Section one: Contracting authority/entity
one.1) Name and addresses
Solihull Metropolitan Borough Council
Council House, Manor Square
Solihull
B913QB
Contact
Procurement Department
procurementteam@solihull.gov.uk
Country
United Kingdom
NUTS code
UK - United Kingdom
Internet address(es)
Main address
Buyer's address
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
SOL - Provision of Mechanical & Electrical Services - Modification
Reference number
Contract - 00011698
two.1.2) Main CPV code
- 50710000 - Repair and maintenance services of electrical and mechanical building installations
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:
Contract for all planned mechanical and electrical (M&E) work in line with asset management plans and other capital work subsequently introduced.
All M&E cyclical service, testing and maintenance works including day to day reactive works.
M&E engineering design, commissioning and sign off
M&E feasibility and energy studies.
Types of disciplines includes but not limited to mechanical installations (heat generating and distribution equipment), air conditioning installations, air handling installations, refrigeration plant and equipment, educational / commercial / catering extraction equipment and installations, gas installations, catering equipment, pressure / expansion vessels, fire fighting and sprinkler equipment and installations, electrical installations, portable appliance testing, fire alarm installations, emergency lighting installations, data and communication installations, automatic door / shutter / access barrier installations, access control installations, heating control / building management system / building energy management system installations, sustainable / renewable / energy advise and installations, air and ground source heat pump installations, lightning protection system installations. Sewage plant installations.
The above works are carried out on domestic, corporate, educational, commercial and light industrial portfolio of properties.
The supplier currently provides these services to the Authority under a contract due to expire on 31 October 2022.
two.2.7) Duration of the contract, framework agreement, dynamic purchasing system or concession
Duration in months
120
In the case of framework agreements, provide justification for any duration exceeding 4 years
The duration of this framework agreement is 7 years as indicated plus an option for a 3 year extension. A single operator, acting in a partnering arrangement, will be expected to support all participating contracting authorities within the UK in developing collaborative initiatives through this framework.
Further justification can be found in original OJEU Contract Notice 2012/S 021-034391.
Section four. Procedure
four.2) Administrative information
four.2.1) Contract award notice concerning this contract
Notice number: 2012/S 021-034391
Section five. Award of contract/concession
Contract No
00011698
Title
SOL - Provision of Mechanical & Electrical Services
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract/concession award decision:
13 July 2012
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
Dodd Group (Midlands) Limited
Unit 1 Rabone Park, Rabone Lane
Smethwick
B66 2NN
Country
United Kingdom
NUTS code
- UKG3 - West Midlands
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: £400,000,000
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
High Court, Royal Court
Strand
London
WC2A 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
- 50710000 - Repair and maintenance services of electrical and mechanical building installations
seven.1.3) Place of performance
NUTS code
- UK - United Kingdom
seven.1.4) Description of the procurement:
The contract is for the extension of an existing Mechanical and Electrical Services arrangement. The contract to fulfil the requirement commenced on 1 November 2012. The contract provided for an initial 7-year term with an option to extend for a further 3 years as contained in OJEU Contract Notice 2012/S 021-034391 of 1 February 2012. The options to extend have been utilised and the contract is currently due to expire on 31 October 2022.
This notice confirms that an extension of 24 months until 31 October 2024 has become necessary and our intention to apply Regulation 72 (Modification of contracts during their term) of the Public Contracts Regulations 2015. We can confirm that the specification, pricing and terms and conditions of the original agreement will not materially change.
seven.1.5) Duration of the contract, framework agreement, dynamic purchasing system or concession
Start date
1 November 2022
End date
31 October 2024
seven.1.6) Information on value of the contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession:
£400,000,000
seven.1.7) Name and address of the contractor/concessionaire
Dodd Group (Midlands) Limited
Unit 1 Rabone Park, Rabone Lane
Smethwick
B66 2NN
Country
United Kingdom
NUTS code
- UKG3 - West Midlands
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 modification is limited to extending the contract duration for a further 24 months, and in accordance with Regulation 72.1 (c) shall not exceed 50% of the value of the original contract.
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:
A Restricted Procedure procurement process was commenced on 14 January 2022 (Contract Notice reference: 2022/S 000-001112), however, due to an insufficient number of compliant responses at Selection Questionnaire stage we are unable to proceed with this. Consultation with a broad range of the supplier market was undertaken who expressed that the upturn in market conditions brought about due to recovery from COVID-19 has led a more selective and risk adverse approach to tender opportunities. In addition, despite the model of contract being similar to the current contract which when tendered had generated considerable interest, in the recent tender the contract was deemed to be unusual and unappealing by the companies consulted.
The Authority intends to conduct a thorough market engagement during the period of this contract extension in order to prepare and present an opportunity that will be of interest to the wider industry to establish a long-term partnering agreement, and at a time when the market conditions have stabilised.
Regulation 72.-(1) (c)
The need for this modification has been brought about by circumstances which a diligent contracting authority could not have foreseen. The Authority could not have reasonably foreseen the occurrence of the COVID-19 Pandemic and its resulting impacts upon the industry.
The proposed modification does not alter the overall nature of the contract and we can confirm that the specification, pricing and terms and conditions of the original agreement will not materially change.
The increase in duration would not cause the overall price to exceed 50% of the value of the original contract. The realised value of the framework to date is lower than advertised, and the cumulative value including the modification will not result in the advertised value being met or exceeded.
Regulation 72.-(1) (e) with reference to;
Regulation 72.-(8)
a) The modification does not render the contract materially different in character from the one initially concluded, as the specification, terms and conditions of contract, and pricing will not materially change and where change is required it will only be minor.
b) The Authority considers that the modification does not introduce conditions which, had they been part of the initial procurement procedure, would have allowed for the admission of other candidates than those initially selected. This is because the specification, terms and conditions of contract, and pricing will not materially change and where change is required it will only be minor.
i. The Authority considers that the modification would not have allowed for the acceptance of a tender other than that originally accepted, because the specification, terms and conditions of contract, and pricing will not materially change and where change is required it will only be minor.
ii. The authority considers that the modification would not have attracted additional participants in the procurement procedure, as the specification, terms and conditions of contract, and pricing will not materially change and where change is required it will only be minor. We do not consider that the additional 2-year contract duration would have attracted additional participants.
iii. The modification does not change the economic balance of the contract in favour of the contractor.
c) The authority does not consider that the modification extends the scope of the contract considerably, as the specification will not materially change and where change is required it will only be minor.
d) The contract will continue to be performed by the supplier originally awarded the 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: £400,000,000
Total contract value after the modifications
Value excluding VAT: £400,000,000