- Id
- 2
- Rationale
- Need for modification brought about by circumstances which a diligent contracting authority/entity could not foresee: Regulation 72(1)(c) permits this modification, due to unforeseen circumstances which a diligent contracting authority could not have foreseen, the overall nature of the contract is not altered and Modification value does not exceed 50 % of the original contract value
(i) the need for modification has been brought about by circumstances which a diligent contracting authority could not have foreseen;
Modification to the Contract has been brought about due to the unforeseen termination of a Contract between the LCCC and Hi-Tech, with termination notice being provided 30 days in advance. Due to the unexpected termination of the Contract, the Council, despite their best efforts, did not have sufficient time to carry out a tender exercise. In order to ensure the continuity of services, avoidance of reputational damage and on health and safety grounds, it was agreed to invoke an emergency appointment of a new Contractor.
Upon evaluation, the best option for maintaining the delivery of services, compliance with the relevant procurement regulations as well as value for money would be achieved by modifying an existing contract between LCCC and Cobra in order to incorporate the additional duties following the termination of the previous Contract with Hi-Tech. Other contracts were considered however were not suitable. Regulation 72(1) (b) further permits this as a change of provider:
(i) cannot be made for economic and technical reasons as requirements of interchangeability or interoperability of services procured under the original procurement and given the need to ensure continued services; and
(ii) will cause significant inconvenience and duplication of costs.
It has also been brought about by unforeseen inflationary pressures and in particular wage inflation.
(ii) the modification does not alter the overall nature of the contract;
Regulation 72(1)(c) permits this extension as the overall nature of the contract is not altered. The modification does not alter the existing contract with Cobra as similar duties are carried out under their current contract, such as:
- Opening/closing of facilities
- Litter picking
- Cleaning of welfare facilities
- Building/facility inspections
- Legionella flushing of facilities.
- Playing surface inspections
There is extension to the number of sites and the additional services Cobra will be responsible for following this modification include, but are not limited to:
- Erecting corner flags for pitches
- Rolling out of roll-away football goal nets.
- Extension of cleaning to include changing facilities.
Due to unforeseen inflationary pressures, combined with the increase in minimum/living wage an uplift will be applied to the originally tendered hourly of 14.9% for the existing services and 22.2% for the additional duties performed by way of the variation of the contract.
(iii) any increase in price does not exceed 50% of the value of the original contract or framework agreement.
The increase in the expenditure in the contract brought about through the increase in services and the increase in the minimum/living wage will not exceed 50% of the value of the original contract and indeed is currently estimated to fall within the levels permitted under Regulation 72 (5) but notwithstanding this notice is published in the interest of transparency.
- Description
- Regulation 72(1)(c) permits this modification, due to unforeseen circumstances which a diligent contracting authority could not have foreseen, the overall nature of the contract is not altered and Modification value does not exceed 50 % of the original contract value
(i) the need for modification has been brought about by circumstances which a diligent contracting authority could not have foreseen;
Modification to the Contract has been brought about due to the unforeseen termination of a Contract between the LCCC and Hi-Tech, with termination notice being provided 30 days in advance. Due to the unexpected termination of the Contract, the Council, despite their best efforts, did not have sufficient time to carry out a tender exercise. In order to ensure the continuity of services, avoidance of reputational damage and on health and safety grounds, it was agreed to invoke an emergency appointment of a new Contractor.
Upon evaluation, the best option for maintaining the delivery of services, compliance with the relevant procurement regulations as well as value for money would be achieved by modifying an existing contract between LCCC and Cobra in order to incorporate the additional duties following the termination of the previous Contract with Hi-Tech. Other contracts were considered however were not suitable. Regulation 72(1) (b) further permits this as a change of provider:
(i) cannot be made for economic and technical reasons as requirements of interchangeability or interoperability of services procured under the original procurement and given the need to ensure continued services; and
(ii) will cause significant inconvenience and duplication of costs.
It has also been brought about by unforeseen inflationary pressures and in particular wage inflation.
(ii) the modification does not alter the overall nature of the contract;
Regulation 72(1)(c) permits this extension as the overall nature of the contract is not altered. The modification does not alter the existing contract with Cobra as similar duties are carried out under their current contract, such as:
- Opening/closing of facilities
- Litter picking
- Cleaning of welfare facilities
- Building/facility inspections
- Legionella flushing of facilities.
- Playing surface inspections
There is extension to the number of sites and the additional services Cobra will be responsible for following this modification include, but are not limited to:
- Erecting corner flags for pitches
- Rolling out of roll-away football goal nets.
- Extension of cleaning to include changing facilities.
Due to unforeseen inflationary pressures, combined with the increase in minimum/living wage an uplift will be applied to the originally tendered hourly of 14.9% for the existing services and 22.2% for the additional duties performed by way of the variation of the contract.
(iii) any increase in price does not exceed 50% of the value of the original contract or framework agreement.
The increase in the expenditure in the contract brought about through the increase in services and the increase in the minimum/living wage will not exceed 50% of the value of the original contract and indeed is currently estimated to fall within the levels permitted under Regulation 72 (5) but notwithstanding this notice is published in the interest of transparency.