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

UK-Wembley: Building installation work.

Section I: Contracting Authority

   I.1) Name, Addresses and Contact Point(s):
       Sovereign Network Homes
       The Hive, 22 Wembley Park Boulevard, Wembley, HA9 0HP, United Kingdom
       Tel. +44 2087824854, Email: procurement@networkhomes.org.uk
       Contact: Linda Lally
       Main Address: www.sng.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 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: Sovereign Network Homes (SNH) 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 SNH and MCP (the "Underlying Contract") by twelve (12) months, and which will increase the value of the Underlying Contract by approximately £12,000,000 (twelve 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: 12,000,000
                  
         Currency:GBP            

   II.2) Description

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


      II.2.3) Place of performance
      Nuts code:
      UK - UNITED KINGDOM
   
      Main site or place of performance:
      UNITED KINGDOM
             

      II.2.4) Description of the procurement: SNH 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 SNH and MCP (the "Underlying Contract") by twelve (12) months, and which will increase the value of the Underlying Contract by approximately £12,000,000 (twelve million pounds). The Underlying Contract will now expire on 31 January 2025. The Underlying Contract is for the provision of responsive repairs and void refurbishment works across the entirety of SNH's housing stock. The properties covered by the Underlying Contract include General Needs Housing, Shared Ownership and Sheltered Housing Sites. The Underlying Contract was originally entered into between MCP and Network Homes Limited. However, following an agreement to merge in October 2023 between Network Homes Limited and Sovereign Housing Association Limited, Network Homes Limited changed its name to Sovereign Network Homes on the 28th September 2023. This Notice and the Deed of Variation will therefore be in the name of Sovereign Network Homes.

      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: 22/02/2024

      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, IG1 1LR, United Kingdom
             NUTS Code: UK
            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: 12,000,000
         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=847176155

   VI.4) Procedures for review

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

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

      VI.4.3) Review procedure
         Precise information on deadline(s) for review procedures: Not Provided

      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: 05/03/2024




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
          SNH is entering into a deed of variation (the "Contract") to extend the duration of an existing R&M contract between SNH and MCP. The estimated increase in the value of the Underlying Contract is estimated to be £12,000,000 (twelve million pounds). A procurement procedure is not necessary on the basis that the award of the Contract is permitted pursuant to regulation 72(1)(e) of the Public Contracts Regulations 2015. The Contract will have the effect of modifying the Underlying Contract in accordance with Regulation 72 of the Public Contracts Regulations 2015.
The Underlying Contract had been previously extended by a period of 6 months in January 2023. Following the merger between Network Homes Limited and Sovereign Housing Association Limited, the Underlying Contract will be varied in order to extend the duration of the Underlying Contract by a further period of twelve (12) months in order to facilitate the reprocurement of a repairs and maintenance contractor for the entirety of the merged entity's stock. The estimated value of the Underlying Contract is increased by £12,000,000 (twelve 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 proposed modification is not substantial within the meaning of regulation 72(1)(8) on the basis that:
1.the modification does not alter the contract materially different in character - the proposed modification remains limited to the same type, scope and nature of works, and will be delivered in the same geographic region.
2.the modification 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 in the procurement procedure - the change in value as a result of a short extension of the opportunity is not a significant change and is unlikely to have changed the outcome of the procurement.
3.The modification does not change the economic balance in favour of the contractor in a manner which was not provided for in the contract - SNH has satisfied itself that the estimated compensation for the additional works is reflective of market costs and does not amount to an over-compensation of the works to be provided.
4.As per our comments at 1. above, the modification does not extend the scope of the contract considerably. For the reasons set out above, the proposed modification does not constitute a substantial modification and is permitted by regulation 72(1)(e) and 72(8) of the Public Contracts Regulations 2015.
Additionally, we note that the proposed modification is in part to facilitate the reprocurement of a contractor following the merger between Network Homes Limited and Sovereign Housing Association Limited, in order to ensure enough time to align an approach to the re-procurement of the repairs and maintenance requirement as a whole.