Voluntary ex ante transparency notice
Directive 2014/24/EU
Section I: Contracting
entity
I.1) Name and addresses
South Oxfordshire District Council (and other Councils referred to below)
135 Eastern Avenue, Milton
Abingdon
OX14 4SB
UK
Contact person: Andrew Down
Telephone: +44 1235422300
E-mail: procurement@southandvale.gov.uk
NUTS: UKJ14
Internet address(es)
Main address: http://www.southoxon.gov.uk
Address of the buyer profile: https://sebp.due-north.com/
I.4) Type of the contracting authority
National or federal agency/office
I.5) Main activity
General public services
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
5 Councils Corporate Services Project
II.1.2) Main CPV code
79000000
II.1.3) Type of contract
Services
II.1.4) Short description
South Oxfordshire District Council, Havant Borough Council, Vale of White Horse District Council, Mendip District Council and Hart District Council (‘the Councils’) entered into a contract (for an initial duration of approximately 9 years) with Capita for a range of corporate and transactional services (‘the Contract’). The opportunity was advertised under OJEU Notice 2015/S 057-100137 and the Contract entered into on 4 April 2016. Further details of the original contract are set out in that OJEU Notice.
The Councils intend to enter into a further contract variation agreement with Capita for the purposes of removing the requirement for Procurement and the majority of the exchequer services and the reduction of the current IT service requirement from the scope of the original contract.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
126 528 796.00
GBP
II.2) Description
II.2.2) Additional CPV code(s)
79000000
79900000
66171000
66172000
79940000
75242110
75310000
75130000
79212400
79211120
79211110
79631000
79200000
79210000
79211000
79211200
66600000
72222300
72267100
72261000
72253000
79632000
79633000
79414000
79600000
79418000
79520000
79521000
79553000
79810000
79820000
79822500
79500000
79342300
79512000
79710000
79993000
79993100
98341130
98341140
70330000
98351000
98351100
98351110
II.2.3) Place of performance
NUTS code:
UKJ14
UKK23
UKJ3
Main site or place of performance:
Oxfordshire (UKJ14), Somerset (UKK23) and Hampshire (UKJ3, UKJ33).
II.2.4) Description of the procurement
This section provides detail of the reduction of the original contract.
The reduction in the I-Hub and Human Resources (Advisory) Services resulted in a reduction in Contract value of approximately GBP 700 242 per year for the remainder of the contract term.
The reduction in the licensing services resulted in a reduction in contract value of approximately GBP 377 000 per year for the remainder of the contract term.
The reduction in the human resources operational and payroll services resulted in a reduction of approximately GBP 1 012 086 per year for the remainder of the contract term.
The reduction in the finance services resulted in a reduction in contract value of approximately GBP 634 000 per year for the remainder of the contract term.
This notice is now concerned with the further reductions set out below:
The reduction in the exchequer services (via a contractual option, see II.2.14) would result in a reduction in contract value of approximately GBP 1 217 000 per year for the remainder of the contract term.
The reduction in the procurement function would result in the contract value being reduced by approximately GBP 366 844 per year for the remainder of the contract term.
The reduction in the IT service requirement would also result in an immaterial reduction in Contract value for the remainder of the Contract term.
Continues in Annex D1.
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
II.2.14) Additional information
Continued from II.1.4) — The previous variation also conferred on the Councils a contractual option to remove the majority of the exchequer services from the contract, subject to operational and commercial considerations. The Councils will be seeking to exercise this right to remove the exchequer service (with the exception of the Integra and Pay360 software and support via the Central Support Team.
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 contract has been reduced as per the information set out in section II.2.4).
Taking into account the value and scale of the original contract the Councils consider that the proposed modification(s) to further reduce the scope of the contract is not substantial for the purposes of Regulation 72(1)(e) of the PCR in the context of a GBP 140 262 000 contract spanning 9 years. (The 9 year term represents the contract duration of the contract, excluding any extension options). Furthermore, the economic balance of the contract is moving away from the contractor by the reduction of the service opportunity.
The Councils consider that modifying the contract in the manner proposed is for operational and commercial reasons to achieve a smooth transition and continuity are bringing these services back ‘in-house’'.
The restructuring of the services seeks to ensure the ongoing delivery of public services on a value for money basis.
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
Yes
IV.2) Administrative information
IV.2.1) Previous publication concerning this procedure
Notice number in the OJ S:
2015/S 057-100137
Section V: Award of contract/concession
V.2 Award of contract/concession
V.2.1) Date of conclusion of the contract/concession
28/10/2020
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
Capita Business Services
65 Gresham Street, London
Westminster
EC2V 7NQ
UK
Telephone: +44 2077991525
NUTS: UKI
The contractor is an SME:
Yes
V.2.4) Information on value of the concession and main financing terms (excluding VAT)
Total value of the concession/lot:
126 528 796.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.3) Additional information
The estimated value in II.1.7) and V.2.4) refers to the projected value of the diminished contract value in the event the Councils modify the Contract in accordance with the further variations set out in this notice.
Where the Councils remove the majority of the exchequer services, procurement function and reduce the IT service requirement from the contract (as set out in this notice) the estimated value of the modified contract will be GBP 126 528 796.
The value of the contract with Capita as originally awarded on 4 April 2016 was GBP 140 262 000 as per OJEU ref: 2016/S 088-154829.
The contract has previously been varied by the Councils to remove I-Hub, Human Resources (Advisory) Services Human Resources Operational and Payroll, Finance Services and Licensing Services from the scope of the Contract.
VI.4) Procedures for review
VI.4.1) Review body
Royal Courts of Justice, The Strand
London
WC2A 2LL
UK
VI.4.3) Review procedure
Precise information on deadline(s) for review procedures:
In accordance with Regulation 88 — 104 (Enforcement of duties through the Court) of the Public Contracts Regulations 2015 (as amended) (‘PCR’).
VI.5) Date of dispatch of this notice
16/11/2020