Sovereign Network Homes: Deed of Variation in relation to repairs and maintenance services of building installations

UK-Wembley: Building installation work.

Preliminary Questions
   This notice is published by:
   Directive 2014/24/EU

Section I: Contracting authority/entity

I.1) Name and addresses
       Network Homes
       The Hive, 22 Wembley Park Boulevard, Wembley, HA9 0HP, United Kingdom
       Tel. +44 2087824854, Email: linda.lally@networkhomes.org.uk
       Contact: Linda Lally
       Main Address: www.networkhomes.org.uk
       NUTS Code: UKI

I.4) Type of the contracting authority (in the case of a notice published by a contracting authority)
      Body governed by public law

I.5) Main Activity (in the case of a notice published by a contracting authority)
      Housing and community amenities


Section II: Object

II.1) Scope of the procurement
   
   II.1.1) Title: Deed of Variation in relation to repairs and maintenance services of building installations.
      Reference number: Not Provided
      
   II.1.2) Main CPV code:
      45300000 - Building installation work.
   
   II.1.3) Type of contract: WORKS
   
   II.1.4) Short 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.
   
   II.1.6) Information about lots
      This contract is divided into lots: No

   II.1.7) Total value of the procurement (excluding VAT)
      Value: 6,000,000      
      Currency: GBP


II.2) Description

   II.2.2) Additional CPV codes:
      45453100 - Refurbishment work.
      45453000 - Overhaul and refurbishment work.
      50700000 - Repair and maintenance services of building installations.
   

   II.2.3) Place of performance:
      UK UNITED KINGDOM
   
   
   II.2.4) Description of the procurement:
    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.    
   
   II.2.5) Award criteria
   (Directive 2014/24/EU / Directive 2014/25/EU)
               
    Not provided       
      
      
   II.2.11) Information about options:
      Options:    No       
   
   II.2.13) Information about European Union funds:
      The procurement is related to a project and/or programme financed by European Union funds:    No

   II.2.14) Additional information:
    Not provided    
      
Section IV: Procedure

IV.1) Description
   
   IV.1.1) Type of procedure: Award of a contract without prior publication of a call for competition in the Official Journal of the European Union in the cases listed below         
   
   IV.1.3) Information about framework agreement
         The procurement involves the establishment of a framework agreement: No    
   
   IV.1.8) Information about the Government Procurement Agreement (GPA)
         The procurement is covered by the Government Procurement Agreement:Yes
         
IV.2)Administrative Information

   IV.2.1) Previous publication concerning this procedure:
      Notice number in OJ S: Not provided       
   
Section V: Award Of Contract/Concession
      
Award of Contract/Concession No: 1
Contract No: Not Provided    Lot Number: Not Provided    Title: Not Provided

V.2) Award of contract/concession
      
      V.2.1) Date of contract award decision: 11/08/2022.
      
      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, No. 1:
          MCP Property Services Ltd, 03744489
       Treviot House,, 186 - 192 High Road,, Ilford, IG1 1LR, United Kingdom
       NUTS Code: UKH3
   The contractor/concessionaire will be an SME: No    
   
         
      V.2.4) Information on value of the contract/lot/concession:
         Initial estimated total value of the contract: 6,000,000          
         Total value of the contract/lot/concession 6,000,000         
         Currency: GBP

      V.2.5) Information about subcontracting:
         The contract is likely to be subcontracted: No          


Section VI: Complementary Information

   VI.3) Additional Information:
      To view this notice, please click here:
https://www.delta-esourcing.com/delta/viewNotice.html?noticeId=748008572
GO-2023110-PRO-21892447 TKR-2023110-PRO-21892446   
   VI.4) Procedures for review
   
      VI.4.1) Review Body
          High Court of England and Wales
       London, United Kingdom
   
      V1.4.2) Body responsible for mediation procedures:
                High Court of England and Wales
       London, United Kingdom.

      VI.4.3) Review procedure
         The Contracting Authority will conduct itself in accordance with the Public Contracts Regulations 2015.    
      
      VI.4.4) Service from which information about the review procedure may be obtained
          Cabinet Office Town: London Country: United Kingdom
       London, United Kingdom
   
   VI.5) Date of dispatch of this notice: 10/01/2023


Annex D1 - General Procurement
Justification for the award of the contract without prior publication of a call for competition in the Official Journal of the European Union
Directive 2014/24/EU


2. Other justification for the award of the contract without prior publication of a call for competition in the Official Journal of the European Union

   The procurement falls outside the scope of application of the directive: Yes

3. Explanation

   Please explain in a clear and comprehensive manner why the award of the contract without prior publication in the Official Journal of the European Union is
   lawful, by stating the relevant facts and, as appropriate, the conclusions of law in accordance with the directive: (500 words maximum)
   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.