising development funding to deliver the vision for BioQuarter. NHS Lothian is not a Contracting Authority for this procurement and is not involved in the procurement exercise.

BioQuarter is a 167-acre site of which 103 acres has been, or is currently anticipated to be, self-developed by the Contracting Authorities and NHS Lothian themselves over the next 25 + years. Such future self-developments conducted by the Contracting Authorities will also be in line with the Primary Purpose. For the avoidance of doubt, the Primary Purpose will not apply to development on land owned by NHS Lothian. It is currently anticipated that the land available as part of this procurement exercise will be in the region of 64-acres of undeveloped land which is owned by Scottish Enterprise (the “PSP land zone”). The anticipated boundary is shown in the Bidders Information Pack. Early development assessments conducted by the Contracting Authorities estimate that there is development capacity in the region of 360,000 square metres gross internal (GIA) area in the PSP land zone.

The vision of the Contracting Authorities is to transition BioQuarter into Edinburgh’s Health Innovation District; a new mixed-use urban neighbourhood of Edinburgh centred on a world leading community of health innovators and to grow BioQuarter into a global destination for pioneering health innovation and enterprise.

Success for the BioQuarter Vision requires the acceleration of development and sufficient level of commercial health innovation accommodation to ensure BioQuarter is a model for commercial health innovation services that will see existing tenants and companies being retained and growing, and new tenants and companies being attracted. The Contracting Authorities aspire to have in the region of 50% of the GIA of development in the PSP land zone as commercial health innovation accommodation to maximise BioQuarter’s strategic objectives for economic growth and community impact and ensure a high level of accommodation is available for commercial health innovation companies and tenants. The Contracting Authorities understand that this ambition needs to be balanced with commercial viability.

Whilst no third-party funding has to date been assured to support the project, the Contracting Authorities are actively pursuing such funding to support the development and bidders will be advised during dialogue. Further details of the opportunity, the proposed contractual arrangements and the procurement process are set out in the supporting documentation available in PCS-T.

The Contracting Authorities are hosting an online bidders event on Tuesday 9th November 2021 from 09.00am to 10.00am GMT. Please complete registration on the following link - https://www.eventbrite.co.uk/e/edinburgh-bioquarter-health-innovation-district-joint-venture-bidders-event-tickets-199858711787

two.1.5) Estimated total value

Value excluding VAT: £1,000,000,000

two.1.6) Information about lots

This contract is divided into lots: No

two.2) Description

two.2.2) Additional CPV code(s)
  • 70110000 - Development services of real estate
  • 70000000 - Real estate services
  • 70100000 - Real estate services with own property
  • 70111000 - Development of residential real estate
  • 70112000 - Development of non-residential real estate
  • 70121000 - Building sale or purchase services
  • 70122000 - Land sale or purchase services
  • 66122000 - Corporate finance and venture capital services
  • 79411100 - Business development consultancy services
  • 79993000 - Building and facilities management services
  • 79900000 - Miscellaneous business and business-related services
  • 75200000 - Provision of services to the community
  • 98000000 - Other community, social and personal services
  • 85323000 - Community health services
two.2.3) Place of performance
NUTS codes
  • UKM75 - Edinburgh, City of
two.2.4) Description of the procurement

Bids for the role of private sector partner will be evaluated against 4 key themes which align with the requirements. Each will be explored in dialogue. A: Property Development & Management Services - develop and manage the PSP land zone in line with the Place Strategy and Sustainability Strategy with sufficient levels of commercial health innovation accommodation to meet the BioQuarter Vision. B: Commercial Health innovation Services - provide commercial health innovation services/model that will see activation and accelerated growth of the ecosystem in line with the Innovation Strategy across the whole BioQuarter site. C: Community Impact Services - provide community impact services by working in partnership with the Contracting Authorities and BioQuarter’s other stakeholders to ensure that BioQuarter plays a significant community impact role in line with the Community Impact Strategy. D: Commercial and Legal - raise development funding and resourcing to deliver A, B & C and enter a sustainable, long-term framework to work in partnership and deliver the ambitions for BioQuarter.

Property development and management is anticipated to be limited to the PSP land zones. Tenant retention, attraction, marketing and letting services is anticipated to be included in the scope in relation to BioQuarter NINE and the BioCubes where bidders consider these services will form an integral and valuable part of their proposals for a health innovation ecosystem. FM Services to some common areas out with the PSP land zones is anticipated to be included as a requirement.

The Contracting Authorities aspire to have in the region of 50% of the GIA of development in the PSP land zone as commercial health innovation accommodation to maximise BioQuarter’s strategic objectives for economic growth and community impact and ensure a high level of accommodation is available for commercial health innovation companies and tenants. The Contracting Authorities understand that this ambition needs to be balanced with commercial viability.

During dialogue, it is anticipated that accommodation proposals may be refined being informed by commercial viability, phasing and income generation solutions from bidders and/or the availability of third party public funding. Bidders will be expected to maximise the delivery of commercial health innovation accommodation and the evaluation of submissions will take into account the proportion of commercial health innovation accommodation proposed against the aspiration for in the region of 50%.

The PSP will be responsible for setting the strategy for infrastructure provision to enable their development ambitions. This will include the provision of energy sources, to meet environmental standards set out in the Sustainability Strategy. The Contracting Authorities have explored some potential solutions which have included preliminary discussions with Midlothian Energy Limited. The Contracting Authorities have made no commitments to energy or infrastructure solutions and it is expected that options will be fully explored through dialogue.

Whilst no third-party funding has to date been assured to support the project, the Contracting Authorities are actively pursuing such funding to support the development and bidders will be advised during dialogue. This is currently focussed on, but not limited to, grant funding programmes from the Scottish and UK Governments for low carbon energy solutions, general infrastructure works to make the PSP land zones ready for development and opportunities to accelerate the delivery of innovation space. The Contracting Authorities will advise bidders if the position regarding potential third-party public-sector funding changes during the continuance of the procurement exercise. Bidders will be expected to address the provision of funding for its activities in its bid.

Please see section V.I.3 for details relating to the procurement documentation being released at this stage.

two.2.5) Award criteria

Quality criterion - Name: Quality / Weighting: 70

Price - Weighting: 30

two.2.6) Estimated value

Value excluding VAT: £1,000,000,000

two.2.7) Duration of the contract, framework agreement or dynamic purchasing system
Duration in months

300

This contract is subject to renewal

Yes

Description of renewals

The contracts will be awarded for an initial 25-year term, with possible extension options for a further 10 years and then a further 5 years

(giving a potential 40 year term in total). Extension options will act as breakpoints for contract review.

two.2.9) Information about the limits on the number of candidates to be invited

Envisaged number of candidates: 5

Objective criteria for choosing the limited number of candidates:

The procurement process that is anticipated to be followed is in stages. The first stage is the SPD. When completing the SPD, bidders must have regard to the statements in this Notice and the SPD guidance document. The Contracting Authorities intend to invite 5 bidders to participate in dialogue.

These 5 bidders must:

a) Pass the minimum standards in SPD Part III (Exclusion Grounds);

b) Pass the minimum standards in SPD Sections 4B and 4D in the PCS-T Qualification envelope. Statements for these questions can be found in the SPD guidance document and Sections III.1.1, III.1.2 and III.1.3 (Minimum level(s) of standards possibly required) of this Notice; and

c) Complete the scored SPD Section 4C found in the PCS-T Technical envelope and achieve the first, second, third, fourth and fifth highest overall weighted score for the questions in Section 4C. Statements for these questions can be found in the SPD guidance document and

Section III.1.3 (List and brief description of selection criteria) of this Notice. Section 4C will be scored as per scoring methodology detailed below. Objective Criteria for Shortlisting - SPD Section 4C scoring method:

0 – Unacceptable. Nil or inadequate response. Fails to demonstrate previous experience/capacity/capability relevant to this criterion.

1 – Poor. Response is partially relevant but generally poor. The response shows some elements of relevance to the criterion but contains insufficient/limited detail or explanation to demonstrate previous relevant experience/ capacity/capability.

2 – Acceptable. Response is relevant and acceptable. The response demonstrates broad previous experience, knowledge and skills/capacity/capability but may lack in some aspects of similarity e.g. previous experience, knowledge or skills may not be of a similar nature.

3 – Good. Response is relevant and good. The response is sufficiently detailed to demonstrate a good amount of experience, knowledge or skills/capacity/capability relevant to providing similar services to similar clients.

4 –Excellent. Response is completely relevant and excellent overall. The response is comprehensive, unambiguous and demonstrates thorough experience, knowledge or skills/capacity/capability relevant to providing similar services to similar clients.

Scored SPD Section 4C question weighting:

4C.1.2 Statement 1 Example 1 – Development Capability (Maximum weighting available 35 percent)

4C.1.2 Statement 2 Example 2 – Partnership working and investment risk (Maximum weighting available 15 percent)

4C.1.2 Statement 3 Example 3 – Managing & developing health innovation and ecosystems (Maximum weighting available 40 percent)

4C1.2 Statement 4 Example 4 - Community Impact (social and economic) (Maximum weighting available 10 percent)

d) Pass the Business Continuity Questionnaire Appendix C and Information Security Questionnaire Appendix D in the PCS-T Technical Envelope.

The Contracting Authority intends to invite the top 5 candidates who have all passed the relevant questions and have achieved the highest scores in the scored assessment to participate in dialogue. 5 qualified bidders will be invited to participate in dialogue (outline solution stage). Following dialogue, bidders will be formally invited to submit their outline solutions which will be evaluated in accordance with the outline solution criteria and evaluation methodology that will be confirmed to them. Following evaluation of outline solution submissions, the highest scoring 3 bidders will be invited to continue dialogue (detailed solution stage). Once dialogue is closed, the 3 bidders will be invited to submit their final solutions which will be evaluated in accordance with the criteria and evaluation methodology. The bidder with the highest scoring final solution will be invited to become the preferred bidder and enter into the Strategic Joint Venture Agreement and other contracts.

two.2.10) Information about variants

Variants will be accepted: No

two.2.11) Information about options

Options: No

two.2.13) Information about European Union Funds

The procurement is related to a project and/or programme financed by European Union funds: No

two.2.14) Additional information

Bidders may be excluded from this procurement if they are in any of the situations referred to in regulation 58 of the Public Contracts.(Scotland) Regulations 2015. Bidders who are unsuccessful at this stage will be provided with feedback.Dialogue will continue until the Contracting Authorities are satisfied that they can identify the solution or solutions which are capable of meeting their needs.


Section three. Legal, economic, financial and technical information

three.1) Conditions for participation

three.1.2) Economic and financial standing
Minimum level(s) of standards possibly required

SPD 4B.1.1 Statement:

Bidders will be required to have a minimum “general” yearly turnover of 10, 000, 000 GBP for the last 2 years.

SPD

4B.3 Statement

Where turnover information is not available for the time period requested, the bidder will be required to state the date which they were set

up/started trading.

4B.4

Bidders will be required to provide adequate assurance of financial strength to successfully complete their contractual obligations. Bidders

must read carefully Appendix A Financial Evaluation Summary, Appendix B Financial Evaluation Template.

Bidders must be able to provide a DUNS number in order to bid. Please provide your DUNS number in the ratio calculation template.

DUNS number to be used by the Contracting Authorities to obtain a Dun & Bradstreet (D&B) Financial Risk Indicator Score, the level of

which will determine a score as noted in Appendix A, bidders to include in Appendix B:

Bidder must provide the following ratios, within the ‘Ratio Calculation Template’:

-Acid Test Ratio

-Return on Capital Employed (ROCE)

-Gearing

A review of your ratios and Dun and Bradstreet may be undertaken. In some cases this review may lead to an additional request for further

financial information to help clarify any potential issues raised. This information may be used to assess financial sustainability.

SPD 4B.5.1a, 4B.5.1b and 4B.5.2 Statement:

It is a requirement of this contract that bidders hold, or can commit to obtain prior to the commencement of any subsequently awarded

contract, the types and levels of insurance indicated below:

Employer’s (Compulsory) Liability Insurance = 5,000,000 GBP

Public Liability Insurance = 10,000,000 GBP

Professional Indemnity Insurance = 10,000,000 GBP

Product Liability Insurance = 5,000,000 GBP

It is currently envisaged that parent company guarantees or other forms of suitable security will be required from bidders.

three.1.3) Technical and professional ability
List and brief description of selection criteria

BELOW ARE SUMMARISED STATEMENTS ONLY. BIDDERS MUST REFER TO FULL STATEMENTS IN SECTION 4C OF THE SPD GUIDANCE DOCUMENT ATTACHED PCS-T

SPD 4C.1.2 Statement

Bidders are required to submit 4 case studies demonstrating that they have the relevant experience in the key areas identified in each

question. For full questions please refer to SPD guidance document. Responses should be clearly labelled and provided in a single

document attached to the response box in PCS-T.

Minimum level(s) of standards possibly required

BELOW ARE SUMMARISED STATEMENTS ONLY. BIDDERS MUST REFER TO FULL STATEMENTS IN SECTION 4D OF THE SPD GUIDANCE DOCUMENT ATTACHED PCS-T

4D.1 Statement 1: Quality Management

The bidder must hold a UKAS (or equivalent) accredited independent third party certificate of compliance in accordance with BS EN ISO

9001 (or equivalent),

4D.1 Statement 2: Health & Safety

The bidder must hold a UKAS (or equivalent), accredited independent third party certificate of compliance in accordance with BS OHSAS

18001 or ISO 45001 (or equivalent) or have, within the last 12 months, successfully met the assessment requirements of a

construction-related scheme in registered membership of the Safety Schemes in Procurement (SSIP) forum.

4D.1.1 Statement 1:

If the bidder does not hold a UKAS (or equivalent) accredited independent third party certificate of compliance in accordance with BS EN

ISO 9001 (or equivalent), the bidder must have the following:

Equivalent, documented policy and procedures regarding quality management, endorsed by the Chief Executive Officer, or equivalent.

These must include the following documented items relevant to the nature and scale of the work to be carried out, which are equivalent to

the standards listed above — a policy with set responsibilities, review and improvement procedures, quality management and performance

process, workforce training, skills and information process, monitoring arrangements, bidder quality management arrangements, and a process for managing complaints.

4D.1.1 Statement 2:

If the bidder does not hold a UKAS (or equivalent), accredited independent third party certificate of compliance in accordance with

BSOHSAS 18001 or ISO 45001 (or equivalent) or have, within the last 12 months, successfully met the assessment requirements of a

construction-related scheme in registered membership of the Safety Schemes in Procurement (SSIP) forum, then the bidder must have the

following:

Equivalent, regularly reviewed and documented policy and procedures for Health and Safety (H&S) management, endorsed by the Chief

Executive Officer, or equivalent. These must include the following documented processes and arrangements relevant to the nature and scale

of the work to be carried out, which are equivalent to the standards listed above –ensuring H&S effectiveness, obtaining H&S advice and

assistance, training, skills and information for bidder workforce, workforce H&S qualifications, checking and reviewing H&S performance,

involving workforce in planning and implementation, recording accidents/incidents and follow-up actions, ensuring bidder’s suppliers

apply H&S appropriate measures, risk assessment, and coordinating with bidder’s suppliers.

SPD 4D.2 Statement

The Bidder must hold a UKAS (or equivalent) accredited independent third party certificate of compliance with BS EN ISO 14001 (or

equivalent) or a valid EMAS (or equivalent) certificate

SPD 4D.2.1 Statement

If the bidder does not hold UKAS (or equivalent) accredited independent third party certificate of compliance with BS EN ISO 14001 (or

equivalent) or a valid EMAS (or equivalent) certificate, then the bidder must have the following:

Equivalent, regularly reviewed documented policy and procedures regarding environmental management, authorised by the Chief Executive, or equivalent.

These must include the following documented processes and arrangements relevant to the nature and scale of the work to be carried out, which are equivalent to the standards listed above – ensuring effectiveness of measures and reducing impacts, workforce training and skills, checking and reviewing, dealing with waste, and ensuring any suppliers the bidders engages apply appropriate environmental protection

measures

three.2) Conditions related to the contract

three.2.2) Contract performance conditions

Where bidders are bidding as part of a group (e.g. a consortium), the Contracting Authorities reserve the right to require bidders to assume

a particular legal form for the purpose of the award of the contracts (e.g. establishing a special purpose vehicle (SPV) to act as the private sector partner). Where a bidder relies on the capacities of other entities with regard to criteria relating to economic and financial standing,the Contracting Authorities reserve the right to require that the bidder and those entities be jointly and severally liable.


Section four. Procedure

four.1) Description

four.1.1) Type of procedure

Competitive dialogue

four.1.4) Information about reduction of the number of solutions or tenders during negotiation or dialogue

Recourse to staged procedure to gradually reduce the number of solutions to be discussed or tenders to be negotiated

four.1.8) Information about the Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: Yes

four.2) Administrative information

four.2.1) Previous publication concerning this procedure

Notice number: 2020/S 121-298087

four.2.2) Time limit for receipt of tenders or requests to participate
Date

10 December 2021

Local time

8:00am

four.2.3) Estimated date of dispatch of invitations to tender or to participate to selected candidates

28 February 2022

four.2.4) Languages in which tenders or requests to participate may be submitted

English

four.2.6) Minimum time frame during which the tenderer must maintain the tender

Duration in months: 12 (from the date stated for receipt of tender)


Section six. Complementary information

six.1) Information about recurrence

This is a recurrent procurement: No

six.2) Information about electronic workflows

Electronic ordering will be used

Electronic invoicing will be accepted

Electronic payment will be used

six.3) Additional information

Bidders are required to read all documentation available throughout all parts of the procurement. Within the Contract Notice the Contracting Authorities have made available – Bidders Information Guide, which contains key areas referred to in sections II.1.4 and II.2.4 of this Notice, draft legal Heads of Terms and a draft copy of the Invitation to Participate in Dialogue. All documentation can be accessed via PCS.

Competitive dialogue procedure has been used, as specified in Regulation 31 of the PC(S)R 2015. The aim is to dialogue with bidders to identify and define the means best suited to satisfying their needs. Under the Freedom of Information (Scotland) Act 2002 (FOISA) and the Environmental Information (Scotland) Regulations 2004 (EIR), the Contracting Authorities may need to disclose and/or publish any information you send. If any information included in your response is considered commercially sensitive/confidential, please identify it and explain (in broad terms) what harm might result from disclosure and/or publication. Even where you have indicated that information is commercially sensitive or confidential, we may be required to disclose and/or publish it.

The Contracting Authorities will require the means of proof as evidence of fulfilment of the selection criteria detailed in the SPD. Should documentation not be forthcoming or satisfactory, e.g. certification out of date or incorrect certification held, the Contracting Authorities reserve the right to disqualify any Bidder.

Bidders and subcontractors engaged in the delivery of this contract may be excluded if they have not met all aspects of SPD section 3D. This includes obligations for certain organisations under the Modern Slavery Act 2015 (available online at http://www.legislation.gov.uk/ukpga/2015/30/contents/enacted), as well as obligations listed in Annex X of Directive 2014/24/EU (available online at http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32014L0024&from=EN).

The Contracting Authorities reserves the right to cancel the procurement process at any stage and/or not to award the contract as a result of the competition

The buyer is using PCS-Tender to conduct this PQQ exercise. The Project code is 19891. For more information see: http://www.publiccontractsscotland.gov.uk/info/InfoCentre.aspx?ID=2343

A sub-contract clause has been included in this contract. For more information see: http://www.publiccontractsscotland.gov.uk/info/InfoCentre.aspx?ID=2363

Community benefits are included in this requirement. For more information see: https://www.gov.scot/policies/public-sector-procurement/community-benefits-in-procurement/

A summary of the expected community benefits has been provided as follows:

Community impacts are included as a core requirement – scope of works Theme C see reference to the third dialogue theme (C: Community Impact Services) above. For more information see: https://www.gov.scot/policies/public-sector-procurement/community-benefits-in-procurement/

A summary of the expected community impact has been provided as follows:

Community Impact is a key component of this procurement, in both evaluation and delivery of this project. This will be addressed through the third and fourth dialogue themes (C: Community Impact Services; and D: Commercial and Legal).

BioQuarter has the potential to be a catalyst for the regeneration of areas beyond its boundaries: It is located in Little France, a suburb of Southeast Edinburgh and several of the surrounding neighbourhoods including Craigmillar, Mordun and Niddrie rank high on the Scottish Index of Multiple Deprivation.

The Contracting Authorities believe that it is crucial that development at BioQuarter leads to the creation of employment, educational and social opportunities, and amenities for local communities. For it to be truly inclusive it needs to be accessible and tackle non-physical barriers, pertinent to the socio-economic status of the surrounding areas.

(SC Ref:671913)

six.4) Procedures for review

six.4.1) Review body

Edinburgh Sheriff Court

Edinburgh

Country

United Kingdom