Awarded contract

Health and Disability Assessment Services (HDAS) - contract extension

  • Department for Work and Pensions

F20: Modification notice

Notice reference: 2024/S 000-013494

Published 25 April 2024, 4:03pm



Section one: Contracting authority/entity

one.1) Name and addresses

Department for Work and Pensions

Hartshead House, Hartshead Square

Sheffield

S1 2FD

Email

cd.healthbom@dwp.gov.uk

Country

United Kingdom

NUTS code

UK - United Kingdom

Internet address(es)

Main address

https://www.gov.uk/government/organisations/department-for-work-pensions


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

Health and Disability Assessment Services (HDAS) - contract extension

two.1.2) Main CPV code

  • 85000000 - Health and social work services

two.1.3) Type of contract

Services

two.2) Description

two.2.3) Place of performance

NUTS codes
  • UK - United Kingdom

two.2.4) Description of the procurement at the time of conclusion of the contract:

The Contract relates to the provision of 'social and other specific services' within the meaning of Schedule 3 of the Public Contracts Regulations 2015 (SI 2015/102) and is critical to the provision of statutory "ESA" and Universal Credit welfare and other benefits for both DWP and Other Government Departments. The provider will carry out an objective and independent assessment of the impact of health conditions and disabilities on claimants which is essential to the process of determining entitlement to these benefits.

The provider will carry out this assessment and provide information and advice to support the Authority’s decision-making processes.

— The key elements of the service will include:

— The consideration of a claimant’s health conditions or disabilities and the impact on their daily life and mobility,

— Assessing individuals against criteria prescribed by the Authority,

— The delivery of functional assessments to support the above,

— The gathering and consideration of evidence to support the above including, where necessary, paying appropriate fees for evidence,

— The completion of reports, including advice, to the Authority, and other Government Departments,

— The referral of assessment reports and any associated evidence to the Authority,

— Interpretation and advice to the authority on technical evidence,

— Follow up liaison with the Authority in relation to assessments, including the provision of relevant health professional expertise as required,

— The administration and management of the service, including scheduling of Consultations, ensuring that they are completed within timescales set down by the Authority,

— The recruitment, training, and ongoing support of health care professionals, including liaison with relevant professional bodies,

— The development of guidance and training in conjunction with the Authority,

— The provision of an enquiry service for individuals being assessed,

— The provision of a quality control regime, including a complaints function,

— The provision of management information as defined by the Authority,

— Initiatives and liaison with relevant organisations to support the provision of evidence,

— Liaison and collaborative working with local and national partners, including disability organisations, health professional bodies and the devolved administrations,

— Support for Test and Learn Activity.

two.2.7) Duration of the contract, framework agreement, dynamic purchasing system or concession

Start date

29 October 2014

End date

1 March 2024

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 five. Award of contract/concession

Contract No

UI_DWP_101014

five.2) Award of contract/concession

five.2.1) Date of conclusion of the contract/concession award decision:

29 October 2014

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

Maximus UK Services Ltd

East Sussex

Country

United Kingdom

NUTS code
  • UK - United Kingdom
National registration number

09072343

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: £1,297,737,098


Section six. Complementary information

six.3) Additional information

Suppliers Instructions:

How to Express Interest in this Tender:

1. Register on the eSourcing portal (this is only required once):

https://dwp.bravosolution.co.uk & click the link to register - Accept the terms & conditions & click 'continue' - Enter your correct business & user details - Note your chosen username & click 'Save'. You will receive an email with your password (keep this secure)

2. Express an Interest in the tender - Login to the portal with the username/password - Click the 'PQQs / ITTs Open To All Suppliers' link. (These are Pre-Qualification Questionnaires or Invitations to Tender open to any registered supplier) - Click on the relevant exercise to access the content. - Click the 'Express Interest' button at the top of the page. - This will move the PQQ /ITT into your 'My PQQs/ My ITTs' page. (A secure area reserved for your projects only) -You can now access any attachments by clicking 'Buyer Attachments' in the 'PQQ/ ITT Details' box

3. Responding to the tender - Click 'My Response' under 'PQQ/ ITT Details', you can choose to 'Create Response' or to 'Decline to Respond' (please give a reason if declining) - You can now use the 'Messages' function to communicate with the buyer and seek any clarification - Note the deadline for completion. Follow the onscreen instructions to complete the PQQ/ ITT - There may be a mixture of online & offline actions to complete (detailed online help available). To submit your reply use the 'Submit Response' button (top of the page).

For further assistance please consult the online help, or the eTendering help desk.

DWP expressly reserves the rights(i)to use a reverse auction; (ii)to cancel this procurement at any stage; (iii)to not award any contract as a result of the procurement process commenced by publication of this notice; (iv)and in no circumstances will DWP be liable for any costs incurred by potential suppliers.

six.4) Procedures for review

six.4.1) Review body

Department for Work and Pensions

Sheffield

S1 2FD

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

  • 85000000 - Health and social work services

seven.1.3) Place of performance

NUTS code
  • UK - United Kingdom

seven.1.4) Description of the procurement:

The Contract relates to Schedule 3 of the Public Contracts Regulations 2015 (SI 2015/102) and is critical to the provision of statutory ESA and Universal Credit welfare and other benefits for both DWP and Other Government Departments. The provider will carry out an objective and independent assessment of the impact of health conditions and disabilities on claimants which is essential to the process of determining entitled to these benefits.

The provider will carry out this assessment and provide information and advice to support the Authority’s decision-making processes.

— The key elements of the service will include:

— The consideration of a claimant’s health conditions or disabilities and the impact on their daily life and mobility,

— Assessing individuals against criteria prescribed by the Authority,

— The delivery of functional assessments, to support the above,

— The gathering and consideration of evidence to support the above including, where necessary, paying appropriate fees for evidence,

— The completion of reports, including advice, to the Authority, and other Government Departments;

— The referral of assessment reports and any associated evidence to the Authority,

— Interpretation and advice to the authority on technical evidence,

— Follow up liaison with the Authority in relation to assessments, including the provision of relevant health professional expertise as required,

— The administration and management of the service, including scheduling of Consultations, ensuring that they are completed within timescales set down by the Authority,

— The recruitment, training, and ongoing support of health care professionals, including liaison with relevant professional bodies,

— The development of guidance and training in conjunction with the Authority,

— The provision of an enquiry service for individuals being assessed,

— The provision of a quality control regime, including a complaints function,

— The provision of management information as defined by the Authority,

— Initiatives and liaison with relevant organisations to support the provision of evidence,

— Liaison and collaborative working with local and national partners, including disability organisations, health professional bodies and the devolved administrations,

— Support for Test and Learn Activity.

seven.1.5) Duration of the contract, framework agreement, dynamic purchasing system or concession

Start date

29 October 2014

End date

6 September 2024

seven.1.6) Information on value of the contract/lot/concession (excluding VAT)

Total value of the contract/lot/concession:

£1,382,272,693

seven.1.7) Name and address of the contractor/concessionaire

Maximus UK Services Ltd

East Sussex

Country

United Kingdom

NUTS code
  • UK - United Kingdom
National registration number

09072343

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):

On 7 February 2023, DWP published Modification reference: 2023/S 000-003704 https://www.find-tender.service.gov.uk/Notice/003704-2023 extending the HDAS contract term by an additional 7 months until 1 March 2024 due to an ongoing Functional Assessment Services (FAS) procurement process. DWP informed bidders of the outcome of the FAS procurement on 15 March 2023 and planned to sign contracts shortly thereafter to provide an 11-month implementation period before the commencement of operational services in March 2024.

During the standstill period, DWP was served with a legal claim, which meant that the FAS contracts could not be signed as planned. The claim has since been resolved and the FAS contracts have been signed. The delay incurred owing to the legal claim reduced the time available for the FAS implementation period, which is crucial to enable a safe transition to the new service and delivery of the new IT that will support it.

DWP considers that a further extension to the HDAS contract of 6 months to 6 September 2024 is necessary to account for this delay, in order to preserve the 11-month implementation period ensuring an efficient and smooth handover between HDAS and the new FAS providers. Without a further extension to the HDAS contract, there would be a service provision gap, adversely impacting Employment and Support Allowance (“ESA") and Universal Credit (“UC”) customers, as well as other minor benefits, resulting in a failure of DWP to meet its statutory obligations. This could result in a delay to the provision of assessments for the critical statutory welfare benefit which HDAS services encompasses. As the recipients of the welfare benefits the HDAS services encompass constitute a vulnerable section of society, DWP is of the view such an extension is necessary to ensure they are not disadvantaged .

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:

For the reasons in VII.2.I) and:

(i) interchangeability issues with a new supplier means these key services could be negatively impacted. The implementation of the FAS contract necessitates a lengthy handover period therefore it is not possible to introduce a new provider for the additional 6 months. A change in supplier without a full handover programme (which includes transition to a new managed IT service necessitating dual running of systems) would risk delivery of these services which provide critical statutory benefits to vulnerable people;

(ii) appointing a new supplier to cover the extra 6 months (which DWP do not consider a viable option) at the same time as the incumbent was engaged in handover to the new FAS supplier means significant duplication of costs particularly as DWP would be paying additional costs already during the implementation period; and

(iii) value of the contract for the extended period does not exceed 50% of value of the original contract

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: £1,297,737,098

Total contract value after the modifications

Value excluding VAT: £1,382,272,693