Section one: Contracting authority/entity
one.1) Name and addresses
Key Housing Association
The Square, 70 Renton Street
Glasgow
G4 0HT
Contact
Asa Brooks
Telephone
+44 1413421890
Fax
+44 1413421891
Country
United Kingdom
NUTS code
UKM - Scotland
Internet address(es)
Main address
Buyer's address
https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA12503
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Modification of Insurance and Related Services 2019 - 2024 to June 25
two.1.2) Main CPV code
- 66510000 - Insurance services
two.1.3) Type of contract
Services
two.2) Description
two.2.2) Additional CPV code(s)
- 66510000 - Insurance services
two.2.3) Place of performance
NUTS codes
- UKM82 - Glasgow City
two.2.4) Description of the procurement at the time of conclusion of the contract:
Contract Award for the Modification of provision of general insurance and related services, including claims handling, loss control services and general programme maintenance and advice as required by Key HA and Community Lifestyles commencing 1 June 2024 to 1 June 25.
Further to the previously advertised VEAT notice, Document ID: 755297 - Title: VEAT - Insurance Provision Contract - Modification and having sought advice, to meet our statutory regulatory requirements as a Registered Social Landlord, these public contracts shall be modified and awarded under Regulation 72 (1) (c) utilising the Modification of contracts during their term “by circumstances Key Housing Association (KHA) could not have foreseen”.
Key Housing Association (KHA) intends to extend the existing Insurance Provision contract due to end 1 June 24 to the 1 June 25 with Zurich Ltd who are the current insurance service Provider
two.2.7) Duration of the contract, framework agreement, dynamic purchasing system or concession
Duration in months
12
In the case of framework agreements, provide justification for any duration exceeding 4 years
NA
two.2.13) Information about European Union Funds
The procurement is related to a project and/or programme financed by European Union funds: No
Section four. Procedure
four.2) Administrative information
four.2.1) Contract award notice concerning this contract
Notice number: 2019/S 064-149127
Section five. Award of contract/concession
Contract No
Modification of Insurance and Related Services to June 25
Title
Modification of Insurance and Related Services 2019 - 2024 to June 25
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract/concession award decision:
20 February 2024
five.2.2) Information about tenders
The contract/concession has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor/concessionaire
Zurich Municipal
The Eagle Building, 215 Bothwell Street
Glasgow
G2 7ED
Country
United Kingdom
NUTS code
- UKM82 - Glasgow City
The contractor/concessionaire is an SME
No
five.2.4) Information on value of the contract/lot/concession (at the time of conclusion of the contract;excluding VAT)
Total value of the procurement: £1,461,544
Section six. Complementary information
six.3) Additional information
(SC Ref:755296)
six.4) Procedures for review
six.4.1) Review body
Glasgow Sheriff Court and Justice of the Peace Court
1 Carlton Place
Glasgow
G5 9TW
Country
United Kingdom
Internet address
Section seven: Modifications to the contract/concession
seven.1) Description of the procurement after the modifications
seven.1.1) Main CPV code
- 66510000 - Insurance services
seven.1.3) Place of performance
NUTS code
- UKM - Scotland
seven.1.4) Description of the procurement:
Key Housing Association (KHA) intends to extend the existing Insurance Provision contract due to end 1 June 24 to the 1 June 25 with Zurich Ltd who are the current insurance service Provider.
This informed decision based on; the ongoing insurance marketplace uncertainty reflective of the post-Brexit economic environment, the far-reaching impact of the war in Ukraine, recent challenges faced by RSL’s relating to all services, and the current cost-of-living pressures; while concurrently seeking to ensure effective continuity of our insurance services to meet our statutory regulatory requirements. The insurance market for social housing providers has always been quite restricted, however in the field of property and liability this has hardened severely and quickly since the start of 2023. This has been accelerated by the departure of two main insurance providers to the Sector over the last 6 months, meaning the already limited capacity is much reduced. This has resulted in unsustainable market conditions, and we have seen insurers react this year applying significant rate increases on Renewals during the first quarter of 2024.
KHA intend to go out to the marketplace for a new contract for Insurance Provision and this procurement process will commence 2024 Q3 with a target effective date contract date of 1 June 2025.
seven.1.5) Duration of the contract, framework agreement, dynamic purchasing system or concession
Duration in months
12
In the case of framework agreements, provide justification for any duration exceeding 4 years:
NA
seven.1.6) Information on value of the contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession:
£1,461,544
seven.1.7) Name and address of the contractor/concessionaire
Zurich Municipal
St Vincent Plaza, 7th Floor, 319 St Vincent Street
Glasgow
G2 5LP
Country
United Kingdom
NUTS code
- UKM - Scotland
The contractor/concessionaire is an SME
Yes
seven.2) Information about modifications
seven.2.1) Description of the modifications
Nature and extent of the modifications (with indication of possible earlier changes to the contract):
Further to the previously advertised VEAT notice, Document ID: 755297 - Title: VEAT - Insurance Provision Contract - Modification and having sought advice, to meet our statutory regulatory requirements as a Registered Social Landlord, these public contracts shall be modified and awarded under Regulation 72 (1) (c) utilising the Modification of contracts during their term “by circumstances Key Housing Association (KHA) could not have foreseen”.
Key Housing Association (KHA) intends to extend the existing Insurance Provision contract due to end 1 June 24 to the 1 June 25 with Zurich Ltd who are the current insurance service Provider.
seven.2.2) Reasons for modification
Need for modification brought about by circumstances which a diligent contracting authority/entity could not foresee.
Description of the circumstances which rendered the modification necessary and explanation of the unforeseen nature of these circumstances:
This informed decision based on; the ongoing insurance marketplace uncertainty reflective of the post-Brexit economic environment, the far-reaching impact of the war in Ukraine, recent challenges faced by RSL’s relating to all services, and the current cost-of-living pressures; while concurrently seeking to ensure effective continuity of our insurance services to meet our statutory regulatory requirements. The insurance market for social housing providers has always been quite restricted, however in the field of property and liability this has hardened severely and quickly since the start of 2023. This has been accelerated by the departure of two main insurance providers to the Sector over the last 6 months, meaning the already limited capacity is much reduced. This has resulted in unsustainable market conditions, and we have seen insurers react this year applying significant rate increases on Renewals during the first quarter of 2024.
seven.2.3) Increase in price
Updated total contract value before the modifications (taking into account possible earlier contract modifications, price adaptions and average inflation)
Value excluding VAT: £1,090,381
Total contract value after the modifications
Value excluding VAT: £1,461,544