The Home Office signed the contract with its preferred bidder before the outcome of the judicial review was known

16  The Home Office chose Global Solutions Limited in January 2004 as its preferred bidder. Global Solutions Limited's construction price and operating fees were lower than the Home Office's cost estimates (see Figure 3 overleaf). Its bid still had some planning and other issues to be resolved, for example planning compliance. None of the consortiums were willing to accept planning risk, given the history of the project. To freeze the risk of price increases during construction and show commitment, the Home Office was keen to sign the contract as soon as possible. In the meantime, the Home Office's consultants worked with the preferred bidder to resolve detailed planning issues, address other key risks, such as ground conditions, and undertake initial non-planning-dependent works.

 

3

Comparison of the Design, Build and Operate bids submitted for Bicester

 

Home office cost plan estimate
(£'000)
3

Global Solutions Limited
(£'000)

Premier
Accommodation

Services

(£'000)

UKDS


(£'000)

NOTES

1  All figures exclude VAT unless otherwise stated.

2  Construction costs exclude the cost of site acquisition of £3.25 million and contractor capital budget allocations of some £3.768 million excluding VAT.

3  Costs are at August 2003 prices.

Construction

 

 

 

 

Construction

54,285

54,497

61,577

73,775

Equipment

6,046

3,146

4,291

5,303

Total

60,331

57,643

65,868

79,078

Maintenance

100

117

274

611

Operational start up

1,900

2,132

2,917

4,825

Total construction price/cost

62,331

59,892

69,059

84,514

operating fee

 

 

 

 

Maintenance

2,160

1,130

1,847

2,492

Operation

15,857

14,294

15,060

15,431

Total annual operating fee

18,017

15,424

16,907

17,923

Source: Bicester January 2004 Business Plan