2.1 Contract Award for construction of Galway Surgical Hub at Merlin Park University Hospital, Galway
The Chair welcomed and introduced Mr Brian O’Connell as the Interim National Director, Capital & Estates, and thanked the Committee for attending today’s meeting.
The Acting CSO and Interim ND Capital & Estates presented to the Committee the Contract Award for construction of Galway Surgical Hub at Merlin Park University Hospital, Galway.
The Committee noted that the contract presented was the second of 6 new surgical hubs announced by the Minister for Health in December 2022. The surgical hubs will be separate facilities with separate resources to ensure that time, and the facilities themselves, are protected for elective care.
The Committee reviewed the contract and discussed the extended timeframe proposed by the contractor, if this could impact on the tendered cost, and the reasoning why only one tender was received.
The ND Capital & Estates advised the Committee that interested contractors were invited to return a completed Suitability Assessment Questionnaire (SAQ), which were assessed by the HSE appointed Design Team, as a result three contractors were successfully prequalified for the project and were invited to tender. One tender was received, following the voluntary withdrawal of the other two contractors, he confirmed that the tender received reflects the current market rates for this scale and complexity of project in the area.
The Committee noted that the bid was determined to be the Most Economically Advantageous Tender (MEAT) and represented value for money in the current market. A full analysis of the tender was carried out, with a number of queries raised by the HSE appointed Technical Advisor (TA) Team during post-tender clarifications, who then recommended acceptance of the tender. With regard to the extended timeframe, which is in excess of what the tender documents sought, the Committee were advised that the programme is under discussion with the contractor with the intention of improving on the timeframe if possible. The Committee asked that the Interim ND Capital & Estates confirm to the Committee the overall risk provision for this contract and the value of the bond.
The Committee requested that the Acting CSO would provide the Committee with periodic reports comparing the tender amounts for major projects approved by the Board with the final outturn for those projects. In addition, for all major capital projects, briefing papers will highlight any risks of likely cost overruns.
The Committee considered the detail of the Contract and agreed to recommend to the HSE Board for approval, and asked that consideration be given to designating this development as one which will operate on a 7-day basis.