Modification notice

Modification of a contract/concession during its term

Section I: Contracting entity

I.1) Name and addresses

Section II: Object

II.1) Scope of the procurement

II.2) Description

Section IV: Procedure

IV.2) Administrative information

Section V: Award of contract/concession

Contract No: 1

V.2 Award of contract/concession

V.2.1) Date of conclusion of the contract/concession

09/04/2021

V.2.2) Information about tenders

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

V.2.3) Name and address of the contractor/concessionaire

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

Total value of the contract/lot: /concession: 2 490 000.00  GBP

Section VI: Complementary information

VI.4) Procedures for review

VI.5) Date of dispatch of this notice

30/06/2022

Section VII: Modifications to the contract/concession

VII.1) Description of the procurement after the modifications

VII.1.1) Main CPV code

90511000

VII.1.2) Additional CPV code(s)

VII.1.3) Place of performance

NUTS code:

UKN0E

VII.1.4) Description of the procurement

Provision for the Recycling and Recovery of Residual and Bulky Waste from Council Household

Recycling Centres in the Lisburn and Castlereagh City area. The tender is for one year with the option to extend for a further 2 years. The

contract commenced on 12 April 2021 and would therefore end on 11 April 2024 should the Council choose to exercise all extensions

under the contract. The current extension will be for an initial 6 months which would bring us to 12 October 2022.

VII.1.5) Duration of the contract, framework agreement, dynamic purchasing system or concession

Duration in months: 36

VII.1.6) Information on value of the contract/lot/concession (excluding VAT)

Total value of the procurement: 2 875 000.00 GBP

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

VII.1.7) Name and address of the contractor/concessionaire

VII.2) Information about modifications

VII.2.1) Description of the modifications

The cost increase has been attributable to the increasing energy and fuel costs (also the ban on the use of red diesel and move to white

diesel) which directly impacts on the operation of the Materials Recovery Facility, the driver and employee shortage challenge within the

haulage and waste processing industries which has necessitated employers reviewing their pay scales and terms and conditions not only

to hold on to existing staff but also to attract new staff and increasing costs for the manufacture and supply of components and parts

used in the maintenance of plant, equipment and waste containers. The recent increase in National Insurance costs has also impacted

on staffing costs. The transition of world economies out of Covid, Brexit and its impact of the war in Ukraine have directly contributed to

the current economic climate of rising costs. It is worthwhile noting that UK inflation currently stands at around 9% and is expected to

increase further over the coming months. The tender was awarded in early January 2021 and it is therefore reasonable to assume that

contractors would not have foreseen the current cost increases in delivering services under the contract at time of tendering.

This direct award is permitted by Regulation 72(1)(c) of the Public Contracts Regulations 2015

(c) where all of the following conditions are fulfilled:—

(i) the need for modification has been brought about by circumstances which a diligent contracting authority could not have foreseen;

(ii) the modification does not alter the overall nature of the contract;

(iii) any increase in price does not exceed 50% of the value of the original contract or framework agreement.

VII.2.2) Reasons for modification

Need for modification brought about by circumstances which a diligent contracting authority/entity could not foresee

Description of the circumstances which rendered the modification necessary and explanation of the unforeseen nature of these circumstances:

The cost increase has been attributable to the increasing energy and fuel costs (also the ban on the use of red diesel and move to white

diesel) which directly impacts on the operation of the Materials Recovery Facility, the driver and employee shortage challenge within the

haulage and waste processing industries which has necessitated employers reviewing their pay scales and terms and conditions not only

to hold on to existing staff but also to attract new staff and increasing costs for the manufacture and supply of components and parts

used in the maintenance of plant, equipment and waste containers. The recent increase in National Insurance costs has also impacted

on staffing costs. The transition of world economies out of Covid, Brexit and its impact of the war in Ukraine have directly contributed to

the current economic climate of rising costs. It is worthwhile noting that UK inflation currently stands at around 9% and is expected to

increase further over the coming months. The tender was awarded in early January 2021 and it is therefore reasonable to assume that

contractors would not have foreseen the current cost increases in delivering services under the contract at time of tendering.

This direct award is permitted by Regulation 72(1)(c) of the Public Contracts Regulations 2015

(c) where all of the following conditions are fulfilled:—

(i) the need for modification has been brought about by circumstances which a diligent contracting authority could not have foreseen;

(ii) the modification does not alter the overall nature of the contract;

(iii) any increase in price does not exceed 50% of the value of the original contract or framework agreement.

VII.2.3) Increase in price

Updated total contract value before the modifications (taking into account possible earlier contract modifications and price adaptions and, in the case of Directive 2014/23/EU, average inflation in the Member State concerned)

Value excluding VAT: 2 490 000.00 Currency: GBP

Total contract value after the modifications

Value excluding VAT: 2 875 000.00 Currency: GBP