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: NPS-CFM-106-20

Title: Supply of Rock Salt and Associated Products Framework

V.2 Award of contract/concession

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

01/07/2021

V.2.2) Information about tenders

The contract has been awarded to a group of economic operators: Yes

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

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

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

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

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: 9 580 000.00  GBP

Section VI: Complementary information

VI.3) Additional information

(WA Ref:136791)

VI.4) Procedures for review

VI.5) Date of dispatch of this notice

28/11/2023

Section VII: Modifications to the contract/concession

VII.1) Description of the procurement after the modifications

VII.1.1) Main CPV code

14410000

VII.1.2) Additional CPV code(s)

34927100

15872400

24951310

14774000

14311000

14770000

03100000

VII.1.3) Place of performance

NUTS code:

UKL

Main site or place of performance:

Wales

VII.1.4) Description of the procurement

Framework for the supply of rock salt and associated de-icing products

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

Duration in months: 48

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

Total value of the procurement: 14 360 000.00 GBP

The contract/concession has been awarded to a group of economic operators: Yes

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

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

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

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

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

VII.2) Information about modifications

VII.2.1) Description of the modifications

This modification is to increase the published contract value of the WGCD (formerly NPS) Rock Salt and Associated Products Framework by 4.78million GBP

Explanation:

The Rock Salt and Associated Products Framework will reach the end of its four year term in July 2025. This modification will ensure that the framework spend remains complaint within the published contract value over the remaining duration of the framework. The modification will ensure continuity of supply of products that are critical to the safe operation of the Welsh road network.

The modification to the Framework is permissible under Regulation Reg 72 (1) (c) Public Contracts Regulations 2015. Under this Regulation amendments can be made to the framework if the following conditions are met:

(i) the need for the 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.

Our assessment has concluded that these conditions have been met as follows:

(i) the supplier price increases and associated higher than anticipated contract spend has been brought about by the significant increases in energy and fuel costs and inflationary increases which the WGCD could not have foreseen;

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

(iii) the increase of 4.78m GBP does not exceed 50% of the original framework value

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 modification in the published framework value is due to increased supplier product costs which could not have been foreseen.

The price increases have been largely driven by significant increases in fuel and energy costs over the last 12 months. The increases in fuel and energy have had a significant impact on the mining sector as its operations are heavily dependent on both.

Another contributory factor to the price increases is the higher than anticipated inflation increases over the last 12 months.

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: 9 580 000.00 Currency: GBP

Total contract value after the modifications

Value excluding VAT: 14 360 000.00 Currency: GBP