Deed of Variation in relation to repairs and maintenance services of building installations

Concepts

• building installation
• wembley
• mcp property services limited
• deed of variation
• installation work
• maintenance contract
• repairs
• duration of an existing repairs
• provision of responsive repairs
• maintenance services of building installations

Location

United Kingdom: UNITED KINGDOM

Description

Network intends to enter into a deed of variation with MCP Property Services Limited, the effect of which will extend the duration of an existing R&M contract between Network and MCP (the "Underlying Contract") by six (6) months, and which will increase the value of the Underlying Contract by approximately £6,000,000 (six million pounds) Notwithstanding that the original Contract Notice was published in the Official Journal of the European Union, TED has confirmed that Network is unable to publish a modification notice in OJEU in respect of this modification.

Total Quantity or Scope

Network intends to enter into a deed of variation with MCP Property Services Limited, the effect of which will extend the duration of an existing repairs and maintenance contract between Network and MCP (the "Underlying Contract") by 6 months, and which will increase the value of the Underlying Contract by approximately £6,000,000 (six million pounds ). The Underlying Contract will now expire on 31 January 2024. The Underlying Contract is for the provision of responsive repairs and void refurbishment works [across the entirety of Network's housing stock]. The properties covered by the Underlying Contract include General Needs Housing, Shared Ownership and Sheltered Housing Sites.

Award Detail

CPV Codes

• 45300000 - Building installation work
• 45453100 - Refurbishment work
• 45453000 - Overhaul and refurbishment work
• 50700000 - Repair and maintenance services of building installations

Legal Justification

This VTN gives notice that Network is entering into a deed of variation (the "Contract") to award additional works to MCP. The estimated increase in the value of the Underlying Contract is estimated to be £6,000,000 (six million pounds) across a 6 month period. A procurement procedure is not necessary on the basis that the award of the Contract is permitted pursuant to regulation 72(1)(e) and 72(1)(c) of the Public Contracts Regulations 2015. The Contract will award additional works to MCP, and will have the effect of modifying the Underlying Contract in accordance with Regulation 72 of the Public Contracts Regulations 2015. Whereas the Underlying Contract had an original value of £16,000,000 (sixteen million pounds) across a full possible ten (10) year term, the Underlying Contract will be varied in order to extend the duration of the Underlying Contract by a period of six (6) months, and the estimated value of the Underlying Contract is increased by £6,000,000 (six million pounds). This modification is being made in accordance with regulation 72(1)(e) and 72(8) of the Public Contracts Regulations 2015. Namely, the modification is not substantial within the meaning of regulation 72(1)(8) on the basis that: it does not render the contract materially different in character – it is limited to the same type, scope and nature of works in the same geographic area. There is just an increase in the number of homes to which MCP will be required to provide R&M works; it does not introduce conditions which would have (a) allowed for the admission of other candidates, (b) allowed for the acceptance of another tender, or (c) attracted additional participants - the change in value is not a significant change and is unlikely to have changed the outcome of the procurement; it does not change the economic balance - Network is satisfied that the estimated compensation is reflective of market costs and does not amount to an over-compensation; it does not extend the scope of the contract considerably. The modification does not constitute a substantial modification and is permitted by regulation 72(1)(e) and 72(8). Further, or in the alternative, the modification is permitted pursuant to regulation 72(1)(c) of the Public Contracts Regulations 2015 (on the basis that the circumstances giving rise to the need for the modification could not have been foreseen by Network, acting diligently, at the time the Underlying Contract was procured). Network's existing repairs and maintenance works are provided by MCP and another contractor (the "Second Contract"). Wider market issues have caused difficulties with delivery and the Second Contract is in the process of being ended. This (and the need to urgently allocate outstanding work under the Second Contract) could not have been foreseen by Network, acting diligently, when the contracts were entered into. The modification does not alter the overall nature of the Underlying Contract, nor does it increase the price by more than 50% of the original contract value.

Other Information

** PREVIEW NOTICE, please check Find a Tender for full details. ** To view this notice, please click here: <a href="https://www.delta-esourcing.com/delta/viewNotice.html?noticeId=748008572" target="_blank">https://www.delta-esourcing.com/delta/viewNotice.html?noticeId=748008572 GO Reference: GO-2023110-PRO-21892447