Awarded contract

DSD Medical Support Services

  • Department for Communities formerly the Department for Social Development DSD

F20: Modification notice

Notice reference: 2023/S 000-026463

Published 7 September 2023, 12:14pm



Section one: Contracting authority/entity

one.1) Name and addresses

Department for Communities formerly the Department for Social Development DSD

Causeway Exchange, 1-7 Bedford Street

BELFAST

BT2 7EG

Email

healthtransformation@communities-ni.gov.uk

Country

United Kingdom

NUTS code

UK - United Kingdom

Internet address(es)

Main address

https://communities-ni.gov.uk

Buyer's address

https://communities-ni.gov.uk


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

DSD Medical Support Services

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:

Continuation of the provision of work capability assessment services in Northern Ireland.

For full details of the nature of the services please see OJEU 2007/S 063-077231.

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

Duration in months

158

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: 2007/S 063-077231


Section five. Award of contract/concession

Contract No

Project 71

five.2) Award of contract/concession

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

31 December 2010

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

Atos Origin IT Services Ltd

London

Email

robert.gidney@atos.net

Country

United Kingdom

NUTS code
  • UK - United Kingdom
National registration number

01245534

Internet address

http://atos.net/en/

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: £121,392,886


Section six. Complementary information

six.4) Procedures for review

six.4.1) Review body

DFC - Department for Communities formerly the Department for Social Development DSD

Belfast

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:

Continuation of the provision of work capability assessment services in Northern Ireland.

For full details of the nature of the services please see OJEU 2007/S 063-077231.

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

Start date

31 December 2010

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:

£121,392,886

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

Atos Origin IT Services Ltd

London

Email

robert.gidney@atos.net

Country

United Kingdom

NUTS code
  • UK - United Kingdom
National registration number

01245534

Internet address

https://atos.net/en/

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):

Nature and extent of the modifications (with indication of possible earlier changes to the contract):

Extension of contract term by additional 6 months until 06.09.2024 due to an ongoing procurement process.

The Department for Work and Pensions (DWP) led Functional Assessment Services (FAS) procurement, based on 5 geographic Lots (Lot 5 in Northern Ireland), was launched on 12 November 2021. FAS will replace the services currently provided by the MSS and PIP contracts.

On 15 March 2023, DWP notified FAS bidders of the outcome of the procurement in Lots 1, 2, 4 and 5. Procurement activity in Lot 3 (Southwest England) continues, resulting in a DWP and DfC agreement to delay contract signature in all Lots to support full alignment in FAS transition to ‘go-live’ in 2024. DfC has a number of dependencies on DWP to enable it to comply with key Authority obligations in relation to FAS Lot 5 service delivery.

It is anticipated that the completion of the FAS procurement exercise in Lot 3 will result in a 6-month delay in the contract signature for Lot 3 and consequently in Lots 1, 2, 4 and 5.

Without an extension there would be a service provision gap, adversely impacting MSS customers and resulting in a failure of DfC to meet its statutory obligations. Furthermore, the absence of continuity in service provision would put at significant risk a vulnerable group of MSS recipients and create further hardship and disadvantage.

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:

duplication of cost preventing a change of contractor:

DfC considers Regulation 72(1)(b) PCR 2015 (as amended) is applicable. For the reasons in VII.2.I) above, the provision of additional services until 6 September 2024 is necessary and:

(i) interchangeability issues with a new supplier means these key services could be negatively impacted for technical and economic reasons. The implementation of the contract currently being procured will necessitate a lengthy handover period and make it impossible therefore to introduce a new provider for a short extension period. A change in supplier, without a full handover programme (to include transition to a new 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 a short extension period (which DfC does not consider a viable option) at the same time as an incumbent is engaged in handover to a new FAS supplier, would result in significant duplication of costs and a loss of value for money for the taxpayer;

(iii) the value of the contract for the extended period does not exceed 50% of value of 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: £121,392,886

Total contract value after the modifications

Value excluding VAT: £127,701,886