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 | Global Solutions Limited | Premier | UKDS | 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 |
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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 |
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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 | ||||||