Contract

Deed of Variation in relation to repairs and maintenance of building installations

  • Sovereign Network Homes

F03: Contract award notice

Notice identifier: 2024/S 000-007081

Procurement identifier (OCID): ocds-h6vhtk-0445c4

Published 5 March 2024, 4:05pm



Section one: Contracting authority

one.1) Name and addresses

Sovereign Network Homes

The Hive, 22 Wembley Park Boulevard

Wembley

HA9 0HP

Contact

Linda Lally

Email

procurement@networkhomes.org.uk

Telephone

+44 2087824854

Country

United Kingdom

Region code

UKI - London

Internet address(es)

Main address

www.sng.org.uk

one.4) Type of the contracting authority

Body governed by public law

one.5) Main activity

Housing and community amenities


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

Deed of Variation in relation to repairs and maintenance of building installations

two.1.2) Main CPV code

  • 45300000 - Building installation work

two.1.3) Type of contract

Works

two.1.4) Short description

Sovereign Network Homes (SNH) is entering into a deed of variation with MCP Property Services Limited, the effect of which will extend the duration of an existing R&M contract between SNH and MCP (the "Underlying Contract") by twelve (12) months, and which will increase the value of the Underlying Contract by approximately £12,000,000 (twelve million pounds).

two.1.6) Information about lots

This contract is divided into lots: No

two.1.7) Total value of the procurement (excluding VAT)

Value excluding VAT: £12,000,000

two.2) Description

two.2.2) Additional CPV code(s)

  • 45453100 - Refurbishment work
  • 50700000 - Repair and maintenance services of building installations
  • 45453000 - Overhaul and refurbishment work

two.2.3) Place of performance

NUTS codes
  • UK - United Kingdom
Main site or place of performance

UNITED KINGDOM

two.2.4) Description of the procurement

SNH intends to enter into a deed of variation with MCP Property Services Limited, the effect of which will extend the duration of an existing repairs and maintenance contract between SNH and MCP (the "Underlying Contract") by twelve (12) months, and which will increase the value of the Underlying Contract by approximately £12,000,000 (twelve million pounds). The Underlying Contract will now expire on 31 January 2025. The Underlying Contract is for the provision of responsive repairs and void refurbishment works across the entirety of SNH's housing stock. The properties covered by the Underlying Contract include General Needs Housing, Shared Ownership and Sheltered Housing Sites. The Underlying Contract was originally entered into between MCP and Network Homes Limited. However, following an agreement to merge in October 2023 between Network Homes Limited and Sovereign Housing Association Limited, Network Homes Limited changed its name to Sovereign Network Homes on the 28th September 2023. This Notice and the Deed of Variation will therefore be in the name of Sovereign Network Homes.

two.2.5) Award criteria

Price

two.2.11) Information about options

Options: No

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.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:

SNH is entering into a deed of variation (the "Contract") to extend the duration of an existing R&M contract between SNH and MCP. The estimated increase in the value of the Underlying Contract is estimated to be £12,000,000 (twelve 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 have the effect of modifying the Underlying Contract in accordance with Regulation 72 of the Public Contracts Regulations 2015.

The Underlying Contract had been previously extended by a period of 6 months in January 2023. Following the merger between Network Homes Limited and Sovereign Housing Association Limited, the Underlying Contract will be varied in order to extend the duration of the Underlying Contract by a further period of twelve (12) months in order to facilitate the reprocurement of a repairs and maintenance contractor for the entirety of the merged entity's stock. The estimated value of the Underlying Contract is increased by £12,000,000 (twelve 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 alter the 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.

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 change in value as a result of a short extension of the opportunity 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 - SNH has satisfied itself that the estimated compensation for the additional works is reflective of market costs and does not amount to an over-compensation of the works to be provided.

4.As per our comments at 1. above, the modification does not extend the scope of the contract considerably. For the reasons set out above, 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.

Additionally, we note that the proposed modification is in part to facilitate the reprocurement of a contractor following the merger between Network Homes Limited and Sovereign Housing Association Limited, in order to ensure enough time to align an approach to the re-procurement of the repairs and maintenance requirement as a whole.

four.1.8) Information about the Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: Yes


Section five. Award of contract

A contract/lot is awarded: Yes

five.2) Award of contract

five.2.1) Date of conclusion of the contract

22 February 2024

five.2.2) Information about tenders

Number of tenders received: 1

The contract has been awarded to a group of economic operators: No

five.2.3) Name and address of the contractor

MCP Property Services Ltd

Treviot House, 186-192 High Road

Ilford

IG1 1LR

Country

United Kingdom

NUTS code
  • UK - United Kingdom
National registration number

03744489

The contractor is an SME

No

five.2.4) Information on value of contract/lot (excluding VAT)

Total value of the contract/lot: £12,000,000


Section six. Complementary information

six.3) Additional information

To view this notice, please click here:

https://www.delta-esourcing.com/delta/viewNotice.html?noticeId=847176155" target="_blank">https://www.delta-esourcing.com/delta/viewNotice.html?noticeId=847176155

GO Reference: GO-202435-PRO-25413884

six.4) Procedures for review

six.4.1) Review body

High Court of England and Wales

London

Country

United Kingdom

six.4.2) Body responsible for mediation procedures

High Court of England and Wales

London

Country

United Kingdom

six.4.4) Service from which information about the review procedure may be obtained

Cabinet Office

London

Country

United Kingdom