Section one: Contracting authority/entity
one.1) Name and addresses
Milton Keynes City Council
Civic Offices, 1 Saxon Gate East
Milton Keynes
MK93EJ
Contact
Corporate
contracts@milton-keynes.gov.uk
Telephone
+44 1908691691
Country
United Kingdom
Region code
UKJ12 - Milton Keynes
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
RegenerationMK
two.1.2) Main CPV code
- 45000000 - Construction work
two.1.3) Type of contract
Works
two.2) Description
two.2.2) Additional CPV code(s)
- 45210000 - Building construction work
- 45453100 - Refurbishment work
- 50000000 - Repair and maintenance services
- 70330000 - Property management services of real estate on a fee or contract basis
- 71200000 - Architectural and related services
two.2.3) Place of performance
NUTS codes
- UKJ12 - Milton Keynes
Main site or place of performance
UKJ12
two.2.4) Description of the procurement at the time of conclusion of the contract:
To secure a long term strategic partner to work with Milton Keynes Council (now Milton Keynes City Council) (the "Council") and other legal entities connected to or forming part of the Council to deliver maintenance and improvements to the Council's social housing portfolio and other assets, and further enable the development a Regeneration programme of refurbishment, new build housing and other new build assets as part of a wider place making strategy.
On 29 March 2016, the Council entered into partnership agreement to deliver the regeneration programme which was delivered through a joint venture company YOURMK LLP. The partnership agreement was terminated in 26 March 2021 and YOURMK LLP was wound up on 26 April 2022.
On 29 March 2016, the Council and Mears Limited entered into two separate contracts in respect of the Council's maintenance programme for existing social housing and other assets being a Term Partnering Agreement for the provision of repairs and maintenance services (the "TPA") and a Project Partnering Agreement for the provision of planned repairs and maintenance services (the "PPA").
The term of the TPA commenced on 1st April 2016 and expired on 31 March 2021 with an option, at the Council's discretion, to extend for a further period or periods of up to ten years in duration. The term of the PPA also commenced on 1st April 2016 and expired on 31 March 2021 with an option, at the Council's discretion, to extend for a further period or periods of up to ten years in duration.
On 30 September 2020, having exercised its option to extend both contracts, the Authority entered into deeds of variation to the TPA and the PPA to extend the terms of both contracts for a further of three years commencing on 1 April 2021 and ending on 31 March 2024.
On 13 December 2023, having exercised its option to extend both contracts, the Authority entered into further deeds of variation to the TPA and the PPA to extend the terms of both contracts for a further 12 months commencing on 01 April 2024 and ending on 31 March 2025.
two.2.7) Duration of the contract, framework agreement, dynamic purchasing system or concession
Duration in months
180
Section four. Procedure
four.2) Administrative information
four.2.1) Contract award notice concerning this contract
Notice number: 2016/S 085-150300
Section five. Award of contract/concession
Contract No
CU2359
Title
RegenerationMK
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract/concession award decision:
29 March 2016
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
Mears Limited
1390 Montpellier Court
Brockworth
GL3 4AH
Country
United Kingdom
NUTS code
- UK - United Kingdom
Companies House
02519234
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: £130,000,000
Section six. Complementary information
six.3) Additional information
Total value of the procurement: £130,000,000
This was broken down over the initial five-year term of the TPA and the PPA as follows:
• Repairs and Maintenance (including refurbishment) - GBP 10 to GBP 12 million per annum.
• New Build - GBP 12 to GBP 14 million per annum.
• Share of surplus generated from new build opportunities.
The term of the TPA commenced on 1st April 2016 and expired on 31 March 2021 with an option, at the Council's discretion, to extend for a further period or periods of up to ten years in duration. The term of the PPA also commenced on 1st April 2016 and expired on 31 March 2021 with an option, at the Council's discretion, to extend for a further period or periods of up to ten years in duration.
On 30 September 2020, having exercised its option to extend both contracts, the Authority entered into deeds of variation to the TPA and the PPA to extend the terms of both contracts for a further of three years commencing on 1 April 2021 and ending on 31 March 2024.
On 13 December 2023, having exercised its option to extend both contracts, the Authority entered into further deeds of variation to the TPA and the PPA to extend the terms of both contracts for a further 12 months commencing on 01 April 2024 and ending on 31 March 2025 (the "2023 Deeds of Variation").
The Council published a modification notice (2023/S 000-037208) on the Find a Tender Service on 18 December 2023 in relation to 2023 Deeds of Variation. The stated values included in Section VII.2.3 (Increase in Price) of that notice did not account for all increases in the contract value between 2019 and 2024. Therefore the figures in that notice (2023/S 000-037208) should have made clear that the updated total contract value before the modifications under the 2023 Deeds of Variation was £295,200,000 and the total contract value after the modifications was £320,000,000.
As the date of publication of this modification notice, the total anticipated contract value to 31 March 2025 is estimated to be £336,900,000 as set out in Section VII.2.3 (Increase in Price) below.
six.4) Procedures for review
six.4.1) Review body
The High Court
Royal Courts of Justice
London
WC24 2LL
Country
United Kingdom
Section seven: Modifications to the contract/concession
seven.1) Description of the procurement after the modifications
seven.1.1) Main CPV code
- 45000000 - Construction work
seven.1.2) Additional CPV code(s)
- 45210000 - Building construction work
- 45453100 - Refurbishment work
- 50000000 - Repair and maintenance services
- 71200000 - Architectural and related services
seven.1.3) Place of performance
NUTS code
- UK - United Kingdom
seven.1.4) Description of the procurement:
The Council has modified the TPA and the PPA under Regulation 72(1) (b) of the Public Contracts Regulations 2015 to extend the terms of both contracts for a further period of four (4) months and three (3) days commencing on 1 April 2025 and ending on 3 August 2025. The purpose of this modification is to allow the Council to instruct Mears to provide repairs and maintenance services to its social housing and other assets under the TPA and the PPA for a period of four (4) months and three (3) days as further detailed in Section VII.2.2 below. The Council is currently in the process of procuring a new long term housing repairs and maintenance works and services contract, which is due to be awarded in May 2025 following which there will be a three (3) month mobilisation period before the commencement of the housing repairs and maintenance works and services under the new contract on 4 August 2025.
The nature of the works provided at the commencement of the extensions to the TPA and the PPA are the same as immediately prior to the extension of the terms of both contracts.
seven.1.5) Duration of the contract, framework agreement, dynamic purchasing system or concession
Start date
1 April 2025
End date
3 August 2025
seven.1.6) Information on value of the contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession:
£14,200,000
seven.1.7) Name and address of the contractor/concessionaire
Mears Limited
1390 Montpellier Court
Brockworth
GL3 4AH
Country
United Kingdom
NUTS code
- UK - United Kingdom
Companies House
02519234
The contractor/concessionaire is an SME
No
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):
The term of the TPA commenced on 1st April 2016 and expired on 31 March 2021 with an option, at the Council's discretion, to extend for a further period or periods of up to ten years in duration.
The term of the PPA also commenced on 1st April 2016 and expired on 31 March 2021 with an option, at the Council's discretion, to extend for a further period or periods of up to ten years in duration.
On 30 September 2020, having exercised its option to extend both contracts, the Authority entered into deeds of variation to the TPA and the PPA to extend the terms of both contracts for a further of three years commencing on 1 April 2021 and ending on 31 March 2024.
On 13 December 2023, having exercised its option to extend both contracts, the Authority entered into further deeds of variation to the TPA and the PPA to extend the terms of both contracts for a further 12 months commencing on 01 April 2024 and ending on 31 March 2025.
The Council has now further exercised its option to extend both the TPA and the PPA. The TPA and the PPA have been modified under Regulation 72(1) (b) of the Public Contract Regulation 2015 to extend the terms of both contracts for a further period of four (4) months and three (3) days commencing on 1 April 2025 and ending on 3 August 2025.
The purpose of this modification is to allow the Council to instruct Mears to provide repairs and maintenance services to its social housing and other assets under the TPA and the PPA for a period of four (4) months and three (3) days. The Council is currently in the process of procuring a new long term housing repairs and maintenance works and services contract, which is due to be awarded in May 2025 following which there will be a three (3) month mobilisation period before the commencement of the housing repairs and maintenance works and services under the new contract on 4 August 2025.
seven.2.2) Reasons for modification
Need for additional works, services or supplies by the original contractor/concessionaire.
Description of the economic or technical reasons and the inconvenience or duplication of cost preventing a change of contractor:
The Council requires additional works and services to be carried out by Mears under the TPA and the PPA during the period of 1 April 2025 to 3 August 2025 which were not included in the original procurement.
The reason for this modification is to allow the Council to instruct Mears to provide repairs and maintenance services to its social housing and other assets under the TPA and the PPA for a period of four (4) months and three (3) days whilst the Council concludes its procurement for a new long term housing repairs and maintenance works and services contract. The Council is due to award its new contract in May 2025 following which there will be a three (3) month mobilisation period before the commencement of the housing repairs and maintenance works and services under the new contract on 4 August 2025.
A change in contractor cannot not be made for the following economic and technical reasons:
A change in contractor cannot be made as it would not be technically possible for a new contractor to be appointed so that it can deliver the housing repairs and maintenance services and capital works schemes during the period 1 April 2025 and 3 August 2025. The Council would be required to carry out a procurement exercise to appoint any new contractor. Following that procurement exercise, due to the complexity of the housing repairs and maintenance services and the capital works schemes that are provided under the TPA and PPA, a new contractor would require a mobilisation period of at least three (3) months before it would be able to start to deliver housing repairs and maintenance services and commence delivery of capital works schemes. Any new contractor would require this mobilisation period in order to set up its operation which would include requiring access to extensive asset information and data relating to the properties covered by the TPA and the PPA and associated IT systems.
A change in contractor would cause significant inconvenience or substantial duplication of costs for the contracting authority:
A change in contractor would cause significant inconvenience and result in a substantial duplication of costs, time and resource for the Council if it was required to carry out another procurement to cover the provision of the works and services covered by the TPA and the PPA for a period of four (4) months and three (3) days. This is because the Council has already incurred considerable cost and expense as well as having dedicated considerable time and resource carrying out its procurement for a long term housing repairs and maintenance works and services contract.
Increase in price does not exceed 50% of the value of the original contract.
The value of the works that Mears will be instructed to carry out under the TPA and the PPA during the extension period total £14,200,000 (excluding VAT) which is less than 50% of the anticipated value over the initial five year term as set out in the advertised contract notice (£130,000,000 excluding VAT) which was broken down as follows:
• Repairs and Maintenance (including refurbishment) - GBP 160 to GBP 12 million per annum.
• New Build - GBP 12 to GBP 14 million per annum.
• Share of surplus generated from new build opportunities.
and is less than 50% of the value of the original contract as set out in the contract award notice (£130,000,000 excluding VAT).
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: £336,900,000
Total contract value after the modifications
Value excluding VAT: £351,100,000