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
Contact person: Paul Carter
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 Services 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 5.12.2014 for the delivery of probation services, with contracts entered into on 18.12.2014. 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 4.12.2020, 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.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
456 000 000.00
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 6. The Cheshire and Greater Manchester Community Rehabilitation Company Ltd (“CRC”) 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) on 5.3.2019 and accordingly does not in the Authority's view amount to the award of a new contract and/or an unlawful substantial change. 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 456 000 000,00 GBP as stated in the contract award notice ref: 2015/S 027-045770. It is necessary for the additional services to be taken on by the contractor 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. In combination with the relative shortness of the extension period and requirement for the additional services, there is a very high level of human, operational and technical infrastructure required to operate a CRC, requirements of interoperability with the Contracting Authority and CRCs existing equipment. The Contracting Authority’s exercise of its right to extend the contract beyond 4.12.2020 to expire on or before 30.6.2021 will help to ensure safe and stable transition and mobilisation of probation services.
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 modification allows the Authority:
1) To exercise the option to extend the contract for a maximum period of 7 months;
2) To change the payment mechanism including replacing the payment by results with a cost plus model during the extension period; and
3) Add enhanced Authority audit rights.
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 456 000 000,00 GBP as stated in the contract award notice ref: 2015/S 027-045770. It is necessary for the additional services to be taken on by the contractor 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. In combination with the relative shortness of the extension period and requirement for the additional services, there is a very high level of human, operational and technical infrastructure required to operate a CRC, requirements of interoperability with the Contracting Authority and CRCs existing equipment. The Contracting Authority’s exercise of its right to extend the contract beyond 4.12.2020 to expire on or before 30.6.2021 will help to ensure safe and stable transition and mobilisation of probation services.
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: 6
Contract No: 2015/S 027-045770
Title: Cheshire And Greater Manchester
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
05/03/2019
V.2.2) Information about tenders
Number of tenders received: 1
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
The Cheshire and Greater Manchester Community Rehabilitation Company Ltd
08802524
Interserve House, Ruscombe Park, Ruscombe
Reading
RG10 9JU
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:
: 170 021 000.00
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 agreed heads of terms with the contractor to vary the contract to add an option for the Authority to extend the Contract beyond the termination date of 4.12.2020 to a date no later than 30.6.2021. In the event that the Authority exercises its right to extend the contract, for the period of 5.12.2020 to the revised termination date, the contract shall be modified as follows:
— replacing the fee for service mechanism with a “cost plus” mechanism to entitle the contractor to recover all recoverable costs incurred by the contractor to deliver the services, plus a percentage of the contractor’s actual costs,
— adjustment to the calculation of the payment by results mechanism so that no new quarterly cohorts or annual cohorts shall be deemed to have commenced from 5.12.2020 onwards, and
— adding enhanced Authority audit rights for the extension period.
The contract value of £170021000.00 stated in Section V.2.4 above relates to the estimated contract value for all services from contract commencement to contract expiry. 22 213 000,00 GBP of the total contract value relates to the additional services for the full potential extension period 5.12.2020 to 30.6.2021.
Please refer to section II.2.4 above.
The Authority has also submitted a modification notice for publication.
VI.4) Procedures for review
VI.4.1) Review body
High Court of Justice
London
UK
VI.5) Date of dispatch of this notice
15/05/2019