Awarded contract

Contract for the Provision of Air Charter Services

  • Department of Health and Social Care

F20: Modification notice

Notice reference: 2021/S 000-024330

Published 30 September 2021, 3:17pm



Section one: Contracting authority/entity

one.1) Name and addresses

Department of Health and Social Care

39 Victoria Street

London

SW1H 0EU

Contact

DHSC International Freight Team

Email

FreightContractNotices@dhsc.gov.uk

Country

United Kingdom

NUTS code

UKI32 - Westminster

Internet address(es)

Main address

https://www.gov.uk/government/organisations/department-of-health-and-social-care

Buyer's address

https://www.gov.uk/government/organisations/department-of-health-and-social-care


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

Contract for the Provision of Air Charter Services

Reference number

C29949

two.1.2) Main CPV code

  • 60423000 - Air-charter 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 Department of Health and Social Care (DHSC) is awarding this contract to provide air freight charter activity. Air Freight Charter in this procurement lot refers only to the management of charter bookings. All wraparound services required as part of the end-to-end solution including ground handling, customs services and further freight movement will be delivered by the Lot 2 Supplier.The successful organisation will provide outsourced managed services for international air freight charter. The successful organisation’s primary objective is to manage the end to end process of securing and booking air charter to be utilised by DHSC and their suppliers, not including wraparound services. The successful organisation will hand over charter booking to the Authority’s selected air freight and ground handling service. Both Lot 1 and 2 providers will work to the Authority’s given schedule to optimise import of freight into the UK. The successful organisation will be required to mobilise a fully staffed operation, running on a 24/7/365 basis, working in direct contact with DHSC’s freight teams, producers and other third party organisations as required.

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

Duration in months

12

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.2) Administrative information

four.2.1) Contract award notice concerning this contract

Notice number: 2020/S 247-615613


Section five. Award of contract/concession

Contract No

C29949

Lot No

1

Title

CONTRACT FOR THE PROVISION OF AIR CHARTER SERVICES

five.2) Award of contract/concession

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

10 April 2021

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

Kuehne + Nagel Limited

1 Roundwood Avenue, Stockley Park

Uxbridge

UB11 1FG

Country

United Kingdom

NUTS code
  • UK - United Kingdom
National registration number

01722216

Internet address

http://uk.kuehne-nagel.com/en_gb

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: £34,000,000


Section six. Complementary information

six.4) Procedures for review

six.4.1) Review body

High Court

39 Victoria Street

London

SW1H 0EU

Country

United Kingdom

Internet address

https://www.gov.uk/government/organisations/department-of-health-and-social-care

six.4.2) Body responsible for mediation procedures

High Court

39 Victoria Street

London

SW1H 0EU

Country

United Kingdom

Internet address

https://www.gov.uk/government/organisations/department-of-health-and-social-care

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

Department of Health and Social Care

39 Victoria Street

London

SW1H 0EU

Country

United Kingdom

Internet address

https://www.gov.uk/government/organisations/department-of-health-and-social-care


Section seven: Modifications to the contract/concession

seven.1) Description of the procurement after the modifications

seven.1.1) Main CPV code

  • 60423000 - Air-charter services

seven.1.2) Additional CPV code(s)

  • 60423000 - Air-charter services

seven.1.3) Place of performance

NUTS code
  • UK - United Kingdom

seven.1.4) Description of the procurement:

The Department of Health and Social Care (DHSC) is awarding this contract to provide air freight charter activity. Air Freight Charter in this procurement lot refers only to the management of charter bookings. All wraparound services required as part of the end-to-end solution including ground handling, customs services and further freight movement will be delivered by the Lot 2 Supplier.The successful organisation will provide outsourced managed services for international air freight charter. The successful organisation’s primary objective is to manage the end to end process of securing and booking air charter to be utilised by DHSC and their suppliers, not including wraparound services. The successful organisation will hand over charter booking to the Authority’s selected air freight and ground handling service. Both Lot 1 and 2 providers will work to the Authority’s given schedule to optimise import of freight into the UK. The successful organisation will be required to mobilise a fully staffed operation, running on a 24/7/365 basis, working in direct contact with DHSC’s freight teams, producers and other third party organisations as required.

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

Duration in months

12

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

Total value of the contract/lot/concession:

£50,999,999

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

Kuehne + Nagel Limited

1 Roundwood Avenue, Stockley Park

Uxbridge

UB11 1FG

Country

United Kingdom

NUTS code
  • UK - United Kingdom
National registration number

01722216

Internet address

http://uk.kuehne-nagel.com/en_gb

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 Air Charter contract awarded to Kuehne and Nagel has been extended in value under Regulation 72(1)(c) by under 50% of the original contract value. No other modifications have been made to the contract as part of the extension.

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:

The original contract value reflected demand figures available at the time. Changes to testing procedures altered the demand for freight usage. For example, the Prime Minister's RoadMap (Feb 2021) resulted in wider use of Lateral Flow Devices to facilitate testing of teachers, pupils and household bubbles for the re-opening of schools, along with workplace testing and visitors to adult social care settings. The Universal offer in April 2021 provided all adults access to twice weekly testing, bringing the eligible population for LFD tests to 50m people and an increased scope for private sector testing, widening the number of companies able to request testing ahead of the re-opening date. Disruption to rail lines internationally lead to an increased reliance on air charter.This modification serves to amend the total value by under 50% of the original contract value. There is no alteration to the overall nature of 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: £34,000,000

Total contract value after the modifications

Value excluding VAT: £50,999,999