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