I wish to thank the Deputy for his communication regarding my Department’s MMC 3d volumetric modular framework relating to a modular provider (details supplied). As you will be aware I also received this communication directly to my office.
The primary objective of my department in the running of this competition is to establish a framework agreement of suitably qualified economic operators for the provision of MMC pre-fabricated modular 3D volumetric educational accommodation. The framework agreement which is now established will operate for a term of up to four years.
The communication from the provider relates to their unsuccessful submission to obtain a place on the Framework and specifically the qualification criteria applied in regard to joint-venture minimum requirements.
Under EU public procurement law, contracting authorities may require that both members of a Joint Venture meet specific pre-qualification selection criteria, including those related to technical capability and experience, provided that this is objectively justified, proportionate, and clearly stated in the procurement documents. My department gave comprehensive feedback to the modular provider as to why it was stipulated in the competition that both members of a joint venture must demonstrate past experience in the delivery of modular buildings:
The purpose of the competition is to establish a framework agreement for Category 1 MMC only (i.e. 3D volumetric modular buildings). Other MMC solutions or traditional methods of construction are not acceptable as was clearly stated in the PIM document.
To ensure a level playing field, all applicants - including JV members - must be assessed on a consistent basis. Evaluating each JV member individually ensures that the contracting authority can verify that the JV as a whole meets the minimum standards for Technical Capability Criteria; specifically that each member can demonstrate past experience in the delivery of MMC Category 1 buildings.
The requirement for both JV members to demonstrate personnel and company past experience in modular buildings was a key requirement of this procurement competition as part of the contracting authority’s risk management strategy, such as:
the importance of ensuring contract performance reliability and guarantee, necessitated the assessment of the capability of both JV members,
the importance of ensuring that both members had experience and track record in the delivery of 3D volumetric modular buildings, specifically in the event of a potential future dispute between JV members, default or insolvency event by one member.
The Department of Education and Youth is satisfied that it has conducted the competition in a fair, transparent and objective manner in compliance with procurement law and has iterated this in its feedback correspondence to the modular provider.