Deed of Variation in relation to Repairs and Maintenance contract

Concepts

• peterborough
• overhaul and refurbishment
• repair and maintenance
• repairs and maintenance contract
• variation
• maintenance
• repairs
• deed
• building installations
• underlying contract

Location

UNITED KINGDOM

Description

Cross Keys Homes Limited ("CKH") intends to enter into a deed of variation with Mears, the effect of which will extend the duration of an existing R&M contract between CKH and Mears (the "Underlying Contract") by one (1) year, and which will increase the value of the Underlying Contract by approximately £20,000,000 to £25,000,000 (twenty to twenty five million pounds).

Total Quantity or Scope

The Underlying Contract is due to expire in March 2024.

Award Detail

CPV Codes

• 45453000 - Overhaul and refurbishment work
• 50700000 - Repair and maintenance services of building installations

Indicators

• Award on basis of price and quality.

Legal Justification

This VTN gives notice that CKH is entering into a deed of variation (the "Contract") to award an extended contract to Mears. The estimated increase in the value of the Underlying Contract is estimated to be £20,000,000 to £25,000,000 (twenty to twenty five 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 award additional works to Mears, 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 £300,000,000 to 375,000,000 (three hundred to three hundred and seventy five million pounds) across a full possible fifteen (15) year term, the Underlying Contract will be varied in order to extend the duration of the Underlying Contract by a period of one (1) year, and the estimated value of the Underlying Contract is increased by £20,000,000 to £25,000,000 (twenty to twenty five 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 render the Underlying 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 and on identical commercial terms. The modification is limited to an extension of the Contract's duration, and for a limited time period to facilitate the re-procurement of the opportunity as a whole. 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 relatively short extension 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 – the extension is limited to identical commercial terms currently in use under the Underlying Contract, CKH is satisfied that this does not amount to an over-compensation. 4.the modification does not extend the scope of the contract considerably: the extension is limited in duration to facilitate the re-procurement process, and the specification and commercial terms remain unamended. For the reasons set out, 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.

Other Information

To view this notice, please click here: <a href="https://www.delta-esourcing.com/delta/viewNotice.html?noticeId=835278579" target="_blank">https://www.delta-esourcing.com/delta/viewNotice.html?noticeId=835278579 GO Reference: GO-2024115-PRO-24968879