5 Councils Corporate Services Project

Concepts

• business services
• fleet
• abingdon
• havant
• consultancy services
• treasury services
• maintenance services
• support services
• bailiff services
• benefit services

Location

Oxfordshire (UKJ14) and Hampshire (UKJ3, UKJ33)

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 have previously varied the Contract as per notice numbers 109745-2020, 560746-2020 and 609089-2020. The Contract permits the Councils to enter into an extension for a total period of up to 5 years from the end of the Initial Term. The Councils (with the exception of Somerset Council who will exit the Contract entirely upon expiry of the initial term on 1 October 2025), have elected to utilise the extension provision within the Contract to extend the services for Revenues & Benefits and Local Land Charges only for a period of up to 3 years from the expiry of the initial term, which may be up to October 2028 with the option to extend for an additional 2 years. South Oxfordshire District Council and Vale of White Horse District Council also wish to utilise the extension within the Contract to extend the out of hours service for Customer Services for 3 years with the option to extend for an additional 2 years.

Total Quantity or Scope

The estimated value of the extension of Local Land Charges for a period of up to 3 years is £1,100,000. The estimated value of the extension of Revenues & Benefits for a period of up to 3 years is £23,400,000 The estimated value of the extension of the out of hours service of Customer Services for a period of up to 3 years is £226,269. The estimated total value of the extension to the Contract amounts to £24,736,269. Continues in Annex D1.

Award Detail

Award Criteria

CPV Codes

• 79000000 - Business services: law, marketing, consulting, recruitment, printing and security
• 66171000 - Financial consultancy services
• 66172000 - Financial transaction processing and clearing-house services
• 66600000 - Treasury services
• 70330000 - Property management services of real estate on a fee or contract basis
• 72222300 - Information technology services
• 72253000 - Helpdesk and support services
• 72261000 - Software support services
• 72267100 - Maintenance of information technology software
• 75130000 - Supporting services for the government
• 75242110 - Bailiff services
• 75310000 - Benefit services
• 79200000 - Accounting, auditing and fiscal services
• 79342300 - Customer services
• 79414000 - Human resources management consultancy services
• 79418000 - Procurement consultancy services
• 79500000 - Office-support services
• 79600000 - Recruitment services
• 79710000 - Security services
• 79810000 - Printing services
• 79820000 - Services related to printing
• 79900000 - Miscellaneous business and business-related services
• 98341130 - Janitorial services
• 98341140 - Caretaker services
• 98351000 - Car park management services

Indicators

• Award on basis of price.

Legal Justification

The Contract has previously been reduced (see notices 109745-2020, 187598-2020, 560746-2020 and 609089-2020) a summary is below. The reduction in the I-Hub and Human Resources (Advisory) Services resulted in a reduction in Contract value of approximately £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 £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 £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 £634,000 per year for the remainder of the Contract term. The reduction in the Exchequer Services resulted in a reduction in Contract value of approximately £1,630,000 per year for the remainder of the Contract term. The reduction in the Procurement function resulted in the Contract value being reduced by approximately £2,376,000 for the remainder of the Contract term. The reduction in the IT function resulted in the Contract value being reduced by approximately £441,000 for the remainder of the Contract term. Further reductions include: A reduction to front of house (Customer Services) for South & Vale and Hart, resulted in the Contract value being reduced by an approximate £1,515,385 for the remainder of the Contract term. A reduction to Customer Services by Mendip (now Somerset) resulted in the Contract value being reduced by an approximate £1,090,000 for the remainder of the Contract term. A reduction to IT Services by Mendip resulted in the Contract value being reduced by an approximate £321,954, per year for the remainder of the Contract term. A reduction to IT Services by Hart resulted in the Contract value being reduced by an approximate £249,659, for the remainder of the Contract term. This notice is concerned with invoking the extension option within the Contract to extend its term for the Revenues & Benefits and Local Land Charges services only for all Councils (except Somerset Council) for a period of up to 3 years with an option to extend for a further period of 2 years. This notice is also concerned with invoking the extension option within the Contract to extend its term for out of hours Customer Services for South and Vale District Council and Vale of White Horse Councils for 3 years with an option to extend for a further period of 2 years. Taking into account the value and scale of the original Contract the Councils consider that the extension to the Contract for up to 3 years is not substantial for the purposes of Regulation 72(1)(e) of the PCR given that the original Contract provided for an extension period beyond the initial 9 year term by up to a further 5 years. The 3 year extension has a total estimated value of £24,736,269 in the context of the original £140,262,000 Contract. In addition, the scope of the originally awarded Contract has significantly reduced, and the economic balance of the Contract is moving away from the contractor by the reduction of the service opportunity despite the extension this notice is concerned with. The Councils consider that extending the Contract in the manner proposed is for operational and commercial reasons to achieve a smooth transition. The extension of these Services will ensure the smooth ongoing delivery of public services on a value for money basis.

Other Information

The estimated value in II.1.7 and V.2.4 refers to the estimated value of the extension to the Contract as described in this notice. The value of the Contract with Capita as originally awarded on 4 April 2016 was £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 Service, Procurement and Exchequer from the scope of the Contract. Please see the following notices for further information: 109745-2020, 187598-2020, 560746-2020 and 609089-2020.