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Contract Award Notice

Transforming Rehabilitation: Contracts for the Delivery of Rehabilitative Services and Offender Mana

  • First published: 28 February 2019
  • Last modified: 28 February 2019
  • Version: N/A
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To record your interest or obtain additional information or documents please find instructions within the Full Notice Text. (NOTE: Contract Award Notices and Prior Information Notices do not normally require a response)

Contents

Summary

OCID:
Published by:
Ministry of Justice
Authority ID:
AA25231
Publication date:
28 February 2019
Deadline date:
-
Notice type:
Contract Award Notice
Has documents:
No
Has SPD:
No
Has Carbon Reduction Plan:
N/A

Abstract

This notice relates to modifications to the Lot 21/Kent Surrey and Sussex CRC (KSS) contract (the Contract). The Authority considers the modifications of the Contract without prior publication of a contract notice is permitted by the Public Contracts Regulations 2015 (PCR) and Directive 2014/24/EU. The Contract was modified in accordance with regulation 72(1)(b)/article 72(1)(b) and regulation 72(1)(c)/article 72(1)(c) on 15.2.19 and accordingly does not in the Authority's view amount to the award of a new contract and/or an unlawful substantial change.

The need for modification has been brought about by external circumstances which a diligent contracting authority could not have foreseen, namely the Working Links and its CRCs going into administration on 14.2.19 resulting in the need to place the services with a different contractor(s) for a period which is:

(a) too long to permit the use of the contingency mechanism in clause 6 of the original contracts but

(b) too short to make it economically or technically feasible to re-let the remaining term of the Working Links CRCs' contracts to an economic operator other than an existing CRC(s).

The modification does not alter the overall nature of the Contract, and the increase in price does not exceed 50 % of the value of the original Contract, namely 372 000 000 GBP as stated in the Contract Award Notice ref: 2015/S 027-045770.

Further, it is necessary for the additional services to be taken on by KSS because a change of contractor to an economic operator who is not an existing CRC cannot be made for economic and technical reasons and would cause significant inconvenience and substantial duplication of costs for the contracting authority, by reason of the very high level of human, operational and technical infrastructure required to operate a CRC in combination with the relative shortness of the required duration of the additional services. The increase in price will not exceed 50 % of the value of the original Contract, namely 372 000 000 GBP as stated in the Contract Award Notice ref: 2015/S 027-045770.

A Modification Notice has been published simultaneously on OJEU.

Full notice text

Contract award notice

Results of the procurement procedure

Section I: Contracting entity

I.1) Name and addresses

Ministry of Justice.

102 Petty France

London

SW1H 9AJ

UK

Telephone: +44 2033343555

E-mail: mojcommercialreset@justice.gov.uk

NUTS: UK

Internet address(es)

Main address: www.gov.uk/government/organisations/ministry-of-justice

I.4) Type of the contracting authority

Ministry or any other national or federal authority, including their regional or local subdivisions

I.5) Main activity

General public services

Section II: Object

II.1) Scope of the procurement

II.1.1) Title

Transforming Rehabilitation: Contracts for the Delivery of Rehabilitative Services and Offender Management

II.1.2) Main CPV code

75231240

 

II.1.3) Type of contract

Services

II.1.4) Short description

Following publication of Contract Notice ref 2013/S 183-315991, successful bidders acquired the Community Rehabilitation Companies (CRCs) and contracts were awarded on 5.12.14 for the delivery of probation services, with contracts entered into on 18.12.14. The contracts were for a 7-year initial term with an option to extend for a further 3 years. The contracts are due to expire on 4.12.20, following service of termination notices in December 2018. The GBP (£) figures quoted within the original contract award notice were the maximum anticipated, total, real value of the contracts if the contracts had been extended to the fullest amount allowed under the contract and payment by results had been paid at the maximum level in all periods, including all extensions.

Lot 21 (KSS CRC) was awarded to Seetec Business Technology Centre Ltd. Lot 11 (Wales CRC), Lot 13 (BGSW CRC) Lot 14 (DDC CRC) were awarded to Working Links (Employment) Ltd (“Working Links”) (together “Working Links CRCs”).

II.1.6) Information about lots

This contract is divided into lots: No

II.1.7) Total value of the procurement

Value excluding VAT: 372 000 000.00  GBP

II.2) Description

II.2.2) Additional CPV code(s)

75100000

75230000

75240000

80400000

80500000

85100000

85300000

II.2.3) Place of performance

NUTS code:

UK

II.2.4) Description of the procurement

This notice relates to modifications to the Lot 21/Kent Surrey and Sussex CRC (KSS) contract (the Contract). The Authority considers the modifications of the Contract without prior publication of a contract notice is permitted by the Public Contracts Regulations 2015 (PCR) and Directive 2014/24/EU. The Contract was modified in accordance with regulation 72(1)(b)/article 72(1)(b) and regulation 72(1)(c)/article 72(1)(c) on 15.2.19 and accordingly does not in the Authority's view amount to the award of a new contract and/or an unlawful substantial change.

The need for modification has been brought about by external circumstances which a diligent contracting authority could not have foreseen, namely the Working Links and its CRCs going into administration on 14.2.19 resulting in the need to place the services with a different contractor(s) for a period which is:

(a) too long to permit the use of the contingency mechanism in clause 6 of the original contracts but

(b) too short to make it economically or technically feasible to re-let the remaining term of the Working Links CRCs' contracts to an economic operator other than an existing CRC(s).

The modification does not alter the overall nature of the Contract, and the increase in price does not exceed 50 % of the value of the original Contract, namely 372 000 000 GBP as stated in the Contract Award Notice ref: 2015/S 027-045770.

Further, it is necessary for the additional services to be taken on by KSS because a change of contractor to an economic operator who is not an existing CRC cannot be made for economic and technical reasons and would cause significant inconvenience and substantial duplication of costs for the contracting authority, by reason of the very high level of human, operational and technical infrastructure required to operate a CRC in combination with the relative shortness of the required duration of the additional services. The increase in price will not exceed 50 % of the value of the original Contract, namely 372 000 000 GBP as stated in the Contract Award Notice ref: 2015/S 027-045770.

A Modification Notice has been published simultaneously on OJEU.

II.2.5) Award criteria

Price

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

Section IV: Procedure

IV.1) Description

IV.1.1) Type of procedure

Award of a contract without prior publication of a call for competition

Justification for selected award procedure:

The procurement falls outside the scope of application of the Directive

Explanation

The need for modification has been brought about by external circumstances which a diligent contracting authority could not have foreseen, namely Working Links and its CRCs going into administration on 14.2.19 resulting in the need to place the services with a different contractor(s) for a period which is:

(a) too long to permit the use of the contingency mechanism in clause 6 of the original contracts but

(b) too short to make it economically or technically feasible to re-let the remaining term of the Working Links CRCs' contracts to an economic operator other than an existing CRC(s).

The modification does not alter the overall nature of the Contract, and the increase in price does not exceed 50 % of the value of the original Contract, namely 372 000 000 GBP as stated in the Contract Award Notice ref: 2015/S 027-045770.

Further, it is necessary for the additional services to be taken on by KSS because a change of contractor to an economic operator who is not an existing CRC cannot be made for economic and technical reasons and would cause significant inconvenience and substantial duplication of costs for the contracting authority, by reason of the very high level of human, operational and technical infrastructure required to operate a CRC in combination with the relative shortness of the required duration of the additional services. The increase in price will not exceed 50 % of the value of the original Contract, namely 372 000 000 GBP as stated in the Contract Award Notice ref: 2015/S 027-045770.

IV.1.8) Information about Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: No

IV.2) Administrative information

IV.2.1) Previous publication concerning this procedure

Notice number in the OJ S:

2013/S 183-315991

Section V: Award of contract

Lot No: 21

Contract No: 2015/S 027-045770

Title: Kent, Surrey and Sussex

A contract/lot is awarded: Yes

V.2 Award of contract

V.2.1) Date of conclusion of the contract

15/02/2019

V.2.2) Information about tenders

Number of tenders received: 2

The contract has been awarded to a group of economic operators: No

V.2.3) Name and address of the contractor

The Kent, Surrey and Sussex Community Rehabilitation Company Ltd

08802556

75–77 Main Street

Hockley

UK

NUTS: UK

The contractor is an SME: No

V.2.4) Information on value of the contract/lot (excluding VAT)

Total value of the contract/lot: : 261 233 000.00  GBP

V.2.5) Information about subcontracting

The contract is likely to be subcontracted

Section VI: Complementary information

VI.3) Additional information

The Authority has made the following variations:

— to add the services that were previously provided by the Working Links CRCs in 3 separate contract package areas (Wales; Bristol, Gloucestershire, Somerset and Wiltshire; Dorset, Devon and Cornwall) to the Contract (Services),

— incorporate a mobilisation and transition plan for KSS to take over the Services in a managed way and provide for payment for mobilisation activities and transition costs,

— incorporation of some additional necessary service specification obligations specific to the three geographical areas being taken over,

— replication and adaptation of existing payment mechanism to also incorporate the Services,

— specific provisions to deal with staff transfers and apportioning related risks,

— technical drafting amendments to maintain the status quo and provide operationally for separation of activities and reporting within each separate contract package area,

— technical updates to reflect operational changes, e.g. subcontractors/premises to be operated from.

The contract value of 261 233 000,00 GBP stated in Section V.2.4) above relates to the estimated contract value for all services from contract commencement to contract expiry. 111 300 000 GBP of the total contract value relates to the additional Services for the period 15.2.2019 to 4.12.2020.

Please refer to section II.2.4) above.

The Authority has also submitted a Modification Notice for publication. The updated total contract value before the modifications as stated in the Modification Notice is 149 933 000 GBP. This reflects previous changes to the Contract as set out in Modification Notice ref: 2019/S 028/063373. This sum is less than the original contract value of 372 000 000 GBP (as stated in the Contract Award Notice ref: 2015/S 027-045770) and reflects various previous changes including the fact the contract duration has been shortened and payments over the life of the contracts to date have been less than originally anticipated.

In December 2018 the Authority notified all CRCs of its intention to undertake a mini competition as part of its contingency planning in response to a potential administration event. Only those CRCs which could take on the additional services without exceeding the 25 % Market Share Cap applied in the original TR procurement in 2014 were invited to participate in the mini competition. Two bids were subsequently received and evaluated.

VI.4) Procedures for review

VI.4.1) Review body

High Court Justice

London

UK

VI.5) Date of dispatch of this notice

21/02/2019

Coding

Commodity categories

ID Title Parent category
75100000 Administration services Administration, defence and social security services
80400000 Adult and other education services Education and training services
85100000 Health services Health and social work services
75230000 Justice services Provision of services to the community
75231240 Probation services Judicial services
75240000 Public security, law and order services Provision of services to the community
85300000 Social work and related services Health and social work services
80500000 Training services Education and training services

Delivery locations

ID Description
100 UK - All

Alert region restrictions

The buyer has restricted the alert for this notice to suppliers based in the following regions.

ID Description
There are no alert restrictions for this notice.

About the buyer

Main contact:
mojcommercialreset@justice.gov.uk
Admin contact:
N/a
Technical contact:
N/a
Other contact:
N/a

Further information

Date Details
No further information has been uploaded.

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