Nursery

Dartford and Gravesham NHS Trust (the Trust) intends to enter into arrangements with [Bright Horizons] (the Operator) to grant the Operator a lease of land at the Darent Valley Hospital (the Hospital) to enable the Operator to construct and operate a nursery which staff at the Hospital will be able to use. The documents to be entered into by the Trust comprise Heads of Terms, an Agreement for Lease and a Lease.

The Trust intends to enter into (1) the Heads of Terms and (2) the Agreement for Lease, which provides the Operator with the option to construct a nursery on the Site. In the event that it does so, following completion of the nursery, the Trust will grant the Operator a Lease of the Site.

The arrangements are a land deal and do not amount to a public works contract or a works concession contract for the purposes of the Public Contracts Regulations 2015 (the PCR), the Concession Contracts Regulations 2016 (the CCR) or the Procurement Act 2023 (the Act). Additional information: The Trust identified the Operator following a competitive process, which was carried out outside the PCR, CCR and Act, which provided market operators within the sector with the opportunity to submit proposals to be granted a lease of the Site that would permit operation of a nursery.

The Trust proposes to enter into the Heads of Terms, followed by an Agreement for Lease in respect of the Site. The Agreement for Lease will contain break rights in favour of the Trust in the event that the Operator opts not to exercise its right to develop a nursery at the Site.

Where the Operator chooses to exercise its rights to develop a nursery at the Site, the Trust will grant a Lease of the Site to the Operator following completion of the relevant works. The Operator is under no obligation to undertake development at the Site.

No public contract arises due to a lack of enforceable obligation. The Lease will contain tenant covenants which limit the permitted use of the Site to nursery facilities and requirements to ensure that any buildings are constructed and maintained in line with statutory requirements and that any nursery services are carried out in line with statutory requirements and in a way that does not obstruct the wider operation of the Hospital.

These obligations are consistent with the grant of a lease to permit development and operation of facilities on a live hospital site. The Trust is not specifying requirements for the nursery if constructed, or providing any guarantee that staff will use the nursery’s services if constructed and there is no enforceable obligation on the Operator to deliver the nursery.

As such, no public contract or concession contract arises under the PCR, CCR or Procurement Act. The Trust will not enter into any contract or agreement with [Bright Horizons] before the expiry of the 10 day standstill period following publication of this notice.