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 V: Award of contract/concession

Contract No: HOCS2b/00016/3

V.2 Award of contract/concession

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

13/10/2021

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: 1 000 000.00  GBP

Section VI: Complementary information

VI.4) Procedures for review

VI.5) Date of dispatch of this notice

13/10/2021

Section VII: Modifications to the contract/concession

VII.1) Description of the procurement after the modifications

VII.1.1) Main CPV code

79632000

VII.1.2) Additional CPV code(s)

VII.1.3) Place of performance

NUTS code:

UK

VII.1.4) Description of the procurement

The Authority (Ministry of Defence) has a requirement to provide Apprentice Training and Associated Services and is under scrutiny to ensure they provide value for money to support delivery of excellent public services which align to strategic goals and core business. Apprentices are vital in developing the capability and productivity of our workforce, now and in the future. The Authority wants to create opportunities for individuals from diverse backgrounds to gain work-related skills and nationally recognised qualifications through structured, work-based training programmes with most of the training ‘on the job’. The remaining ‘off the job’ training will be provided by a training provider (Supplier). Apprenticeships will follow either a framework or a standard (noting that all English apprenticeships moved to standards in 2020).

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

Start: 24/10/2021

End: 23/10/2023

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

Total value of the procurement: 1 000 000.00 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

This existing Contract has been extended for two years until October 2023 under Regulation 72(b)(ii).

This to facilitate the creation of a category strategy for apprenticeships to enable the assurance of best value for money and provision of fit for purpose arrangements that support the growth in this area of expenditure. The MOD has adopted a category management approach as part of the delivery of its commercial approach to enabling best value to be delivered in its areas of commercial activity. Apprenticeships is one of those and is part of a broader people resource overarching category. The work on the strategy has been prioritised and is scheduled for completion by Spring 2022. For this reason, MOD is simply not in a position to conduct a competitive tendering exercise at the moment, and will not be until the complete requirement has been fully scoped. To attempt to conduct a competitive tendering exercise at this time would not only thus be impracticable but would also mean that any consequent competitive procurement exercise would result in contracts that did not provide the full range of requirements required, offered disadvantageous terms to all bidders and crucially, would not provide the Authority with Best Value For Money. It very likely also, as has happened previously, that this would lead to a lack of engagement from the suppliers on any particular pan Government framework through which we intended to procure. However, in order to ensure that apprentices can still be onboarded until new contracts can be put in place, it is necessary to extend the current contract for a maximum of 2 years. The Contract however, can be terminated at any time during that period.

It should be noted that the Cabinet Office is in the process of putting in place a new contract for the provision of apprenticeships that will be available to all government departments. This is due to be in place later this Autumn but will not be in place at the point at which the current Contract expires and while this CO option will be considered as part of the development of the new category strategy, not extending the current contract would result in there being no provision available under which to provide apprenticeships to the MOD in the areas covered. To proceed with a competitive procurement at this juncture will not only cover only a partial, and possibly scanty, part of the overall requirement but would also prevent potential bidders from gaining a perspective of the complete requirement and would also, in not providing Best Value For Money, most probably create a substantial duplication of costs and certainly considerable inconvenience on the part of MOD.

This extension has therefore been placed to accommodate additional services by the original contractor, which have become necessary but were not included in the initial procurement, because a change of contractor cannot be made for economic or technical reasons in that MOD is not yet able to finalised it’s future category management strategy and therefore, undertake a new competitive procurement process and to do other than extend the existing Contract, would cause significant inconvenience or substantial duplication of costs for the contracting authority in that it would have no provider for these apprenticeships for the foreseeable future.

This extension/modification does not exceed 50% of the original contract value.

VII.2.2) Reasons for modification

Need for additional works, services or supplies by the original contractor/concessionaire

Description of the economic or technical reasons and the inconvenience or duplication of cost preventing a change of contractor:

Please see VII.2.1 (Description of the modifications).

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: 2 775 000.00 Currency: GBP

Total contract value after the modifications

Value excluding VAT: 3 775 000.00 Currency: GBP