Recruitment Partner

Concepts

• recruitment services
• wolverhampton
• yoo recruit limited
• its long-term recruitment needs
• yoo recruit limited (yrl
• recruitment
• recruit
• wolverhampton city council
• adecco uk limited
• adecco

Location

Wolverhampton

Description

On 21 August 2017, Yoo Recruit Limited (YRL) entered into a contract (the Contract) with Adecco UK Limited (Adecco) for a maximum term of seven (7) years, to provide and manage recruitment services for Wolverhampton City Council (the Council). YRL is a wholly owned company of the Council. The Contract would, but for this extension, expire on 21 August 2024. The Contract award was advertised in the OJEU under reference 2017/S 143-295006 (dated 25/07/17). This notice sets out YRL’s intention to extend the Contract with Adecco for circa 11 months, with a longstop date of 31/07/25, to allow YRL to complete a full review of its long-term recruitment needs, and, if required, to conduct a re-procurement exercise to appoint and implement a new managed service with a successor provider.

Total Quantity or Scope

YRL intends to extend the term of the Contract with Adecco for a bridging period of 11 months to allow it to conduct a full review of its long-term recruitment needs and those of Wolverhampton City Council, and, if required, to conduct a re-procurement exercise for the long-term successor to the Contract. The extension will provide YRL with sufficient time to conduct such a review, carry out any required procurement exercise and implement a new managed service for the longer term.

Award Detail

CPV Codes

• 79600000 - Recruitment services

Indicators

Legal Justification

The existing Contract with Adecco commenced on 21 August 2017 and would, but for this extension, expire on 21 August 2024. YRL intends to extend the contract by circa 11 months to allow it time to undertake a comprehensive review of its recruitment needs and requirements and those of Wolverhampton City Council and, if required, to conduct a re-procurement exercise for the appointment of a long-term successor to the Contract. The total estimated value of the original Contract was between £24m and £164m and the value of the proposed extension is £22.4m. YRL considers that the proposed extension is a permitted modification under Regulation 72(1)(e) of the Public Contracts Regulations 2015 (as amended) (PCR) (non-substantial modifications) and that none of the conditions set out in Regulation 72(8) are met. With reference to Regulation 72(8)(a), the proposed modification will not render the Contract materially different in character from the one initially concluded as there will be no change to the services in the extension period (either in terms of the nature of the services or the quantity of services provided per month). The modification is an extension of term only. With reference to Regulation 72(8)(b), YRL does not consider that the modification introduces conditions which, had they been part of the initial procurement procedure, would have— (i) allowed for the admission of other candidates than those initially selected, (ii) allowed for the acceptance of a tender other than that originally accepted, or (iii) attracted additional participants in the procurement procedure. The only effect of the modification is to extend the term of the Contract and so YRL does not consider that there would have been any change to the outcome of the original procurement. With reference to Regulation 72(8)(c), the modification will not change any of the commercial terms of the Contract, and so there will be no change to the economic balance of the contract. YRL does not consider that the modification will extend the scope of the Contract considerably within the meaning of Regulation 72(8)(d) in the context of the Contract as a whole (7 years). No change is proposed to the nature or quantity of the services provided per month and no new services will be included in the scope. Regulation 72(8)(e) of the PCR is not engaged as there is no change to the contractor. The purpose of the modification is to provide a ‘bridging period’ in order to conduct a comprehensive review in relation to the future of the services and the long-term successor to the Contract. The modification will therefore allow continuity of service and value for money for YRL while it conducts this exercise, the scope of which may include assessment of its future requirements, market testing, assessment of risks and uncertainty within the sector, development and design of procurement strategy, managing the orderly wind-down and exit of the Contract with the existing supplier and mobilisation of any new contract.