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

UK-Wembley: Building installation work.

Section I: Contracting Authority

   I.1) Name, Addresses and Contact Point(s):
       Network Homes
       The Hive, 22 Wembley Park Boulevard, Wembley, HA9 0HP, United Kingdom
       Tel. +44 2045125273, Email: procurement@networkhomes.org.uk
       Contact: Linda Lally
       Main Address: https://www.networkhomes.org.uk
       NUTS Code: UKI

   I.2) Joint procurement:
      The contract involves joint procurement: No          
      In the case of joint procurement involving different countries, state applicable national procurement law: Not Provided
      The contract is awarded by a central purchasing body: No

   I.4)Type of the contracting authority:
      Body governed by public law

   I.5) Main activity:
      Housing and community amenities

Section II: Object Of The Contract

   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 is entering 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).

      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 code(s):
      Not Provided

      II.2.3) Place of performance
      Nuts code:
      UKI - LONDON
   
      Main site or place of performance:
      LONDON
             

      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 six (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:
                  
      Price - Weighting: 10
            

      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 (please complete Annex D1)


   IV.1.3) Information about a framework agreement or a dynamic purchasing system
      The procurement involves the establishment of a framework agreement: No       
      

   IV.1.6) Information about electronic auction
      An electronic auction has been used: 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
       Not Provided
   

   IV.2.9) Information about termination of call for competition in the form of a prior information notice
      The contracting authority will not award any further contracts based on the above prior information notice: No

Section V: Award of contract

Award Of Contract (No.1)

   Contract No: Not Provided    
   Lot Number: Not Provided    
   Title: Not Provided

   A contract/lot is awarded: Yes


   V.2) Award of contract

      V.2.1) Date of conclusion of the contract: 01/02/2023

      V.2.2) Information about tenders
         Number of tenders received: 1
         Number of tenders received from SMEs: Not Provided          
         Number of tenders received from tenderers from other EU Member States: Not Provided          
         Number of tenders received from tenderers from non-EU Member States: Not Provided          
         Number of tenders received by electronic means: Not Provided

      V.2.3) Name and address of the contractor

      The contract has been awarded to a group of economic operators: No
         
         Contractor (No.1)
             MCP Property Services Ltd, 03744489
             Treviot House, 186-192 High Road, Ilford, Essex, IG1 1LR, United Kingdom
             NUTS Code: UKH3
            The contractor is an SME: No

      V.2.4) Information on value of the contract/lot (excluding VAT)
         Initial estimated total value of the contract/lot: Not Provided          
         Total value of the contract/lot: 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=770625566

   VI.4) Procedures for review

      VI.4.1) Review body
          The High Court of England and Wales
          London, United Kingdom

      VI.4.2) Body responsible for mediation procedures
          The High Court of England and Wales
          London, United Kingdom

      VI.4.3) Review procedure
         Precise information on deadline(s) for review procedures: 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
          London, United Kingdom

   VI.5) Date of dispatch of this notice: 23/03/2023




ANNEX D

   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
          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.