Section one: Contracting authority/entity
one.1) Name and addresses
Dacorum Borough Council
The Forum,Marlowes
HEMEL HEMPSTEAD
HP11DN
Contact
Andrew Linden
Telephone
+44 1442228263
Country
United Kingdom
Region code
UKH23 - Hertfordshire
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
Buyer's address
one.4) Type of the contracting authority
Regional or local authority
one.5) Main activity
General public services
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Total Asset Management Contract
Reference number
CPU00230
two.1.2) Main CPV code
- 45000000 - Construction work
two.1.3) Type of contract
Works
two.1.4) Short description
On the 1st July 2014, Dacorum Borough Council ("the Council") entered into a contract for a period of up to 10 years with Osborne Property Services Limited ("Osborne") for 'total asset management' service delivery of Borough wide housing repairs works and services, including maintenance and improvements (the "Contract").
This was advertised on the OJEU under 2013/S 030-046801 (dated 12 February 2013).
The Contract includes responsive repairs, void repairs and planned improvements.
This VEAT notice relates to a proposed extension of the Contract for up to a further 2 years (1+1) with a longstop date of 30th June 2026 to allow the Council to conduct a re-procurement exercise for the long-term successor to the Contract.
two.1.6) Information about lots
This contract is divided into lots: No
two.1.7) Total value of the procurement (excluding VAT)
Lowest offer: £40,000,000 / Highest offer: £50,000,000 taken into consideration
two.2) Description
two.2.2) Additional CPV code(s)
- 31216100 - Lightning-protection equipment
- 31216200 - Lightning conductors
- 34928200 - Fences
- 44221220 - Fire doors
- 45210000 - Building construction work
- 45220000 - Engineering works and construction works
- 45232430 - Water-treatment work
- 45261410 - Roof insulation work
- 45261900 - Roof repair and maintenance work
- 45262600 - Miscellaneous special-trade construction work
- 45312310 - Lightning-protection works
- 45312311 - Lightning-conductor installation work
- 45320000 - Insulation work
- 45421100 - Installation of doors and windows and related components
- 45421130 - Installation of doors and windows
- 45421132 - Installation of windows
- 45421140 - Installation of metal joinery except doors and windows
- 45451000 - Decoration work
- 50700000 - Repair and maintenance services of building installations
- 51110000 - Installation services of electrical equipment
- 71220000 - Architectural design services
- 71240000 - Architectural, engineering and planning services
- 71250000 - Architectural, engineering and surveying services
- 71300000 - Engineering services
- 71420000 - Landscape architectural services
- 79512000 - Call centre
- 90650000 - Asbestos removal services
two.2.3) Place of performance
NUTS codes
- UKH23 - Hertfordshire
Main site or place of performance
Borough of Dacorum in Hertfordshire
two.2.4) Description of the procurement
Dacorum Borough Council intends to extend the term of the Contract with Osborne Property Services Limited for a bridging period of up to a twenty-four months (1+1) to allow it to conduct a re-procurement exercise for the long-term successor to the Contract.
The extension will provide the Council with a sufficient period of time to run a comprehensive market-engagement, commissioning and re-procurement exercise, and to factor in the current high degree of risk and uncertainty in the construction and housing repair sector, with the new service to commence no later than 1st July 2026.
two.2.11) Information about options
Options: No
Section four. Procedure
four.1) Description
four.1.1) Type of procedure
Award of a contract without prior publication of a call for competition in the cases listed below
- The procurement falls outside the scope of application of the regulations
Explanation:
The existing Contract with Osborne commenced on 1st July 2014 and expires on 30th June 2024. The Council intends to extend the contract by up to 24 months, with provision to terminate earlier, to allow the Council time to run a comprehensive re-procurement exercise for the appointment of a long-term successor to the Contract. The total estimated value of the original Contract was between £200m and £300m and the cost of the proposed two year extension is between £40m and £50m.
The Council's position is that the proposed extension is a permitted modification under Regulation 72(1)(e) of the Public Contract 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 or works to provided for the extension period (either in terms of the nature of the works/services or the quantity). The modification is an extension of term only.
With reference to Regulation 72(8)(b), the Council 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 the Council 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.
The Council 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 (10 years). No change is proposed to the nature or quantity of the works and services and no new services or works will be included in the scope. The period of the extension may be reduced if the procurement exercise is completed before the end of the extension period.
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 re-procurement exercise for the long-term successor to the Contract. The modification will therefore allow continuity of service and value for money for the Council while it conducts this exercise, the scope of which will include market testing, assessment of risks and uncertainty within the construction and housing repair sector, corresponding development and design of procurement strategy, managing the orderly wind-down and exit of the Contract with the existing supplier and mobilisation of the new contract.
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: Yes
four.2) Administrative information
four.2.1) Previous publication concerning this procedure
Notice number: 2013/S 030-046801
Section five. Award of contract/concession
A contract/lot is awarded: Yes
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract
9 February 2023
five.2.2) Information about tenders
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor/concessionaire
Osborne Property Services Limited
Fonteyn House, 47-49 London Road, Reigate
Surrey
RH2 9PY
Country
United Kingdom
NUTS code
- UKJ2 - Surrey, East and West Sussex
Companies House
05756266
The contractor/concessionaire is an SME
No
five.2.4) Information on value of contract/lot/concession (excluding VAT)
Lowest offer: £40,000,000 / Highest offer: £50,000,000 taken into consideration
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
High Court of England and Wales
Royal Courts of Justice, Strand
London
WC2A 2LL
Country
United Kingdom
six.4.3) Review procedure
Precise information on deadline(s) for review procedures
In accordance with Regulation 88 to Regulation 102 of the PCR 2015 (particularly, Regulations 92, 93, 94 and 99 in relation to deadlines).