Section one: Contracting authority
one.1) Name and addresses
Newcastle City Council
Barras Bridge
NEWCASTLE-UPON-TYNE
NE1 8QH
Contact
Andrew Richardson
andrew.richardson@newcastle.gov.uk
Telephone
+44 1912116936-26936
Country
United Kingdom
NUTS code
UKC22 - Tyneside
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
one.4) Type of the contracting authority
Regional or local authority
one.5) Main activity
General public services
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Contract Modification (under Regulation 43 Concession Contracts Regulations 2016) to the Quay Management Agreement between Shepherd Offshore Services Limited and Newcastle City Council
two.1.2) Main CPV code
- 63721000 - Port and waterway operation services and associated services
two.1.3) Type of contract
Services
two.1.4) Short description
In August 2001, Newcastle City Council ('the Council') awarded a contract to provide a quayside management service to Shepherd Offshore Services Limited ('SOSL'), whereby SOSL operates port activities at Walker Quay ('the Quay') on behalf of the Council ('the Contract').
The Contract term is 25 years from 6 August 2001, and is due to expire on 31 March 2026. SOSL is remunerated solely by receiving a share of the income from operating the Contract.
The Council has become aware of the need for considerable remediation works to be carried out to the Quay prior to the expiry of the Contract which is the responsibility of the Council, therefore a contract modification has been made to extend the term of the Contract.
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: £265,119,131
two.2) Description
two.2.3) Place of performance
NUTS codes
- UKC22 - Tyneside
Main site or place of performance
Walker Quay, Newcastle-upon-Tyne.
two.2.4) Description of the procurement
Following the commissioning of a survey of Walker Quay, the Council has become aware of the need for considerable remediation works to be carried out to preserve the structural integrity of the Quay and associated facilities ('the Works'). For safety reasons, the Works are required to be carried out prior to the expiry of the Contract. The Works will not improve the Quay but are necessary maintenance in order to maintain operations at the Quay.
The Works will disrupt the normal operations and turnover of the Quay for the remaining term of the Contract to 31 March 2026. As a result, in order to compensate SOSL for losses it will incur as a result of the Works, the Council has entered into an extension of the Contract for a further 9.7 years.
two.2.5) Award criteria
Price
two.2.11) Information about options
Options: 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:
Explanation in Section VI. Complementary Information.
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: No
Section five. Award of contract
Title
Contract Modification to Newcastle City Council Quay Management Agreement
A contract/lot is awarded: Yes
five.2) Award of contract
five.2.1) Date of conclusion of the contract
6 August 2001
five.2.2) Information about tenders
Number of tenders received: 2
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor
Shepherd Offshore Services Limited
White Street, Walker
Newcastle upon Tyne
NE6 3NH
Country
United Kingdom
NUTS code
- UKC22 - Tyneside
Companies House
06450756
The contractor is an SME
No
five.2.4) Information on value of contract/lot (excluding VAT)
Total value of the contract/lot: £265,119,131
Section six. Complementary information
six.3) Additional information
This Notice is to advise of a contract modification and is published to satisfy the Concessions Contracts Regulations 2016 ('CCR').
The Council has made the decision to modify its current contract for quay management services to extend the Contract term by 9.7 years.
Regulation 43 of the CCR permits variations to existing contracts without undertaking further competition in certain circumstances. Regulation 43(1)(e) CCR permits modifications to be made to existing concession arrangements, irrespective of value, if they are not substantial within the definitions provided at Regulation 43(9) CCR. The extension to the Contract is not substantial within Regulation 43(9) CCR for the following reasons:
(a) the extension does not render the concession contract materially different in character from the one initially concluded, because the object of the Contract will remain as the exclusive provision of quay management services to the users of the Quay together with ancillary port activity;
(b) the extension does not introduce conditions which would have attracted a larger or different pool of applicants that those originally selected, or would have resulted in a different tender being selected as the winning tender, because the circumstances leading to the extension were not known to the Council at the time of entering into the Contract and the extension opportunity would therefore have been available to any bidder who won the original procurement;
(c) the extension does not change the economic balance of the Contract in favour of SOSL in a manner which was not provided for in the original contract, as the extension puts SOSL in the position it would have been if that extension had not been required. Further, the term of the extension, which is the contractual equivalent for compensation which would otherwise be due to SOSL for permitting the Works to be undertaken over the remaining term of the Contract, is supported by technical and financial analysis carried out by an independent expert report prepared by WSP.
(d) the extension does not change the scope of the Contract considerably, because the extension will be on materially the same scope in terms of services provided, other than some additional services to assist the works contractor which will be separately appointed by the Council to carry out the remediation works.
(e) there is no replacement concessionaire proposed in the contract modification.
six.4) Procedures for review
six.4.1) Review body
High Court of Justice
Technology and Construction Court, 7 Rolls Buildings, Fetter Lane
London
EC4A 1NL
Country
United Kingdom