Source · Select Committees · Public Accounts Committee
Recommendation 36
36
Acknowledged
The Department told us that it is concerned about the health and capacity of the...
Conclusion
The Department told us that it is concerned about the health and capacity of the market and sees a lack of supplier appetite to bid for the main construction contracts as a significant risk.65 It said that it has done some market engagement work including issuing an information notice to the market and had undertaken a survey of suppliers resulting in a database of potentially interested suppliers. It has also had consultancy support to understand the capacity of the market and the pipeline for these type of complex construction projects. The Department felt that it had done quite a lot of market engagement, but recognised there was more to do.66 The Department confirmed that it is still working on the commercial strategy for the Weybridge redevelopment programme, but aims to complete it shortly.67 63 Qq 42–43 64 Q 43 65 Q 75; C&AG’s Report, paragraph 3.18 66 Qq 74–75 67 Q 42 Redevelopment of Defra’s animal health infrastructure 19
Government Response Summary
The department will update the Committee in six months via Treasury Minute, by May 2023, the programme will have options around Science Hub form of contract and competition.
Government Response
Acknowledged
HM Government
Acknowledged
7. PAC conclusion: The redevelopment of Weybridge is a large construction programme with a range of commercial risks that will need careful management. 7. PAC recommendation: The Department should report back to us in six months on progress in developing its commercial strategy and specifically on how it: • Intends to structure its contracts and manage their integration effectively; and • Will ensure there is adequate competition for the main construction contracts. 7.1 The government agrees with the Committee’s recommendation. Target implementation date: June 2023 7.2 The department will update the Committee in six months via Treasury Minute. The Commercial Strategy Phase II has been endorsed by the SCAH Programme Board. Phase III of the Strategy is in development with a planned completion by Quarter 3 of 2023. By May 2023, the programme will have options around Science Hub form of contract and competition, including packaging approach and the contracting environment to manage sub programme integration. This will reflect early market engagement to ensure the department’s approach will attract sufficient market interest.