Loughborough University: Project Texas

  Loughborough University has published this notice through Delta eSourcing

Notice Summary
Title: Project Texas
Notice type: Voluntary Ex-Ante Transparency Notice
Authority: Loughborough University
Nature of contract: Services
Procedure: Award without prior publication
Short Description: The University proposes entering into an agreement for lease with Stoford Loughborough Limited (“Stoford”) that will, subject to the satisfaction of certain conditions precedent, result in the grant of a long lease by the University of a site owned by the University (“the site”) to a lessee nominated by Stoford (“the lessee”). Stoford proposes to commission the construction by a building contractor for the lessee of a new advanced manufacturing facility on the site, along with site specific infrastructure, which the lessee will sub-lease to an occupier (“the sub-lessee”). The building contractor will also provide certain infrastructure works on land owned by the University adjacent to the site, comprising a new roundabout, spine road and drainage, which will be owned by the University.
Published: 21/01/2025 16:38

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UK-Loughborough: Real estate services.

Preliminary Questions
   This notice is published by:
   Directive 2014/24/EU

Section I: Contracting authority/entity

I.1) Name and addresses
       Loughborough University
       Epinal Way, Loughborough, LE11 3TU, United Kingdom
       Tel. +44 1509228186, Email: M.T.Chester@lboro.ac.uk
       Contact: Mark Chester
       Main Address: https://www.lboro.ac.uk
       NUTS Code: UKF2

I.4) Type of the contracting authority (in the case of a notice published by a contracting authority)
      Body governed by public law

I.5) Main Activity (in the case of a notice published by a contracting authority)
      Education


Section II: Object

II.1) Scope of the procurement
   
   II.1.1) Title: Project Texas.
      Reference number: LU00958
      
   II.1.2) Main CPV code:
      70000000 - Real estate services.
   
   II.1.3) Type of contract: SERVICES
   
   II.1.4) Short Description: The University proposes entering into an agreement for lease with Stoford Loughborough Limited (“Stoford”) that will, subject to the satisfaction of certain conditions precedent, result in the grant of a long lease by the University of a site owned by the University (“the site”) to a lessee nominated by Stoford (“the lessee”). Stoford proposes to commission the construction by a building contractor for the lessee of a new advanced manufacturing facility on the site, along with site specific infrastructure, which the lessee will sub-lease to an occupier (“the sub-lessee”). The building contractor will also provide certain infrastructure works on land owned by the University adjacent to the site, comprising a new roundabout, spine road and drainage, which will be owned by the University.
   
   II.1.6) Information about lots
      This contract is divided into lots: No

   II.1.7) Total value of the procurement (excluding VAT)
      Value: 4,000,000      
      Currency: GBP


II.2) Description

   II.2.2) Additional CPV codes:
      70112000 - Development of non-residential real estate.
      70120000 - Buying and selling of real estate.
   

   II.2.3) Place of performance:
      UKF2 Leicestershire, Rutland and Northamptonshire
   
   
   II.2.4) Description of the procurement:
    The University is to enter into an agreement for lease with Stoford Loughborough Limited (“Stoford”) in respect of land located at the University’s Science and Enterprise Park. The agreement for lease provides for the grant of a 150-year lease to the lessee subject to conditions precedent including, amongst others, the obtaining of planning permission and Stoford entering into an agreement with the lessee whereby the lessee will accept the lease for agreed purposes. These are that Stoford will oversee the construction for the lessee by a building contractor of a new building comprising manufacturing, warehousing, offices, clean room facilities and site-specific infrastructure which will be sub-leased by the lessee to the sub-lessee pursuant to separate arrangements. To allow the new facility to be developed, occupied and accessed, infrastructure (roundabout, spine road and drainage) will be provided on separate land which will continue be owned and occupied by the University.    
   
   II.2.5) Award criteria
   (Directive 2014/24/EU / Directive 2014/25/EU)
               
    Not provided       
      
      
   II.2.11) Information about options:
      Options:    No       
   
   II.2.13) Information about European Union funds:
      The procurement is related to a project and/or programme financed by European Union funds:    No

   II.2.14) Additional information:
    Not provided    
      
Section IV: Procedure

IV.1) Description
   
   IV.1.1) Type of procedure: Award of a contract without prior publication of a call for competition in the Official Journal of the European Union in the cases listed below         
   
   IV.1.3) Information about framework agreement
         The procurement involves the establishment of a framework agreement: No    
   
   IV.1.8) Information about the Government Procurement Agreement (GPA)
         The procurement is covered by the Government Procurement Agreement:Yes
         
IV.2)Administrative Information

   IV.2.1) Previous publication concerning this procedure:
      Notice number in OJ S: Not provided       
   
Section V: Award Of Contract/Concession
      
Award of Contract/Concession No: 1
Contract No: Not Provided    Lot Number: Not Provided    Title: Not Provided

V.2) Award of contract/concession
      
      V.2.1) Date of contract award decision: 20/01/2025.
      
      V.2.2) Information about tenders
      The contract has been awarded to a group of economic operators: No .

      V.2.3) Name and address of the contractor/concessionaire, No. 1:
          Stoford Loughborough Limited, 16166913
       26-28 Ludgate Hill, Birmingham, United Kingdom
       NUTS Code: UKG31
   The contractor/concessionaire will be an SME: No    
   
         
      V.2.4) Information on value of the contract/lot/concession:
         Initial estimated total value of the contract: 4,000,000          
         Total value of the contract/lot/concession 4,000,000         
         Currency: GBP

      V.2.5) Information about subcontracting:
         The contract is likely to be subcontracted: No          


Section VI: Complementary Information

   VI.3) Additional Information:
      To view this notice, please click here:
https://www.delta-esourcing.com/delta/viewNotice.html?noticeId=918855561
GO-2025121-PRO-29186048 TKR-2025121-PRO-29186047   
   VI.4) Procedures for review
   
      VI.4.1) Review Body
          Loughborough University
       Epinal Way, Loughborough, LE11 3TU, United Kingdom
       Tel. +44 1509228186
   
      V1.4.2) Body responsible for mediation procedures:
         Not Provided .

      VI.4.3) Review procedure
      Not Provided    
      
      VI.4.4) Service from which information about the review procedure may be obtained
         Not Provided
   
   VI.5) Date of dispatch of this notice: 21/01/2025


Annex D1 - General Procurement
Justification for the award of the contract without prior publication of a call for competition in the Official Journal of the European Union
Directive 2014/24/EU


2. Other justification for the award of the contract without prior publication of a call for competition in the Official Journal of the European Union

   The procurement falls outside the scope of application of the directive: Yes

3. Explanation

   Please explain in a clear and comprehensive manner why the award of the contract without prior publication in the Official Journal of the European Union is
   lawful, by stating the relevant facts and, as appropriate, the conclusions of law in accordance with the directive: (500 words maximum)
   The transaction outlined will result in infrastructure works being constructed on land owned by the University. However, the University considers that the transaction does not, for that reason, constitute a public works contracts within the scope of the regulations. First, it is assumed for the purposes of publication of this Notice that the University is a contracting authority which is bound to comply with the regulations. However, the University reserves its position on that issue. Second, the main subject matter of the transaction from the point of view of the University is the disposal of a parcel of its land at the Science and Enterprise Park by way of the agreement for lease with Stoford and, ultimately, the long lease by the University to the lessee. Stoford, the lessee and (under separate arrangements) the sub-lessee have their own objectives including the construction, leasing and occupation of the new facility along with the infrastructure works which are necessary to facilitate occupation of and access to the facility. The University’s objective is the disposal of its land, as it will not be party to the subsequent development and leasing of the facility. The disposal of the University’s land will result in the provision of certain infrastructure works on the University’s retained land, the value of which will be reflected in the premium paid by the lessee for its lease of the site. These works are ancillary and/or incidental to the primary objective of disposing of the parcel of land upon the terms of the long lease and necessary to facilitate occupation of and access to the new facility and would not take place in the absence of the disposal of the University’s land. On that basis, the transaction is not a public works contract because of the application of regulation 4(2) of the regulations. For the avoidance of doubt, the construction works which are to be carried out on the University’s retained land are not objectively separable from the construction works which are to be carried out on the site, as they are to adjoin and connect with the site and will be performed by the same building contractor under a single contract. Third, the University will have no right to procure the construction of the facility and can exercise no control over the form or specifications of the development of the site other than prescribing that the uses of the new facility are aligned to those that will be imposed through the planning permission process. The building contract for the construction of the facility, between Stoford and a contractor to be chosen through a competitive tendering procedure could not be a public works contract for that reason also. Fourth, even if the infrastructure works on the University’s retained land were separable from the other aspects of development of the facility, their value is significantly less than the £5,372,609 threshold for public works contracts and so such works would not be subject to the application of the regulations in any event.
   

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