Modification notice
Modification of a contract/concession during its term
Section I: Contracting
entity
I.1) Name and addresses
Department for Work and Pensions
Quarry House, Quarry Hill
Leeds
UK
Telephone: +44 1132327010
E-mail: employmentcategory.covid19@dwp.gsi.gov.uk
NUTS: UK
Internet address(es)
Main address: https://www.gov.uk/government/organisations/department-for-work-pensions
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
ESF 2014-2020
II.1.2) Main CPV code
80000000
II.1.3) Type of contract
Services
II.2) Description
II.2.3) Place of performance
NUTS code:
UK
II.2.4) Description of the procurement
Open Competition; 3 year contract.
II.2.7) Duration of the contract, framework agreement, dynamic purchasing system or concession
Start:
07/10/2019
End:
07/10/2022
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
Yes
Section V: Award of contract/concession
Contract No: ecm.7301
V.2 Award of contract/concession
V.2.1) Date of conclusion of the contract/concession
23/07/2019
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
Fedcap Employment Ltd
Middlesborough
UK
NUTS: UK
The contractor/concessionaire is an SME:
No
V.2.4) Information on value of the contract/lot/concession (excluding VAT)
Total value of the contract/lot:
/concession: 1 080 000.00
GBP
Section VI: Complementary information
VI.3) Additional information
Frame work competition.
VI.4) Procedures for review
VI.5) Date of dispatch of this notice
18/09/2020
Section VII: Modifications to the contract/concession
VII.1) Description of the procurement after the modifications
VII.1.1) Main CPV code
80000000
VII.1.2) Additional CPV code(s)
VII.1.3) Place of performance
NUTS code:
UK
VII.1.4) Description of the procurement
The provision is a package of tailored support for unemployed and economically inactive individuals — particularly those who are disadvantaged and facing multiple barriers to employment and those that are not fully supported by existing employment programmes. The provision is voluntary for participants.
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: 1 080 000.00 GBP
The contract/concession has been awarded to a group of economic operators:
No
VII.1.7) Name and address of the contractor/concessionaire
Fedcap Employment Ltd
Middlesborough
UK
NUTS: UK
The contractor/concessionaire is an SME:
No
VII.2) Information about modifications
VII.2.1) Description of the modifications
On 9 April 2020 the interim payment arrangement was agreed and implemented quickly to make appropriate payments to providers to calm the reaction in the market and provide a degree of confidence to maintain services. This was in line with Cabinet Office PPN 02/20 and provided cash-flow until June 2020. This delivered the objective in the very short term. On 1 July 2020 the next stage of the strategy was implemented and suspended the Payment By Results model, replacing it with a new Cost+ model until the situation changes. This replaces the interim payment arrangement. Acknowledging the uncertain environment; the new model will be subject to regular reviews, to assess the external conditions. The Department will reserve the right to revert to the original model, subject to notice, at any time. Whilst it may be appropriate to revert directly to the original arrangements, this will need careful consideration and assessment of the environment, not least the pipeline of participants to realise outcomes, the labour market conditions and the potential changes to citizen behaviour including restrictions.
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 outbreak and subsequent impact of the Covid-19 pandemic posed a threat to the viability of the contracted employment services market. Without intervention, the market would not be sustained to support wider society get back to work. The conventional payment by results (PBR) model does not generate sufficient income for providers to remain viable or to maintain capacity and capability. Providers are also mainly reliant
On referrals to provision by Jobcentre Plus and this activity was de-prioritised to focus on the national need to pay benefits. Some providers were already experiencing financial stress and many organisations in the supply chain are small third sector companies being impacted by the wider
Impact of Covid-19. The Labour Market and economy is suffering the consequences of the Covid-19 pandemic and existing delivery arrangements are not appropriate in the current restricted climate.
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: 1 080 000.00 Currency: GBP
Total contract value after the modifications
Value excluding VAT: 1 080 000.00 Currency: GBP